Moreover, with the fiscal cliff overhang, global risk is starting to shift toward the U.S. Investors may do well to take a greater global perspective and diversify into international exposure.

“We think selected European equities look quite attractive,” BlackRock analysts said, “and we would also encourage investors to seek out opportunities in other areas of the world, including countries such as Australia and New Zealand as well as many emerging and frontier markets that have compelling valuations.”

ETF options to play BlackRock’s suggestions include Vanguard European ETF (NYSEArca: VGK), iShares MSCI Australia Index Fund ETF (NYSEArca: EWA), iShares MSCI New Zealand Investable Market Index Fund ETF (NYSEArca: ENZL), Vanguard Emerging Markets ETF (NYSEArca: VWO) and Guggenheim Frontier Markets ETF (NYSEArca: FRN).

Max Chen contributed to this article.