Written by David Fabian, July 18th, 2017
The markets are doing that thing again. That thing where everything looks easy. Where the trends are picture perfect. Where good stocks keep doing good things and bad stocks keep doing bad things. Where shorting the VIX seems like the easiest money in the world and where commodities are so fractured as to be all but unbearable to own. Read more
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, January 25th, 2017
Many investors are familiar with the GARP acronym, which stands for Growth At A Reasonable Price. The basic definition is to uncover stocks with reasonable fundamentals (undervalued) that have sustainable growth potential. The methodology seems sound and is essentially a way of saying – don’t chase price simply for the sake of recent performance.
On the flip side of that ideology is a perilous path that I have seen many investors tread in recent years. I call it “Yield at Any Price” or YAAP. Read more
Written by David Fabian, January 21st, 2017
Target date mutual funds are commonly found among company-sponsored retirement plans such as 401(k)’s and 403(b)’s. These “set-it-and-forget-it” style funds own a broad mix of stocks and bonds that slowly changes over time. The farther out your retirement date, the greater percentage of assets will be skewed towards stocks as a riskier growth asset. The portfolio will then begin to balance itself towards bonds and cash to become more conservative the closer you get to retirement. Read more
Written by David Fabian, December 28th, 2016
Preparation is an important part of executing any successful plan. There are some instances where luck plays an unexpected role in investment success. However, most investors are going to achieve their goals through careful planning and execution of a disciplined investment approach.
In my opinion, the best tools you can use for this task are exchange-traded funds (ETFs). These simple vehicles are highly diversified, tax efficient, low-cost, and easy to trade. They allow you to own broad swaths of the investment universe or hone in on specific themes to suit your outlook. Put simply, the careful and practiced use to ETFs in your portfolio is going to go a long way towards a successful outcome over your lifetime.