Written by David Fabian, March 22nd, 2017
I’m normally an optimistic, “glass-half-full” kind of guy. I roll my eyes every time I see a headline decrying the next market crash or cataclysmic event that will cripple the global economy. I’m quick to discern speculation from truths and prefer taking the opposite side of most mainstream assumptions.
It’s not that I see everything through rose colored glasses, but rather that I have found an unruffled approach to be a strong foundation for better decision making. Navigating the markets with a calm and calculated strategy produces far superior returns than simply worrying about what dangers might lurk around every corner. Read more
Written by David Fabian, March 14th, 2017
The world of exchange-traded funds is filled with heavy weight indexes geared towards a variety of stock selection criteria. The venerable SPDR S&P 500 ETF (SPY) is the largest and most heavily traded of the top ten funds by asset size. SPY is known for its meaningful diversification, tremendous liquidity, and low costs. It’s the benchmark by which nearly every stock-focused strategy is ultimately compared against.
Having a benchmark is important because it allows investors the opportunity to compare similar investment styles to determine if a fund is meeting their expectations. It can easily identify consistent trends that are worthy of greater interest or evasion. One such outlier among the largest U.S. stock ETFs is the pattern of outperformance demonstrated by the PowerShares QQQ (QQQ) over the last decade.
Written by David Fabian, February 22nd, 2017
ETF investors are spoiled by the tremendous number of quality choices for building their diversified stock allocations. The sheer breadth of selection across market cap, sector, industry, and factor-based strategies ensures there is something for virtually everyone.
Yet, one of the lesser understood qualities of exchange-traded funds are their ability to simplify your portfolio. You can own hundreds or even thousands of stocks in a single holding with extremely low costs and impeccable tracking efficiency. That eliminates the need to screen numerous positions and creates benefits of widening your exposure profile.
Written by David Fabian, February 16th, 2017
The volatility in the biotech space over the last two years has been quite a sight to behold. I’m not strictly speaking of volatility in terms of downside either. There has been money to be made on both sides of the market for those that have been nimble in their trades.
Most ETF investors are probably familiar with trading the iShares NASDAQ Biotechnology ETF (IBB). This market-cap weighted giant has $8.2 billion dedicated to a basket of 164 stocks in the biotech research and medical services fields. As you can see on the chart below, this index has been on a rollercoaster ride of whipsaws in both directions over the last year.
Read the complete article at Seeitmarket.com
Written by David Fabian, February 15th, 2017
Retail stocks have become a highly-publicized area of the market in recent years as the continued struggle for brick and mortar relevance battle the efficiency of online sales. The trend has been exacerbated with the steady expansion of retail juggernaut Amazon Inc (AMZN) into more and more households. The strength of Amazon has unavoidably weighed on the share prices of more traditional retailers that find themselves strung with slowing sales and inescapable costs.
There is no doubt that consumerism is alive and well in the heart of the American economy. Which is why it’s worth considering if the pendulum of momentum will eventually swing back in the direction of numerous stalwart retail competitors.