Ben Felix | Home Country Bias @BenFelixCSI | Uploaded November 2019 | Updated October 2024, 3 hours ago.
Global diversification is one of the keys to a well-constructed portfolio. We have known this for a long time, and investors have been largely ignoring it for just as long.
In a 1991 paper titled Investor Diversification and International Equity Markets, Kenneth R. French and James M. Poterba documented the concept of investors’ preference for owning stocks in their home country, commonly known as home-country bias.
------------------
References in this episode:
- Investor Diversification and International Equity Markets: nber.org/papers/w3609
- The global case for strategic asset allocation and an examination of home bias: personal.vanguard.com/pdf/ISGGAA.pdf
- Do Global Stocks Outperform US Treasury Bills? : papers.ssrn.com/sol3/papers.cfm?abstract_id=3415739
- Global equity investing: The benefits of diversification and sizing your allocation: vanguard.com/pdf/ISGGEB.pdf
------------------
Follow Ben Felix on
- Twitter: twitter.com/benjaminwfelix
- LinkedIn: linkedin.com/in/benjaminwfelix
Visit PWL Capital: pwlcapital.com/teams/passmore-felix
PWL Capital Blog Post: pwlcapital.com/for-investors-a-little-home-country-bias-goes-a-long-way
Follow PWL Capital on:
- Twitter: twitter.com/PWLCapital
- Facebook: facebook.com/PWLCapital
- LinkedIn: linkedin.com/company/pwl-capital
You can find the Rational Reminder podcast on
Google Podcasts:
google.com/podcasts?feed=aHR0cHM6Ly9yYXRpb25hbHJlbWluZGVyLmxpYnN5bi5jb20vcnNz
Apple Podcasts:
itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2
Spotify Podcasts:
open.spotify.com/show/6RHWTH9iW7hdnA7eAg7ukO?si=hjZNfLKuSjSeWX38GPqhVA
------------------
Global diversification is one of the keys to a well-constructed portfolio. We have known this for a long time, and investors have been largely ignoring it for just as long.
In a 1991 paper titled Investor Diversification and International Equity Markets, Kenneth R. French and James M. Poterba documented the concept of investors’ preference for owning stocks in their home country, commonly known as home-country bias.
------------------
References in this episode:
- Investor Diversification and International Equity Markets: nber.org/papers/w3609
- The global case for strategic asset allocation and an examination of home bias: personal.vanguard.com/pdf/ISGGAA.pdf
- Do Global Stocks Outperform US Treasury Bills? : papers.ssrn.com/sol3/papers.cfm?abstract_id=3415739
- Global equity investing: The benefits of diversification and sizing your allocation: vanguard.com/pdf/ISGGEB.pdf
------------------
Follow Ben Felix on
- Twitter: twitter.com/benjaminwfelix
- LinkedIn: linkedin.com/in/benjaminwfelix
Visit PWL Capital: pwlcapital.com/teams/passmore-felix
PWL Capital Blog Post: pwlcapital.com/for-investors-a-little-home-country-bias-goes-a-long-way
Follow PWL Capital on:
- Twitter: twitter.com/PWLCapital
- Facebook: facebook.com/PWLCapital
- LinkedIn: linkedin.com/company/pwl-capital
You can find the Rational Reminder podcast on
Google Podcasts:
google.com/podcasts?feed=aHR0cHM6Ly9yYXRpb25hbHJlbWluZGVyLmxpYnN5bi5jb20vcnNz
Apple Podcasts:
itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2
Spotify Podcasts:
open.spotify.com/show/6RHWTH9iW7hdnA7eAg7ukO?si=hjZNfLKuSjSeWX38GPqhVA
------------------