Why should foreign investors consider the U.
S.
market? The opportunity for outsized returns and subdued investment risk could be dramatic.
What is the basis for this concept? The United States is unique among developed countries because of the size and scope of the commercial industrial complex, the modern complete infrastructure, and yet vast capacity for additional development.
Additionally, among the very large developed areas the United States also is one of the few developed countries with anticipated aggressive continued population growth.
First, from a developable capacity, the United States is able to add vast commodity production for minerals, agriculture, and many other areas whereas most developed countries are largely tapped out.
This addition implies a substantial economic growth opportunity.
As this potential is developed, the U.
S.
dollar can be expected to mount a steady but sure increase relatively against countries that have less room for movement from this perspective.
Countries in developed Europe and Japan are those where this trend will reward their U.
S.
investments.
Second, from a population perspective, the United States can increase 100 million to 600 million according to studies on the potential.
Assuming that per capita productivity follows the economic value of the United States on this basis, we can expect to see strong positive dollar domination value trends for the period against countries that will experience much slower or even negative growth.
This condition is already in effect in 26 nations globally.
Third, the United States position as the reserve currency provider for the world may be changing, but that change will take at least a generation and even then the dollar will likely be one of two or three potential reserve currencies available to the market.
While this is a major change, this prospective goes directly to the value of the dollar.
Because of this, the near term prospects of the dollar are also good as much of the globe faces slower growth and rate pressure increases on the dollar because of federal debt.
Plan on significant U.
S.
dollar appreciation during the next decade against much of the Eurozone nations.
To net this discussion out, investors in the U.
S.
real estate market are positioned to enjoy a two pronged appreciation in their investment.
The first will be driven by the increased value of a steadily less available commodity - real estate.
The second will be driven by a relatively appreciating dollar versus the home currency for developing nations (further enhanced by near term rate pressures).
Bottom line - the United States is a great investment location for foreign capital holders.