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I believe that as the populations of China and India (combined 2.5 Billion) and other populations in South America mature they will put demands on our natural resources as the world has never seen. They will demand better food (Cresy), better housing (CHLN.ob, improved transportation (TATA, SORL), vacation spots (Macau-MPEL), banking services (HDB), etc.

This story will take 20 years or more to unfold and it will not occur in a straight line. As this happens the dollar will drop as other currency's rise. I also think commodoties will rise as well. But this will also bring about new technologies that will improve crop yields, more efficient energy production and consumption.

Anyway I guess I feel pretty strongly that part of ones portfolio should be diversified among a basket of foreign businesses. I wouldn't count out the US but I think anywhere from 20-50% in foreign stocks is a reasonable allocation depending on your risk/volatility tolerance.

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