USA TODAY.
There are for U.S. investors to venture abroad and make money in stocks overseas, says Russ Koesterich, global chief investment strategist at
"It's probably always a good idea to look overseas," he said, adding that many retail investors make the mistake of loading up on U.S. stocks, which he refers to as "home country bias."
Looking abroad makes more sense now, given that U.S. stocks are facing headwinds, such as rising interest rates and full valuations, Koesterich says. In contrast, stock markets in Japan and Europe have cheaper valuations and central banks in both places are still taking market-friendly steps, such as lowering interest rates and injecting more stimulus into their economies.
Koesterich's advice: "Investors with a very high U.S. stock concentration — which is virtually everybody — should be allocating more dollars outside the U.S. in foreign developed markets."
