In the midst of the world-wide COVID – 19 pandemic, investors are beginning to realize the repercussions of our current situation not only impact (most importantly) the health and safety of their loved ones, but also their financial welfare and security. As markets become more and more volatile, many are likely noticing they are suffering losses in the financial marketplace, and in some instances, catastrophic losses. It is more important than ever for investors to review their financial plans and their portfolios in order to determine whether such losses were avoidable and are the result of negligence or misconduct by their financial professional.

Of course, not all losses are the result of misconduct. When markets suffer disruption, losses can occur regardless of whether your financial professional has provided you with appropriate advice and recommendations. But importantly, those market losses may have been exacerbated by your financial professional’s failure to properly advise you with regard to your investments. You should ask yourself the following questions:

  • Is my portfolio well-balanced? Am I over-concentrated in a single sector of the market (e., oil or healthcare companies)?
  • Does my portfolio match my risk tolerance?
  • Does my portfolio contain a large position in alternative or illiquid investments?
  • Does my portfolio contain expensive and unsuitable annuity products?
  • Does my advisor respond to my questions or concerns regarding the recent volatility and my investment losses?

It is not always clear whether your losses were “market losses” or if you were the victim of investment fraud or advisor misconduct, especially in volatile markets. It may be helpful for you to seek out a qualified securities attorney to review your account to determine whether you were victimized by advisor misconduct.

Robert E. Linkin is a partner in Munck Wilson Mandala’s litigation practice.  Rob represents clients in complex litigation, securities litigation, and class action lawsuits. He brings more than 24 years of legal experience advising clients in business disputes, financial reporting, and commercial litigation.