FMD Capital Management

Posts Tagged: china

China ETFs Steam To Multi-Year Highs

Written by David Fabian, August 04th, 2017

Emerging markets have been off to the races in 2017 and China has played a huge role in fueling that growth.  The world’s second largest economy felt the heavy contraction that plagued many stock markets throughout 2015 as commodity and currency volatility took their toll.  However, its turning point coincided with a global rally in risk assets that has been persistently strengthening over the last eighteen months. Read more

Emerging Market ETFs Ignite 2017 Growth Prospects

Written by David Fabian, April 04th, 2017

Emerging market stocks have been the perennial underdog for the last half decade.  Their persistent underperformance has been blamed on commodity fluctuations, currency woes, and a host of other fundamental headwinds.  Nevertheless, these regional stocks are making a bold statement in the first quarter of 2017 that may ignite further interest in their ongoing growth potential.

A screen of the top performing, non-leveraged or inverse exchange-traded funds through the first three months of the year reveals a pointed theme.  Brazil, China, India, Argentina, and other emerging market indexes mounted the strongest returns of all asset classes.  Of those nations, smaller company shares were the biggest standouts.

Read the complete article at NASDAQ.com

Emerging Market ETFs: Value Trade Of The Next Decade?

Written by David Fabian, April 19th, 2016

The concept of value investing is one that has proven its worth over decades of cyclical investment trends.  Most often, investors who adhere to this practice are trying to uncover stocks or areas of the globe that are fundamentally mispriced in relation to more expensive alternatives.  Buying at a low relative valuation, with a long-term time horizon, can provide fruitful results as mature trends fade and fresh momentum takes shape.

One stunning example of this valuation gap can be seen in the divergence between emerging market stocks and those here in the United States.  The iShares MSCI Emerging Market ETF (EEM) has $26 billion dedicated to an index of 842 publicly traded companies in China, South Korea, Taiwan, India, Brazil and many others.

Read the complete article at NASDAQ.com

3 ETF Sectors Crushed By January Volatility

Written by David Fabian, February 02nd, 2016

January was a rough month in the stock market by almost any metric.  From an index standpoint, the U.S. concentrated SPDR S&P 500 ETF (SPY) dropped 5.07%, while the globally oriented iShares MSCI ACWI ETF (ACWI) fell 5.30%.  Both benchmarks would have been substantially worse if not for a late month rally that was spurred by oversold conditions alongside a sizeable rally in crude oil prices.

Many investors are now succumbing to the realization that volatility happens quickly and with little advance warning.  In fact, several high growth sectors experienced jaw-dropping moves in the month of January that are good examples of how quickly gains can evaporate in the midst of adverse conditions.

Read the complete article at NASDAQ.com

The News Is Always Worst At The Bottom

Written by David Fabian, September 10th, 2015

There is an old saying on Wall Street that I will paraphrase as: the news is always best at the top and worst at the bottom. That is because good news drives buyers in and bad news generally causes widespread selling and/or panic as sentiment reaches extremes. Once all of the band wagon investors have either jumped on or stepped off a trend, the price begins to reverse course. Read more