The simple answer is YES, you can sue your financial advisor!
Investment advisors owe a fiduciary duty to their clients to act in the client’s best interests. When an investor is “over concentrated” in one or too few investments (like stock or just a few investments), or in just one industry or sector (like too many oil-related stocks), or stuck in one or more illiquid investments (like limited partnerships, private placements, and promissory notes), it puts them at great risk for large losses. Investors should aim to have a diversified portfolio, where assets do not correlate with each other. When the value of one rises, the value of the other falls. It lowers overall risk because, no matter what the economy does, some asset classes will benefit. The overall risk is also reduced because it is rare that the entire portfolio would be wiped out by a single governmental, social or political issue. A diversified portfolio is your best defense against a financial crisis.
If you have lost significant funds in your investment account due to an over-concentration in oil or energy stocks, you may be able to sue your financial advisor. We encourage you to contact our office for a free consultation to see if you have a viable claim. I have dedicated my career to helping individuals who have experienced significant investment losses and have been taken advantage of by their financial advisors. Since the laws and regulations that apply to financial advisors are complex, we always recommend consulting with an experienced lawyer if you are unsure as to whether you are a victim of misconduct or fraud. If you would like to talk to an attorney about suing your financial advisor, losses you have incurred, or any other concerns you may have, please contact us for a free consultation.