Monthly Outlook: October 2025

With summer behind us, I find myself reflecting on vacation travel and the mostly good times that come with adventures and experiencing other parts of the world. Most of you are travelers, so I know you can relate. As I was reflecting, it dawned on me how similar traveling is to investing. By comparing the two, perhaps it will help us recognize where we are today and how to prepare for the road, and markets, ahead.

Planning Your Trip

There are people that thoroughly plan their trips with research on the local sites and history, best deals to be had, and shortcuts to ease the hassle. And there are people who prefer to “wing it” and take life as it comes. Maybe you check for passport, wallet, sunglasses, and away you go! Or, maybe you identify with both of these types of travelers, depending on how far and how long you’re going. You may research for international travel, but wing it for a day trip. Similarly, some investors really consider their objectives, need for growth and/or income, desire to work with an advisor or not, tax bracket, and what global asset classes they want to invest in. Others get an idea or two from Motley Fool or their neighbor and buy some shares. Most likely, it depends on the size of their investment portfolio, with more serious planning needed for larger portfolios, similar to planning for an international trip. Even with a lot of planning, it’s still going to be an adventure, and you’ll have plenty of surprises and need to adjust your plan.

Early Days of the Journey

You’ve made your travel plans (or not), and you’re off! So exciting! You’re full of hope and energy and everything is going great. Of course it is, you haven’t had time for anything to go wrong yet, ha! You’re sure you packed everything, did enough research, and all will go well. You try not to second guess your travel plans, but there’s a small voice in your head telling you that you could change the plan if something better pops up. You pay attention, look out the window, and are fully engaged. New investors have this kind of hope and optimism. They’re confident in their new portfolio and maybe their new advisor. They can’t wait to see their gains. They read their performance reports, they follow their investments closely, maybe too closely, and all is going well.

Turbulence and Delays

Even best laid plans go awry. We’ve all been there, and often enough to know that hiccups are the norm, not the exception. Flight delays, turbulence, a flat tire, a reservation that can’t be found. It’s just part of traveling and you didn’t do anything wrong, except maybe by thinking it wouldn’t happen to you. Hopefully, you built in some flexibility to your travel plan and maybe your mindset to get through it. Investors go through similar disruptions with bull and bear markets, and maybe long periods of losses they didn’t expect. They question their plan and the advice from those that gave it. They consider rebooking (meaning changing their portfolio, their strategy, and maybe their advisor). Most often, the market turbulence stops, the portfolios grow again, and they realize that volatility is all part of the journey. The best investors manage volatility well.

Grinding Out the Miles Phase

Apart from takeoff and landing, a lot of travel is just grinding out the miles in between. This is the boring part, but it’s critical to get you to your final destination. Most of investing is grinding out returns, letting your growth compound quarter after quarter. Today’s market feels like this phase, with month after month of gains and no trades or hedging needed. Sometimes just sitting in your seat, or holding your investments for growth, is hard to do and boring. But this is when you make money, this is when you achieve your financial goals to support your best life.

Reflection and Repeat

Eventually, your travel and vacation come to an end, and you reflect on all that you saw, all that you experienced, and the fun you had. It won’t be long before you start planning your next adventure. The wise investor similarly reflects on what they learned through a bull/bear cycle, and tweaks their strategy, perhaps, for the next cycle. Experienced travelers and investors plan, pay attention, expect turbulence, tolerate the miles, and are prepared for different conditions. It’s your journey; we just help navigate it.