Understanding Concentrated Stock Risk: Protecting Your Wealth for the Long Term

While the market generally trends upwards over time, individual stocks can be a different story. In fact, from 1987 to 2023, over two-thirds of stocks in the Russell 3000 underperformed the index, and about one-third actually lost money. While it may feel like you’re giving up the chance for massive gains, diversification is critical to safeguarding your financial future. If you have questions about managing concentrated stock risk or want to discuss your unique financial situation, feel free to reach out. Let’s protect your wealth for the long haul!