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Change Your Foreign Mix

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Change Your Foreign Mix

Most of the foreign stocks that you’ll own, either directly or via mutual funds, will be from large companies domiciled in developed markets. To adjust your foreign position, consider these options.

Things To Know

  • The world’s developing markets certainly hold promise.

Mid- and small-company stocks

As in the United States, foreign mid- and small-company stocks theoretically have a growth edge over their larger counterparts, too.

Emerging-markets stocks

The world’s developing markets certainly hold promise. As deregulation, increasing communications, and free-market thinking grip emerging countries, their stock markets seem poised to benefit.

The jury’s still out on whether emerging-markets stocks will deliver gains that live up to their promise. But they certainly qualify as aggressive investments.

Where to find more information

You can find ideas for these investments by using online screening tools such as those offered by Morningstar. Analyst recommendations are also a good source.