The Tel Aviv Stock Exchange has the worst day in its history

"There are many reasons to worry," said Amir Kahanovich, chief economist at the Phoenix Insurance Company & Nessuah Excellence Investment House.

Tel Aviv Financial District

At the end of the day, the stock market closed with sharp declines: the Tel Aviv 35 fell by 5.1%, the largest decline

since August 7, 2011; all the shares of the TA-125 index were tradable, while the index itself fell by 4.7%; and the bank's equity index also fell 4.1%.

Among stocks in sharp decline, the global health care provider Perrigo, which fell by 29%; Israeli group Teva Pharmecutical Industries, down 8%; the Delek group, whose shares were down 5.7%; and various computer values ​​such as Hilan and Matrix, which lost 5.8% to 5.9%.

According to Kahanovich, Perrigo has seen its shares suffer not only from the general decline in the stock market, but also from the announcement of a massive tax bill for its subsidiary in Ireland. Perrigo is one of the largest shares of the Tel Aviv Stock Exchange, and its fall contributed to the overall decline in indices.

So what exactly is going on? "We are in steep decline, continuing the trend in most global markets in October," said Kahanovich. "Many markets are already down more than 20% and the Tel Aviv Stock Exchange reacts accordingly."

Kahanovich was wary of calling the crisis a "crash".

"Long-term investors should not be alarmed, but in the case of recent investors, it's actually a crash." In a long-term perspective, the market is very high relative to in the last years, "he said.