Helping Don

DON BOUDREAUX says:

What a U.S. trade deficit does imply is that global investors find the U.S. to be an especially attractive place to invest, [relative to domestic investors]  With the U.S. receiving a net inflow of global capital, the size of the U.S. capital stock grows [more than it would otherwise].  

Bold face mine.

So why do domestic investor prefer less domestic investment? Domestic investors are more familiar with the local scene and are more likely correct.