The Importance of Diversification in International Funds

I don't have any issue with using international funds in particular. The main problem is they don't really provide the kind of diversification you want from your generic cap-weighted U.S. funds. I would be careful trying to use comparative valuations of various stock markets to make some kind of determination whether something is undervalued or overvalued. It's for those basic reasons that I find these arguments about other countries' stock markets having a lower valuation to be only superficially interesting.