09 Dec 2025 Wise Choices Still Matter in Frothy Markets

Posted at 21:07h in The Friday Brief by

In the world of investing, just as in life, you can make a careful, well-reasoned decision and still end up with an outcome that leaves you disappointed. And the reverse is true as well. Every now and then, a rushed or thinly supported choice can turn out surprisingly well. It is an uncomfortable tension because we naturally want a neat relationship between good decisions and good outcomes. But real life and real investing don’t always work that way, and recognizing that complexity is essential.

When the stock market is roaring and nearly everything seems to be hitting new highs, it becomes all too easy to find examples of questionable or even clearly poor choices that happened to work out. We have all heard stories of day traders quitting their jobs after striking gold with a meme stock, a trendy crypto coin, or a speculative options trade. Those may be dramatic cases, but subtler versions show up in more everyday ways. Holding on to a single stock long after it has grown far beyond a healthy portion of a portfolio, taking on more risk than we truly need, or stretching our budgets with debt because everything seems to be going up. For a while, a rising market can make almost any decision look like a smart one.

But it is precisely during times like these, when enthusiasm is high and uncertainty is growing, that the quality of our decisions matters most. A frothy market should prompt us to strengthen our discipline, not relax it. I’ve written before about the importance of consistently making good decisions. Decisions that involve sticking to your long-term plan, seeking objective perspective, and resisting the urge to act impulsively. I also suggested some practical steps to consider when markets are near all time highs and feel uncertain.

Good decisions may not guarantee perfect outcomes, but they do meaningfully shift the odds in our favor. Over time, intentional and disciplined choices lead to better results, and that ultimately gives us more freedom, resilience, and flexibility in our financial lives. I believe that is especially true during time such as this when both uncertainty and investment values seem to be elevated.

As always, we’re here to help you stay grounded, make thoughtful decisions, and feel confident about your financial future. Let us know if you’d like to chat.

Geoff Hall, CFP®, RICP®
[email protected]

For nearly three decades, I’ve had the privilege of guiding families with what we at Beacon call real planning, sensible investing, and meaningful advice—so that money can truly be a blessing, not a burden. I consider it an honor to walk alongside my clients through both the ups and downs of the markets and the seasons of life. At home, I’m grateful for a life full of love and adventure. My wife, Crystal, and I have been married for 13 years, and together we’re raising our two kids, Cooper (11) and Rhodes (9). When I’m not with them, you might find me serving downtown at our church, pushing my limits on a mountain bike, or catching up with a friend over coffee in Raleigh’s Five Points area. Both personally and professionally, I’ve found that the best journeys are built on trust, relationships, and perspective. That’s why I’m passionate about helping families plan wisely and invest intentionally—so they can live generously and focus on what matters most.