Today's Animal Spirits Talk Your Book is sponsored by iShares.

Welcome to Animal Spirits, the podcast that takes a completely different look at markets and investing.

Hosted by Michael Bannick and Ben Carlson, two guys who study the markets as a passion and

invest for all the right reasons. Michael Batnick and Ben Carlson work for

Ritholz wealth management. All opinions expressed by Michael and Ben or any podcast guests are solely their own opinions

and do not reflect the opinion of Ritt Holt's wealth management.

This podcast is for informational purposes only and should not be relied upon for investment decisions.

Clients of RIT Holt's wealth management may maintain positions in the securities discussed in this podcast.

From 1970 to today, $1 invested in the S&P 500 grew to $134.

$1 invested in the MSCI World X USA grew to just $60.

Home country bias worked.

Is that you're telling me?

Well, what do you say to that?

Well, the problem is, it's kind of crazy.

So we looked at this number as I think you were the first one to figure this out and it kind of

blew my mind so obviously if you look at from 1970 to 2018 the US has done much

better but pretty much the entirety of that growth has come since 2008 so we also looked at the

growth of the dollar 1970 through June 2008 and it's identical like the graphs are

almost on each other

and they meet at the same point.

So this brings us to a bigger issue,

that when you are looking at back tests

...