Home Bias: Is Your Portfolio More “American” Than You Think?
By Jason Blumstein, CFA
After reviewing hundreds of portfolios over the years, I’ve noticed something interesting.
Different people.
Different careers.
Different goals.
Yet somehow… the portfolios often look almost identical.
Heavy U.S. stocks. Very little international exposure. And a level of concentration that most investors never intentionally chose.
When I ask how it happened, the answer is usually the same:
“I’m not really sure. It just kind of ended up that way.”
That’s not carelessness. It’s human nature.
But it has a name. And understanding it could matter more than most people realize.
It’s called home bias.
The Hidden Concentration Most Investors Miss
Before we even talk about global markets, let me describe something I see constantly with high-earning professionals.
Someone comes in for a portfolio review.
They’re doing well.
Strong income.
Growing savings.
RSUs vesting from their employer.
On the surface, everything looks like progress.
But when we look under the hood, the financial picture often looks like this:
✔ Salary tied to one company
✔ Bonus tied to that same company
✔ RSUs tied to that same company
✔ Investment portfolio heavily concentrated in U.S. equities—often in the same sector
Their human capital and investment capital are pointing in the same direction.
When markets are rising and the company is thriving, this feels great.
But if something shifts—a company issue, a sector rotation, or a broader market correction—multiple pieces of their financial life can get hit at once.
This isn’t about intelligence.
Many of these people are extremely successful.
It’s about awareness.
And that’s where home bias often enters the picture.
The Number That Made Me Pause
A recent Morningstar study found the average U.S. investor holds about 82% of their equity portfolio in U.S. stocks.
Meanwhile, the U.S. market represents roughly 62% of global market capitalization.
That gap matters.
It means many investors aren’t simply owning the world’s markets in proportion to their size.
They’re significantly overweighting their home country—often without ever making a deliberate decision to do so.
That’s home bias in its simplest form:
The tendency to invest where things feel familiar.
Why It Feels So Logical
Home bias doesn’t feel like a mistake.
In fact, it often feels smart.
You recognize the companies.
You use their products.
You follow them in the news.
And over the past decade, that familiarity looked like a winning strategy.
U.S. markets had an extraordinary run over the last 10–15 years, particularly in large technology companies.
So staying close to home wasn’t just comfortable.
It was rewarded.
But markets have a long memory, and they move in cycles.
What worked beautifully for one decade doesn’t always repeat in the next.
The Script May Already Be Shifting
Take a look at what happened recently.
After years of U.S. dominance, international markets (MSCI ACWI ex-US) outperformed the S&P 500 by nearly 15 percentage points in 2025.
The largest gap in more than a decade.
Now, one year doesn’t make a trend. I’m not predicting where markets go next
But it is a reminder that leadership rotates.
And portfolios built around one country always winning aren’t truly diversified.
They’re concentrated.
Same Business. Different Price Tag.
Here’s a simple way to think about it.
Look at Procter & Gamble (PG) and Unilever (UL).
Two massive global consumer companies.
Both sell products you probably have under your kitchen sink right now.
Both operate around the world.
Yet depending on the market environment, they can trade at very different valuations simply because they’re listed in different markets.
Same kind of business. Different sticker price.
Imagine walking through the grocery store and seeing the same product priced meaningfully higher on one shelf than the other.
Most people would naturally pick the better value.
But investors sometimes ignore those differences simply because one company happens to be headquartered in the U.S.
That’s the subtle influence of home bias.
“But I Own Global Companies…”
I hear this one often.
“Most of the companies I own do business globally. Isn’t that enough?”
It’s a fair question. But there’s an important distinction.
A U.S.-listed company—even one that sells products worldwide—still trades on a U.S. exchange.
Its stock price is still influenced by:
• U.S. investor sentiment
• U.S. interest rates
• U.S. economic expectations
• movements in the U.S. dollar
Owning a global business is not the same as owning global markets.
The exposure is fundamentally different.
The Behavioral Lesson
There’s a concept from how new ideas spread that applies here.
When something new emerges—whether it’s a technology trend or an investment strategy—there are stages.
First come the early adopters. Then the early majority.
Eventually, something becomes the obvious default.
And by that point, the biggest opportunity is often already behind.
This doesn’t mean U.S. markets are going away.
Of course they aren’t.
But when any investment strategy starts to feel unquestionable, it’s worth pausing.
Because that’s usually when people stop making deliberate decisions and start following the crowd.
A Few Questions Worth Asking Yourself
You don’t need to overhaul your portfolio overnight.
But a few simple questions are worth knowing the answers to:
✔ What percentage of your equity portfolio is currently in U.S. stocks?
✔ If you receive RSUs or equity compensation, how much of your total net worth is tied to your employer?
✔ Has your allocation been reviewed recently against your long-term goals?
