Conservatism has been the most successful overseas game plan in 2008. At MFS International Value Fund, two-thirds of portfolio is in Western Europe, one-quarter Japan and most of the rest in non-Japanese Asia.
"I think some parts of continental Europe, such as France and Germany, could be interesting for investing because there hasn't been anything like the credit expansion of the U.S., U.K., Ireland and Spain," Wiener said. "Since there are countries where consumers haven't borrowed up to their eyeballs to buy a house, U.S. investors should be increasing their international investing."
His fund's largest stock holdings include dominant names such as France's Total SA; the U.K's GlaxoSmithKline, Royal Dutch Shell and Vodafone Group; Switzerland's Nestle SA, Roche Holding Ltd. and Novartis; the Netherlands' ING Groep; Spain's Telefonica; and Germany's E.ON. That 5.75 percent "load" (sales charge) fund requires a $1,000 minimum initial investment.
If you're not 100 percent confident about foreign investing, you could consider investing in so-called world funds that include the U.S. in their mix. Some have up to half of holdings in domestic stocks.
"The U.S. stakes in world stock funds have allowed them to hold up considerably better than either foreign-only or domestic-only funds," said Arijit Dutta, analyst with Morningstar Inc. in Chicago.
Two world funds that have proven especially resilient, Dutta said, are:
-- The $97 million Marsico Global Fund (MGLBX), launched mid-2007 and up 6 percent in the past 12 months. Fifty-six percent of its portfolio is in U.S. stocks.
Seasoned veterans Tom Marsico and Jim Gendelman are on a management team led by Cory Gilchrist that combines macroeconomic analysis with shrewd stock picking. This concentrated portfolio of around 50 stocks can really take off, and its MasterCard holdings have provided a solid boost. Other top holdings are Wells Fargo Co. and Denmark's Vestas Wind Systems. This no-load fund requires a $2,500 minimum investment.
-- The $1.1 billion T. Rowe Price Global Stock Fund (PRGSX), a relatively flat performer over the past 12 months with a three-year annualized return of 13 percent. Forty percent of its portfolio is in U.S. stocks.
Manager Rob Gensler took over in 2005 and has proven adept at finding outstanding opportunities, such as American Tower Corp. and a number of Latin American stocks. He has even scooped up a few downtrodden choices in housing. Biggest holdings are Mexico's America Mobile and Google Inc. A no-load fund, it requires a $2,500 minimum investment.
Despite the overall gloomy global record this year, each foreign market is unique.
"I will be looking at Russia, China, Brazil and India for signs of a turnaround," said Rowland. "Many European countries also have the potential for a strong move during the next bull phase."