FMD Capital Management

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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How To Proactively Manage Risk In Your Retirement Portfolio

Written by Michael Fabian, April 21st, 2014

As a retiree, common sense would lead you to the conclusion that you should take extra special care of your assets. This is especially true when you consider replenishing them through other income streams is probably not an option, or at least not an option you are interested in pursuing.

I wholeheartedly agree with this mantra as income investors face new challenges with the probability of a secular shift higher in interest rates and the overhang of an aging bull market. Read more

Easter Musings

Written by David Fabian, April 20th, 2014

This weekend I was fortunate enough to spend the elongated Easter break surrounded with family and friends in sunny La Jolla, California.  It was a time of rest, relaxation, eating good food, and creating new memories.  I came away refreshed from the daily grind and contemplative of the next steps in this journey.   Read more

VIDEO: April 2014 Chart Review

Written by David Fabian, April 17th, 2014

In this monthly video roundup, we analyze 10 different ETF charts that give us a picture of the best and worst performing domestic sectors, international funds, bonds, gold, and more.  Key areas include: energy, dividend paying stocks, retail, social media, precious metals, and emerging markets. This video was recorded after the close of the market on April 17, 2014.  A log of our previous videos are posted here.

To schedule a portfolio review or ask us a question, please click here.