Given the current economic environment, that's not expensive. The market is actually undervalued. The conventional wisdom is that as the U.S. market peaks, investors take profits and seek to diversify overseas. Conventional wisdom is wrong on this. I believe U.S. interest in foreign markets is at its highest when the local market is doing well, not when it is at the peak or starting to decline.
Investors feel confident about overseas markets when their core portfolio is doing well.
I think over the next few months, Mexico and Hong Kong will be key beneficiaries. I like technology. I don't think it's very late in the cycle to get into U.S. stocks in general or technology stocks. Sure, you would have done well if you had invested two years ago, but that doesn't mean there is no upside from here on. I would rather not be defensive but continue looking for good opportunities.