The writer is biased towards owning dividend funds in the country you live in.

The reason for this bias is to keep up with the holdings. If you buy a mutual fund, it will have a variety of stocks in it, and for the most part you will likely know their names if you buy local. If you look at the holdings and do not know the names, how will you determine if the fund is worth keeping? unless you do a lot of research. Yes it is possible, but will you do it? If you are similar to most of us, maybe not even though the information is close to your fingertips. For example, most of know some large German companies, the German economy is keeping Europe afloat, there is great opportunity in Germany. Unless you have a connection to Germany, do you keep track of the companies? Do you know the economy is structured? the slight differences that exist, which allow the economy to function?

Closer to home, we all have biases from the towns and cities we grew up in. Every area has its Nob Hill, Mortgage Hill, Wrong side of the tracks, etc. When you live in a place you know the areas. It does not mean that things aare better, the people who live there are any different, it just means we all have biases. We have all seen the United Nations Building in New York City either in person or on TV, did you ever notice one side has smaller windows than the other because the neighbourhood changed. When the UN Building was built its neighbour was a giant stockyard or cattle pen – it no longer exists but the windows do. Things change the biases come later.

The point of the above is those buying dividends companies in the country you live in allows you to stay familar with the companies in the portfolio. You are buying for its dividends not to sell the stock tomorrow or next week or next month, unless it stops paying dividends. If you follow another country easily and often than buy another country. There are great opportunities in every country where there are people, but most of us do not easily follow other countries. Many of us tend to have biases to our local area, afterall that is you live.

There are always more questions than answers, till the next time – to raising questions