FMD Capital Management

Posts Tagged: discipline

There Are Two Ways To Beat The Market

Written by David Fabian, July 29th, 2017

Active investors are continually looking for innovative ways to beat the market.  They want to believe that some perfect combination of fundamental or technical indicators will lead to the holy grail of outperformance (otherwise known as alpha).

In the broadest sense, there are two ways to beat the market: on the upside or on the downside.  You either take more risk or less than the benchmark. Read more

Stop Fretting Over ‘Why’ Stocks Do What They Do

Written by David Fabian, September 11th, 2016

In my experience as an investment advisor and student of the markets, investors are always concerned about the “why” on the way down.  They MUST know exactly what caused a specific drop in the market and what could potentially curb that price action.   Yet for some reason, that same level of scrutiny doesn’t apply on the way higher. Read more

Why Writing Makes Me A Better Investor

Written by David Fabian, July 17th, 2016

I love to write.  It’s one of the most pleasurable things that I get to do on any given day.  The freedom of opening up a blank page and pouring out my thoughts on ETFs, investing, and life is a liberating experience.  I consider myself lucky to have the time and skill to commit to this endeavor.  Read more

Don’t Invest Like Captain Hindsight

Written by David Fabian, June 30th, 2016

The only measure of certainty we have in the markets is the clarity of hindsight.  No one knows what is going to happen in the future and complicating matters is the fact that no two events unfold in the exact same manner.

That being said, constantly looking to the recent past for your investment direction can be a misleading predictor of future returns.  Probably one of the worst things you can do for your portfolio is to turn into Captain Hindsight.  You know what I’m talking about…. Read more

It’s Never A Perfect Time To Invest In Stocks

Written by David Fabian, February 03rd, 2016

Let me know if any of these narratives sound familiar to you:

2013 Analyst: “We are deeply concerned about the sharply rising 10-Year Treasury Yield as a headwind for stocks. The end of quantitative easing and the Federal Reserve’s unprecedented monetary policies may forestall further gains in equities.” Total return of SPDR S&P 500 ETF (SPY): +32.31%

2014 Analyst: “A sharp drop in virtually all commodity prices may be signaling a contraction in the global economy and warrant reducing exposure to risk assets. Furthermore, the strongest performing asset class is the 30-year Treasury bond, which is a virtual assurance of the coming apocalypse.” SPY total return: +13.46% Read more