I'm doing a year-end portfolio review of my retirement investments this week. Since international stocks have been on a nice run for the past few years, my portfolio is heavily overweighted in international equities.

If you look at the typical asset allocation for aggressive style investing that is recommended by brokerage firms and advisors, they usually recommend 40-50% in U.S. large caps and only 15-20% in international stocks. Historically, this allocation may have worked well, but I believe it should be changed to reflect overseas growth. Due to the devaluation of the U.S. dollar and the growth of foreign markets, I predict continued growth in the international sector. And the U.S. may not regain market dominance for the long term, barring a meltdown in an influential overseas market such as China.

For investors with more than 20 years to retirement, I would drop the U.S. large cap allocation to 30% and raise international to 30-40%, depending on one's stomach for volatility. But that's just my two cents. SmartMoney Magazine, however, agrees with this strategy.