Close Menu
Free Consultation: 888-976-6111
Home > Case Types > Lack of Diversification

Lack of Diversification

The first rule of investing is “do not put all your eggs in one basket.” Despite this universal knowledge, some financial advisors somehow still fail to properly diversify portfolios.


Diversification is important because it protects portfolios against downside risk. A well-diversified portfolio will hold different assets with returns that are not correlated to each other. This is structured in such a way that the entire portfolio does not decline in value when one asset declines in value. When a portfolio is not well-diversified, a fall in the price of one asset class will cause the entire portfolio to fall.

We have successfully handled cases involving portfolios over-weighted in the energy industry, foreign bonds, junk bonds, and other sectors. In each case, the specific sector had a substantial decline in value, which caused the investor to lose a significant portion of their life savings. In each instance, with proper diversification, the losses could have been greatly reduced.

Please contact us for a free and confidential case evaluation if you believe that you are a victim of overconcentration or lack of diversification.

Contact Us For A Free Case Evaluation
Latest Blog Posts
  • Matthew Stratman: Bond Complaint Against Western International Advisor

    Los Angeles-area financial advisor Matthew Stratman (CRD# 5834026) is involved in an investor complaint alleging his advice resulted in six-figure...

    Read More
  • Carolyn Valentine: $471K TIC Complaint Against Ex-H. Beck Advisor

    A recent investor complaint against Canton, Ohio financial advisor Carolyn Valentine (CRD# 2532412) alleges that her conduct resulted in six-figure...

    Read More
  • Bay Creek Acquisitions: Seven Charged in Alleged Tax Shelter Scheme

    The US Department of Justice recently indicted seven individuals on charges they conspired to commit fraud in connection with the...

    Read More
  • Raymond James Fires Jean Coulanges, Boca Raton Advisor

    Boca Raton financial advisor Jean Coulanges (CRD# 7410568) was recently fired by his former member firm in connection with alleged...

    Read More
  • Previous
  • Next