U.S. stocks have encountered choppy waters recently following several years of smooth sailing. Investors may be concerned about not giving up their hard-won gains. However, it is important to remember that U.S. stocks are just one portion of a broadly diversified portfolio. Outside of the U.S., few stock markets are near all-time highs. In fact, the MSCI All Country World ex. U.S. Index remains 25% below its 2007 peak (chart). Having not risen as far and enjoying lower valuations, some foreign stocks may exhibit less downside risk and higher long-term return potential from these levels.