A Path of Faulty Logic Leading to Foreign Stocks

Money managers have been tripping over each other during the 1990s to offer American investors a chance to invest abroad. One after another, managers have rolled out foreign stock mutual funds or other vehicles to channel your cash overseas. They have been aided and abetted by advisers who told clients that non-U.S. companies offered better diversification and higher potential returns. Oops. When you really think about it, the stampede to …