The stock market goes up and it goes down. It can be very painful when it goes down like this market has, but it IS what markets do. Most investment advisors in this country will have suitably (appropriately) positioned their clients’ portfolios, taking into consideration such things as the client’s age and financial circumstances, assets (retirement accounts, other investments), whether the client is retired or working, and the client’s yearly earnings. If your adviser did this, then the advisor and his or her firm have acted properly
and appropriately, and you simply need to weather through this storm.
Some brokers, however, do NOT suitably position their clients’ investments. It IS unsuitable for brokers to position the investment portfolios of older individuals in risky investments, particularly those who are retired and/or unable to work and count on their investments to sustain them. Those individuals should not be seeing their investment accounts going down at the same rate as the overall market notwithstanding anything the broker says.
There are a lot of variables to consider when assessing whether an investment portfolio was unsuitable. For example, strong, proven,
good dividend-paying companies are entirely appropriate for many portfolios of older investors, and yet many of those companies’ stocks have gone down dramatically with this Bear market.
A good example is Exxon Oil Company. Exxon is one of the strongest oil companies in the world, and Exxon stock has been held by thousands and thousands of mutual funds and retirement
accounts for decades. Exxon stock has been particularly hard hit by the double whammy of the sharp decrease in oil prices (thanks in part to the gamesmanship between Russia and Saudi Arabia) and COVID-19. But Exxon, like many of the other strong dividend-paying companies, will likely continue to pay the same dividend and will recover.
Things to look out for in your investment portfolio
We need to emphasize that the vast majority of advisers position their clients’ investment portfolios suitably and appropriately. Therefore, for the vast majority of investors, this dramatic decline in the market is simply something that happens from time to time.
If, however, you are concerned that something is not appropriate about your investments, we will examine your portfolio for you at no charge.
When financial loss hits, every day without legal counsel costs you more. Veach Law PLLC has been fighting for investors since 1983, recovering losses caused by securities fraud, broker misconduct, and investment disputes. Reach out to our attorney’s office today.
After uncovering research misconduct within my organization that tied directly to investor harm, I needed an attorney who understood the legal and scientific sides of the issue. Attorneys at Veach Law PLLC handled everything with professionalism.
I discovered that critical information about my portfolio had not been accurately represented to me for years. Tucker Veach, Attorney, and his team investigated the fraud case thoroughly and secured a result I didn’t think was possible.
Veach Law PLLC took on my broker misconduct case when no one else would. Tucker Veach understood the financial loss I had suffered and fought hard through FINRA arbitration to recover what I was owed. I finally felt like someone was in my corner.
Dealing with a broker who falsified data or a situation involving the manipulation of research materials? You deserve clear answers. Reach out to Tucker Veach Attorney for a direct conversation about your rights and your options for recovery.
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A: The four main types are debt securities, derivative securities, equity securities, and hybrid securities.
A: The seven common types are insurance fraud, securities fraud, tax fraud, identity theft, wire fraud, mortgage fraud, and research fraud.
A: Brokers are held to a professional standard. If a mistake results in financial loss, the broker or their firm may be held liable through legal action or FINRA arbitration.
