~5 minute read
By Tim Russell, CFP®, CKA® (President & Wealth Manager) at Life Financial Group
Originally shared on the Life in the Markets podcast — 10/26/2026
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Is playing it safe really safe?
When markets get choppy, playing it safe feels like the responsible choice. But for your portfolio, avoiding risk entirely can quietly cost you the growth you’re counting on. In this post, you’ll learn why risk is data rather than something to run from, what a risk-off week in the market shows us, and why the same lesson applies to your life’s work.
Why playing it safe can backfire
I read a book about the life of Elon Musk last week, and one lesson from it applies directly to how we invest.
Right at the end of the book, Musk is about to launch his Starship. The launch gets shut down by the government because of concerns about the weather. Musk says something to the effect of, “This is why civilizations fail: governments become more concerned about avoiding risk than taking risk.”
The lesson I draw from this is that risk is data, and pure avoidance of risk is not always the wise thing to do. In our work with clients, our job is to manage and mitigate risk, not to avoid it entirely. If we avoided all potential risk, there would be no growth. Accepting some risk is required to earn above-inflation rates of return.
Scripture makes the same point:
He who observes the wind will not sow, and he who regards the clouds will not reap. As you do not know the way the spirit comes to the bones in the womb of a woman with child, so you do not know the work of God who makes everything. In the morning sow your seed, and at evening withhold not your hand, for you do not know which will prosper, this or that, or whether both alike will be good.
— Ecclesiastes 11:4–6 (ESV)
What last week’s risk-off market shows
Last week was a good example of why we manage risk instead of fleeing it. It was a volatile, risk-off week driven by sell-offs in AI stocks. The S&P 500 and Nasdaq dipped slightly, but the equal-weighted S&P 500 and the Russell 2000 gained ground. Bonds improved as the 10-year Treasury yield fell below 5%.
In other words, not everything fell at once. A diversified portfolio had parts that held up while others struggled.
The headwinds are real:
- AI valuations: concerns that prices have run ahead of earnings.
- Housing: a weakening market, with mortgage rates above 7%.
- Inflation: ongoing pressure that hasn’t fully eased.
Looking ahead, the outlook for the next two years remains optimistic. With the midterm elections coming up, political gridlock looks likely even if Democrats gain seats. The Fed is expected to hold interest rates steady this week, though another rate hike remains likely in December.
What this means for your portfolio
A week like this can make playing it safe feel like the wise move. But a portfolio built to dodge every storm also misses every harvest. The goal is a plan that takes the right amount of risk for your goals and timeline, is diversified so one sector’s sell-off doesn’t sink the whole, and is reviewed regularly so you’re not reacting to headlines.
If last week made you uneasy, that’s worth a conversation with your advisor, not a reason to stop sowing.
Don’t play it safe with your life’s work
Playing it safe isn’t only a portfolio problem. It can quietly shape how we approach our work and our lives too. The Ecclesiastes passage above isn’t just about investing. It’s about sowing seed, doing the work in front of you without waiting for perfect conditions.
Musk has started more businesses than anyone I know of. He has taken on more risk, created more jobs, and become the world’s wealthiest person by a very large margin. Rather than sitting back once he became successful, as most people would, he keeps building because his vision for the future isn’t finished. He’s not motivated by money. He’s motivated by mission.
It’s tempting to hold back and think, “I’m not Elon Musk; my life and vision don’t matter as much.” But your work matters deeply because you are made in the image of God. He is a working God who blesses the work of our hands and gives us meaningful labor, whether you are washing clothes, constructing buildings, or working in accounting. Every form of honest work is part of His plan to care for, maintain, and improve the world He created.
So today, don’t lose heart. Avoid getting distracted by the stock market or the news, and stay focused on the good work God has placed before you. If you don’t know what that mission is, take time today to prayerfully consider what the Lord would have you do with your one precious life.
Verse of the Week
Let the favor of the Lord our God be upon us, and establish the work of our hands upon us; yes, establish the work of our hands!
— Psalm 90:17 (ESV)
Have questions about what this means for your own plan? Reach out to our team, we’re glad to talk it through.
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Disclaimer: The topics discussed here are for informational purposes only and do not constitute specific investment advice. Investing involves risks, including potential loss of principal. Past performance does not guarantee future results. Securities and advisory services offered through Geneos Wealth Management, member FINRA/SIPC.
