FMD Capital Management

Wealth Management

Investment Advisors Aren’t Worth The Money

Written by David Fabian, April 19th, 2017

I had a conversation with a prospective client the other day who called me inquiring as to what we do.  I gave him the typical run down that we are a fee-only investment advisor specializing in ETF portfolios.  In other words, we provide discretionary management of client accounts using low-cost investment tools.

His response {paraphrasing}: “Mr. Fabian, I know a CFO of a big publicly traded company.  He told me they did a big study about the use of investment advisors and that they aren’t worth the 1% fee.  That all you need to do is buy ETFs to reduce the drag of expenses on your portfolio.  What do you have to say to that?” Read more

The Investment Advisor You Need vs The Advisor You Want

Written by David Fabian, April 06th, 2017

There isn’t a perfect formula or road map for hiring someone to look after your hard-earned wealth.  It’s a unique journey that every investor must carry out based on their objectives and experience.  It’s about knowing the right questions to ask and identifying with a professional that understands their craft and will put your interests ahead of theirs.   Read more

Second Quarter Outlook: Trends, Risks, and Opportunities

Written by David Fabian, March 30th, 2017

Forecasting the direction of the markets on a quarter by quarter basis is no easy feat.  There are simply too many unknowns to determine exactly what will happen and how investors will react to future events on both a micro and macro level.  Nevertheless, a look back at recent price action and examining seasonal trends can be helpful to frame expectations.  It may also elevate the need for closer examination of your existing holdings and offer consideration for changes to reduce risk or capitalize on fresh opportunities. Read more

ETF Risks: Truth Or Fiction?

Written by David Fabian, March 28th, 2017

There are many stories and books written about the risks of ETFs.  Some of these are derived from real-world events, while others are simply speculation about what might come to pass under extreme circumstances.  There is also a subset of perceived risks in related asset classes that may not have anything to do with ETFs at all.

The difficult part for investors who use these tools is discerning whether the risks are real, imagined, or simply overstated for the benefit of grabbing your attention.  To help shine some additional light on this subject, I want to explain some of the most commonly touted risks and look at various strategies to mitigate them.

Read the complete article on NASDAQ.com

Sensible Tips For Constructing A Well-Balanced Portfolio

Written by David Fabian, March 27th, 2017

Constructing a well-balanced portfolio is a fine art that can be lost among the shuffle of collecting individual positions.  Too often, investors are more concerned about finding the right stock or jumping on a new trend, rather than analyzing how it fits within their accounts.

Jumbling together a random series of stocks or funds without any sense of cohesion makes it more likely that you will abandon them at random (inopportune) moments.  That path leads to uncertainty of past decisions, weak correlation with the markets, and streaky performance at best.  Instead, matching all the right pieces together to suit your risk tolerance and investment strategy will have a meaningful impact on your behavioral choices through good times and bad. Read more