International Stock Mutual Funds Bubble?

Chet Currier, columnist for Bloomberg News, makes a case for caution in international stock mutual funds investing in this article published at the Detroit News web site. Currier reports that the international category of mutual funds, comprised of broadly diversified funds, "averaged a 14.7 percent return for the 12 months ended Nov. 30. That handily beat the 10.2 percent return for domestic growth and value funds." And, he noted that single-country and regional funds outperformed by even wider margins, "with the Profunds UltraJapan fund, up 83.2 percent, and the T. Rowe Price Latin America Fund, up 70.6 percent, to the Turkish Investment Fund, up 60.5 percent, and the ING Russia Fund, up 56.2 percent." Currier also reports record new money inflows into international funds, "about a 41 percent increase from the record set last year of $106 billion."

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(May '04-Jun '05)