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.
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
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 21st, 2017
Small cap stocks are traditionally known as centers of growth in the global capital markets. These companies often demonstrate greater risk due to their diminished market footprint. However, they also offer compelling performance and diversification dynamics for investors with a higher risk tolerance.
Most exchange-traded funds that track this segment are focused on broad swaths of the small cap category. They typically own hundreds, if not thousands, of individual stocks with market capitalization’s of less than $2-$3 billion.
Written by David Fabian, March 15th, 2017
Four years ago, we set out to build something special. The founding of FMD Capital Management became not only a professional achievement, but also the start of a journey to find a better way to manage money.
This week marks the fourth anniversary of our firm’s origin. We started this company with the commitment to work harder than other investment advisors. To be advocates for our client’s best interests and to share our knowledge in real-time. It’s with great pride that we continue that same bedrock promise to this day. Read more