X Since 1963, the S&P 500 delivered 19 years in which it rallied more than 15%. But each year following those big gains averaged a more modest 7.5% advance. And some seem to already be at hand. Scarcely three days into the new year and the Dow has charged ahead 1.4%, in the process topping 25,000 for the first time ever. But some of the best gains for the full year may come in overseas stock markets and in value equities both in the U.S.

That rotation of big portfolios into more foreign stocks is expected to take place despite economic uncertainty due to the U.K.'s Brexit and escalating tensions with Russia's Vladimir Putin and China's Xi Jinping, not to mention North Korea's nuclear threats. Two big reasons are the prospect of faster economic growth abroad and cheaper valuations for many foreign equities. GDP growth will likely continue strong in both China and Europe, where European Central Bank (ECB) President Mario Draghi says monetary stimulus will continue until at least September.

The U.S. economy looks positive too. Align Technology (ALGN), part of the Nasdaq and a member of the IBD 50 list of top-performing growth stocks, jumped 131% in 2017. The company is known for its computer-assisted design approach to straightening teeth. Banking giant JPMorgan Chase (JPM), a key cog in the Dow, rose 24% in 2017. IBD Markets Editor Juan Carlos Arancibia analyzes 2017's top-performing stocks in a separate article.

Outlook For Foreign Stocks Vs. Against this backdrop, money pros say some of the best opportunities lie in non-U.S. And in both the U.S. David Joy, chief market strategist for broker and financial advisor Ameriprise Financial (AMP). Joy cites three reasons why foreign stocks may shine. The third reason: Valuations.

U.S. stocks as a group have grown expensive, Joy says. Other markets are more attractively valued. So there's more upside potential than in U.S. Joseph Davis, Vanguard's global chief economist and head of its investment strategy group, says Vanguard expects the lowest returns for U.S. His group expects 4% to 6% annual gains for U.S. Ameriprise forecasts 3.0% U.S. GDP growth in excess of inflation in 2018. Before Congress passed tax reform, Ameriprise was predicting 2.4%. China's pace should remain around 6.5%. The eurozone's economy should grow around 2.2% vs.

As for interest rates Ameriprise, among others, expects the Fed to continue raising rates. That "will be a lid on earnings multiples for U.S. corporations and may bring some (multiples) down," Joy said. U.S. tax reform is a wild card. U.S. joblessness should drop to 3.6% by the end of 2018, the lowest rate since 1969, Ameriprise says.

David Polak, equity investment specialist at Capital Group, the parent of American Funds, sees investment opportunities in several geographic markets. Asia and the U.S. Manufacturers of logic chips are one group of innovators. Industry consolidation has left four key players, including Taiwan Semiconductor (TSM) and California-based Intel (INTC). Another Asia stock he likes is Japan's Murata Manufacturing.

Since the capacitors are used in Apple iPhones as well as Samsung Galaxy and other Android phones, "It's a way to invest in the growth element without having to bet on which phone will do better," Polak said. In gaming, he likes the way Japan's Nintendo (NTDOY) has diversified its addressable market.

Then there's Tencent (TCEHY), China's leading provider of messaging and mobile gaming services. Tencent also owns the popular WeChat app. For Polak, a key Tencent trait is its leadership in China's mobile payments services, enabling consumers to use smartphones to pay bills and make online purchases. 9.3 billion ClearBridge Large Cap Growth (SBLYX) sees opportunities among U.S.

FAANG stocks because their price run-ups have left less room to rise. The ClearBridge fund is on track to becoming a 2018 IBD Best Mutual Funds Award winner after outperforming the S&P 500 in 2017 as well as in the trailing three, five and 10 years. Schlumberger (SLB) should benefit from a bottoming among energy stocks, Bourbeau says.