FMD Capital Management

Posts Tagged: compounding

Stock Market Shortcuts & Hacks

Written by David Fabian, September 12th, 2017

Most people are hardwired to look for shortcuts.  The fastest way home from work.  The most efficient way to mow the lawn.  The chance to make our lives easier or more productive can be a positive in many work environments.  It may also make you feel more accomplished in other aspects of your life as well.

However, when that same impulse is applied to the stock market, it takes a much darker turn.  Read more

Knowing When To Do Nothing

Written by David Fabian, February 27th, 2017

There is a misplaced psychology among active investors and many advisors that they must always be doing something with their portfolio.  It’s the notion that activity leads to profitability or that instant gratification is a requirement of sticking with any process for more than a few months.

This emotional response is compounded when you are paying someone to look after your account with very little physical action – i.e trading.  It’s easy to think to yourself that “I don’t need to pay this person to sit there, I can do that myself for free”. Read more

The House Always Wins With Volatility ETFs

Written by David Fabian, June 10th, 2016

Pick your favorite casino vice – craps, roulette, black jack – each of these games involves a little bit of skill and luck to leave the table with more money than you started with.  Nevertheless, every gambler knows that overstaying your welcome will lead to tragic results.

Put simply, over a long enough time frame, the house always wins.

This same philosophy can also be applied to funds that track volatility futures.  These indexes can experience sharp rallies that quicken the pulse and dilate your pupils, but they also have led to consistent wealth destruction over the last seven years. Read more

What To Do If You Are Deep In A Hole

Written by David Fabian, February 25th, 2015

I recently had a shocking conversation with a gentleman who was evaluating our asset management services for what was left of his once sizeable investment portfolio. As I often do with new investors that I meet, I asked him to give me a brief synopsis of his recent investment history and financial acumen.

What he told me was unbelievable… Read more