Friday, December 15, 2006
Megatrend #2: Foreign markets will grow faster than the US
The economies of the emerging markets including Brazil, Russia, India, and China are growing at a faster pace than the United States creating investment opportunities in emerging markets. In addition, the US consumer is loaded with debt due to low interest rates and a high cost of living and the US government is loaded with debt. The interest payments on all of this existing debt limits the ability of the US to grow its economy at a faster rate than economies with less debt. The US also has a large trade imbalance with the rest of the world which means that US dollars are leaving the US for other parts of the world, also reducing US growth when those dollars are not reinvested back into the US economy.
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