FMD Capital Management

Posts Tagged: utilities

Should ETF Investors Worry About Their Interest-Rate Sensitive Stocks?

Written by David Fabian, January 24th, 2018

Stocks have come roaring out of the gate to start 2018 as the bull market extends to unprecedented heights. Momentum and volatility-agnostic investors have been treated to a continuation of the same strong trends that dominated last year’s markets. Yet, even with so much enthusiasm spread among the major diversified indices, there remains lackluster sentiment for many interest-rate sensitive stocks and sectors.

Interest-rate sensitivity has traditionally been the realm of fixed-income, where bond prices and bond yields are negatively correlated. Nevertheless, there are many areas of the U.S. equity markets that also key in to the fluctuations of U.S. Treasury yields. The foremost of which are utility, REIT, and financial stocks.

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What You Need To Know Before You Buy An Infrastructure ETF

Written by David Fabian, November 15th, 2016

Donald Trump’s victory as the 45th President of The United States has Wall Street scrambling to identify key investment themes for 2017.  One such idea that has been repeated often over the last week is “infrastructure spending.” This thesis is based on the notion that Trump has a builder’s mentality and professional history to back it up.  Many are now speculating that he will pour a great deal of time and resources into stimulating the economy through various infrastructure projects.

But what does this mean for a typical investor and how can they represent this concept in their portfolio?

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State Of The Market In 7 Charts – November 2016 Edition

Written by David Fabian, November 13th, 2016

It feels like we have almost packed a full year’s worth of stock market price action into just the last two weeks.  With so many diverging market sectors and overall fluctuations, I thought it would be prudent to do an examination of some key charts.

Taking a closer look at these categories can help frame macro views as well as determine areas of strength and weakness. Read more

3 Sectors To Watch In The Second Half Of 2015

Written by David Fabian, July 01st, 2015

The S&P 500 Index was nearly unchanged in the first half of 2015, yet the divergences in underlying sectors told a very different tale. The tepid return in the major averages was generated by weakening in interest rate sensitive areas and continued strength in high growth leadership categories. This tug-of-war style market has created a relative valuation chasm between several important sectors that warrants close attention. Read more

Dividend ETFs: Yield, Quality or Both?

Written by Michael Fabian, March 27th, 2015

In the income investing universe, participants have a predisposition to focusing on ETFs with the highest headline yields. After all, income investors have a way of keying in on a yield that matches up with their spendable cash flow needs.

Yet more recently, there are a myriad of so-called “dividend growth ETFs” that sport yields just slightly higher than blended indexes, such as the S&P 500. Read more