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Investors may want to consider boosting their exposure abroad โ even with U.S. stocks around record highs
CNBCยท 2025-10-04 15:00
Group 1 - Investors in the U.S. are exhibiting a significant home bias, with too much capital allocated domestically, suggesting a potential opportunity for increased overseas exposure [1][2] - The recent performance of major U.S. indices, including the Dow, S&P 500, and Nasdaq, which gained approximately 1% this week, contrasts with the nearly 3% increase in the iShares MSCI Emerging Markets ETF, which reached a 52-week high [2] - There is a growing conversation among investors and advisors about diversifying into international markets, with a particular focus on the long-term potential of China [3] Group 2 - The Emerging Markets Internet ETF has seen a 35% increase this year, while the India Internet ETF has decreased by 3%, indicating varied performance in emerging market sectors [4] - Despite India's NSE Nifty 50 underperforming U.S. markets with a 5% increase this year, it has experienced a substantial 118% growth over the past five years, highlighting its long-term potential [4] - India is projected to have a GDP growth rate of 6.2% in 2025, positioning it as one of the fastest-growing major economies, and it has recently surpassed Japan to become the world's fourth-largest economy [5]