Investing Abroad

The Economist has an article on why emerging markets are heating up these days, suggesting that just like average investors sick of getting little return on their personal investments, big investors need to gamble to get anything these days.

More important is the fact that investors have more money to play with and nowhere better to place it. With short-term interest rates pinned to the floor by the Federal Reserve, the rich world has grown unprofitable for yield-hungry prospectors.

The caveat is, of course, that the cheap interest rates here at home that help drive the demand for overseas investment "may not last much longer."

*Full Disclosure: the editor of this column is neither an economist nor a serious investor.