Sentences with phrase «home bias»

Unfortunately, this is a sad reminder the real risk of home bias for investors may not be portfolio return.

Those surveyed appeared hesitant to consider investing beyond their borders, displaying a strong home bias.

I tend to believe this is a better allocation because it is much broader and more diversified, but there are reasons for home biases.

I still keep a globally diverse portfolio to avoid home bias.

Two important questions remain, what percentage should I allocate to international equities, and what degree of home bias makes sense?

It's tempting — the Irish market's definitely been good to me in the past two years (despite my regular warnings about home bias).

The problem is known as home country bias or simply home bias.

Despite home bias risk, I'm comfortable with having, say, 3 good Irish stock picks in my portfolio.

Two important questions remain, what percentage should I allocate to international equities, and what degree of home bias makes sense?

But aside from the more obvious benefits, there's another compelling reason to avoid home bias & embrace diversification — it can actually simplify your stock selection process!

«We think emerging markets are a great option to help advisers combat their clients» home bias investing and further diversify their portfolio.»

While the message of diversification isn't a novel one, it's particularly relevant to Canadian investors given our concentrated market and bears repeating as we continue to see a strong home bias in Canadian's investment portfolios.

In my recent interview with Meir Statman, author of What Investors Really Want, I asked the professor why we suffer from home bias.

It's easier for Canadian investors to achieve a portfolio with substantial home bias because, unlike the U.S., Japan and Europe, Canada's economy and financial markets are a relatively small share of the overall pie.

The real problem with home bias is investors who might have say 75 % + invested in their home market, and aren't even conscious of the colossal bet / risk they're actually taking...

Of course, many factors will change this allocation such as home bias, currency risks, and market instabilities, which is why even our portfolio does not represent the world economies.

Fortunately, there's plenty of stock selection filters you can employ — for example, to help protect against the risks posed by home bias, bottom - up stock picking, and / or a concentrated portfolio.

It's easier for Canadian investors to achieve a portfolio with substantial home bias because, unlike the U.S., Japan and Europe, Canada's economy and financial markets are a relatively small share of the overall pie.

[I'm already presuming you're well diversified in terms of stocks & sectors, and adequately insured against home bias.

-LSB-...] Preet observes that many Canadians have an extreme home bias in their investments and explores why it is so.

By historical standards, this implies sustained double - digit losses on bond holdings, subpar growth in developed markets, and balance sheet risks for banking systems with a large home bias.

The portfolios of investors just after retaining a financial advisor exhibit relatively high trading activity for restructuring to increase diversification and otherwise lower risk (less home bias and more passive investments).

Home bias appears to be a robust phenomenon under all three scenarios.

He has been wrong on many of the issues on which he has opined, not least his speech on home bias and his pleadings for U.S. homeowners to refinance their mortgages and use home equity as a piggy bank.

I have heard many times, as an excuse for having such a strong home bias portfolio, that most companies in the TSX and the S&P 500 have an international exposure.

This is my little home bias.

Apparently, Professor Lewis has long been recommending greater allocation to non-U.S. stocks then U.S. investors follow — concluding there is an «equity home bias» that causes investors to favor their home country.

That's what a pure indexer would be holding as they shouldn't be showing home bias.

The ability of an advisor to get beyond home bias was an area where the panellists felt a portfolio manager could gain an advantage.

Of course, I've written about home bias before, but that was in relation to equities: I beg your indulgence as I take another brief look from a currency perspective.

The sad fact is though, investors who exhibit the worst home bias are often oblivious (and ignorant & fearful) of the alternative (s) available to them — and there's nothing worse than a bet you don't even realise you're actually making!

If you prefer to ignore these more extreme examples as v unlikely (as many of the aforementioned victims did, to their cost... read «Wealth, War & Wisdom» by Barton Biggs), the benefits of fighting home bias are still obvious.

Because most of the time, like home bias, bottom - up stock picking is just another excuse for laziness (or ignorance)-- in fact, they regularly go hand - in - hand.

And debating home bias simply means you've already lost the argument... it's like arguing evolution with a cretinist creationist.

I think where home bias is a factor is where one looks at investments close to home and does not consider what alternatives further away may exist (and yep, I am certainly guilty of that at times).

Even within the US, there is home bias among investors to the extent that we tend to invest more in companies that are near to us — perhaps it is a greater flow of informal information.

Yes, like I said in my other comment, the real danger is investors who are unconsciously home biased.

Here, I'll discuss how home bias is measured, the factors that underpin this phenomenon, and why it's probably a good idea to expand your horizons a bit — especially given current valuations.»

-LSB-...] Home bias decisions when it comes to diversification by Where does all my money go?

absolute return, alternative assets, closed - end funds, currency allocation, distressed assets, emerging markets, frontier markets, FX rates, home bias investing, NAV discount, portfolio allocation, quantitative easing, real assets, special situations, value investing

Canadians perennially suffer from home bias — moreso than most investors worldwide, if the anecdotal evidence is to be believed.

That said, DeGoey has a concern for home bias in the portfolio.

Move your return expectations down, and diversify away from the US; there are better returns abroad — but remember, there are good reasons for home bias, so choose your foreign investments with care.

Cross-border flows of real and financial capital have also increased dramatically — a reflection of the recent notable reduction in the degree of home bias in capital markets.

Economists refer to this as home bias.

I mentioned that it wasn't uncommon for Canadians to have extreme home biases, and many Canadians only invest in Canadian stocks.

While the message of diversification isn't a novel one, it's particularly relevant to Canadian investors given our concentrated market and bears repeating as we continue to see a strong home bias in Canadian's investment portfolios.

Since most banks followed similar quantitative signals, and exerted a traditionally strong home bias in their fixed income portfolios, a concerted dumping of government bonds ensued.