FMD Capital Management

Growth Investing

Chasing Strength vs. Buying Weakness

Written by David Fabian, April 22nd, 2014

The price action of the market in April has been a perfect example of the risk to reward of buying on weakness rather than chasing strength.

In the beginning of the month, the SPDR S&P 500 ETF (SPY) dipped below its 50-day moving average and appeared to be headed for much lower prices. Fears over further conflict between Russia and Ukraine, along with weakness in momentum stocks was enough to push the markets below this key trend line. However, subsequent positive earnings announcements and geo-political stabilization rapidly shifted the momentum back to the bulls. Read more

Japan Exposure Weighs on International ETFs

Written by David Fabian, April 22nd, 2014

ETF investors that want international exposure in their portfolios are likely going to gravitate towards global funds with a heavy allocation to Japanese stocks. This large allocation is simply a function of Japan being the third largest economy in the world and second largest developed nation behind the United States and China. As a result, it’s reasonable to assume that Japanese companies would be core holdings in a diversified basket of developed foreign nations.

However, this vary same overweight exposure to Japanese stocks is one reason that many broad-based international ETFs have stalled this year.

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Value ETFs Take Center Stage In 2014

Written by David Fabian, April 15th, 2014

Last year, the story was all about traders taking on as much risk as possible to keep up with a fast moving market.  In 2014, we have seen a significant shift in momentum from high growth areas to value opportunities.  This has been precipitated by an increase in overall volatility that has prompted investors to take a second look at more defensive areas of the market.  In addition, there has been a transition to large cap stocks that are considered to be more stalwart during periods of uncertainty.

A graphical representation of this shift is best illustrated in a chart of the iShares S&P 500 Value ETF (IVE) versus the iShares S&P 500 Growth ETF (IVW).

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6 Traits of Successful ETF Investors

Written by David Fabian, April 11th, 2014

Millions of investors have successfully integrated ETFs into their portfolios over the last two decades as these innovative vehicles have surpassed more than $1.6 trillion in global assets.  They are used by both retail and institutional accounts as a method of gaining instant exposure to a specific asset class with the click of a button.

Through my conversations with clients, readers, and industry peers, I have recognized several common traits that prosperous ETF investors share.  Read more

5 Key Strategies for ETF Growth Investors

Written by David Fabian, April 10th, 2014

Growth investors have benefited from the resiliency of stocks for quite some time now.  The SPDR S&P 500 ETF (SPY) has traded above its 200-day moving average for 16 straight months and nearly every modest dip is bought with gusto.  However, many investors are starting to notice swirling currents beneath the surface that threaten to change the path to profits moving forward. Read more