What to Do with Your 401K
Millions of dollars from people’s 401(K)’s are going to Europe and Asia. There is a good reason for this. Foreign markets have a great prospect for growth today as the dollar is declining against the Euro since 2001 and is expected to drop even further this year. While this is bad for tourists it’s great for investors in foreign stocks because your dollar will rise.
The best way to get involved here is to start purchasing large-company, value-oriented stocks from Europe. Make sure that you only use this market sparingly though because emerging markets are known for booms and busts too. However, choosing to invest in European stocks is definitely a smart thing to do because they are cheaper than U.S. markets.
There is also expected to be major growth in India and China this year. However, bargains are harder to find in Asia. This is because these only tend to do well when the America dollar or U.S. interest rates fall.
Another big market is Japan. This is a tricky market because their economy has been troubled since 1989 but is fairing better now.
If your 401(K) does not have an international option then you really should consider opening a large-company stock fund instead.