Yeah, I definitely think most of us have a home bias when it comes to stocks.
I guess I just didn't get the title due to your definition of passive investing.
Most of us own far too much domestic stock, far too little international stock, and far too little fixed income, to truly call ourselves passive investors. (I.e. we don't really own the whole market.)
I wouldn't define "passive investor" as "owning the whole market, based on the actual makeup of the world economy".
I think a permanent portfolio investor could be considered a passive investor.
Or someone owning 100% VTI.
Just had never heard that definition of passive investor.
My definition I was working with in my schema was "as opposed to active" and would have to do with how much and often they trade (i.e. "buy and hold" is passive, to me).
I didn't think passive has much, if anything, to do with your AA.
Your passive definition allows for someone to buy and trade every day, as long as they're modeling the whole market (as defined as the world's economy), which I'm not sure I agree with.
But given that definition, yes, now the title makes sense.