Many experts recommend that investors maintain a global component in their portfolios.
By diversifying into markets outside the U.S., you might be able to decrease the risk and even out the returns in your portfolio from year to year. One of the easiest is to buy an international mutual fund, and let a professional manage the global portion of your portfolio. Many closed-end mutual funds and unit investment trusts also focus on particular regions of the world, and are other options for adding a global component to your nest egg. And many U.S. brokers are now beginning to offer trading on overseas markets, although usually at a significantly higher commissions. And there are still currency and economic risks associated with direct investment in a foreign country's stocks that many investors will find hard to swallow.