Overconcentration 

Overconcentration refers to when your brokerage firm or financial advisor concentrated your portfolio in a single or limited assets This can be risky because if the value of that asset, industry, or geographic location declines, the investment could lose a significant amount of money.

Overconcentration is risky because it can expose companies and individuals to significant losses if the value of the asset class, industry, or geographic location in which they are invested declines. For example, if a company invests all of its money in technology stocks and the technology sector experiences a downturn, the company could lose a significant amount of money. Similarly, if an individual invests all of their money in real estate in a particular city and the real estate market in that city declines, the individual could lose a significant amount of money.

The reality is, more often then not, overconcentration is not suitable for investors and causes significant losses.  

If you suspect you've been a victim of overconcentrated, contact us today for an investment loss consultation.