User:Peculiar Investor/Home country bias

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Home country bias is the tendency for investors to focus their investments in their domestic markets.[1] Even though there is general agreement on the importance of exposure to a variety of asset classes, there is less agreement on the role of foreign securities in a domestic portfolio.[2] Financial theory suggests that investors should construct their asset class exposure in line with global-market capitalization.[3] The home bias phenomenon occurs all over the world,[2][3] and is often intentional.

Although Vanguard has published research supporting international investing, it should also be noted that Jack Bogle doesn't recommend international investing.[4]

See also

References

  1. Home Country Bias Definition | Investopedia, viewed January 1, 2015.
  2. 2.0 2.1 Philips, Christopher B.; Kinniry Jr., Francis M.; Donaldson, Scott J. (June 2012). "The role of home bias in global asset allocation decisions". Vanguard. https://personal.vanguard.com/pdf/icrrhb.pdf. Retrieved March 9, 2018.
  3. 3.0 3.1 Pakula et al., Vanguard research, Global equity: balancing home bias and diversification - a Canadian investor perspective, July 2014, viewed Dec. 29, 2014
  4. Christine Benz. "Why Bogle Doesn't 'Do' International Investing". Morningstar. http://www.morningstar.com/cover/videocenter.aspx?id=718644&SR=COM807. Retrieved March 9, 2018.

External links