FMD Capital Management

High Yield ETFs Demonstrate Formidable Strength

Written by David Fabian, February 21st, 2018

There is a saying on Wall Street that “credit leads.” The meaning of this adage is that high yield investments are often the first to falter during a significant downturn. Junk bonds, bank loans, and other riskier types of debt have often been analogized to the canary in the coal mine when gauging the health of global markets. Perhaps it is because these investments have historically been quite sensitive to liquidity and risk appetites as investors shift their capital accordingly.

If this maxim is indeed true, the relative strength of credit-sensitive investments during the February stock market correction is a positive sign.

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Your Bonds Aren’t Crashing

Written by David Fabian, February 14th, 2018

The inherent fear of rising rates is something that income investors have dealt with through every major market cycle.  Many have stubbornly adhered to the notion that the Fed’s monetary decisions and other fiscal shenanigans in the U.S. will ultimately cause a severe disruption in the bond market.  Additionally, there has always been this chronic concern that inflationary pressures lurk just around the corner and will ultimately put pressure on bond prices.  Read more

Energy ETFs Fall Hard To Kick off 2018

Written by David Fabian, February 14th, 2018

The buzzword of the year may well be “volatility” after the swift beating that stocks have taken in the early days of February.  The profound absence of any tangible downside price action over the last eighteen months has left many investors over-exposed and under-prepared for a correction.  That may well be the spot that energy investors have found themselves in over the last several weeks as the pernicious selling engulfs many funds in this sector.

The Energy Select Sector SPDR (XLE) had just found its footing in the second half of 2017 as surging commodity prices boosted demand for oil and gas stocks.  That rally has now come under fire as XLE has dropped 16% from high to low this year and now trades 8% below its starting point for 2018.

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Say Hello To Artificial Intelligent ETFs

Written by David Fabian, February 06th, 2018

Artificial intelligence is one of those buzz words that sound so futuristic. A computer that functions with the speed and intellect of a human without all the underlying emotion. Scientists and technology experts have spent decades working to develop this next innovative leap with mixed results. While some may argue that we aren’t all the way there yet, it should come as no surprise that investors can apply these themes directly in their portfolio using exchange-traded funds.

There are really two ways to accomplish this feat: 1) invest in companies that are working on artificial intelligence and robotics projects or 2) use intelligent algorithms to select stocks for you.

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Yeah, But The Economy….

Written by David Fabian, January 29th, 2018

As an investment advisor, I’m often asked my opinion on what I think will happen to the market on any given time frame.  It’s one of those things like talking about sports or the weather.  People just ask you what you think will happen so they can confirm their pre-existing bias, size you up, or argue with your opinion.

The other day I had a surprisingly common conversation with a casual acquaintance that went something like this: Read more