Home Bias & Poor Diversification

Jay Pluimer, AIF® CIMA® Thursday, 05 November 2020

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 a 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

Always check back next week for more Flourish Insights with Jay Pluimer and don't forget to check out our insights blog at https://www.flourishinsights.com Please write a review of this podcast on Apple Podcasts or Alexa.

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About the Author

Jay Pluimer, AIF® CIMA®

Jay Pluimer, AIF® CIMA®

Jay Pluimer brings over 25 years of experience working with Investment Committees and individual investors to Flourish Wealth Management. He has built a career focused on investment research, client conversations about investments, and building diversified portfolios to help clients accomplish their goals. As Director of Investments, Jay is passionate about the opportunity to deliver individualized investment solutions for our clients that help align their resources and goals.

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