Quotes About Foreign Stocks

In 1982, his biggest investment was Treasury bonds; right after that, he made Chrysler his top holding, even though most experts expected the automaker to go bankrupt; then, in 1986, Lynch put almost 20% of Fidelity Magellan in foreign stocks like Honda, Norsk Hydro, and Volvo. So, before you buy a U.S. stock fund, compare the holdings listed in its latest report against the roster of the S & P 500 index; if they look like Tweedledee and Tweedledum, shop for another fund.7

The best choice for your equity investments is a fund indexed to the total world stock market. If you are truly uncomfortable investing in "foreign" stocks, you could choose a domestic total stock market fund. We recommend that you be diversified internationally because the United States represents less than half of the world's economic activity and stock market capitalization. For your bonds, choose a total U.S. bond market index fund.