Bear in mind that if you buy a five-year Treasury at par you are guaranteed to get your principal back in 2007, no matter what the price fluctuation might be in the meantime.

FORBES: Stretch That Yield

None of this is to gloss over the fact that international investing does carry risk of currency fluctuation, questionable accounting practices (which Americans are by no means immune to at home, either) and, for some countries, political instability.

FORBES: Magazine Article