Money Magazine July Issue discussed global funds as the best way to diversify.  Instead of treating U.S. and foreign stocks as different assets, global funds are the best way to invest in the best stocks worldwide (65% of McDonald’s revenues come from overseas, for example).  And, global funds simplify figuring out what % to put in U.S. and what % to invest overseas, as fund managers make those decisions.   T.Rowe Price analyzed various combination of U.S and foreign equities from 1970 to 2007, according to Money, and discovered that on average most combinations came away with 11.3-4% annualized return.  And, with different sectors being more important today (across the globe), global funds make a lot of sense.

Money’s picks for global investing are at:

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