Written by David Fabian, February 03rd, 2017
Investing is a stressful endeavor – plain and simple. You never have all the facts to make a perfect decision. You are only able to see the right answer with the benefit of hindsight. Things are always slow on the way up and frenetic on the way down. This all leads to emotions taking their toll on every single one of us. Read more
Written by David Fabian, January 25th, 2017
Many investors are familiar with the GARP acronym, which stands for Growth At A Reasonable Price. The basic definition is to uncover stocks with reasonable fundamentals (undervalued) that have sustainable growth potential. The methodology seems sound and is essentially a way of saying – don’t chase price simply for the sake of recent performance.
On the flip side of that ideology is a perilous path that I have seen many investors tread in recent years. I call it “Yield at Any Price” or YAAP. Read more
Written by David Fabian, January 21st, 2017
Target date mutual funds are commonly found among company-sponsored retirement plans such as 401(k)’s and 403(b)’s. These “set-it-and-forget-it” style funds own a broad mix of stocks and bonds that slowly changes over time. The farther out your retirement date, the greater percentage of assets will be skewed towards stocks as a riskier growth asset. The portfolio will then begin to balance itself towards bonds and cash to become more conservative the closer you get to retirement. Read more
Written by David Fabian, January 15th, 2017
The stock market is a machine that will eventually humble every single one of us. It doesn’t care what you think it should do. It has no alignment with your political, social, or environmental beliefs. It is simply a mechanism for transferring your hard-earned money into an asset that will fluctuate over time. Sometimes that means higher and sometimes that means lower. Read more
Written by David Fabian, January 08th, 2017
Clients and readers often ask my opinion about an investment relative to its 200-day moving average. This trend line is one of the most common foundations of simple technical analysis.
In fact, the 200-day moving average has deep-rooted meaning to my family legacy. My grandfather Dick Fabian was one of the first investors to pioneer a trend following system based on this measurement. Read more