The threat of the national market “home bias”
One of the most common pitfalls of investment behavior is the “home bias” – investors’ apparent preference for investing in their home country. According to the International Monetary Fund (IMF), US investors have approximately 80% of their wealth in US-denominated assets – which equates to a strong overweight. This may be based on the perception that US equities have outperformed international counterparts over the last years, but it also disregards many opportunities outside of the US.