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| Yahoo Finance Poll result on Best country for investment |
According to a Yahoo finance poll conducted in August 2013, U.S is clearly the first choice among investors. Around 67% votes (62k voters+) went in favor of U.S while 10% voted for Europe. So far in 2013 U.S stock markets has been the best performing large sized market in the world while the flavor of the past year, BRIC nations, has performed very poorly.
With rising employment, GDP and stability in the U.S economy it has again become the preferred choice for large investors who went scouting for investment avenues after the crisis hit U.S in 2008. Brazil, Russia, India, China, Turkey and many mid and large sized developing economies received huge inflows from funds and institutional investors from U.S. and European region for the sake of diversification and delta.
The quantitative easing part 3 created mini bubbles in debt, equity and currency of many emerging economies which are now being punctured by the hawkish Fed tone to roll back QE3. Hardening 10 year treasury yields and outperforming U.S equities lead to massive debt & equities outflow from emerging economies in short period of time which created sell off in most of the developing economy currencies including India, Brazil, Russia etc. For Instance India saw an outflow of nearly $10 from debt & equity put together in the month of June and July 2013 and the currency depreciated more than 10% since the start of this year.
There is no doubt that the american govt and Fed has handled the crisis very well and has done all the right things to boost consumer and investor's confidence back in the country, which I believe is the key to growth and stability for any country. Right now what emerging economies are facing is more of a crisis of confidence. With U.S economy and companies reporting increasingly better number in coming months, the confidence of investors globally seems to be heading only northward.
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