The mid-late 80's brought immense Japanese buying of US Real Estate, and it culminated in a massive collapse in early 90's... Now, we've got Furriners buying up prime slices of US Companies... Being fully aware that the 2 asset classes differ dramatically, seems to me like this is a helluva precursor to a similar move in the US equity markets... Anyone care to look deeper... Happy New Year!!!
Arab money is real cash (albeit coming from the ground in the form of Oil).....much different from Leveraged bank loans that plagued Japan in the 80's and was mostly "paper" wealth Ton's of other reasons I can go on and on...but you Can not compare the 2 More realistic comparison is China 00's and Japan 80's...with corrupted bank system, paper wealth, etc
Foreign investors tend to buy foreign assets at long-term market peaks. They're the "final fool" to buy the top. It doesn't mean things will collapse but there won't be fresh-money to propel the market higher.
The Ayrabs are the new Japanese, but better. They realize that there is no point to only hire those of your own nationality to make the decisions. I do agree, they have rules about hiring certain management positions to the natives. However, they appreciate foreign talent. Arabs are not as dumb as you think they are, if anything they are smarter than most, their only problem is their ties to certain nations where they feel forced to accept unpleasant requests. HAPPY TRADING, AND A HAPPIER NEW YEAR
Well the Arab royal families are total morons & corrupt. Most of the countries are sh*tholes while they sit on the most valueable natural resources. They don't have to accept anything, it's just that it's that much easier to be corrupt, fall to Western interests and enjoy an easy going work free luxury lifestyle as opposed to actually lifting your nation out of the gutter. So somehow I don't see what you base your opinion on. Besides being an Arab yourself. My granddad used to be a diplomatic consulate to many of the Middle eastern nations. He also said they are pretty dumb.
Those investing heavily in the US are taking a big risk as US is in no position to repay the huge debts taken so will have to devalue the dollar slowly but steadily. China, India and even Japan are better places to invest currently and in the next 20 years.