FMD Capital Management

Posts Tagged: sector

Energy ETFs Fall Hard To Kick off 2018

Written by David Fabian, February 14th, 2018

The buzzword of the year may well be “volatility” after the swift beating that stocks have taken in the early days of February.  The profound absence of any tangible downside price action over the last eighteen months has left many investors over-exposed and under-prepared for a correction.  That may well be the spot that energy investors have found themselves in over the last several weeks as the pernicious selling engulfs many funds in this sector.

The Energy Select Sector SPDR (XLE) had just found its footing in the second half of 2017 as surging commodity prices boosted demand for oil and gas stocks.  That rally has now come under fire as XLE has dropped 16% from high to low this year and now trades 8% below its starting point for 2018.

Read the complete article at NASDAQ.com

Consumer Staples ETFs Face Technical Test

Written by David Fabian, October 03rd, 2017

Consumer staples stocks have always been known for their relatively low volatility and conservative nature. It’s one of the reasons they are such a prominent aspect of many retirement portfolios and continue to serve as a reassuring equity allocation for countless investors.

These companies are typified by their mature business models and inelastic consumer trends. Think grocery stores, beverage companies, consumer goods, tobacco stocks, and drug store chains. They sell products that are constantly in demand no matter what the overall economy is doing. For this primary reason, they are considered more stable than speculative or growth-oriented stocks.

Read the complete article at NASDAQ.com

Thematic ETFs Are Finally Gaining Some Much-Needed Respect

Written by David Fabian, September 26th, 2017

Thematic funds have long been one of the more dubious areas of the ETF industry. In a broad sense, this genre is all about taking an investment concept with potentially long-term, cyclical implications and finding a group of stocks that fit the criteria. It’s more about investing in a story rather than identifying companies based on strict fundamentals or sector prowess.

Want to invest in the trend of weight loss, clean energy, or social media growth? There are now multiple funds to choose from in each category.

Thinking that you want your portfolio positioned according to your political, religious, or ethical beliefs? I can easily point you in the right direction with several options to choose from.

Read the complete article at NASDAQ.com

Financial ETFs Are Struggling To Regain Momentum

Written by David Fabian, September 19th, 2017

Financial stocks received a much-needed boost in the immediate aftermath of the 2016 presidential election. Now, almost a year later, these stocks are struggling to regain momentum as the prospects dim for industry-wide deregulation and expansive earnings growth.

Further aggravating the macro picture for the financial sector is the continued slide in interest rates that stifle gains in publicly traded banks, brokerages, and insurance companies. These entities have historically experienced a positively correlated relationship to domestic interest rate fluctuations in large part due to their core business and financing activities.

Read the complete article on NASDAQ.com

Sector Rotation: Sell Tech and Buy Energy?

Written by David Fabian, June 15th, 2017

Every year brings with it new challenges with respect to sector leaders and laggards.  This is particularly acute for investors that own individual stocks or that like to add tactical exposure via sector-focused ETFs.  Sometimes you are in the sweet spot and other times you miss the mark entirely.

That scenario perfectly encapsulates the recent divergence between the top and bottom performing sectors this year.  Technology has been the big outperforming growth theme that has been driven by tremendous momentum and enthusiastic sentiment.  Conversely, energy stocks have languished by the wayside as falling oil and natural gas prices weigh on valuation prospects.  Read more