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Strategies & Market Trends : John Pitera's Market Laboratory

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To: robert b furman who wrote (21941)6/24/2019 2:42:05 PM
From: elmatador  Read Replies (1) of 33421
 
The world now has $13 trillion of debt with below-zero yields.

The universe of negative-yielding bonds grew about $1.2 trillion this week after dovish messages from central banks in Europe and the U.S., pushing the total past $13 trillion for the first time.

They now make up 23.8% of global sovereign bonds. Countries with negative yielding sovereign debt, in order of increasing yield:

#Switzerland

#Germany

#Denmark

#Netherlands

#Austria

#Finland

#Sweden

The home bias. Let them pay someone keep their money.

The more they pay the better.

Coval and Moskowitz (1999) showed that home bias is not limited to international portfolios, but that the preference for investing close to home also applies to portfolios of domestic stocks. Specifically, they showed that U.S. investment managers exhibit a strong preference for locally headquartered firms, particularly small, highly leveraged firms that produce nontradable goods.
https://en.wikipedia.org/wiki/Equity_home_bias_puzzle

Home bias is the tendency for investors to invest the majority of their portfolio in domestic equities, ignoring the benefits of diversifying into foreign equities
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