FMD Capital Management

Posts Tagged: risk management

Investors May Not Be Worrying About Downside Risks, But ETF Issuers Are

Written by David Fabian, June 06th, 2017

Complacency in the stock market is almost palpable as $300 billion has flowed into ETF coffers since the U.S. presidential election just seven months ago.  With domestic and international indices hitting new all-time or 52-week highs, there continues to be a pervasive sense of calm in stock markets around the globe.

While many investors may be ignoring the risks of a pullback, there are some select ETF issuers who are thinking of the bigger picture and delivering tools to ride out future storms. Three fund companies have released diversified equity strategies this year with built-in hedges or risk management measures to reduce downside volatility.  These risk-aware funds will provide active investors greater options to consider if capital preservation or minimizing volatility is a top priority.

Read the complete article at NASDAQ.com

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

The Low Down On Long-Short ETFs

Written by David Fabian, April 21st, 2017

EMAIL INBOX: Dave – read your article today.  What is your take on the long short ETF space at this point in the market?  Products like DYLS and DYB are looking more appealing in my opinion.  Interested to hear your take.

The long/short ETF category is one that many investors may not even know exists.  These strategies have typically been the realm of institutional portfolios and sophisticated hedge funds.  Now, they are readily available in the form of a diversified and liquid investment vehicle.  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

Sensible Tips For Constructing A Well-Balanced Portfolio

Written by David Fabian, March 27th, 2017

Constructing a well-balanced portfolio is a fine art that can be lost among the shuffle of collecting individual positions.  Too often, investors are more concerned about finding the right stock or jumping on a new trend, rather than analyzing how it fits within their accounts.

Jumbling together a random series of stocks or funds without any sense of cohesion makes it more likely that you will abandon them at random (inopportune) moments.  That path leads to uncertainty of past decisions, weak correlation with the markets, and streaky performance at best.  Instead, matching all the right pieces together to suit your risk tolerance and investment strategy will have a meaningful impact on your behavioral choices through good times and bad. Read more