Note: This market review was published on February 28th, 2020 and may not be reflective of current market or investing issues.
In his brief essay yesterday, Woody Brock, one of our research partners, wrote that the Coronavirus is truly an “unknowable unknown”. And while we are all sympathetic to those who have died, or are sick and possibly stranded, the stock market around the world can be brutal when there is not enough information to make an informed decision.
Longview, as investment advisors, has the same access to information as any other investors around the world. So far, this information has been vague and inconclusive. Global markets have corrected this past week faster than at time in the history of the S & P. We, along with most other investors, have watched as the situation went from a local Chinese problem to a global panic.
We have been tracking the downturn since last Friday, February 21, and aggregate portfolio losses have been about half of the market losses. Many of you will remember our philosophy of “grow and protect” and we feel the “protect” mode is prudent now. Many investors are attuned to buying the dips, but as in late 2008, when you don’t know where the floor is, we would rather wait. Your capital and ours is too hard earned to be anything but prudent. You will see in your portfolios where we, as we understood the unfolding gravity of this global panic, have exchanged “growth” assets for “protect” assets. It is our opinion that a resolution to this situation will not be quick, but could take months or longer, not only longer to overcome the virus, but to also re-establish global trade.
We are never happy to add additional turmoil to your lives by changing investments within your portfolios, but taking a lesson from 2008, we feel it prudent to do so. As always, thank you for your confidence in our abilities. Please don’t hesitate to contact us with questions.
Longview Financial Advisors, Inc.’s Investment Team
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.