For most of us, our retirement accounts suffered substantial losses with the advent of the Coronavirus pandemic. Should we blame our financial advisers for those losses? Probably not. But some portfolios did, however, suffer inappropriately excessive losses due to unsuitable asset allocations. For example, if you are retired, your portfolio should be allocated to weather almost any substantial economic downturn, whether caused by a cyclical downturn, an event like 9-11, a pandemic, a war, or any of the other myriad of causes for economic crises.
Of course, even the most suitable portfolio will suffer losses in the face of something like a pandemic. But if, for example, you are 70 years old and were in 100% equities with limited sector diversification--you might have a claim to recoup at least some of your losses. Nobody should have had most of their nest egg invested in American Airlines Group stock!
A recent article in Financial Adviser Magazine predicted a surge in FINRA arbitration filings by investors. The article noted that claims doubled after the 2008 market crash. Attorneys quoted in the article predicted increases in claims related to oil and gas investments as well as real estate investment trusts. Both have taken a heavy hit during the pandemic for obvious reasons.
The attorneys at Cosgrove Law Group represent financial advisers as well as aggrieved investors. If you suffered substantial losses and you are above the age of 60, feel free to give us a call and we will evaluate your situation. Likewise, if you are a financial adviser falsely accused of malfeasance, we have experience successfully defending against unfair claims as well.