Avner Stepak in *Building for the Long Term*: A Sober and Experienced Perspective on the Capital Markets, Real Estate, and Financial Education

Avner Stepak, a social entrepreneur and prominent figure in the investment world, joins Merav Miller and Aviv Cohen on the show “Building for the Future” for an in-depth conversation about economics, entrepreneurship, and values. What does starting a financial career at age 12 look like? Why does he rarely invest in real estate in Israel? Also: Why does he volunteer his time to give lectures in schools, and what are his thoughts on Trump and the global stock markets? An inspiring conversation with a clear message—invest wisely, and invest in goodness.

Avner Stepak, an Israeli social entrepreneur and businessman known as the co-owner of the Meitav Dash investment house, was a guest on the “Building for the Long Term” podcast. During the conversation, Stepak shared his insights on the capital markets, real estate in Israel and around the world, and the impact of global economic policy.

In addition to managing Meitav Dash, Stepak spoke about his various activities, which include investing in fintech companies, technology firms in the fashion industry, and extensive social entrepreneurship. Among other things, Stepak discussed the establishment of three non-profit organizations, including a fund to support post-traumatic stress disorder in collaboration with the Joint and the Ministry of Health, an organization promoting employment for people with disabilities, and his longstanding work in the field of foster care.

The first step into the world of investing: as early as age 12

One of the most interesting topics that came up in my conversation with Stepak was how he got his start in the world of investing at the age of 12. He described how he was drawn to the securities industry and worked at Meitav from a young age, which led him to invest small amounts of money. Stepan expressed enthusiastic support for financial education for youth and even mentioned that he volunteers as a lecturer on the subject among teenagers and various segments of the population. According to Stepan, children aged 11–12 are capable of understanding basic concepts in economics and the capital market, and that exposure to this subject is important for their future lives. "I am very much in favor of boys and girls getting involved in this field. I think it’s a good thing," he said.

"We're investing billions in real estate abroad and almost nothing in Israel. The market in Israel ranges from 'crazy' to 'a bubble.'"

Later in the conversation, the topic turned to the real estate market. Stepak offered sharp criticism of the Israeli real estate market, saying that, in his view, it was “somewhere between a frenzy and a bubble.” He explained that the very low rental yields in Israel—ranging from 1% to 2.25% in the Tel Aviv metropolitan area, and reaching up to 4.5% in problematic apartments in the periphery—are unreasonable given the high mortgage interest rates. According to him, “There are almost no markets in the world where the yield is so low relative to interest rates.” Stepak also emphasized that his company is investing billions in real estate abroad and aims to reduce its investments in Israel to zero due to the state of the local real estate market.

Unlike in Israel, Stepak presented a positive outlook for the real estate market in certain parts of the world, particularly in the United States (in multi-family and logistics properties) and in Western Europe, specifically highlighting Ireland as an attractive market with relatively high yields of 6%–7%. Stepak explained that Ireland is enjoying significant economic growth and an influx of high-tech and financial companies following Brexit.

"Trump gave the whole world one eye, but kept two for himself"

Regarding the impact of the Trump administration’s economic policies on global financial markets, Stepak expressed concern about President Trump’s actions, particularly regarding cuts to public sector spending and the imposition of tariffs. He argued that the tariffs primarily harm the United States itself and have caused declines in U.S. stock markets more than in other markets around the world. According to him, “The bottom line is that what Trump did was to take one eye out of the whole world but keep both of his own.” Stepan expressed hope that Trump would reverse his policy, whether due to continued market declines or pressure from his advisors.

Regarding market conditions, Stepak warned against undiversified investment in the U.S. stock market, a trend he said is common among Israelis. He recommended spreading investments across various stock markets around the world, including Asia, Europe, and Israel. “The important thing is not to put all your eggs in one basket called the S&P 500,” he said. Explore Asia, Europe, and Israel; don’t put everything into the United States. It’s too risky.”

Despite what has been said about the global economy, Stepak expressed cautious optimism regarding Israel’s situation, which he said is relatively better off and is expected to be less affected by the global crisis. He concluded his remarks with a two-part message: first, the importance of diversifying stock investments, and second, the recommendation to “do good,” which, he said, always pays off with interest and returns. He concluded by saying, “I am truly optimistic. I think, first of all, that Israel is in a much better position and will be less affected than other countries.”

Conclusions from the conversation – Greece is a fertile ground for investment

In conclusion, Cohen noted that Greece is a fertile ground for investment. When the topic of the first investment in Greek real estate and the associated concerns, Cohen explained that the Greek market is currently stable and developing, the economy is growing, and demand is increasing. He noted that the fact that there are still no mortgages in the Greek market presents potential for future price increases. Another advantage Cohen mentioned regarding buying a home in Greece is the relatively low prices for apartments in a major European capital, and the proximity to Israel.

In summary, Avner Stepak’s remarks covered a wide range of economic topics, from investments in the capital markets and real estate, through global economic policy, to the importance of financial education. He presented a complex picture of opportunities and risks in various markets, while emphasizing the need for caution, diversification, and a long-term perspective.