Stepping out of your comfort zone: how it helps you invest better
Investors often have a tendency to focus their investments predominantly on their home country's market. While this may seem like a safe bet, it can actually limit your investment opportunities and potential gains. Diversifying your investments beyond your comfort zone can pay off in the long run.
The effect of home country bias on stock markets
For instance, let's take a look at the Canadian stock market, which represents only 3.4% of the global market. However, Canadian investors' portfolios are exposed to domestic stocks on average for about 52.2%. This imbalance is...