Meyer agrees, arguing that "Americans are still woefully underexposed to foreign stocks." So how much foreign exposure should investors have? "We suggest that 20 to 25 percent of equity investments be in foreign investments," says William Stone, the chief investment strategist at PNC Wealth Management.
When choosing which foreign equities to buy, Saut urges investors to "keep it simple." He suggests starting with a well-balanced mutual fund that provides exposure to a broad range of emerging markets, and perhaps adding an ETF that tracks the stock index of a higher-growth foreign market, like that of China or Brazil.
Observers expect the emerging market growth to benefit American-based companies as well—but some more than others. Large multinationals that do significant business overseas, such as Procter & Gamble, Honeywell, and Johnson & Johnson, are well positioned to succeed in the global economy of the next 25 years, Metz says. And on account of its expansive multinational operations, Saut is particularly bullish about General Electric's 25-year outlook. "If I had one stock to own—and only one stock—it would be GE," he says.
So while no one knows what the next 25 years may hold for the U.S. economy, broad exposure to foreign assets and American-based multinational stocks can help investors make the most of the coming market—no matter how bullish or bearish it turns out to be.
