Saturday, November 20, 2010
If your name is Huang, Joao or Gupta
There are wealthy people in this country that would like to invest their tax breaks in your country to give you a job.
What is different is how directly these investors are going into non-American markets. They are not content with buying international equities or going into an international bond fund. They are looking to invest directly in Chinese private equity, Indian real estate, Brazilian equities denominated in reals and Australian government bonds. They are also opening cash accounts in multiple currencies.All the more attractive after their peculations wrought far more damage on the US economy than they expected. Those lovely little tax breaks invest just as well offshore as onshore.
“International clients understand the need to diversify currencies, but this is something new to U.S. clients,” said David Frame, global head of alternative investment at J. P. Morgan Private Bank.
The people putting as much as 40 percent of their portfolios into nondollar investments are quite wealthy.
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