But for those who have the time and are willing to take the chance, it may still be a good time to consider international investments. The correlation between the United States and world economies isn‚t likely to always hold true, according to Lawrence Goodman, an economist and the managing director of Globalecon, a New York advisory firm. While the United States was the main driver in global growth during the 1990s, the uncertain American economy means that countries will have to "look inward" or to other countries for growth, he says.
In June, investors poured $2 billion into international equity funds while taking $20.5 billion out of U.S. equity funds, according to TrimTabs.com Investment Research in Santa Rosa, Calif.