Funds returning to the US: For the last few years, investors have been selling USD and buying euro and other currencies, hence funds were going out of the US. Now, the reverse is happening, which means that the USD is being bought and other currencies are being sold. If an investor would have 1 billion USD, which he would wish to invest, I am sure the United States would be the place the investor would choose. Since everything in US is cheap now, chances of the business doing well in the country are better than compared to other parts of the world. In my opinion, I believe funds will start returning back to the US.
In order to bring a business to the US, foreign investors will have to start buying back the American dollar in order to buy USD denominated assets. Secondly, currently, the United States is the most transparent economy, and hence it seems the US is not doing well because the economy is going through an internal house cleaning, called Mark to Market.
When Europe, China, Russia and the rest of the world will follow suit and conduct their own internal cleaning, it will seem the US is doing the best among all. The problem is that this house cleaning does not happen transparently in various parts of the world. I cannot say when, but I believe after a year or two, the global economy will boom thanks to this house cleaning happening now.
