Video
Home Bias: Why You Should Go Beyond the Familiar
I’m Hannah Whatley, an advisor with Rather and Kittrell.
Home bias is when we invest in what we are familiar and comfortable with. We see this in investors worldwide. People have a tendency to over-weight their investment exposure to their own country. However, if you look at the returns of developed markets over the past 20 years, the U.S. was number one, once.
Not only that, but the S&P 500 lost money from January 2000 through December 2009. The period that some people refer to as “the lost decade”. We recommend using an investment policy statement that incorporates diversification as an easy way to ensure that you are diversified and unemotional with your investments, instead of falling into home bias.
We’re here to help with this. If you’d like to learn more, visit us at rkcapital.com.
