Safe Harbor for Now

My trip to Israel this week (for a speech to Israeli investors in U.S. real estate) reinforced the view that offshore investors see the U.S. as their only sure shot safe haven. Israelis generally have proved extremely savvy investors and the group of over 120 I met with had little interest in Europe—still viewed as a basket case economy—and apparently even less  in China and other parts of Asia—not transparent enough.

Obviously strong national ties—the large U.S. Jewish population and U.S. military support—create a natural comfort level for Israelis, but other foreign investors led by Asian sovereign wealth funds and Eurozone players are lining up to make investments here as well, swelling the availability of equity capital looking for opportunities.