The pandemic altered the global markets in ways we’ve never seen. But few realized the most important change during that time.
It’s not related to supply chain disruptions or chip shortages like you’d think.
This change shifted the trajectory of which country would dominate the global economy. For years, the world has predicted that it would be China.
But in 2020, a country no one expected took the number one spot. And its momentum isn’t slowing. It’s accelerating.
In today’s Daily, I’m going to explain how one country has taken the lead in an exceptional way. And why this should drive all your investment decisions. As a bonus, I’ll even give you one of our top ways to profit from this hidden story.
U.S.A. for the Win
The level of Foreign Direct Investment (FDI) is among the most important data points for any country. This data point follows the amount of money invested from one country into another.
No matter how strong an economy, outside investment is needed to reach its peak potential. It’s like trying to start a company all by yourself versus getting investments from friends and family.
Unless you are already doing amazing financially, it’ll take forever to get a new project off the ground by yourself. Even if you can self-fund the business over time, it’s way faster with investors.
That’s why the fastest-growing economies are always among the top recipients of FDI.
It’s been that way for decades. Every economic boom is jump-started by an influx in FDI. If you could predict which country leads in FDI, you’d have a huge advantage.
So, what’s the current hotspot for global investment? Is it Brazil, the largest nation in South America? What about the world’s largest democracy and now most populous country, India? China is a good guess. It used to be number one. But not anymore.
There is a new king.
The U.S. now wears the crown for the world’s largest recipient of FDI.
It really took off in 2017, when the U.S. moved from 3rd place to 2nd place globally in FDI investment. In 2020, the U.S. suddenly moved to the top spot.
What’s even more remarkable is what’s happened since. The gap in FDI has only increased. The reindustrialization of America is being supercharged by FDI. Foreign investors want in on the action.
2022 saw another $216.8 billion flow into the U.S.
Top investors were from the United Kingdom and Germany.
Like us, they believe the U.S. is on the cusp of another economic boom.
Total FDI in the U.S. stands at over $5 trillion. That’s creating massive factories and millions of jobs all around the U.S. That’s on top of the huge reinvestment by American companies that are bringing jobs back to the States. American companies reshored, or brought back from overseas, 260,000 jobs in 2021. 2022’s climbed 34.6% to 350,000.
And some U.S. stocks stand to reap the reward. I’ll tell you about one of our favorite picks.
How to Profit from This Global Domination
Today’s pick is at the forefront of the reindustrialization of America.
It is the world’s largest manufacturer of construction and mining equipment.
And it dominates the global market in diesel engines and industrial turbines, too.
It’ll have its hands in every major construction project in the U.S.
Hundreds of billions are being spent right now just on new semiconductor plants in the U.S. And you’ll find this company’s equipment on every job site.
Our pick is Caterpillar Inc (CAT).
It’s performed so well financially, the stock is up 43% in the past year. Just like FDI in the U.S., we think Caterpillar’s success is just getting started.
And we’ve been watching its success for a long while.
Caterpillar was the first trade in our Intelligent Options Advisor service. Our hold period was less than three weeks. And in that time frame we generated a 133.56% annualized return. To learn more about how we achieved that, click here.
Analyst, Intelligent Income Daily