Home Country Bias: Should You Overweight Domestic Stocks?
Many Happy Returns
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Understanding Home Country Bias in Investment Portfolios
The chapter delves into the phenomenon of home country bias where investors tend to overweigh domestic stocks in their portfolios compared to global market weight. It explores reasons such as familiarity, ease of access, and concerns about foreign investment risks. The chapter also discusses implications on investment decisions and the debate around the advantages and risks of holding a significant portion of one's portfolio in domestic stocks.
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