✔ Is your portfolio positioned intentionally—or did it simply evolve over time?
These aren’t trick questions.
They’re conversations I have with clients every week.
Because the difference between someone who builds durable wealth and someone who struggles later often comes down to a single idea:
Intentionality.
A Portfolio Built to Win Anywhere
A strong portfolio isn’t built around one country winning forever.
It’s built to remain resilient across different markets, environments, and economic cycles.
That means thinking about your financial life as a whole:
Your income.
Your equity compensation.
Your investments.
Because when all three are tied to the same place—or the same company—you may be carrying more concentration risk than you realize.
If you’ve never taken a step back to evaluate how your portfolio is positioned globally, it may be worth a second look.
Because building wealth intentionally means understanding not just what you own…
…but why you own it.
Building wealth is by choice, not chance.
If you’d like a second set of eyes on your portfolio allocation, RSU strategy, or overall financial picture, feel free to reach out.
To schedule a meeting, call (201) 408-4644, email info@juliuswealth.com, or get in touch online.
Frequently Asked Questions
What is home bias in investing?
Home bias is the tendency for investors to favor stocks and assets from their own country over foreign ones—often significantly more than market weight would suggest. It's driven by familiarity, comfort, and years of watching domestic markets perform well. For U.S. investors, according to a Morningstar study, the average equity portfolio holds about 82% in U.S. stocks, despite the U.S. representing roughly 62% of global market cap. The gap between those two numbers is home bias in action. At Julius Wealth Advisors, one of the first things we do when reviewing a new portfolio is quantify exactly how much home bias exists, because most people are surprised by the number.
Is it bad to be heavily invested in U.S. stocks?
Not inherently. U.S. stocks absolutely belong in a diversified portfolio. The concern isn't owning U.S. stocks, it's owning them by default rather than by design. When concentration in any one country, sector, or company is the result of habit rather than a deliberate allocation decision, it can create risks that aren't always visible until something shifts. This is exactly the kind of conversation we have with clients at Julius Wealth—not to tell you what to own, but to make sure what you own reflects a real decision, not just inertia.
How do RSUs make home bias worse for high earners?
RSUs (restricted stock units) are shares of your employer's stock, which means your income, bonus, and equity compensation are often all tied to the same company. If your investment portfolio is also heavily weighted toward U.S. equities—particularly in the same sector—your human capital and investment capital are pointing in the same direction. That's a level of concentration most people don't fully account for when they review their statement. It's one of the most common blind spots I see when working with high earners, and it's something we address directly as part of our 360° Wealth planning process.
Does international investing add more risk? International investing does come with additional considerations: currency fluctuation, different regulatory environments, and varying levels of political stability. Those are real factors and worth understanding. But concentration risk is also a form of risk—and one that often gets less attention. The goal isn't to chase international exposure for its own sake but to build a portfolio that's fully intentional about tradeoffs. That's the kind of analysis we walk through with every client at Julius Wealth Advisors, so you can make decisions you'll feel confident about, not just today, but years from now.
About Jason
Jason Blumstein, CFA, is the founder and CEO of Julius Wealth Advisors, an independent boutique RIA serving clients nationwide from Englewood Cliffs, New Jersey. His passion for investing began at just 10 years old, when his grandfather Julius turned off the cartoons, turned on CNBC, and began teaching him about stocks, discipline, and the values that build a meaningful life.
Shaped by early family financial hardship and inspired by Julius’s integrity and generosity, Jason built a career by gaining experience with PwC, Morgan Stanley, and J.P. Morgan. With a mission of offering transparent, education-forward planning rooted in Integrity, Knowledge, and Passion, Jason founded Julius Wealth Advisors in 2021. The firm operates in a fiduciary, client-aligned model built around long-term partnership.
Building Wealth Is By Choice, Not Chance
Today, Jason partners with High Earners, Not Wealthy Yet (HENWY) families ages 35–50, helping them build long-term, sustainable wealth through disciplined planning, deeply personal guidance, and analytical rigor he gained as a CFA® charterholder. He is known for his boutique, high-touch service, and for the educational clarity he brings to every conversation through The Big Bo $how podcast and Wealth of Knowledge blog.
Outside the office, Jason is a proud husband and father of two. He loves all sports, working out, watching the NFL (he has a complicated relationship with the Dolphins), rooting for the Mets, and staying active—a continuation of his college football days. To learn more about Jason, connect with him on LinkedIn.
Disclosures:
This piece contains general information that is not suitable for everyone and was prepared for informational purposes only. Nothing contained herein should be construed as a solicitation to buy or sell any security or as an offer to provide investment advice. The information contained herein has been obtained from sources believed to be reliable, but the accuracy of the information cannot be guaranteed. Past performance does not guarantee any future results. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. For additional information about Julius Wealth Advisors, including its services and fees, contact us or visit adviserinfo.sec.gov.