November 2025 Market Update: October Gains and Year-End Planning

A Surprisingly Strong October

October often earns its reputation as a volatile month for markets—but not this year. October 2025 was outstanding across nearly every asset class, offering investors solid returns and momentum heading into the year’s final stretch.

Despite October’s historical unpredictability, investors in both conservative and aggressive strategies saw their portfolios climb once again, reinforcing the benefits of diversification and disciplined asset management.

Stocks and Bonds Rise Together

The standout theme for October was broad participation—both stocks and bonds posted positive returns, though with wide variance depending on category and risk level.

Bond Market Performance

• Taxable bonds gained about 0.5% for the month.

• Municipal bonds, which had lagged much of the year, delivered roughly 1%, nearly double the return of taxable bonds.

This was an encouraging sign for income investors who hold municipals in their taxable accounts. After months of underperformance, these tax-advantaged bonds regained momentum and narrowed the gap with their taxable counterparts.

Stock Market Performance

Equities were equally strong—and even more diverse:

• Dividend-paying stocks: +1%

• S&P 500: +3%

• European markets: +2%

• Emerging markets: +4%

• Technology positions (QQQ): +6%

Performance data shown reflect general market indices and not the performance of any specific ACT Advisors portfolio. Past performance is not indicative of future results. Individual portfolio results may vary.

This range reflects the significant variance in October’s returns. Conservative investors, with more fixed-income exposure, earned about 1%, while aggressive portfolios, heavier in equities and technology, achieved closer to 3%.

Rotation Updates: Riding the Tech Wave and Favoring Municipals

For several months, ACT Advisors’ stock rotation strategy has emphasized the technology sector through the QQQ index. This positioning once again paid off in October, as technology stocks continued to lead the broader market.

On the fixed-income side, the bond rotation moved further into municipal bonds. As Doug explained, municipals have finally caught up to the broader bond market in performance, prompting the system to allocate roughly one-third of the bond rotation into municipals.

These tactical adjustments are designed to capture momentum while maintaining diversified exposure, a hallmark of ACT Advisors’ disciplined approach.

Preparing for Year-End: Key Financial Planning Priorities

With October’s gains behind us, November marks the start of year-end financial housekeeping—a time when thoughtful planning can make a real difference. Doug highlighted several important areas of focus for the weeks ahead.

1. Required Minimum Distributions (RMDs)

For clients with traditional IRAs or other retirement accounts subject to RMDs, now is the time to act. Doug reminded investors not to wait until the holidays to process these distributions.

If you’re planning to make qualified charitable distributions (QCDs)—donations directly from your IRA to an eligible charity—ensure they’re completed well before the end of November. Timing matters: the funds must clear before December 31 to count toward your RMD and avoid penalties.

2. Insurance Reviews

ACT Advisors’ fourth-quarter financial planning initiatives include a comprehensive insurance review. While the firm does not sell insurance, it partners with an independent agency to assess whether clients’ homeowners, auto, and umbrella policies are appropriately structured.

Clients are encouraged to upload their coverage documents to the secure ACT Advisors Vault for review. The goal is to identify potential gaps or overlaps in coverage, ensuring every client’s protection plan is optimized.

3. Estate Planning Check-Up

The end of the year is also an ideal time to revisit estate planning documents—particularly wills and trusts. ACT Advisors does not provide legal advice, but the team reviews clients’ documents to confirm alignment between beneficiary designations and estate intentions.

It’s not uncommon to find mismatches between what’s listed in a will and what appears on account records. Catching these discrepancies early prevents future complications and ensures your assets are distributed according to your wishes.

Looking Ahead to the Holidays and Beyond

As 2025 enters its final months, the financial landscape remains encouraging. Investors who maintained a diversified approach benefited from October’s gains—a reminder of the long-term value of discipline and planning.

While markets may cool down along with the temperatures, portfolios remain “hot” thanks to steady gains and proactive planning.

Now is the perfect moment to:

• Confirm your RMDs and charitable giving plans.

• Review insurance coverage and ensure policies align with current needs.

• Revisit estate documents and beneficiary designations for consistency.

These steps can help position you for a more organized and confident start to the new year.