Joseph Stone Capital Insights: What Diversification Does and Does Not Do

Diversification spreads capital across different assets, sectors and regions so that no single holding determines the whole result. It can reduce the effect of one position's decline. It does not eliminate risk, does not guarantee a profit, and cannot prevent losses in a broad market decline. Concentrated positions carry additional risk, and investors should consider their own objectives, time horizon and risk tolerance.

Disclosure: Educational content only; not an offer, recommendation or solicitation to buy or sell any security. Investing involves risk, including loss of principal. Joseph Stone Capital, LLC, member FINRA/SIPC, 585 Stewart Avenue, Suite L60C, Garden City, NY 11530.