Love for one’s own country is reflected in every part of life. People tend to play favorites with local products, singers, athletes and anything else that carries that label of one’s own home. This is heavily shown in the financial market and investment industry. Jeff Yastine, an editor for the Banyan Hill who specializes in financial investments, claims that this comes from the so-called “unsurprising trend”.
Yastine Explains the Unsurprising Trend
The background of this bias, where people prefer things that originate from their own nation, is pretty straightforward. One is simply more familiar with those goods that are produced or stationed in their country because they are a lot more discussed. For example, Yastine shows that people from Canada will be more likely to make investments in Canadian stocks. The same applies to Americans who will most likely use their capital to buy stocks of Facebook, Amazon, Apple, IBM, and so on.
This is Not the Best-Case Scenario
Although patriotism is always admired, it can be very hindering to investor’s success. For example, the writer vividly recalls the downturn that many companies went through back in 2008. Nevertheless, millions of people still purchased stocks in American-based companies regardless of the dying economy. These people missed out on some great gains that could have been made by investing in other countries that were not affected by the crisis as much. After all, the main quantifying factor of investor’s endeavors is the profit and not the number of stocks owned in one’s home country.
How is Yastine Qualified to Bring This Issue?
In the decade where so many “experts” claim to have what it takes to earn billions of dollars, the world is lacking well-versed investors who have a good track record. Jeff Yastine, however, is a part of the dying kind. He has been investing his own money in the same companies that he advises his readers to consider. Not only has this strategy been going on for 20 years of his life, it has worked well for him.
Yastine has successfully predicted the crisis of the 2000s as well as numerous other opportunities that resulted in material increases in one’s net worth. He has been a vocal opponent of the large Amazon and Whole FOood merger that is proving to be a not-so-smart idea. No doubt that avoiding his advice is a recipe for failure.