FMD Capital Management

Posts Tagged: risk management

Your Bonds Aren’t Crashing

Written by David Fabian, February 14th, 2018

The inherent fear of rising rates is something that income investors have dealt with through every major market cycle.  Many have stubbornly adhered to the notion that the Fed’s monetary decisions and other fiscal shenanigans in the U.S. will ultimately cause a severe disruption in the bond market.  Additionally, there has always been this chronic concern that inflationary pressures lurk just around the corner and will ultimately put pressure on bond prices.  Read more

Yeah, But The Economy….

Written by David Fabian, January 29th, 2018

As an investment advisor, I’m often asked my opinion on what I think will happen to the market on any given time frame.  It’s one of those things like talking about sports or the weather.  People just ask you what you think will happen so they can confirm their pre-existing bias, size you up, or argue with your opinion.

The other day I had a surprisingly common conversation with a casual acquaintance that went something like this: Read more

Comparing Bond ETFs: Same Yield, Less Interest Rate Risk

Written by David Fabian, January 16th, 2018

The two biggest risks that bond investors face are rising inflation and rising interest rates. This dual threat has been moderated for many years now as global central banks set accommodative policies to boost asset prices. The ultimate result of which has been tame inflationary metrics, steady jobs growth, corporate earnings expansion, and firm declines in Treasury yields.

The more recent roundabout (or tightening) of Federal Reserve fiscal policy has created a unique environment for bond investors to evaluate. Namely a flattening yield curve, whereby the 2-year U.S. Treasury Yield is sharply rising compared to its 10-year and 30-year counterparts.

Read the complete article at NASDAQ.com

The Investments Change But The Psychology Remains The Same

Written by David Fabian, December 10th, 2017

The deluge of investment mania surrounding crypto currencies and Bitcoin in particular is unlike anything I have seen throughout my investment career.  Having not managed money through the dot-com bubble, it’s difficult to compare this period to any real-world experience on my part.  Many are jumping to conclusions that this new digital currency is going to revolutionize the world.  Others are comparing it to a disillusioned craze that will only benefit a tiny minority and end badly for most.  Read more

How Safe Is Your High Yield ETF?

Written by David Fabian, October 18th, 2017

The strong outperformance of credit-related securities and progressive trend in interest rates has emboldened many investors to bulk up on high yield funds over the course of this bull market.  The minimal dividends from traditional CDs and high-quality Treasury bonds leaves little to be desired when compared to corporate or municipal debt yielding magnitudes of greater income.

The combination of high dividends, consistent capital appreciation, and relatively low volatility have made for an attractive opportunity for many income investors portfolios.

Read the complete article at NASDAQ.com