Switch to ADA Accessible Theme
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
  • UBS Adviser Alex Williams: Investor Alleges Unsuitable Options Investment

    Alex Williams (CRD# 2646185), a broker and investment adviser based in New York, has received a pending customer complaint. According...

    Read More
  • $600K Options Complaint Against Los Angeles Broker Bill Calvert

    Financial Industry Regulatory Authority (FINRA) records indicate that UBS Financial Services broker Bill Calvert (CRD# 1023796) has received a pending...

    Read More
  • UBS’ Timothy Croak: Unsuitable Options Strategy Allegations

    Timothy Croak (CRD# 840899), a New York City-based broker and investment adviser, has received a pending customer complaint, according to...

    Read More
  • Wendy Holmes: UBS Adviser Has $1.4M in Pending Options Overlay Complaints

    Wendy Holmes (CRD# 2944190), a broker and investment adviser registered with UBS Financial Services, has received two pending customer complaints...

    Read More
  • Previous
  • Next