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
  • Jose Cornide of UBS Complaints Regarding Options Overlay Strategy

    Pending complaints against UBS Financial Services broker and investment advisor Jose Cornide (CRD# 2785918) allege the Coral Gables, Florida-based representative...

    Read More
  • NFL Agent & 7X Pro Bowl Client Lost $1.2 Million Investing With Fraudster

    NFL agent Vincent (Vince) Taylor of Elite Loyalty Sports and his client, who appears to be 7x Pro Bowl Washington...

    Read More
  • Dennis Mehringer: FINRA Bars Pasadena Financial Advisor

    A disciplinary action taken by the Financial Industry Regulatory Authority against former Pasadena, California broker and investment advisor Dennis Mehringer...

    Read More
  • Mariondy Fernandez: Complaints Against Dorchester Financial Advisor

    Settled and pending investor complaints against former Dorchester, Massachusetts broker Mariondy Fernandez (CRD#: 2391134) allege conduct including fraud, breach of...

    Read More
  • Previous
  • Next