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In fact, a big dollop of foreign stocks can make a bad situation worse.
They buy a diversified portfolio of foreign stocks of all sizes.
Since the markets started pricing in QE2, the trends have generally worked in favor of foreign stocks.
But if you do not, then you should reduce your American equity exposure in favor of foreign stocks.
These developments may also lessen the appeal of foreign stocks, some market strategists say, worsening the odds for the third prediction, too.
The central bank started making modest purchases of foreign stocks last winter, but has kept almost all of its reserves in bonds, like other central banks.
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Just as Americans have scattered investments around the world in pursuit of profit — with holdings of foreign stock and debt exceeding $6 trillion in 2006, according to the Treasury Department — foreigners are looking to the United States, with their capital generating economic activity, proponents say.
In the decade ending last November, American holdings of foreign stock increased to $4.3 trillion from $1.2 trillion.
The fund placed among the top 8percentt of foreign stock funds, which lost 13percentt a year, on average, according to Morningstar Inc.
Underlying the strength of foreign stock markets is a rally in smaller-company stocks, which have done well in the United States but even better abroad.
PAGE 14 Mutual Funds Report The quarterly section looks at the popularity of foreign stock funds and the outlook for funds that invest in real estate.
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