Virus Crisis and Portfolio Losses

The advent of the novel Coronavirus has distressed commerce and led to steep declines across most asset classes.  The challenge for investors and their attorneys will be to distinguish between 1) unavoidable losses, and 2) losses caused by malfeasance or negligence.  In other words, all losses are not attributable to misconduct but some losses are, and some even reveal previously hidden skeletons.

A diversified portfolio can serve to insulate against a portion of the impact of losses in certain markets.  This, of course, does not mean that a reasonably diversified portfolio can shield the investor from all losses in exceptional market chaos and decline.  As such, it is critical to review your holdings and inquire of your advisor if you have any concerns about the performance of your investments.  You may also seek out the input of legal counsel experienced in such matters.  Cosgrove Law Group, LLC has been representing both investors and advisors for over a decade.  Some of us are former securities regulators.  We often employ outside experts to evaluate potential cases.  This is a critical first step as the filing of a meritless claim is of no benefit to anyone.  Food for thought.