💨 Abstract

Investors often exhibit a "home country bias," favoring domestic stocks over global diversification. This can lead to imbalanced portfolios, especially in the U.S., where investors heavily favor American tech companies despite inflated valuations. International markets, including developed and emerging economies, offer cheaper valuations and potential benefits such as reduced volatility and improved returns. Adding international stocks through ETFs or mutual funds can mitigate currency risks and provide exposure to global opportunities.

Courtesy: WTOP Staff