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PEOPLE - Go South, Young Investor

Most of the latest edition of Wharton professor Jeremy Siegel’s Stocks for the Long Run hews to the approach that has made the book a best-seller since 1994.

But the big change in the fourth edition, released this month, is a new focus on international stocks, which Siegel says should make up 40 percent of the average individual investor’s equity holdings. “I’ve always been in favor of international investing, but now it’s becoming huge,” says Siegel. “The U.S. is going to be a much smaller fraction of world equity in the years to come.” He expects the U.S. share, now just less than 50 percent, to fall to about 30 percent in ten years. As for currency risk, Siegel says the dollar is deeply undervalued. “It could go down another 5 or 10 percent, but that’s the bottom.”