Legal Options When You Suffer Financial Losses Due to Your Broker’s Actions: Failing to Diversify Investments

You’ve likely heard it a dozen times – diversify your portfolio for maximum gains and protection against major market fluctuations. But what does that really mean?

Diversity in your financial portfolio refers to spreading your investments throughout multiple assets so that your exposure to any one type is limited and minimized. This process is designed to help reduce the volatility of your investments over time.

In other words, as the saying goes, “don’t put all your eggs in one basket.” Investing your money in more than one suitable asset is believed to reduce your financial risk and improve your chances of profiting.

Financial Advisor’s Responsibility

When you work with a brokerage firm, they will likely have access to bonds, stocks (both domestic and international), Hedge Funds, Private Equity, Money Market Funds, Certificates of Deposit, and other short and long-term investment options. Unfortunately, some financial advisors fail to recommend and implement a diversified portfolio for their clients.

You have the right to rely on your financial advisor to understand your financial goals and place you in options to meet those objectives. And if those objectives are not met, you may be able to file a complaint against your financial advisor or pursue legal action for your losses. You may be compelled to arbitrate your dispute via FINRA- for more on that process, read our blog posts about FINRA arbitrations. 

If your financial advisor places a large portion of your money in just one type of investment, he/she may be exposing you to substantial, unjustified financial risk. If the investment goes bad, you can suffer losses. In certain cases, you can recover for bad financial advice and possibly recover stock trading losses. 

Remember, diversification does not ensure a profit or guarantee against loss. But lack of diversification may unnecessarily increase your risk and diminish your chance of seeing a high return.

Ross & Voytas May Be Able to Help Recover Your Losses

Although no financial advisor can eliminate your investment risk completely, it is their responsibility to recommend suitable investments and investment strategies. And in the financial investment world, this means diversifying your portfolio. 

If you believe you have sustained losses due to the actions of your financial advisor in Missouri and Illinois, call us Ross & Voytas.

Ross & Voytas, LLC are trial lawyers with big firm experience and small firm values. We combine objective advice with the tactical know-how to obtain the compensation you deserve.

The attorneys at Ross & Voytas bring more than thirty years of combined courtroom and litigation experience to support your rights. Clients have given our St. Louis law firm multiple 5-star reviews and we handle difficult cases. 

As natives to St. Louis and licensed in Missouri, Illinois, and various federal courts, Nate Ross and Rick Voytas provide knowledge and personal attention to your legal matter.

Don’t delay! Contact the professional attorneys at Ross & Voytas now for your investment-related legal issues in Missouri and Illinois at 314-394-0605 or learn more at

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