The Month Investors Fear - 4 Portfolio Takeaways from October

October is notorious for market scares, but this year, it rewarded patience, balance, and conviction. Here’s what our portfolios revealed when fear gave way to performance.

October has a reputation for keeping investors on edge, and with good reason. From 1907 to 2008, it’s been home to some of the market’s sharpest shocks. But this year, the ‘scariest month in markets’ flipped the script.

October reminded me why staying invested, and diversified, pays off.

Across every allocation, from growth-heavy to income-first, portfolios delivered solid gains. But this wasn’t just a ‘good markets’ month; it was a real-time lesson in how different portfolio mixes behave when conditions finally align.

Falling yields gave bonds a boost. Equities found momentum. And some balanced portfolios quietly outperformed expectations.

Here’s what stood out in the data, and what these results might mean for investors heading into year-end.

1. Growth portfolios claimed the spotlight

Growth focus came roaring back.

The Go-Go Growth (100% Global Equity) portfolio led the pack with a +5.5% return, around a quarter of its one-year gain in just one month. The global rally was broad and convincing, from the Nasdaq and Nikkei to the FTSE. Investors betting on companies that can grow through the slowdown were rewarded.

📈 My take: Momentum still matters, but conviction matters more. Growth exposure only pays off if you stay through the quieter months.

2. Balanced portfolios quietly matched the leaders

The biggest surprise? Stability.

The Balance (50/50) portfolio of global equities and bonds gained +5.0%, nearly matching the all-equity allocation and capturing almost half its one-year return in a single month. With both stocks and bonds advancing, diversification did its job, cushioning risk while still participating in upside. Longer-duration bonds amplified returns as yields fell, showing how fixed income can suddenly become the hero when rates move your way.

💡 My take: A balanced mix isn’t ‘boring.’ It offers many benefits, one of which appears when everything finally moves in sync.

3. Bonds proved their value again

After a challenging couple of years, bonds finally reminded investors why they belong in a portfolio.

The Growth & Income (60/40) and Growth with a Backstop (80/20) allocations rose +3.3% and +3.9%, benefiting from falling yields that pushed bond prices higher. Even conservative strategies like the Income Engine (40/60) and Capital Preservation (20/80) delivered healthy +2–3% gains.

🪙 My take: It’s been a challenging stretch for bond investors, but bond duration [Duration is a measure of how sensitive a bond’s price is to changes in interest rates. A higher duration means the bond is more affected when rates move] cuts both ways. When rates fall, those longer maturities can pack quite a punch.

4. Policy and politics set the tone, but portfolios told the story

Yes, the macro backdrop helped.

The Fed’s second rate cut in two months boosted confidence that inflation is contained. Japan’s historic leadership shift lifted sentiment in Asia. India’s expansion stayed steady. Even the UK found firmer footing despite political noise around the Budget.

Gold hitting record highs and copper rebounding told the same story: optimism, tempered with caution.

🌍 My take: Portfolios that blend risk and resilience tend to navigate shifting markets best.

How every portfolio mix stacked up

The data below shows how each allocation, from all-equity growth to bond-heavy preservation, performed across different time frames to the end of October 2025.

Final thought

For a month with over a century-long reputation for turmoil, October 2025 turned out to be an exercise in composure.

With rates easing and growth stabilising, the lesson is simple: conviction and balance can coexist. And sometimes, the month everyone fears most is the one that quietly rewards patience.

While I’ve highlighted a few passive tracker funds, my bias going into, and especially through, any market downturn leans toward active management. In volatile conditions, a skilled manager’s ability to navigate dislocation, reallocate dynamically, and spot opportunity amid the noise can make all the difference. When markets move fast, my view is agility often trumps automation.

Disclaimer: This article is for information and educational purposes only. It expresses my personal views and frameworks for thinking about markets and investing. It does not constitute investment advice or a financial promotion, nor is it a personal recommendation to buy or sell any investment. Everyone’s situation is different, so if you are unsure about a decision, it’s important to seek guidance from a qualified financial professional.

The views, forecasts, and figures included reflect analysis at the time of writing, unless otherwise stated. sources used are believed to be reliable, but markets and circumstances can change quickly, which means our views may also evolve over time.