Written by David Fabian, August 16th, 2017
The notorious website Zerohedge has a thought-provoking tagline that reads: “On a long enough timeline the survival rate for everyone drops to zero.” There’s plenty of truth to that sentiment and drives the philosophical underpinnings of their news and/or investment opinions. I’m not promoting their outlook, but I will take my own thinking down a similar track and add that:
“On a long enough timeline, everyone is a trader.” Read more
Written by David Fabian, June 25th, 2017
The halfway point of 2017 is nearly upon us and as investors consider market dynamics, there is much to be both excited and worried about. The following are some of the most interesting charts on my radar right now and their implications for your portfolio.
PowerShares QQQ (QQQ)
In my opinion, no other major index can define the resilience of growth stocks better than the NASDAQ-100 over the last several years. This ebullient group of the 100 largest non-financial stocks on the NASDAQ Stock Exchange has now spent 137 trading days above its 50-day moving average. That’s a new all-time record according to Charlie Bilello of Pension Partners. Read more
Written by David Fabian, May 11th, 2017
I’ve been an investment advisor for a fair amount of time now. I’ve seen many investors come and go over my tenure – clients, portfolio managers, brokers, traders, etc… Some that are quite successful and others that are downright miserable. The one guiding truth to every single experience is that people are their own worst enemies when it comes to investing. Read more
Written by David Fabian, March 31st, 2017
One of the top stories on CNBC today is about a trader who is relentlessly buying VIX futures despite millions in realized losses. No one can seem to figure out what the purpose of this play is other than the obvious lottery ticket event of a sharp jump in volatility in the S&P 500 Index.
I would normally read this type of article with the knowledge that this is probably a one-off kamikaze trader with more money than sense. Maybe they are some massive hedge fund with a sophisticated trading algorithm or a family office that is hedging some other unforeseen risk. Read more
Written by David Fabian, March 28th, 2017
There are many stories and books written about the risks of ETFs. Some of these are derived from real-world events, while others are simply speculation about what might come to pass under extreme circumstances. There is also a subset of perceived risks in related asset classes that may not have anything to do with ETFs at all.
The difficult part for investors who use these tools is discerning whether the risks are real, imagined, or simply overstated for the benefit of grabbing your attention. To help shine some additional light on this subject, I want to explain some of the most commonly touted risks and look at various strategies to mitigate them.