Foreign Stocks

I often fall far behind in my magazines and newspapers that I read. I am currently on vacation, using this years vacation days up. Right now I am reading one of my Money magazines (August 2004).

Money magazine cites a Merrill Lynch statistic that says that a portfolio with 20% foreign stocks would have performed as well as a portfolio with only domestic stocks, and would have been less volatility.

The article also points out that if you are worried about the U.S. economy, then you may be worried about the security of your job also. If you expect the U.S. stock market to decline, then it may be in your best interest to spread your investments to other countries which may be more stable.