What is current account deficit (CAD)

When dealing with equity, and in general the market and economy trend, one of the most commonly heard of terms to assess the country's creditworthiness is called as CAD (Current Account Deficit). A controlled CAD in general is a healthy sign for a growing economy. This is one of the macro factors to be looked at when taking a long term view of where you invest your hard earned money. So, let us try and understand more about CAD.