provide a response to this discussion board post, include citations Home bias is the tendency to stick with what feels comfortable. It can lead to personal experiences and allegiances playing an outsized role in the decisions we make (Schwab). Home bias is the overinvestment in domestic or local equities, as compared with a diversified benchmark portfolio. Home biased investors forego benefits from diversification and hold portfolios that are more prone to idiosyncratic shocks Santis and Gerard (1997). Home bias is influenced by different cognitive mechanisms. Investors feel more comfortable with familiar investments, leading to reasoning where domestic markets are seen as safer or better simply because they are well-known. Heuristics like familiarity and availability biases make local investments more important in the investor's mind, while confirmation and choice-supportive biases reinforce prior decisions by filtering out contradictory information. Additionally, framing effects can cause domestic assets to appear less risky or more culturally relevant. Since researching foreign investments often requires more time and effort, many investors default to mental shortcuts that favor home markets. This bias can lead to poorly diversified portfolios that are more vulnerable to local economic downturns and can also limit the efficient allocation of capital across global markets. To counteract home bias, strategies such as investor education, thoughtful presentation of internatio