Global Investing: Lots of Room to Grow

Small-cap funds are a better bet today than big global stocks

We Americans tend to place ourselves at the center of the universe. So Wall Street's latest theory on foreign stocks--basically that we don't need them--may be the easiest pitch since Bogie wooed Bacall. The come-on plays to our ego and promises to simplify investing. The trouble is that like so many theories that come and go, it's based on what has been happening lately--which is anything but typical.

So don't shun foreign stocks. Instead, learn the smartest new thinking about how to play them. Modest exposure to foreign stocks--15% to 20% of a stock portfolio--can still help investors reduce risk while...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!