Are You Really Diversified?
Updated: Sep 3
Using Lloyd Financial Group as a Diversifier in a DIY Portfolio
If you’re a do-it-yourself investor, you likely take pride in building your own portfolio—allocating across equities, bonds, ETFs, and maybe even alternatives. But one of the most overlooked risks in DIY investing isn’t stock selection—it’s correlation.
Many self-directed portfolios, even when they appear diversified on the surface, are still heavily tied to the same underlying driver: the S&P 500. Whether it’s large-cap growth stocks, index funds, or even sector ETFs, the reality is that when the market moves, most portfolios move with it.
That’s where a firm like Lloyd Financial Group can play a unique role.
The Problem: “Diversified” But Still Correlated
It’s common to see portfolios that hold:
S&P 500 index funds
A few individual tech names
Maybe some dividend stocks
On paper, that looks diversified. In reality, it’s often just different expressions of the same bet—U.S. large-cap equities. When volatility hits or the market corrects, everything tends to move together.
True diversification isn’t just about holding more positions—it’s about holding different return drivers.
The Opportunity: Non-Correlated Exposure
Lloyd Financial Group offers something most DIY investors don’t have access to on their own: an actively managed stock strategy that is designed to be non-correlated to the S&P 500.
That matters for a few reasons:
Risk Reduction: When markets are under pressure, non-correlated strategies can help smooth portfolio volatility.
Return Enhancement: You’re adding a different source of potential returns—not just doubling down on the same exposure.
Behavioral Advantage: A portfolio that doesn’t fully swing with the market can help investors stay disciplined during downturns.
In other words, instead of trying to outguess the market with more of the same tools, you’re introducing a different playbook altogether.
Active Management Where It Counts
DIY investors often lean heavily on passive strategies—and for good reason. They’re low-cost, transparent, and effective over time.
But passive investing has one built-in limitation: it can’t adapt.
An actively managed strategy, when done right, can:
Adjust to changing market conditions
Identify opportunities outside of crowded trades
Manage risk dynamically rather than riding the full cycle
Lloyd Financial Group’s approach is built around that flexibility—seeking opportunities that don’t simply mirror index performance, but instead operate independently of it.
How It Fits Into Your Portfolio
Think of Lloyd Financial Group not as a replacement for your DIY strategy—but as a complement.
A simple framework:
Keep your core holdings (index funds, long-term positions)
Add Lloyd Financial Group as a satellite allocation
Use it specifically to introduce non-correlated exposure
This is how institutional portfolios are often built—combining passive beta with active, differentiated strategies.
Being a DIY investor doesn’t mean you have to do everything yourself. In fact, the best portfolios often blend independence with strategic partnerships.
If your portfolio is heavily tied to the direction of the S&P 500, adding a non-correlated, actively managed strategy like Lloyd Financial Group can help:
Reduce overall portfolio risk
Create more consistent return potential
Strengthen your long-term investment discipline
Because at the end of the day, real diversification isn’t about owning more—it’s about owning different.
Don’t leave your financial future up to chance. Let’s build a plan that gives you confidence today and peace of mind for tomorrow. Click here to schedule a meeting — I’m here to help you take the next step toward financial freedom.
Colin Symons, CIO Lloyd Financial Group
I admit I hardly ever take the time to watch car racing, but I appreciate the technique. The basic idea is the same every time-- get through a corner quickly and with a route that has you exiting at a good speed. However, every corner is a bit different and even the same corner changes with conditions, such as the grip of your tires.
I think there are similarities to investing. Instead of speed, we’re maximizing money. What are the conditions like, right now? I’ve been relatively aggressive in the last month or so, which I think has been demonstrably correct, as we hit all-time highs. With the latest bump in the Hormuz road, is this something else to ignore?
That may not be as simple a question as you may expect. I think that’s largely a question of how your portfolio is positioned and how much pain you want to risk. For the sake of simplicity, let’s assume my basic idea that we’re facing a future of improved liquidity and decent growth is correct. Further, let’s say you’re going to get wobbles, such as this latest trouble in the Straits of Hormuz. What do you do with that?
The basic idea is to finish first, probably with an eye towards risk. Could you just invest very aggressively and treat this like a drag race? You stand a good chance of blowing up and not finishing. What’s the risk here? We’re seeing continued trouble, and for the first time, stocks are broadly overbought and investors aren’t so hedged for downside. That really opens up the risks.
So, I think we could actually get a decline, here. Still, I’m not expecting anything huge. Dips are buyable until we see fundamental issues. However, a 2-3% decline could get bears all excited and hedged, again, sowing the seeds for more upside.
Given the long-term still looks healthy, at least for now, should we care? That’s a time horizon and positioning question. Can you tolerate a 3% decline or is that going to cause you more distress? Assuming a decline is what happens, is there anything you don’t want to be carrying as we exit the turn and get back to making money?
For our part, the latter half of that is our focus. We have some stocks that are aggressively priced or disappointing, and we’re unloading them as we hit this risk point and the stock market still looks pretty solid. Again, though, we want to exit this corner at speed, so that doesn’t have to mean we’re selling big winners. If we think a stock has more upside, we’re likely to keep it. We’re longer-term holders, not swing traders.
Ultimately, the goal is to maximize risk-adjusted returns. Corners, or changes in the market, can allow opportunities to readjust your portfolio to better get in line with that end goal. Done right, that can really help your portfolio over time. Since we just took these actions this morning, I’m reluctant to mention specific names, today. I’ll likely talk about them on Wednesday.
There’s conflicting news on the time of and participation in potential Iran talks, tomorrow. Trump said there will be no more extensions.
BOJ said they were leaning on holding rates steady for April but expect the next move is likely to be a hike.
AMZN shares were up 3% after announcing a deal with AI company Anthropic to invest in them in exchange for AWS use.
AAPL is down marginally after Tim Cook stepped down as CEO, while they hunt for their next hit product.
United Health (UNH) was up 6% after beating estimates and raising guidance.
Warsh’s confirmation hearing for Fed Chair is supposed to be today.
We also have Retail Sales, ADP Employment, and Pending Home sales, today.
What does it all mean? Continued optimism over an Iran deal is lifting markets.
Don’t leave your financial future up to chance. Let’s build a plan that gives you confidence today and peace of mind for tomorrow. Click here to schedule a meeting — I’m here to help you take the next step toward financial freedom.
Disclosures/Regulation:
This content is intended to provide general information about Lloyd Financial. It is not intended to offer or deliver investment advice in any way. Information regarding investment services are provided solely to gain an understanding of our investment philosophy, our strategies and to be able to contact us for further information.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.
Past performance is no guarantee of future returns.
Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable
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