Skip to Content
2025 Year in Review: Key Insights for Investors Heading Into 2026
It’s been a tumultuous year for investors. While the stock market is up overall, we’ve seen some major events in 2025 that have left many investors facing substantial losses. As the year comes to a close, 2026 is shaping up to be a tumultuous year as well, and it will be important for investors to try to make sure they are as prepared as possible. This includes being prepared to hire an investment fraud lawyer if necessary.
We publish numerous articles on our blog each year, and investment fraud lawyer Jake Zamansky publishes many articles on other platforms as well. Here is a look back at some of the key insights our lawyers shared throughout the year that investors can (and should) carry with them into 2026:
Overconcentrating Investors’ Portfolios in AI Stocks is Not Sound Investment Guidance
While 2025 will be remembered for many reasons, one of its most enduring legacies is likely to be the widespread acceptance of artificial intelligence (AI). All of a sudden, what was once science fiction is now a routine part of our everyday lives.
With the widespread adoption of AI, many AI stocks have performed extremely well this year. Companies like Nvidia and Palantir have led the way, while smaller companies like BigBear.AI have outperformed their expectations by significant margins. However, as we head into 2026, it already looks like the AI stock bubble may be on the verge of bursting.
Despite the promise that AI stocks showed for much of the year, overconcentrating investors’ portfolios in these stocks is not sound investment guidance. If the bubble bursts, investors whose portfolios are overconcentrated could face substantial losses. Although these investors may not be able to recover their losses in the stock market, they may be able to recover their losses by filing claims for fraud. Learn more:
Easterly Fund Collapse Illustrates Risks of Relying on Brokerage Firms for Investment Advice
To see what happens when an investor’s portfolio is overconcentrated, we can look at another of 2025’s major investment-related developments: the collapse of the Easterly ROCMuni High Income Municipal Bond Fund (Easterly Fund) in June.
The Easterly Fund was pitched as a municipal bond fund that was a safe long-term investment for aging investors. In reality, it was a complex structured investment product that entailed far more risk than a traditional municipal bond fund.
This became evident when the fund collapsed.
On June 11 shares of the Easterly Fund were worth $6.31. On June 17, they were worth $3.10. At the end of 2025, they are worth just over $2 per share, with virtually no hope of recovering their value. For an overview of what went wrong and what investors can (and should) do in the aftermath, you can read:
Yieldstreet Collapse Serves as Yet Another Cautionary Tale for Retail Investors
The Yieldstreet collapse in August of this year provides yet another example of what can go wrong when businesses overpromise and underdeliver. Yieldstreet (which has since rebranded as Willow Wealth) promised retail investors the opportunity to “invest like the 1%” in real estate.
However, not only were Yieldstreet’s promises overly optimistic, but the company also appears to have misrepresented the risks of investing. As interest rates rose and loan defaults crushed the value of the company’s portfolio, many investors suddenly found themselves with little choice but to take legal action. Learn more: Zamansky LLC Seeks Yieldstreet Investors.
As Private Equity Goes Mainstream, So Do Its Risks
Private equity is becoming an increasingly popular option among equity investors. While private equity was once the exclusive domain of high-net-worth and institutional investors, various platforms have opened up private equity investing to the general public.
But, as private equity has gone mainstream in 2025, so have its risks.
These risks—which often aren’t clearly disclosed—can leave unsophisticated investors facing substantial losses. Yet, since these investments typically offer high fees to brokers who promote them, many investors are being encouraged to invest against their best interests. If you are thinking about investing in private equity in 2026 (or if you lost money in private equity in 2025), we strongly encourage you to read: Private Equity Loss Attorney Jake Zamansky is Here to Help Retail Investors.
What Investors Need to Know About Their Legal Rights After a Margin “Blowout”
The Trump Administration declared April 2, 2025 as “Liberation Day.” This is when the administration first imposed sweeping tariffs on products from countries around the globe, which caused the Dow Jones Industrial Average to fall by almost 2,000 points in just a few days. When this happened, many brokerage firms issued margin calls—which led to what is commonly referred to as a margin “blowout.”
While brokerage firms have a fiduciary duty to prioritize their clients’ interests, many do not put their clients’ interests first—at least not all of the time. When this happens, their clients can pay the price, and their clients can find themselves needing to take legal action. Learn more: Investment Fraud Attorney Jake Zamansky Discusses an Investor’s Rights in a Margin “Blowout”.
What Investors Need to Know About Taking Legal Action for Fraud
Ultimately, investors who have been misled into any type of high-risk investment can—and should—talk to an investment fraud lawyer about taking legal action. Brokerage firms, advisory firms, securities issuers and other parties can all be held accountable for fraud—and hiring a lawyer is the first step in the process of seeking accountability. If you need to know more about taking legal action as a defrauded investor in 2026, we strongly encourage you to read: Misled Into a High-Risk Investment? Here’s What You Need to Know.
Request a Free and Confidential Consultation with an Investment Fraud Lawyer at Zamansky LLC
Do you have grounds to file a claim for investment fraud in 2026? If you have questions about your legal rights, we invite you to get in touch. To request a free and confidential consultation with an investment fraud lawyer at Zamansky LLC, give us a call at 212-742-1414 or tell us how we can reach you online today.