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Investing in Stocks May Be Riskier Than You Think

Investing in Stocks May Be Risky: Alerts Warn Against High-Risk, High-Yield Investments, Though Investors Are Anxious to Grow Retirement Nest Eggs Quickly

The ups and downs of the stock market can make any investor weary, but regulators continue to warn against taking extraordinary risks to recover losses. Stockbrokers and other financial professionals have a duty to ensure that recommendations are suitable based on the needs and goals of their clients. Making investment recommendations in high-risk, high-yield investment products is likely not suitable for the average investor. 

At Meyer Wilson, we represent investors who have sustained losses due to investment fraud or stockbroker misconduct. Understandably market fluctuations over the past few years have many investors wanting to recoup their losses, but it is still important to take a sound approach to investment based on your risk tolerance and individual situation.

If you sustained losses due to a broker’s unsuitable investment recommendations, contact our office at (614) 532-4576 to schedule a free case evaluation. 

Warnings Against High-Risk, High-Yield Investment Products

As regulators have already noted in several investor alerts warning against high-risk, high-yield investment products, many of today’s investors are becoming increasingly anxious to grow their retirement nest eggs quickly in order to make up for the previous years’ losses. 

But, the need to obtain fast returns often leads to risky investing choices, more losses, and sometimes even investment fraud. Investing primarily in stocks is one such risky investment choice, warns a Wall Street Journal article

No Need to Gamble

“Despite the assurances of the financial industry, stocks are always a risky investment, and the longer you hold them, the better your chances of getting blindsided by a downturn,” wrote Drs. Bodie and Taqqu in the article. “The usual way of mitigating that risk, diversification, holds no guarantees, either—for the simple reason that investments don't always move the way we want in relation to one another.” 

According to the article, stocks are risky for many reasons, including the regular occurrence of bear markets, and the (relatively new) tendency of many different markets to fluctuate together rather than in counterpoint. Want a safer way to grow your investments? “First, forget the idea of ‘catching up,’' advises Dr. Bodie and Taqqu. You need to “create an investment plan that guarantees the basics with inflation-protected, safe investments.” To learn more, read the full article here.

Investment Fraud and Stockbroker Misconduct

In many cases, investors will turn to a financial professional to help develop a sound investment strategy. Brokers and other investment professionals have a duty to act in your best interest, ensuring that the investments they recommend are suitable based on your situation, assets, income, and risk tolerance. Failure to do so may result in catastrophic losses. 

Hiring an Experienced Attorney

If you have suffered losses due to a broker’s unsuitable investment recommendations, you might be entitled to recovery through arbitration or litigation. Contact our office at (614) 532-4576 to schedule a free case evaluation. Let us help you determine the best course of action to recover your losses. 

At Meyer Wilson, we handle cases on a contingency fee basis, meaning there are no fees unless we recover money on your behalf. We proudly serve clients nationwide. Call now to get started. 

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

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