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Investors: America Is Where the Money Is

Only a few years after the financial crisis, foreign firms see the U.S. as safer alternative for private investment than ever before. The Wall Street Journal reports that the U.S. is pulling in more foreign investment than China:

Outside investment in North America—predominantly the U.S.—is expected to total about $270 billion this year, a roughly 1% rise from $268 billion last year.

That is down from 2011, when foreign investment in North America was about 20% higher than the previous year. Last year, foreign investment in the U.S. alone was $227 billion, a 15% jump from $198 billion in 2010, as America’s oil, gas and manufacturing sectors lured investors…

The U.S.—the world’s most popular destination for capital—is becoming more appealing relative to other economies. Foreign investment into China—the second-most-popular destination—grew around 8% in 2011 from the previous year, to $124 billion, compared with the U.S.’s 15% gain.

Much of this gain is likely driven by America’s expanding reserves of accessible natural resources.

Whatever the reasons, these figures are good news for the U.S. Europe is in free fall, and China and India have worrying outlooks, but despite America’s domestic troubles, investors still think it is the best—the most stable, the safest, the smartest—place for their money in the long term.

We should try to keep it that way.

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  • JoeP

    “We should try to keep it that way.”

    Yes, FDIs are good but would it not be better if more Americans invested in America? To “keep it that way” in the long run, do you really want the US owned by the Chinese, Indians, and Europeans? Or perhaps this is a sign that US asset values are going to decline further (deflation)which local investors are grasping intuitively.

  • Jacksonian Libertarian

    Betting on America has always been a winning move, and with the rise of the fiscally conservative TEA Party, it looks to be a winning move again.

  • Luke Lea

    “the U.S. is pulling in more foreign investment than China”

    And some of it is coming from China’s naked cadres:

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