Aftershock: Protect Yourself and Profit In The Next Global Financial Meltdown, Second Edition

International Investment Recommendations

Our detailed investment suggestions are offered in the next two chapters, but for those of you who just can’t wait, here’s your executive summary:

Our best advice for U.S. investors looking to invest in foreign markets: In the short term, there may be ways to profit, if you are sophisticated about these kinds of investments, and you very actively and correctly manage them. However, in the long term: Stay away! Both the low-end manufacturing and high-end manufacturing economies and the resource-driven economies we just discussed will not recover until America’s economy recovers. And since America’s economy won’t recover until after the dollar bubble pops, there is no reason to invest overseas for many years.

Obviously, there are always exceptions but, in general, investments will not do well because overseas economies will be in much worse shape than the U.S. economy. They are simply more dependent on exports, not as diverse, and not as flexible as we are. Plus, they invested heavily in the U.S. economy, which is about to cost them dearly.

Our best advice for foreign investors looking to invest in their own markets: If the long-term investments in your countries are not good for U.S. investors, they certainly aren’t any better for you. Short term there are opportunities, but it is a bubble, so you have to be aware of that. Even long term, there are always individual exceptions but, in general, when economies nose-dive, normal stock and real ...