We're outright bullish on stocks for 2007. But when it comes to portfolio allocation, it's not enough to just like stocks over bonds, cash and other alternatives. You've got to make some distinctions and decide where the best places to buy stocks are.
Foreign stocks have beaten US stocks since the current bull market's inception, and we expect that trend to continue. This is a counterintuitive for most investors here in the US who assume that stock investing necessarily involves buying US companies. We've written before on the benefits of global diversification (See our past commentary, "Go Global").
When it comes to making the proper decisions on a country and sector basis, it's all a matter of relativity. We're not bearish on the US; we're just less bullish on it relative to other regions. We expect US stocks to do well this year…just not as well as Foreign stocks. Here are some key reasons we believe foreign stocks should again outperform the US:
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*The content contained in this article represents only the opinions and viewpoints of the Fisher Investments editorial staff.