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There are a lot of behavioral finance errors that we all make. One common one is the home country bias. People invest most of their money in their own countries markets. Even in small countries, like Thailand, you will find this. It is particularly bad in smaller countries, because they may have only one industry. For example, most of Australia’s economy is mining.

But even in the US, our market is overvalued now, and it would make sense to have some money overseas.


I don't think this is what's typically considered a behavioral finance decision. It is perfectly rational to invest in what you know. Invest where you understand the economic and political environment. In addition to that, there is also the hurdle of currency risk when you invest in a foreign country.

Elan
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