Keep an Eye on China
In Wednesday's column, I referenced the decline of foreign direct investment (FDI) flowing into the U.S. About 85% of the FDI flowing into the U.S. comes Europe and is used to manufacture goods for U.S. consumers. It's also quite volatile.
The decline of FDI into the U.S. this year is not principally because of European investors diverting capital from the U.S. to China. It reflects the state of the economy throughout Europe and the U.S. In addition, there were and are concerns about the U.S. fiscal cliff, as well as the monetary, fiscal and tax policies that would be impacted by the results of the U.S. elections....437 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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