Home bias is an investor's preference to invest primarily in domestic equities rather than diversifying with foreign investments. While there are many reasons why investors may display home bias, one of the most common is simply familiarity: we tend to feel more comfortable investing in what we know.However, there are some drawbacks to this approach. For one thing, it can lead to missing out on opportunities for growth in other markets. Additionally, if the domestic market experiences a downturn, the lack of diversification can amplify losses.Ultimately, whether or not to display home bias is a personal decision that each investor must make based on their own risk tolerance and investment goals. However, it's important to be aware of both the potential benefits and risks before making any decisions."
