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need to know
IRS says identity thieves breached its systems
Pope Francis to stand with Mexican migrants
Disney's ESPN woes undercut 'Star Wars' gain
U.S. stocks end flat as oil continues to slide
SolarCity shares drop on soft forecast
Apple CEO Cook’s deleted Super Bowl tweet
What to expect from Whole Foods earnings

Japan stocks fall to lowest level since 2014
Abe defends Bank of Japan chief

The sad truth of why retirement
is a myth

Burberry sues, says J.C. Penney copied its designs

Is it wise to hold onto cash reserves?

Election year could be painful on Wall Street

S.F. real estate looks like it did before dot-com crash
Every major city in the world, in one map

Americans quitting their jobs hit a nine-year high
NFIB survey hints wage gains are fleeting
Job openings are second highest on record

Recipe for less boring Oscar speeches

What to know before buying Beyoncé tickets

How to get mortgage approved: hope for sunny day

99 Cent Gas May Be on Its Way
99-cents-a-gallon gas may be on its way: 24/7 Wall St.

Is the gold rally the real deal or ‘fool’s gold’?
Teen can keep $20,000 gold bar found in lake
Gold one of Wall Street’s best bets early in 2016
Gold futures stretch win streak to five sessions

Why is everyone freaking out about ‘CoCos’?
Convertible bonds are alluring as stocks fall
 
Deutsche Bank co-CEO says bank is ‘rock solid’
Deutsche may buy back billions in debt: FT
Why the selloff in European banks is ominous

This stock market has been Europe’s best in 2016

Strategists are arguing that stocks need a true purge

A strand of Lennon’s hair is selling for $12,000

White House forecasts decade-best economic growth
Obama proposes $4.1 trillion federal budget

Five questions that Janet Yellen must answer
Yellen may say goal is not to slow the economy
Fed: Too white, too male, too many bankers?
Expansion won’t die of old age: S.F. Fed study

Facebook, Amazon are the keys to tapping this market
French regulator threatens to fine Facebook
India bans Facebook’s free Internet service


Europe’s battles: migrants, ‘Brexit’ and ECB
German output, exports drop in December
Roubini: Welcome to the New Abnormal


This has been the No. 1 car in America for decades
How far can you get on $50 in gas?


/conga/frontpage.html 367534

Markets »

127.74MDow Volume:
Avg Vol: 130.29M
Unchanged
156
Decliners
4273
Advancers
2073
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,014 -13 0.08%
Nasdaq
/quotes/zigman/12633936/realtime 4,269 -15 0.35%
S&P 500
/quotes/zigman/3870025/realtime 1,852 -1 0.07%
GlobalDow
/quotes/zigman/629063/realtime 2,078 -7 0.34%
Gold
/quotes/zigman/33772884/delayed 1,192 -7 0.55%
Oil
/quotes/zigman/2260836/delayed 28.57 +0.63 2.25%
FTSE 100
/quotes/zigman/3173262/delayed 5,632 -57 1.00%
DAX
/quotes/zigman/2380246/delayed 8,879 -100 1.11%
CAC 40
/quotes/zigman/3173214/delayed 3,998 -69 1.69%
FTSE MIB
/quotes/zigman/1482176/delayed 15,913 -528 3.21%
IBEX 35
/quotes/zigman/2759620/delayed 7,928 -195 2.39%
Stoxx 600
/quotes/zigman/2380150/delayed 309 -5 1.58%
Asia Dow
/quotes/zigman/6959860/realtime 2,451 -20 0.79%
Nikkei 225
/quotes/zigman/5986735/delayed 15,618 -467 2.90%
Hang Seng
/quotes/zigman/2622475/delayed 19,288 +105 0.55%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 23,790 -231 0.96%
Singapore
/quotes/zigman/1709939/delayed 2,566 -57 2.17%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 0.00 0.01%
Yen
/quotes/zigman/16008150/realtime/sampled 114.63 -0.49 0.42%
Pound
/quotes/zigman/16008140/realtime/sampled 1.45 +0.00 0.03%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 0.00 0.23%
DXY Index
/quotes/zigman/1652083/delayed 95.96 -0.10 0.10%
WSJ $ Idx
/quotes/zigman/41508961/realtime 89.24 -0.04 0.05%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.71 -0.02 1.04%
German 10y
/quotes/zigman/15866409/realtime 0.24 0.00 0.00%
Italy 10yr
/quotes/zigman/15866497/realtime 1.68 0.00 0.00%
Spain 10yr
/quotes/zigman/15866444/realtime 1.79 0.00 0.00%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.42 0.00 0.00%
Japan 10yr
/quotes/zigman/15866525/realtime 0.01 +0.04 162.11%
Crude Oil
/quotes/zigman/2260836/delayed 29 +1 2.25%
Gold
/quotes/zigman/33772884/delayed 1,192 -7 0.55%
Corn
/quotes/zigman/25518691/delayed 361 -1 0.14%
DJIA F
/quotes/zigman/48241424/delayed 15,886 -73 0.46%
S&P F
/quotes/zigman/43106711/delayed 1,841 -8 0.41%
Silver
/quotes/zigman/32655632/delayed 15 0 1.39%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 99.54 -0.21 -0.21%
AAPL /quotes/zigman/68270/composite 94.99 -0.02 -0.02%
GOOG /quotes/zigman/59527964/composite 678.11 -4.63 -0.68%
BAC /quotes/zigman/190927/composite 12.20 -0.07 -0.57%
C /quotes/zigman/5065548/composite 37.51 -0.30 -0.79%
F /quotes/zigman/264304/composite 11.35 -0.24 -2.07%
T /quotes/zigman/398198/composite 36.65 -0.46 -1.24%
BP /quotes/zigman/247026/composite 28.95 -0.97 -3.24%
GE /quotes/zigman/227468/composite 28.28 0.11 0.39%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
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World News from MarketWatch

Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.88% 11.62%
Business 13.12% 13.11% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.30% 14.12%
Airline 15.17% 15.16% 15.10%
Cash Back 15.26% 15.23% 15.27%
Reward 15.28% 15.25% 15.14%
Instant Approval 18.21% 18.18% 18.00%
Bad Credit 22.88% 22.88% 22.73%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
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Study: Funds’ Home-State Bias Costs Investors $31 Billion

One more reason your worry about your mutual fund: The manager is too much of a homebody.

Each year Main Street investors shell out billions in management fees, hoping professional investors are scouring the markets for bargains they could never find themselves. Some managers do just that — flying all over the world meeting with executives of exotic companies. Others use complex computer models to take the human bias out of picking stocks.

But new research suggests many favor names simply because they’re familiar from back home. The study, from Indiana University’s Kelley School of Business, found portfolio managers overweight companies based in the state where they grew up by 12% on average. Given the nearly $12 trillion size of the mutual fund industry — about a third of which is invested in domestic active stock funds — researchers estimated hometown bias accounted for annual investments totaling $31 billion each year. (A spokeswoman for the Investment Company Institute, an industry trade group, declined to comment).

Among the detailed findings: Young managers appeared to show greater bias, suggesting the quirk may be tied to experience. The effect was also more pronounced in small-cap stocks, which tend to be harder to research. Fund managers tend to favor stocks near their fund’s location, an effect the researchers say has been documented before.

Should investors be worried? The authors concluded that home-state picks didn’t necessarily underperform other segments of managers’ portfolios – but they didn’t outperform either. Still, the habit does pose extra risks because companies located in the same state tend to be affected by the same business conditions. Your “portfolio may be too concentrated in one area of the economy,” says co-auther Scott Yonker.

Comments

We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (3 of 3)

View all Comments »
    • as Charles explained I am startled that some people able to make $8288 in 1 month on the internet. have you read this link (Click on menu Home more information) http://goo.gl/2bQq5

    • Maybe local (home state) companies provide an easier and less costly opportunity for fund managers to meet with and get to know company management (without traveling to the ends of the earth). This might allow for a better decision on the part of the fund manager.

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MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert

London Markets Open in:

need to know
IRS says identity thieves breached its systems
Pope Francis to stand with Mexican migrants
Disney's ESPN woes undercut 'Star Wars' gain
U.S. stocks end flat as oil continues to slide
SolarCity shares drop on soft forecast
Apple CEO Cook’s deleted Super Bowl tweet
What to expect from Whole Foods earnings

Japan stocks fall to lowest level since 2014
Abe defends Bank of Japan chief

The sad truth of why retirement
is a myth

Burberry sues, says J.C. Penney copied its designs

Is it wise to hold onto cash reserves?

Election year could be painful on Wall Street

S.F. real estate looks like it did before dot-com crash
Every major city in the world, in one map

Americans quitting their jobs hit a nine-year high
NFIB survey hints wage gains are fleeting
Job openings are second highest on record

Recipe for less boring Oscar speeches

What to know before buying Beyoncé tickets

How to get mortgage approved: hope for sunny day

99 Cent Gas May Be on Its Way
99-cents-a-gallon gas may be on its way: 24/7 Wall St.

Is the gold rally the real deal or ‘fool’s gold’?
Teen can keep $20,000 gold bar found in lake
Gold one of Wall Street’s best bets early in 2016
Gold futures stretch win streak to five sessions

Why is everyone freaking out about ‘CoCos’?
Convertible bonds are alluring as stocks fall
 
Deutsche Bank co-CEO says bank is ‘rock solid’
Deutsche may buy back billions in debt: FT
Why the selloff in European banks is ominous

This stock market has been Europe’s best in 2016

Strategists are arguing that stocks need a true purge

A strand of Lennon’s hair is selling for $12,000

White House forecasts decade-best economic growth
Obama proposes $4.1 trillion federal budget

Five questions that Janet Yellen must answer
Yellen may say goal is not to slow the economy
Fed: Too white, too male, too many bankers?
Expansion won’t die of old age: S.F. Fed study

Facebook, Amazon are the keys to tapping this market
French regulator threatens to fine Facebook
India bans Facebook’s free Internet service


Europe’s battles: migrants, ‘Brexit’ and ECB
German output, exports drop in December
Roubini: Welcome to the New Abnormal


This has been the No. 1 car in America for decades
How far can you get on $50 in gas?


