by KYW's Salil Gutt

Stock markets overseas, particularly in emerging markets, have outperformed the US stock market handily every year over the past five years. Thank the weak dollar for that along with faster growth in foreign economies. A key milestone, the US now makes up only 45% of the world's stock markets, down from the almost 60% plus a few years ago.

Investors here have seen the light and are piling into overseas stocks. So how much should one invest in overseas stocks?

First off. There is a difference between overseas and global stocks. GE, for instance, is a global stock that is US based but does business worldwide. Our focus should be on pure overseas stocks. 

There is no hard and fast answer for how much to invest abroad. Many financial planners are recommending that clients invest between half and 55% of their stock allocations to overseas stocks. The best way to invest is a commission free total international stock index fund at either Vanguard or Fidelity. Those who are a little more aggressive can also include an emerging markets stock index fund.