FMD Capital Management

Posts Tagged: correction

3 Ways To Buy The Dip

Written by David Fabian, July 06th, 2017

Buying the dip in any stock or index can be a difficult task for an active investor.  Not only do you have to worry about trade location, but also key factors such as initial position size and risk management parameters.  There is a lot to take in and easily second guess yourself when looking to start a new position in the teeth of a correction.  Read more

Contemplating Risk At All-Time Highs In Stocks

Written by David Fabian, May 29th, 2017

It’s easy to get sucked into the tunnel vision of an easy market.  Trends are strong, liquidity is abundant, credit markets are cheerful, and volatility is low.  This is when it becomes easy to get complacent.  To trick yourself into believing the recent past will extend indefinitely into the future.  It’s a mental trap that even the most tenured investors find themselves falling into over various cycles. Read more

Bear Market Rally

Written by David Fabian, March 22nd, 2016

The term bear market rally is one that has been used with great enthusiasm over the last month.  Many believe that the recent uphill climb in the market is due to a sharp rebound as a result of oversold conditions rather than an intermediate or long-term investable bottom.  Bear market rallies are often characterized as short, violent bounces that will ultimately lead to a re-test or break of the prior lows. Read more

What To Do When You Miss The Move In An ETF

Written by David Fabian, March 16th, 2016

Every correction in the stock or bond market unfolds in a different manner.  While our natural inclination is to try and make comparisons to prior events or rationalize statistical probabilities for a turn, there is no easy way to know when an investable bottom has truly materialized.

From a valuation perspective, cheap can always get cheaper until it goes to zero.  Similarly, from a technical perspective, lines of support can always be broken by new trends or forces that materialize in the midst of a decline.    Read more