Category: News

Market Commentary

Note: This market review was published on May 24th, 2022 and may not be reflective of current market or investing issues.

“A genius is the man who can do the average thing when everyone else around him is losing his mind.”

~ Napoleon

The news around the economy and markets is getting pretty loud these days. I thought it would be appropriate to look at some facts and practical advice on how to make wise decisions in uncertain times. Let’s first analyze the current situation. Inflation is high. Labor is tight. GDP growth is slowing or has slowed. The Federal Reserve is tightening policy. The US stock market is in a correction (down 10%+) or bear market (down 20%+). The bond market, which is supposed to be safe, has been down more than 10% this year. Housing is slowing. These are leading to more and more headlines on the subject of bear markets and recessions. All of these headlines evoke feelings and emotions that can lead investors to make the wrong decisions at the wrong time. A friend of mine likes to say, “Don’t panic, but if you do, panic first.”  The great Peter Lynch said this, “Corrections are unpredictable. By selling stocks to avoid pain, you can miss the next gain.”  The thing to remember is that corrections and bear markets are natural and not to be feared.

Let’s look at some facts on bear markets. On average, the stock market during a bear market drops 36%, lasts less than 10 months, and happens about every four years.[1]  In other words, they happen fairly frequently and are over relatively quickly. That begs the question, why don’t you exit positions and enter back when the coast is clear? To answer that, let’s look at up days during bear markets. Half of the highest gaining days for the stock market have happened during bear markets. Another 34% of the highest gaining days happened just as the bear market has ended when it’s unclear that it has ended. In other words, it’s extremely difficult to predict these things because there are massive up days, and it’s unclear when they end. One of my investing heroes, Cliff Asness of AQR, had a paper at his firm titled Sin A Little.[2]  In it he describes that you can’t time the market, but if you have a diversified portfolio and see an opportunity to lean into a situation that makes sense to either underweight or overweight holdings, it can help. This is a practical way to help weather turbulent markets.

So, what are some other practical ways to make lemonade when the markets are handing out lemons?

  • Diversification. Having a portfolio that can benefit in different environments and circumstances can help calm fears in a hurry.
  • Tax-loss harvesting. If you have an investment portfolio that is in a taxable account, selling holdings at losses can help with taxes at the end of the year. Rotating those holdings into similar positions can keep your portfolio exposures the same but benefit from those realized losses. It also helps to not anchor to the losses if they are sold.
  • Accelerate investment. If the market gives you a discount and you can afford accelerating your retirement or investment savings, it can pay off down the road. When shopping for a car and you have been seeing prices going up year in and year out and all of a sudden you that same car you want is selling 20% lower, you buy it. The same thing happens in bear markets and corrections.
  • Rebalance. If you are holding a diversified portfolio, you are going to have holdings that are down and some that are up. It makes sense to sell the things that are up and buy the things that are down.
  • Dollar-Cost Average. Dollar-cost averaging is simply buying investments over time. Regular contributions to your investments allow you to take the opportunity to buy over time at potentially lower rates.
  • Limit Distributions. Taking distributions from your accounts as the market is decreasing means there is less available for the recovery. When possible, we recommend limited distributions during a bear market.
  • Stay the course. As indicated above, staying the course can lead to higher returns long- term. The highest gaining days usually occur in a bear market and sharp gains can happen quickly.

Remember, when all you see is negativity that there are some proactive steps that can be taken. Negative returns will come and that is a great time to position for success in the future. Capitalism exists to provide efficient use of resources, and when there become excesses in the system, recessions and bear markets come to correct those misuses. These things can be painful, but they can also lay the foundation for future growth.


[1] https://www.hartfordfunds.com/practice-management/client-conversations/bear-markets.html

[2] https://www.aqr.com/Insights/Research/White-Papers/Market-Timing-Sin-a-Little

Disclosure: Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by  Longview Financial Advisors, Inc.), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Longview Financial Advisors, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing.  Longview Financial Advisors, Inc. is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of the Longview Financial Advisors, Inc.’s current written disclosure statement discussing our advisory services and fees is available upon request.

Meet Nicole Gardner, Longview’s Newest Team Member

We would like to take the opportunity to introduce you to our newest team member, Nicole Gardner. Nicole joined Longview in October.

As many of you are aware, Debbie is retiring at the end of the year. Debbie has played an integral role in the success of Longview since 2008. Over her time at Longview, she has worn multiple hats, serving as an administrative assistant, client service associate, office manager, and now, trainer to Nicole. We are so grateful for Debbie and will miss her dearly. Longview wouldn’t be where we are today without her. We wish her the best in her retirement.

We are looking forward to you all meeting Nicole. We are certain you will enjoy her outgoing personality and wonderful Aussie accent as much as we do!

Andrew Gipner Honored with Jack Davis Award

The University of Alabama College of Human Environmental Sciences (CHES) presented the annual Jack Davis Professional Achievement Awards during homecoming activities on campus.

The Jack Davis awards are presented to outstanding CHES alumni for their professional accomplishments. The awards have been given out since 1986, and are named to honor the first man to graduate from the College, Dr. Lewis Clifton “Jack” Davis, Jr.

