Message From the President: Summer 2025
After several years of mostly smooth, quiet market growth, this spring saw a return of rather jagged, loud volatility. Predicting the next turn in the global economy has rarely been more challenging. In today’s environment, marked by persistent inflation, fluctuating interest rates, and ongoing geopolitical tensions, it’s reasonable to ask: Where do we stand?
At Affiance, the answer is: We are not bullish. We are not bearish. We are process.
Simply put, the term volatility refers to how quickly and unpredictably the markets rise and fall. In times of market volatility, it’s natural to feel uneasy, especially when the media often amplifies fear around every market movement. While we can’t control the markets, or the level of volatility, we can control how we respond. By focusing on what’s within our influence, we build the flexibility needed to adapt to what isn’t. This principle has guided our investment committee since its inception.
But what does it mean to be “process”? It means we commit to a disciplined, structured investment strategy, one that avoids reacting to headlines and prioritizes long-term results over short-term emotions. Sudden swings in sentiment can cause investors to make reactive, and often costly, decisions. That’s why we follow a clearly defined process designed to limit behavioral biases and provide a steady hand during uncertainty.
A key part of this discipline is our Market Dislocation Plan. In challenging markets, this plan helps us act strategically instead of emotionally. By setting pre-determined thresholds for analysis and action, we’re able to evaluate when to make a change, and when to avoid unnecessary action. In this way, our process not only informs how we make investment decisions, but just as critically, when we make them.
As we move through 2025, we believe one of the biggest risks isn’t inaction, it’s overreaction. Overtrading, especially when driven by fear, can erode potential long-term returns. And if you're tempted to get out of the market, remember you need to make two correct decisions, when to sell and when to buy back in. That’s why our process is built to keep decisions intentional, measured, and aligned with your goals.
If you’d like to learn more about how this approach works, we encourage you to visit the Investment Planning page on our website.
What does this mean for you? The economic landscape will continue to change, and volatility will persist, though we can’t say to what degree. Regardless our focus remains the same: protecting and growing your wealth through every market environment by following our process.
Respectfully,
Eric Unger, Partner, President, Chief Compliance Officer
Affiance Financial only conducts business in states where it is properly registered or is excluded from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability.
All investment strategies have the potential for profit or loss. There are no assurances that a client’s portfolio will match or exceed any particular benchmark. Different types of investments involve varying degrees of risk. Past performance and detailed processes do not guarantee future results. Please remember to contact Affiance Financial if there are any changes in your personal/financial situation or investment objectives.
