Chatter Around the World – 159

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

Home Country Investing Bias

Home Country Bias by Investors in Various Countries

chinainvest-capital-2300 Image Source: Schwab

Let’s dive into the links that caught my attention this week.

Updates from My Portfolio Holdings

Interesting Reads

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Have a wonderful weekend!

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8 thoughts on “Chatter Around the World – 159

  1. Thanks for the mention R2R. I like your chart. I generally think that the home bias is not as relevant for a US investor. Perhaps for a Canadian one, it is an issue.

    I think that in the very long run ( think 20 -25 years or so), foreign and US may be roughly similar ( though in between they will whipsaw anyway they want). I posted this pic on Twtr a few days ago:

    https://twitter.com/DividendGrowth/status/763492413662982144

    Have a nice weekend!

    DGI

    • I was also thinking, we live in a globalized society, where you have expats working all over the place.

      For example, if you are a European, who works in North America for an Asian company, and you have 80% of equities in the US and 20% in the world, are you home biased or not? Where is your home 😉

    • In a world where companies are earning from all over, it may not be much of an issue — for e.g., the non-US portion of revenue in S&P500 stocks has been increasing steadily over the years and I think it was 2 or 3 years ago that it went above the 50% mark.

      But it also reminds me of another study I had seen where ppl tend to have bias to the region and the industry thats around them. For e.g., folks in western states of US tend to invest more in tech companies, while the ones in south invest more in oil & gas companies. That kind of home bias is the dangerous kind that investors need to be aware of.

      R2R

  2. Thanks for sharing as always R2R. 🙂

    DGI raises a good point, it’s very hard to pinpoint what counts as home bias these days. There are many, many S & P companies that probably earn more overseas than they do domestically (even though they would count as a domestic investment). I think for small countries such as Canada and Australia, the bias could be more dangerous as a lot more of their earnings would be domestic.

    Tristan

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