It’s the distinction between “investment” and “investment in the stock market” that matters here. Investments into the stock market -- and bonds and the like -- are what we call “portfolio” investment. The underlying point here is that foreigners, when they do this portfolio investment, are almost always investing in old share or bonds, those that already exist. We call this the trade deficit and my, doesn’t everyone complain about the existence of that? We’ve not really noticed the trade deficit falling all that much recently -- to put it mildly.

Source: Dhaka Tribune January 05, 2019 17:48 UTC