Home asset bias

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Home asset bias

The tendency of investors to over invest in their own county's assets.

Home Asset Bias

The fact that an investor is more likely to invest in assets that are in his/her own country than in similarly or better priced assets in another country. A variety of factors may explain the home asset bias, including government interventions such as tariffs. However, it is most likely that an investor simply has the most and the best information on assets in his/her own country.
References in periodicals archive ?
Favoritism of agents--The case of referees' home bias.
Low and stable interest rate and well-known home bias of Japanese investors have kept this situation under control, but there is no guarantee that the low interest rate will remain forever.
The previously strong home bias for investments is now being actively discouraged as government pension funds are being directed to higher-yielding foreign assets, [while] the previous large current account surplus (which implied yen-denominated assets would always do well) has now turned into a deficit.
While many investors still typically maintain a home bias, monetary policy dynamics offer a strong case for casting a wider investment net and in particular, examining opportunities in international equity markets in 2015 and beyond.
So diversification and overcoming the home bias are important.
This observed lack of international diversification is commonly referred to as home bias.
It also corroborates the finding from our recent survey of over 250 global insurers' M&A intentions of a home bias when looking at the relative attractiveness of various markets.
The study also indicated that there is a home bias when it comes to financial products, with 64 per cent of respondents' preferring offerings from Indian companies.
How much broader Russia's home bias will develop remains to be seen.
Fixed income is a key part of their home bias because they understand Indian institution-issued paper.
Implied in this statement is the reasonable assumption that the home bias would be more prominent in sports where the outcome is based on subjective judging such as gymnastics and diving, versus the objective judging of sports such as swimming, running and throwing, which involve the relatively simple observation of who crossed the line first or threw the farthest.
The strong home bias meant that you would have made a profit of PS4.