Foreign Stocks Are Too Cheap to Ignore

Emerging markets look particularly alluring.

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Just thinking about foreign stocks makes my stomach hurt. In recent years, just about every dollar I’ve invested for my clients in foreign stocks rather than in U.S. stocks has been a mistake. Over the past 12 months, the MSCI EAFE index, which tracks foreign stocks in developed markets, fell 7.1% and the MSCI Emerging Markets stock index tumbled 13.9%. This during a period when Standard & Poor’s 500-stock index returned 3.0%.

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Steven Goldberg
Contributing Columnist, Kiplinger.com
Steve has been writing for Kiplinger's for more than 25 years. As an associate editor and then senior associate editor, he covered mutual funds for Kiplinger's Personal Finance magazine from 1994-2006. He also authored a book, But Which Mutual Funds? In 2006 he joined with Jerry Tweddell, one of his best sources on investing, to form Tweddell Goldberg Investment Management to manage money for individual investors. Steve continues to write a regular column for Kiplinger.com and enjoys hearing investing questions from readers. You can contact Steve at 301.650.6567 or sgoldberg@kiplinger.com.