Emerging market stocks may be volatile, but they are a necessary part of the modern portfolio, says Timothy McCarthy, author of "The Safe Investor" and the former President and COO of Charles Schwab. McCarthy says last year was a great year for U.S. stocks, so investors should harvest some of those gains and put the profits into emerging market stocks, which sold off last year due to Fed tapering worries. Finally, he says investors are safest when using ETFs in broad, liquid markets.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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