/conga/frontpage.html 367534

Markets »

127.74MDow Volume:
Avg Vol: 130.29M
Unchanged
156
Decliners
4273
Advancers
2073
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,014 -13 0.08%
Nasdaq
/quotes/zigman/12633936/realtime 4,269 -15 0.35%
S&P 500
/quotes/zigman/3870025/realtime 1,852 -1 0.07%
GlobalDow
/quotes/zigman/629063/realtime 2,077 -7 0.34%
Gold
/quotes/zigman/33772884/delayed 1,192 -7 0.55%
Oil
/quotes/zigman/2260836/delayed 28.56 +0.62 2.22%
FTSE 100
/quotes/zigman/3173262/delayed 5,632 -57 1.00%
DAX
/quotes/zigman/2380246/delayed 8,879 -100 1.11%
CAC 40
/quotes/zigman/3173214/delayed 3,998 -69 1.69%
FTSE MIB
/quotes/zigman/1482176/delayed 15,913 -528 3.21%
IBEX 35
/quotes/zigman/2759620/delayed 7,928 -195 2.39%
Stoxx 600
/quotes/zigman/2380150/delayed 309 -5 1.58%
Asia Dow
/quotes/zigman/6959860/realtime 2,451 -20 0.80%
Nikkei 225
/quotes/zigman/5986735/delayed 15,618 -467 2.90%
Hang Seng
/quotes/zigman/2622475/delayed 19,288 +105 0.55%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 23,792 -229 0.95%
Singapore
/quotes/zigman/1709939/delayed 2,566 -57 2.17%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 0.00 0.03%
Yen
/quotes/zigman/16008150/realtime/sampled 114.66 -0.46 0.40%
Pound
/quotes/zigman/16008140/realtime/sampled 1.45 +0.00 0.03%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 0.00 0.23%
DXY Index
/quotes/zigman/1652083/delayed 95.96 -0.10 0.10%
WSJ $ Idx
/quotes/zigman/41508961/realtime 89.24 -0.04 0.05%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.71 -0.02 1.04%
German 10y
/quotes/zigman/15866409/realtime 0.24 0.00 0.00%
Italy 10yr
/quotes/zigman/15866497/realtime 1.68 0.00 0.00%
Spain 10yr
/quotes/zigman/15866444/realtime 1.79 0.00 0.00%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.42 0.00 0.00%
Japan 10yr
/quotes/zigman/15866525/realtime 0.01 +0.04 162.11%
Crude Oil
/quotes/zigman/2260836/delayed 29 +1 2.22%
Gold
/quotes/zigman/33772884/delayed 1,192 -7 0.55%
Corn
/quotes/zigman/25518691/delayed 361 -1 0.14%
DJIA F
/quotes/zigman/48241424/delayed 15,886 -73 0.46%
S&P F
/quotes/zigman/43106711/delayed 1,841 -8 0.41%
Silver
/quotes/zigman/32655632/delayed 15 0 1.35%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 99.54 -0.21 -0.21%
AAPL /quotes/zigman/68270/composite 94.99 -0.02 -0.02%
GOOG /quotes/zigman/59527964/composite 678.11 -4.63 -0.68%
BAC /quotes/zigman/190927/composite 12.20 -0.07 -0.57%
C /quotes/zigman/5065548/composite 37.51 -0.30 -0.79%
F /quotes/zigman/264304/composite 11.35 -0.24 -2.07%
T /quotes/zigman/398198/composite 36.65 -0.46 -1.24%
BP /quotes/zigman/247026/composite 28.95 -0.97 -3.24%
GE /quotes/zigman/227468/composite 28.28 0.11 0.39%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
Please log in to view your watchlist
MarketWatch Portfolio

World News from MarketWatch

Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.88% 11.62%
Business 13.12% 13.11% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.30% 14.12%
Airline 15.17% 15.16% 15.10%
Cash Back 15.26% 15.23% 15.27%
Reward 15.28% 15.25% 15.14%
Instant Approval 18.21% 18.18% 18.00%
Bad Credit 22.88% 22.88% 22.73%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
  • /quotes/zigman/245568/composite DIS+0.22%
  • /quotes/zigman/13139813/composite SCTY-5.69%
  • /quotes/zigman/118681/composite TSLA+0.18%
  • /quotes/zigman/207002/composite DB-1.03%
  • /quotes/zigman/93928/composite PSEC-7.39%
X
Powered by StockTwits
Link to MarketWatch's Slice.

As of July 2, 2013, the SmartMoney content you loved now lives on MarketWatch.

MarketWatch will continue to provide the same important news and information you rely on every day. And, as a MarketWatch user, you will be able to enjoy:

  • Personalized news and quote email alerts
  • Editorial e-newsletters about personal finance, mutual funds and market-specific coverage
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