tag:blogger.com,1999:blog-8964922466569782865.post5543492690217813961..comments2015-08-27T12:58:18.086-04:00Comments on The Llenrock Blog: Foreign investors must do a lot of homework...Llenrock Bloghttp://www.blogger.com/profile/14049782088067081241noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8964922466569782865.post-13253153872070953972008-06-20T11:05:00.000-04:002008-06-20T11:05:00.000-04:00A Comment via Email from Ted:Some good points, but...A Comment via Email from Ted:<BR/><BR/>Some good points, but this argument/approach may ignore three factors fueled by globalization of the U.S. commercial RE investment world. 1) The debt market in the U.S. is already tied to, and may become more correlative to international indices such as LIBOR, etc. 2) International investment begets international investment, i.e. the currency exchange may be mitigated by an international owner selling to another international owner, where cash flows are converted at spot rates over time. Both of these factors will not, of course, mitigate severe volatility in the currency exchange rates, but they will dilute the effect of moderate or predicted dynamism in currency markets. 3) The hedge/speculation factor can be just as viable in real estate micro-markets as in the oil market. Internationals or even large internationally exposed domestic firms will still invest in real estate assets with anticipated short-term currency value erosion or inversely correlated assets to offset other regions or other asset classes purely out of a need to diversify investments. The more globally institutional the investment capital, the more likely that this may skew pure exchange rate driven stagnancy or feeding frenzies depending on the particular movements. In summation, while there is clearly an argument to be made regarding the movements of the dollar in terms of real estate investment strategy, it will take major movements to realize any tangible effect.Anonymoushttps://www.blogger.com/profile/01186483360400865755noreply@blogger.com