Equity home bias and the US stock market supremacy

One of the most documented behavioral anomalies that afflict investors is their preference for the domestic stock market, ignoring the benefits that a portfolio of international stocks can offer in terms of diversification. But beyond the benefits of “statistical” sort, there are factual reasons to avoid this bias. Not only does a broader investment universe … Continued

Market tremors and the financial laws of motion

The recent stock market sell-off have been virulent and widespread, which raises the question of whether we are witnessing the end of the longest bull market in history, or just another transitory market tremor. The correction can be seen as a due response to long-term interest rates ratcheting up since the beginning of the year, … Continued