Do Foreign Stocks Still Make Sense?

Recently, I keep hearing versions of the same question from investors: “Should I stay in foreign stocks?” They’re reviewing their statements and noting the following: As of October 31, year to date the S&P 500 has returned 11.0%, while the MSCI EAFE Index of developed-country stocks has lost 2.8%. Moreover, it seems to be of a pattern: from January 1, 2012 to October 20, 2014, the S&P returned a cumulative 70.5%, 30.5 percentage points ahead of EAFE and a whopping 51.2 points better than the MSCI Emerging Markets Index. So why do I encourage investors to resist the temptation to exit foreign stocks and move to a US-centric portfolio?
Source: Markets