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.
