The year 2025 presented significant investment surprises, challenging initial forecasts of cooling inflation and steady equity returns. Gold unexpectedly surged by 53%, prompting some investors to over-allocate, leading to portfolio drag during corrections. Midcap and smallcap stocks experienced sharp volatility, with corrections of 17-23% in April, causing issues for investors with heavy allocations. Experts advise capping gold exposure around 20% and caution against treating it as an equity replacement, while highlighting the need for disciplined allocation in volatile markets.