FYI: Home country bias is when investors have the tendency to invest mostly in their own domestic markets. A simple reason for this is familiarity (and in many countries a lack of opportunity to invest elsewhere). But many investors who have a home country bias don’t understand how the different regions of the world differ in terms of their market structure and composition. In this piece I wrote for Bloomberg I use South Korea as an example to show how the make-up of certain markets can impact their performance and why this matters for ETF investors.
Regards,
Ted
http://awealthofcommonsense.com/2018/01/how-the-u-s-stock-market-is-unique/
