Probably not. Consuelo is sharing a report that answers that question from Gerstein Fisher, an independent investment advisory firm based in New York City.
As US stocks have outperformed their foreign counterparts in 2013, individual investors may be tempted to reduce international exposure in favor of greater allocations to US equities. By doing so, investors would be
“falling victim to what in behavioral finance is called availability bias – the belief that easily recalled recent outcomes (in this case, US market outperformance) will persist going forward. It is this bias that compels emotionally driven investors to buy last year’s winners and sell the losers.”
