Problems with diversification into foreign stocks

Problems with diversification into foreign stocks, of course,
spell trouble for all investors, big or small, if it does not reduce
the risk of loss in your portfolio. For the authors of this book,
troubles with diversification are even a bigger issue: We are urging
investors to buy more stocks abroad at a time when these purchases
may not make their overall portfolios more diversified. So
we cannot argue that it is easy to contain the added risk you are
taking on by buying more foreign stocks to increase your potential
returns.