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
protected by reCAPTCHA Privacy - Terms
Latest Blog Posts
  • Kiran Devarapalli: Leaders Group Advisor Fired by LPL

    Littleton, Colorado financial advisor Kiran Devarapalli (CRD# 6416586) was recently fired by LPL Financial in connection with alleged rule violations....

    Read More
  • Max & Randy Birkinbine: Ausdal Advisors Face GWG Complaint

    North Oaks, Minnesota financial advisors Max Birkinbine (CRD# 6836583) and Randy Birkinbine (CRD# 2008599) have received an investor complaint alleging...

    Read More
  • Bruce Johnson: L Bond Complaint Against Portsmouth Financial Advisor

    San Francisco financial advisor Bruce Johnson (CRD# 1126862) allegedly misrepresented investments in GWG L bonds, according to an investor complaint....

    Read More
  • Cataldo Panici: $355K REIT Complaint Against Wintrust advisor

    Frankfort, Illinois financial advisor Cataldo Panici (CRD# 2112617) recently received an investor complaint alleging damages of more than $300,000. Financial...

    Read More
  • Previous
  • Next