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With Wild Swings, Stocks Have their Worst December Since the Great Depression

In a volatile market, is your portfolio too risky?

As the bell rang to close the New York Stock Exchange (NYSE) on the afternoon of December 31st, a difficult month for stocks finally came to an end. As reported by The Street, this was the worst December for American stocks since 1931 — during the height of the Great Depression the Dow Jones Industrial Average was down 9.7 percent in December — wiping out more than a year’s worth of gains.

Beyond being a rough month for stocks, December had wild swings. Indeed, the Dow soared 1050 points on December 26th — marking the  single largest point gain in the entire 122-year history of the exchange. Market volatility is way up; and that is troubling news for investors who are looking for safe, secure growth in their portfolio. At this time, it is imperative that investors make sure that their brokerage account is suitable for their individual needs.

Are You Worried About Stock Market Volatility? A Securities Attorney Can Review Your Accounts 

Financial advisors have a professional duty to “know their customer” (FINRA Rule 2090) and to recommend suitable investments to their clients (FINRA Rule 2111). For investors who are looking to build a nest egg, adjustments must be made to accounts for increased volatility. A well-structured portfolio that is truly suitable for an investor’s financial goals and their personal risk tolerance will be able to ride out even the stock market’s most volatile months.

Yet, unfortunately, too many stockbrokers and financial advisors fail to protect their clients against market volatility. Whether it is the over-concentration of investments (failure to diversify) or simply taking on too much risk, broker negligence can cause serious damage to investors. All investors need protection against difficult market conditions. 

If you sustained major investment losses in this year’s highly volatile stock market, you may be entitled to financial compensation for your losses through a securities fraud or broker negligence claim. To be clear, you cannot bring a claim simply because you lost money. All investors must accept that there is some inherent risk in owning stocks.

However, if you sustained losses because your broker recommended unsuitable investments — including investments that were too risky for your personal financial goals and risk profile — then you may have a viable legal claim. You should consult with a lawyer who can help you assess if you have a case. An experienced securities lawyer can conduct a comprehensive review of your brokerage accounts, explain your legal rights and options to you, and help you pursue any available remedies. 

Get Help From Our Florida Securities Lawyer Today 

At the office of Gregory Tendrich, P.A., we have extensive experience representing investors in unsuitable investment claims and other securities losses claims. If you sustained significant losses as a result of the recent market volatility, please do not hesitate to contact us for a free, fully confidential initial consultation. From our office in Boca Raton, we represent investors throughout South Florida, including in Miami, West Palm Beach, Fort Lauderdale, and Hialeah.

Resources:

thestreet.com/markets/stocks-rise-monday-on-hopes-for-united-states-and-china-trade-talks-14821901

finra.org/industry/faq-finra-rule-2111-suitability-faq

washingtonpost.com/business/economy/us-stocks-volatile-as-markets-try-to-recover-from-christmas-eve-freefall/2018/12/26/29f8905e-0928-11e9-85b6-41c0fe0c5b8f_story.html?utm_term=.19f5873b1979

Gregory Tendrich, PA
Gregory Tendrich, P.A. serves clients throughout Florida, including the cities of West Palm Beach, Palm Beach, Delray Beach, Boynton Beach, Boca Raton, Port St. Lucie, Lake Worth, Wellington, Riviera Beach, Palm Beach Gardens, Fort Pierce, Vero Beach, Hobe Sound, Jupiter Island, North Palm Beach, Lake Park, Lantana, Stuart, Palm City, Jensen Beach, Tequesta and Juno Beach and represents clients in Palm Beach County, Martin County, St. Lucie County, Indian River County and throughout Florida.

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