FMD Capital Management

Posts Tagged: portfolio management

The Markets Are Doing That Thing Again

Written by David Fabian, July 18th, 2017

The markets are doing that thing again.  That thing where everything looks easy.  Where the trends are picture perfect.  Where good stocks keep doing good things and bad stocks keep doing bad things.  Where shorting the VIX seems like the easiest money in the world and where commodities are so fractured as to be all but unbearable to own.  Read more

4 Key Factors To Consider Before Selecting An Active ETF

Written by David Fabian, June 13th, 2017

ETF investors have wholeheartedly embraced the transparency and low-cost of passively managed investment vehicles.  Billions of dollars every year since the great financial crisis have left the obfuscated world of high-priced mutual funds and transitioned into index-based ETFs.

This rotation is almost entirely based on the foundation that you know exactly what you own, why you own it, and what the minimal expenses will be. There is a comfort and reliability that the fund will perform to an exacting standard with very little deviation from its benchmark.

Read the complete article at NASDAQ.com

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

2 Key Factors For Judging Investment Returns

Written by David Fabian, May 07th, 2017

The ability to compare your historical returns to an index or benchmark is an important component of investment success.  This exercise allows you to judge whether your strategy is performing up to your expectations or review the effectiveness of someone else’s advice before you decide to hire them.  While this practice is commonplace throughout the industry, I often see investors making head-scratching conclusions based on biased or incomplete information. Read more

Investment Advisors Aren’t Worth The Money

Written by David Fabian, April 19th, 2017

I had a conversation with a prospective client the other day who called me inquiring as to what we do.  I gave him the typical run down that we are a fee-only investment advisor specializing in ETF portfolios.  In other words, we provide discretionary management of client accounts using low-cost investment tools.

His response {paraphrasing}: “Mr. Fabian, I know a CFO of a big publicly traded company.  He told me they did a big study about the use of investment advisors and that they aren’t worth the 1% fee.  That all you need to do is buy ETFs to reduce the drag of expenses on your portfolio.  What do you have to say to that?” Read more