Longview’s Andrew Gipner was selected as a 2021 award recipient.

Congratulations, Andrew!

Longview Nominated for Huntsville/Madison County Chamber Small Business Award

For over 30 years the Huntsville/Madison County Chamber has been supporting and recognizing individuals and businesses that make a positive impact on our community through their products, services, and outstanding attributes. Their annual Small Business Awards Gala honors the best of the best small business entrepreneurs, young professionals, nonprofits, and executive leadership.

Longview Financial Advisors has been nominated for the Professional Services of the Year award for 2021. Longview was nominated in 2016 and won the award in 2017.

This year’s event will be held on Wednesday, Dec. 1 where the winners will be announced.

Jeff Jones Named NAPFA Chair-Elect

Press Release
August 2021
For Immediate Release

Longview Financial Advisors’ Jeff Jones Named NAPFA Chair-Elect

Huntsville, AL – Longview Financial Advisors is pleased to announce that Jeff Jones, Director of Financial Planning, has been named as the National Association of Personal Financial Advisors (NAPFA) Board of Directors Chair-Elect. During its most recent meeting, the NAPFA Board of Directors unanimously elected Jeff to serve as Chair-Elect for the 2021-2022 term. Jeff was named to the National Board in 2019 and has served as the organization’s Treasurer during the 2020-2021.

NAPFA is the country’s leading professional organization of Fee-Only financial advisors – highly trained professionals who are committed to working in the best interest of those they serve in a fiduciary manner. NAPFA has developed high standards in the field and each advisor signs and renews a Fiduciary Oath every year. The association provides support and education to practitioners all over the country and is governed by the NAPFA Board of Directors and four Region Boards.

Jeff has a long-history of service to NAPFA including his current role as Treasurer on the NAPFA Board, as well as time spent on the Finance Committee and Membership Committee. Before joining the National Board, he spent three years on the South Region Board as Symposium Chair, President, and Chair.

Jeff is a passionate advocate for NAPFA and its mission and says, “It’s my honor and privilege to be selected for this role and opportunity. There are so many big shoes to fill of those that served before me. I want to continue the great work of others while helping to steward the organization into the future.”

Lydia Shekels, NAPFA’s current Chair said, “I’m very excited that Jeff was elected as NAPFA’s Chair-elect. As Treasurer during a year in which the pandemic impacted our revenue from in-person conferences, Jeff has been a responsible steward of the organization’s finances as he guided the Finance Committee and Board in navigating this challenging year. I have enjoyed collaborating with Jeff since we first met and appreciate his sense of humor and numerous contributions to the association. I’ve been impressed by his passion and willingness to address challenges and embrace opportunities and look forward to his leadership as we approach NAPFA’s 40th anniversary in 2023.”

Longview congratulates Jeff for his leadership in the Fee-Only industry.

Wes Johnson Named as Longview’s New Chief Investment Office (CIO)

Press Release
July 2021
For Immediate Release

Longview Financial Advisors Selects New Chief Investment Officer

Longview Financial Advisors, Inc. is pleased to announce the appointment of Charles Wesley Johnson as its next Chief Investment Officer. Wes will take over the Chief Investment Officer role from Jeff Cedarholm on July 1, 2021.

Cedarholm, who is semi-retiring at year’s end, is excited about this transition.  “It’s hard to believe, but I met Wes Johnson at least 20 years ago, and at our first meeting, we discussed investing. Here we are years later and not only is he still intrigued, but has become a very good investor himself.  Wes earned his bachelor’s degree in economics from Jacksonville State, then earned a master’s degree in Family Financial Planning and Counseling from the University of Alabama. He has recently earned his CIMA® Designation (Chartered Investment Management Analyst®) from the Investment and Wealth Institute.  He has been working on our firm’s investment team since 2006. As his long-time colleague, I feel you will find Wes very knowledgeable and forthcoming about investing and also very caring of client and fellow employee needs.”

“I am honored and humbled to step in as the Chief Investment Officer” says Johnson. “Longview has high standards of education and transparency that I look forward to continuing.  I will continue to foster a collaborative environment focused on helping clients achieve their goals.  I am excited to be a part of Longview as we help people to live with fulfillment and give with purpose.  I truly cannot overstate how excited I am to be chosen to serve in this role” he continued.

Longview Financial Advisors is a financial planning and wealth management firm which specializes in tax, estate, and retirement planning along with philanthropic giving. For more information about Charles Wesley Johnson and the team at Longview Financial Advisors visit https://longviewfa.com/.

What Does Fiduciary Mean to Us?

A fiduciary standard, when applied to a financial advisor, says the advisor has a legal duty to act in good faith and trust, placing your best interest above that of the advisor or their firm. The advisor is ethically and legally bound to act in this manner.

At Longview, we aren’t just fiduciary by law; we’re fiduciary by choice. All of our advisors sign a fiduciary oath to put your interest before our own.

Recently, several of our team members talked about what being a fiduciary means to them. Check out the videos below to hear what they had to say.


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