Consider global investing

It is not a stretch to say that if you are going to diversify your investment portfolio, you need to look outside the United States for investment alternatives. Now, the easiest way to do this is through mutual funds (global, international, specific regions, etc.). However, that being said, many of the funds which invest in international firms, specifically Europe and large cap companies are not fairing much better than the U.S. mutual funds (those holding U.S. companies shares). Places like China, India, Brazil, Argentina, Romania, Poland, Russia are booming. The GDP of these countries is expected to grow on average 3 times faster than the U.S. GDP. Emerging Market mutual funds invest in companies in some of these countries and may be a category to look at if you have a long-term time horizon 7-10 years and a moderate risk tolerance.