FMD Capital Management

Posts Tagged: aor

Meet The 3 Biggest ETFs of ETFs

Written by David Fabian, September 12th, 2017

The “fund of funds” style is a portfolio tactic that has been used successfully for many large investment companies. Think about those target-date or target-risk funds in your 401(k). They are essentially a single mutual fund filled with 8-12 underlying funds to create a highly diversified investment strategy using varying asset classes.

It was initially assumed that this same dynamic would be readily embraced in the exchange-traded fund format as well. However, after several failed attempts, it’s becoming apparent that ETF investors want certain attributes within a “fund of fund” strategy that they can’t find elsewhere. The following three examples highlight the largest of this breed and how they have developed over the last decade.

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Building A Better Defensive Portfolio Using ETFs

Written by David Fabian, January 26th, 2016

The turmoil that has gripped the stock market is one that some experts predict will last for many months to come.  The swinging pendulum of greed and fear is now firmly pegged on the latter sentiment and many investors are now turning to a strategy of capital preservation rather than swinging for the fences.

Not surprisingly, this most recent dip in stocks has created a surge in traditional defensive plays such as precious metals, Treasury bonds, and utility stocks.  These asset classes display either an inverse relationship with interest rates or the reassuring embrace of a physical asset with intrinsic monetary qualities.  The allure of an oversized cash or money market position is another defensive strategy that can create a temporary feeling of relief from the swirling uncertainty in stocks.

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Why Trying To Avoid Every Dip Is A Fool’s Errand

Written by David Fabian, January 21st, 2016

The unprecedented volatility to start the year has brought out nearly every type of expert opinion on the best way to ride out the storm. I have heard arguments ranging from “stay the course” to “this is just the start of the crash”.

Let me be clear by saying that absolutely no one knows what is going to happen over the next three to six months. We could be another 20% lower, 20% higher, or virtually anywhere in between. Anything can happen and to have 100% conviction in just one outcome is the sign of someone who is completely unhinged from reality. Read more

A Fresh Take On Active Investing And Absolute Return Strategies

Written by David Fabian, December 07th, 2015

As an active portfolio manager, I’m often asked if my goal is to achieve absolute returns for my clients. Meaning to strive for positive results no matter what the stock or bond markets are doing.

On the surface this seems like an obvious goal that everyone should be trying to achieve. I mean who wants to ride out years like 2008 when you can move to cash, add short positions, or otherwise reduce your risk profile during the falling market? Read more

Avoiding Portfolio Panic During A Sell Off

Written by David Fabian, August 23rd, 2015

By now you have likely realized something is up in the stock market.  If you are like me, you have probably consumed a tremendous amount of reading material this weekend that has framed and/or extrapolated this recent pull back in a number of different scenarios.  The end result is that stocks took a hard dive in a very short period of time and now everyone is scrambling to forecast the future or come up with a game plan in the midst of the chaos. Read more