“Investors in U.S. real estate tend to be our trading partners,” explained Roschelle. Year-to-date, Canada accounts for 15.5% total trade United States, making it the second-largest trading partner behind China’s share of 15.8%, according to U.S. Census Bureau data. In 2005, Canada was in first place, with its portion of foreign trade at 19.4% while China was in third place at 11.1%.
The relative strengthening of the U.S. economy compared to other countries is more of a reason why foreign money will continue to find dollar-denominated assets more appealing to foreign investors rather than the Fed’s recent increase in rates.
“The yield that those investors are looking for is really a long-term yield,” said Roschelle. “It's a belief in our economy and a belief in the ability of real estate assets to generate cash flow greater than inflation. So interest rates aren't really that important in the short term.”
He added that the dollar’s rise is really about an improving U.S. economy compared to the rest of the world, rather than just an increase in the interest rate differentials that is driving up the dollar.
“That's more reason for investors to flock for safety and defensiveness to the U.S.,” said Roschelle.
13
By Lawrence Lewitinn
December 17, 2015
Posted on Yahoo Finance