Midyear Update: Staying the Course in a World of Uncertainty

Staying the Course in a World of Uncertainty

As we move through 2025, investors continue to face a mix of global challenges—from trade tensions and fiscal concerns to rising geopolitical risks. Yet, despite the noise, markets have shown resilience, and there are important lessons for long-term investors.

🌍 Global Events, Local Impact

Recent events, including a surprise escalation in the Middle East, have added to investor anxiety. Historically, markets tend to dip after geopolitical shocks but often recover within weeks and post gains over the following year. This pattern reminds us that reacting emotionally to short-term news can be costly.

📊 What the Data Says

According to a recent global survey of professional investors, most now expect a “soft landing” for the global economy—an improvement from earlier in the year when recession fears were more widespread. International equities have outperformed U.S. markets so far in 2025, though this trend may need stronger earnings support to continue.

🛡️ Diversification and Discipline

While sectors like energy and defense have seen short-term gains due to global tensions, these moves can be difficult to time. A more reliable strategy is to maintain a diversified portfolio across stocks, bonds, and alternative assets. Alternatives have gained attention as a long-term diversifier with a low correlation to traditional markets to help achieve better risk adjusted returns.

💼 How the Wealthy Are Investing

A recent UBS report on global family offices—those managing wealth for ultra-high-net-worth families—shows a clear trend: despite concerns about trade wars, recessions, and debt, these investors are staying focused on long-term goals. Many are increasing their exposure to alternatives, but always within a disciplined, strategic framework.

🧭 Your Financial Plan Is Your Foundation

In times of uncertainty, it’s natural to feel the urge to make changes. But history shows that staying invested and sticking to a well-crafted financial plan is one of the most effective ways to build and preserve wealth. Your plan is designed to weather both calm and stormy markets—because it’s built around your goals. Your plan should be built for the next decade, not the next news cycle.

If you have questions or want to revisit your strategy, we are here to help. But remember: the best response to short-term noise is long-term discipline.

Sincerely,

Brett Simpson, BComm CFP® CLU CIM® ChFC RHU
Financial Advisor, Portfolio Manager & Chairman

Jon Knutson, BA, DipIT (Fin Mgt), CFP® CIM®
Financial Advisor and Portfolio Manager

Shaun Sun, BComm CFP® CIM®
Financial Advisor & Portfolio Manager