Surviving International Investing Shifts Part IV


International investing shifts are taking place at an increasingly fast pace.

As the world’s faster and faster pace is stimulated by the introduction and advancement of new technologies, we are swamped by many types of inflation that we will be looking at in a series ahead.

Take real estate as an example of how great opportunity is coming but in different ways.

2007 and 2008 saw a great global recession.  The buzz word among professional investors was “we cannot waste this recession”.  They saw this as a once in a lifetime opportunity… knowing that history shows… the markets always come back.

In 2009 these investors made a killing!  They still are as markets continue to rise.

Markets dropped shortly after the triple tragedy in Japan and unrest in the Middle East but then rallied.   The U.S. stock market is now higher than the earthquake in Japan.

Real estate due to its nature… was slower to fall and has been slower to return.  I believe there will be huge profits gained… but in different ways.

Unless the global population stops growing… the demand for real estate will catch up with the overhang and prices will once again rise.

However the way real estate is used… the features that will make real estate valuable will differ.  Those who invest in real estate the old way may get slaughtered.  Those who spot trends and adapt will become the new rich.

NG photo

This picture from the April 2011 issue of National Geographic and the excerpts from an  article in that issue entitled “Miracle Above Manhattan” provides a clue of how things will change.  This article explains how a derelict railway line that ran like a ribbon 25 feet above parts of Manhattan has been turned into a park.

Here is an excerpt from that article. Bolds are mine: Until recently the High Line was, in fact, an urban relic, and a crumbling one at that. Many of its neighbors, as well as New York’s mayor for much of the 1990s, Rudolph Giuliani, couldn’t wait to tear it down. His administration, aware that Chelsea was gentrifying into a neighborhood of galleries, restaurants, and loft living, felt the surviving portion of the High Line, which winds its way roughly a mile and a half from Gansevoort Street to 34th Street (a section farther south was torn down years ago), was an ugly deadweight. They were certain this remnant of a different kind of city had to be removed for the neighborhood to realize its full potential.

Never have public officials been so wrong. Almost a decade after the  Giuliani administration tried to tear the High Line down, it has been  turned into one of the most innovative and inviting public spaces in New York City and perhaps the entire country. The black steel columns that once supported abandoned train tracks now hold up an elevated park—part promenade, part town square, part botanical garden.

This will happen at an accelerated pace…  the old school officials… the establishment getting it wrong… the opportuity for new bold thinking growing.

Consider this. Most investors think US real estate in areas such as Florida are in trouble.  Some areas are badly depressed and will stay that way for years.  Yet  some parts of Florida and other sunshine states are very different and have great potential, with abundant water and great agricultural potential and offer extra opportunity as utilities shift.

Mt. Dora Photo

We have arranged for a free real estate tour of Mt. Dora and Lake County real estate for Friday April 8, 2011 for those attending Blaine Watson’s course on Vedic Astrology. This tour will be conducted by the real estate broker who helped us find our Lake County real estate.

If you have an interest, please drop me a note at gary@garyascott.com

See my latest international investments at our June 24-26 International Investing & Business Seminar in North Carolina.

Read Miracle Above Manhattan


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