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| quote: | Originally posted by St_Andrew
If most of the world's investor should go and invest in instead of in the US economy, the soon would have an economy as strong as US. And if they had a economy like US investors would think that that country was a safe investment and therfore invest more money in companies in that country, so most investors is just looking for cheap money, not to invest in groundbraking ideas and a brilliant economic systems... |
It depends on the value of the investment. Of course if you pump enough money into any economy you can eventually make it "safe" to invest in. However, oftentimes the return on your investment simply are not worth the time, effort, and risks. There is a lot of foreign investment into the US economy because US companies are oftentimes successful and lucrative ... especially driven by the huge consumer base that exists in the US. The point I am getting at, however, is that there is no such thing as a free lunch. Investors aren't missing out on "money" deals outside of the US simply because they are following the crowd and doing what everyone else is doing. Investors are wealthy for a reason ... they are saavy and intelligent with their money. Ultimately they follow the money trail. It's subject to change of course, but right now, the money trail apparentely leads to the US ...
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. However, most western markets are generally regarded as free markets whereby money follows the path of arbitrage-free pricing models.
