The financial media will often discuss investing at least some of your funds overseas. But nothing is definitive about what is global diversification of investment.
Many large American companies are doing business overseas. So investing in the S&P 500 will give you a measure of global diversification.
If you do buy overseas investments to broaden this strategic step, there are emerging or developing, as well as developed countries in which to participate. Using indexed funds or exchange traded funds (ETFs), you can invest around the globe with varying regional emphasis.
Use indexed funds which are not hedged against currency value changes. This also helps diversify against inflation in the U.S. and acts as a currency hedge.
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