While many economists and economic indicators proclaim the US economy is already or about to be in recession, numerous companies from Europe, Asia and Middle East are simultaneously investing in the US economy.
In 2007, more than a record-breaking $414 billion was injected into US companies from abroad, according to the New York Times. What’s more is that this figure was a 90% rise from the year before. Certainly the well-publicized capital investment by Saudi royals into ailing Citibank is an example of this.
Because of the economic climate and US dollar, the US is a bargain for investors abroad who expect that the US will rebound in the longterm and are taking the steps to position themselves during these times.
Given the already weak dollar and a possibly even weaker dollar due to rumored interest rate cuts, a climate for investment in the US is becoming increasingly favorable to foreign investors. And investors should realize that not all areas of the US economy are struggling. For example, the tourism market in cities like New York and Chicago is not struggling, unlike the troubled housing sector. In fact, given the weak dollar, it is now one of the best times in a while to research the tourism market in the US to devise a strong longterm strategy.
The apparent message is that investors from abroad are thinking longterm and expecting to ride out the current economic woes. Those companies which have already invested or which are researching ways to benefit from the market have not only realized benefits but also are taking the steps to achieve a competitive edge against reluctant competitors.