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Tone Down Your Foreign Mix

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Tone Down Your Foreign Mix

If you’ve been aggressive with your foreign mix of investments, you’ve most likely been drawn to mid- and small-company foreign stocks, or emerging-markets stocks. Though both offer the promise of big returns, both are very volatile.

Things To Know

  • To curtail volatility in your foreign position, focus on large international companies.

To curtail volatility in your foreign position, focus on large international companies that are domiciled in developed markets. They may not have the same growth potential as smaller companies or emerging-markets stocks, but they don’t have the same volatility, either.

For more information

Many online financial Websites, such as Morningstar.com, offer screening tools that are a good starting point for ideas about stocks. Additionally, analyst recommendations, or picks, are a great place to begin, too.