Five Ways Investors Can Still Make Money In Foreign Stocks

3. Short-Term Retreat Isn't a Bad Idea

Despite the long-term value in world markets, investors who can be more nimble with their portfolios may want to take some money off the table globally and wait for a cheaper buying opportunity.

"I felt going into this year that the US market would actually outperform emerging markets," says Uri Landesman, head of global growth strategies at ING Investment Management. "China, which is the most important emerging market, is going to be a problem the first half of the year."

While the year hasn't exactly gotten off to a roaring start on the US market, strategists are feeling more comfortable there for the time being.

"We have suggested taking money off the table in emerging markets on the whole," Krosby says. "There are certainly emerging markets that we think will pull away from the pack, but investors should allocate more money to the United States."

4. Watch Currency Movements

At the first true signs of global growth, central banks are likely to start racing towards raising rates and the bolstering of their currencies.

While low global rates have been necessary to stem deflation, countries promoting long-term growth will not be able to do so on the back of weak currencies.

Yet Australia, one of the first to raise rates in 2009, surprised earlier this week by holding rates steady. Analysts were divided as to whether the move was a signal to other central banks that it was too early to raise global rates, or if it was an opportunity for institutions like the Federal Reserve to get ahead of the curve and start backing the dollar, which gained initially after the Australian move but has edged lower for the week.

The fate of international currency is likely to be a significant factor in determining which economies are poised for growth.

"If you look at the value of the dollar versus the pound and the yen, we're losing ground year after year," Lyman says. "We as citizens should be taking note of that...At some point we've got to be concerned, especially when we are a net-debtor nation and reliant to the extent that we are on other governments and foreign entities to buy that deficit in order to support our deficit.

"Near-term it's probably OK because everybody is in the same boat. Longer-term as a nation we've got to be able to address this issue."

5. Think Locally, Invest Globally

Large-cap US- and foreign-based companies with strong international exposure have been some of the biggest winners in this earnings season, and that quality theme is likely to continue.

"Since the first quarter of 2009 we deliberately began to emphasize companies that have the bulk of their earnings, the bulk of their growth outside the United States," Talon's Wilson says. "Many of these foreign-based companies do not have our debt levels and they do not have our GDP growth challenges."

Wilson says his company's strategy is based on company-specific business models, a theme that fits in with the necessity of being particular about firms either based overseas or with strong multinational exposure.

"On a secular basis emerging markets will be the most important theme for investors," Krosby says. "With that said, there will be temporary concerns, there will be pullbacks."