It's human nature to stick to what we know. But when it comes to investing, staying in your comfort zone can be hazardous to your financial health. Money magazine states that "the typical US investor keeps 87% of assets in domestic stocks, even though the US makes up only about 50% of the total value of the worldâ€™s markets." Money suggests that investors own stocks in multiple, if not every, US industry as well as stocks around the globe.
Experts suggest that no more than 10% of an investor's portfolio should be tied up in their own company stock and that at least 20% should be invested outside the US with some bonds and cash rounding out the complete portfolio. By diversifying, investors tend to maximize returns and minimize losses. Giving into your human need to stay close to home only limits your earning potential. There's a whole world out there, go invest in it!