The Dividend Cafe Thursday - October 30, 2025
Oct 30, 2025
The market faces a downturn, with the Dow dropping 109 points due to interest rate hikes and underwhelming tech earnings. A discussion on choosing investment benchmarks emphasizes goal-based evaluations over simple index tracking. The midstream energy sector receives spotlight attention, advocating for active ETF strategies to enhance returns. A temporary US-China trade truce hints at potential long-term benefits amidst ongoing economic decoupling. Market headwinds from rising rates and earnings reports further challenge investor optimism.
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Rising Rates Are A Short-Term Headwind
- Interest rates have crept up since the Fed meeting and Treasury yields rose slightly, pressuring equities.
- Brian Szytel expects eventual easing as QT ends and forecasts a ~1% real Fed funds target over time.
Benchmark Against Your Goals
- Measure portfolio performance against your personal financial goals rather than broad market indices.
- Define target income, total return, tax efficiency, and downside tolerance as your true benchmark.
Use Active ETFs For Midstream Exposure
- Use an active ETF to gain diversified midstream energy exposure while avoiding multiple K-1 tax statements.
- Rely on specialists to balance U.S. C-Corps, partnerships, and Canadian names for better combined returns.