Forget China

The Shanghai stock market, as measured by the Shanghai Composite Index, was recently up a whopping 70 percent, year over year, after being up more than 100 percent earlier.

China's market has cooled, but it's still unquestionably hot. While China's economic growth is very real, so was the growth of the Internet nearly a decade ago - and that turned out very, very badly.

China will likely have a stronger and more impressive economy a decade from now, but there are signs of inflation as well as signs that the country may have to moderate its growth to conserve one of the most basic resources we all take for granted: water.

In other words, the balance of risk and reward is now better in other developing economies - ones that haven't seen their markets triple in a few short years. Look at Mexico, Brazil and Chile, for example, as they offer above-average growth potential and plenty of intriguing opportunities.

No matter how bright the future, investors must take a pass when valuations become unfavorable - as they have in China. Fortunately, we have the rest of the world to look to for bargains, and now is a promising time to get going. For help zeroing in on attractive international investments, check out our Motley Fool Global Gains newsletter at www. globalgains.fool.com.