Comments on: Is Home Bias Justified In Your Retirement Portfolio? http://amateurassetallocator.com/2008/11/20/is-home-bias-justified-in-your-retirement-portfolio/ Amateur Asset Allocator Fri, 10 Feb 2012 18:16:33 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: hunter http://amateurassetallocator.com/2008/11/20/is-home-bias-justified-in-your-retirement-portfolio/comment-page-1/#comment-2582 hunter Wed, 17 Dec 2008 08:04:43 +0000 http://amateurassetallocator.com/?p=350#comment-2582 you are the home bias puzzle. Because you "feel it's close enough" is not a very good argument for turning ones back on the efficent frontier and capm. I think most investors feel the way you do. They are comfortable with US equitys. But would you be made more conftorable if you were shown that a well (well meaning a proxie for the WMP) diversified international portfolio has shown significantly higher returns over US equities alone for the past 30 years. And this is only as far as reasonable data goes back. you are the home bias puzzle. Because you “feel it’s close enough” is not a very good argument for turning ones back on the efficent frontier and capm.

I think most investors feel the way you do. They are comfortable with US equitys. But would you be made more conftorable if you were shown that a well (well meaning a proxie for the WMP) diversified international portfolio has shown significantly higher returns over US equities alone for the past 30 years. And this is only as far as reasonable data goes back.

]]>