FMD Capital Management

Posts Tagged: fear

The One Investment Truth That Never Changes

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

Why You Shouldn’t Trade Volatility

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

ETF Risks: Truth Or Fiction?

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.

Read the complete article on NASDAQ.com

The Value Of Incremental Steps In Your Investment Portfolio

Written by David Fabian, February 03rd, 2017

Investing is a stressful endeavor – plain and simple.  You never have all the facts to make a perfect decision.  You are only able to see the right answer with the benefit of hindsight.  Things are always slow on the way up and frenetic on the way down.  This all leads to emotions taking their toll on every single one of us.  Read more

There Is No Such Thing As A Safe Stock

Written by David Fabian, October 12th, 2016

Do me a favor and google “safe stocks”.  Here is the link to make it easy on you.

What you see is a loaded list of terms that refer to a “safer retirement”, “protection”, “defensive”, “high yield”, and most importantly “dividends”.  All of these articles want to wrap you in a warm blanket of isolation from all of those other scary stocks that are likely to lose value at some point in time. Read more