Should you put some salsa in your portfolio? International markets provided some of the best gains in 2005, and are off to a roaring start in 2006 as well. Is it too late to add some of these investments to your portfolio?

When we speak of International funds, it is important to keep in mind that the term international means investments outside the United States. Global funds will invest money anywhere in the world, including the United States.

So while international funds, in general, have been hotter than a jalapeno pepper, a really crucial part of your success will be selecting the right corner of the world to put your money to work.

From a strictly percentage return perspective, some of the international markets have already had huge gains. However, on a technical basis, there still seems to be much farther to go for some markets. Again, picking the right areas of the market will help. For example, although the newspapers and other media are filled with reports of wonderful future growth prospects for China, the charts of funds invested in this area are lackluster at best. On the other hand, funds invested in areas like Latin and South America look terrific and continue to generate multiple buy signals on point and figure charts.

Dont get stuck under the Limbo Bar!

Too many new clients come in to see us with very little (or no) exposure to foreign markets at all. To stay ahead of the rest of the crowd, youve got to have some of your money where there is significant out-performance! By using our methods, we can pinpoint precisely where the money is flowing in the markets. Remember, smart money leaves tracks. We just want to follow the footprints.

Now, one reason for this outperformance in some foreign markets like Latin America may be due to the exposure in these regions to vast natural resources. In general, the natural resources, non-ferrous metals and precious metals like gold and silver have been a great place to be invested lately, regardless of whether it is US-based or international. Since some of these areas outside the US are very rich in natural resources, the demand has been great. And remember, anything in demand will see their prices rise. Anything we have too much supply of (or no longer in demand) will see their prices fall.

Some of the best ways to get exposure in these (and other) international markets is through exchange traded funds. Exchange Traded funds (or ETFs) have lower expenses than a traditional mutual fund and can be bought and sold very easily. Also, unlike mutual funds, since ETFs trade on an exchange, they can be bought with limit orders, so you do not overpay in price. You can also place stop orders to limit your downside loss with ETFs. Some ETFs also trade options. This can give you even more ways to protect and grow your asset base.