Foreign Stocks Are In, and So Is Indexing - Knowledge@Wharton:
"In February...investors poured nearly $19 billion into foreign-stock mutual funds, compared to $8.4 billion for U.S. stock funds.
......American investors have also grown enamored of indexers, which now hold about 15% of assets invested in foreign-stock funds, up from about 5% in 2001, according to AMG Data Services. 'People want diversification at the cheapest cost,' notes Wharton finance professor Jeremy Siegel, who talks about the latest economic developments in a podcast included in this issue.....It probably will continue.'
Siegel says the typical American investor should have 40% of his or her equity portfolio in foreign stocks....you don't want to confine yourself to one country....I really advise broad diversification.'"