# Home Bias

*Behavioral Finance — Finicade finance glossary*

Home bias is holding far more domestic assets than global market weights justify, driven by familiarity rather than analysis. Investors in most countries hold a domestic share several times their market's global weight. It compounds an existing exposure — your job, house and currency are already domestic — which makes it a concentration of the risk you can least afford to add to.

**Also known as:** home country bias, familiarity bias

**Related terms:** [Diversification](https://finicade.com/glossary/diversification), [Concentration Risk](https://finicade.com/glossary/concentration-risk), [Emerging Markets](https://finicade.com/glossary/emerging-markets), [Behavioral Biases](https://finicade.com/glossary/behavioral-biases), [Currency Risk](https://finicade.com/glossary/currency-risk)

Source: https://finicade.com/glossary/home-bias