Investments, tenth edition

 Year 

 U.S. Investor 

Holdings Abroad  

a

   

 Foreign Investor 

Holdings in U.S.  

b

   

 2001  

2,170  

 3,932 

 2011  

6,481  

11,870 

   

a

 Billions of dollars.  

   

b

 About 2/3 of these holding are in equities.  

 Source: Report on U.S. portfolio holdings of foreign securities as of 12/31/2011. 

Department of the Treasury, October 2012. 

 Home-country bias remains in force but is far less pronounced today than it was 10 years ago.    

  

2

 This simple single-variable regression is put forward not as a causal model but simply as a way to describe the 

relation between per capita GDP and the size of markets. 

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  C H A P T E R  

2 5

 International 

Diversification 

887