Working with financial advisors is my privilege.  Taking care of clients is theirs.

“So… I’m going to party like it’s 1999.” – Prince

Diworsification, a term popularized by legendary investor Peter Lynch, simply means over-diversification—spreading investments so widely or redundantly that you dilute the benefits of true diversification. It’s a made-up word that tends to resurface in concentrated bull markets.

Back in late 1999, a friend told me how well his investment portfolio was doing. I asked what he owned. “Only three mutual funds,” he said.  I asked if he was concerned about his lack of diversification. “Not at all,” he replied, explaining how his three technology funds were all “different.”  He later discovered the hard way that they weren’t. When you own multiple funds that all lean on the same theme, you’re not diversified, you’re concentrated.

So, where’s the balance?

The answer depends on age, time horizon, goals, and risk tolerance. My colleague, Todd Sohn, has written extensively on concentration risk, the very thing my friend experienced from 2000 to 2002, by investing in a single theme: dot-com. Today does not feel like 1999.  By the end of 1999, QCOM was up 2,587% FOR THE YEAR, and traded at close to 170 times earnings.  As we approach mid-2026, earnings breadth has been stronger than many expected, and momentum can persist longer than seems intuitive.

Former Federal Reserve Chair Alan Greenspan warned of “irrational exuberance,” describing how investor enthusiasm can push asset prices beyond fundamentals. That line comes from his December 5, 1996 speech, “The Challenge of Central Banking in a Democratic Society.”  It pairs well with one of my favorite reminders: “Predictions are difficult, especially when you’re talking about the future.” – Yogi Berra.

If you’re worried you’re experiencing diworsification—or, on the flip side, that you’re taking on too much concentration risk—talk to your financial advisor.

As of 6/02/2026, QCOM was not held in investment portfolios or funds managed by Strategas Asset Management.

This communication was prepared by Strategas (“we,” “us,” or “our”), a brand that offers investment advisory services through Strategas Asset Management, LLC, an SEC Registered Investment Adviser, and provides research to institutional investors through Strategas Securities, LLC, a broker-dealer and FINRA member firm and an SEC Registered Investment Adviser. Information regarding market or economic trends, or the factors influencing historical or future performance, reflects the opinions of management as of the date of this communication, and are subject to change. This communication is provided for informational purposes only and should not be construed as an offer, recommendation, nor solicitation to buy or sell any specific security, strategy, or investment product. The information contained herein has been obtained from sources we believe to be reliable, but no guarantee of accuracy can be made. This communication does not constitute, nor should it be regarded as, investment research or a research report or securities recommendation and it does not provide information reasonably sufficient upon which to base an investment decision. This is not a complete analysis of every material fact regarding any company, industry, or security. Additional analysis would be required to make an investment decision. This communication is not based on the investment objectives, strategies, goals, financial circumstances, needs or risk tolerance of any particular client and is not presented as suitable to any other particular client. Past performance does not guarantee future results. All investments carry some level of risk, including loss of principal.

Strategas Asset Management, LLC and Strategas Securities, LLC are affiliated with Robert W. Baird & Co. Incorporated ("Baird"), a broker-dealer and FINRA member firm, and an SEC Registered Investment Adviser, although the firms conduct separate and distinct businesses.