Episode #13: Home Bias & Poor Diversification

Beware your investing biases and don’t forget to double-check your mutual fund holdings.

In this week’s episode, Director of Investments, Jay Pluimer discusses the dangers of investor bias and lack of diversification in your portfolio. Home Bias means that investors tend to invest more heavily in Domestic Stocks and Bonds. Doing so can lead to missed opportunities from international and emerging markets equities growth.

These missed opportunities coupled with portfolio overlap can lead to vulnerabilities and lack of diversification in your portfolio. Portfolio overlap can often be overlooked because it requires taking a deep dive into the holdings across your mutual funds and ETFs. It is possible that you may own shares of the same stock across multiple funds and ETFs. If this is the case you could be investing in one particular equity too heavily.

If you are unsure about your diversification across markets or across your equities owned, take a closer look. Or speak with an advisor who can give you a solid portfolio review.

We are always here to take your call and provide you with a portfolio review. To schedule your discovery meeting please contact us at flourishwealthmanagement.com/contact

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