Home asset bias

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.