Indeed, an analysis by ValuePenguin reveals that Americans will earn $ 800 million more
on their savings deposits than they'll pay through higher interest rates
on credit cards and
home -
equity lines of credit (HELOCs) after the Fed's latest hike.
First, investors exhibit a pronounced «
home bias» French and Poterba (1991) report that investors in the USA, Japan and the UK allocate 94 %, 98 %, and 82 % of their overall
equity investment, respectively, to domestic
equities explain this fact
on rational grounds [Lewis (1999)-RSB-
Indeed, normative portfolio choice models that take human capital into account typically advise investors to short their national stock market, because of its high correlation with their human capital [Baxter and Jermann (1997)-RSB-.