investing
Written by Dani, June 07th, 2013
We wanted to bring a company to your attention: First Trust company, based in Chicago. They were in our offices last week and we talked about their ETF offerings. They only really focus on investment advisers, and don’t do retail ads like you might have seen from Charles Schwab or iShares. A couple of their Exchange Traded Fund ticker symbols to watch are:
- FCG – 25 natural gas equities
- FDN – internet and technology
- FVD – value line dividend ETF
We’re going to be talking a lot more about these ETFs and First Trust funds in the weeks ahead, but we wanted to put it on your radar for right now. If you have any questions about these funds or other investment ideas, please email us at askdoug(at)dougfabian(dot)com, or tune into our podcast for more detailed information.
Written by Dani, June 05th, 2013
These bond ETFs saw declines in May:
We haven’t had much reaction in high-yield bonds until last week, and it looks like there is some risk there. We don’t usually own long-term bonds, but the most recent volatility makes it even more clear that investors need to be ready to make adjustments.
For your portfolios, look closely at what you own in the bond market, and get ready to move on those if necessary. Don’t get complacent or allow yourself to panic, but make smart investing choices based on good information.
As we’ve said before, entry point reveals whether your investments are safe or not – so watch these trends and be alert to opportunities and warning signs. We might be seeing a “reset” in the financial markets right now, so keep an eye on these numbers.
Written by Dani, May 24th, 2013
The popularity of income streams at the recent Las Vegas Money show was unbelievable. Most people are interested in income strategies, and there are a lot of questions about how to achieve income through investments.
We’d like to let you know about a new investment idea to think about – these are floating rate senior loan ETFs. They are paying about 5-6% in yield, and we think they could be a good tool for your portfolio. The ticker symbols to watch are:
These ETFs invest in credit from the banking industry and are tied to variable rates, so they’re not tied to the interest rate cycle. The income is paid monthly. However, remember that higher yield investments need to be watched on a daily basis, because risk is higher in these kinds of investment vehicles. Income is important, but so is protecting your portfolio.
We use a combination of mutual funds and ETFs for many of our income clients – there are so many great innovative ideas out there and it’s an exciting place to be investing right now. We love ETFs, but there’s nothing wrong with mutual funds; we like ETFs because they are lower in cost and very transparent, but sometimes mutual funds are the best way to move your portfolio forward. If you have any questions, are concerned about the risk in your portfolio or just want a second opinion on your investing strategy, please don’t hesitate to call us at 800-391-1118.
Written by Dani, May 15th, 2013
Last week we discussed five good ETFs to watch for growth, and as promised, today we’ll offer five ETFs to look at for income investors.
- BOND – low volatility in the bond market, manages risk well
- IYLD – 50% exposed to fixed income, 5% yeild
- AMLP – good to watch, but not a good investment right now
- SDIV – international dividend ETF
- EEMV – low volatility stocks in the emerging markets
We’ll be discussing these in depth at the Money Show, and we look forward to seeing you in Las Vegas this week, or having you join us on the live webcast.
As always, if you have questions about the state of your portfolio or how to use ETFs, email questions or concerns to askdoug(at)dougfabian(dot)com.
This is a podcast summary. For more information, please listen to the entire broadcast here.
Written by Dani, May 14th, 2013
Three big news items in the markets this week:
- Bond yields jumped
- Stocks continued higher
- Commodities dropped
We saw a positive week overall in the U.S. markets, although not internationally. We are seeing some volatility and we see elevated risk levels in the world right now. This market is being driven by factors that are outside the normal realm of the markets.
It seems to us that investors are nervous right now because of all the unusual market activity. The most important thing to remember is that entry point is everything, so it’s wise to be cautious and watch for the right time to enter the markets. Markets correct and reset regularly, and when they do it’s wise to be prepared and on the lookout for opportunities.
As always, if you have questions about the state of the markets, email your concerns to askdoug(at)dougfabian(dot)com and we’ll do our best to answer them either individually or on the podcast.
This is a podcast summary. For more information, please listen to the entire broadcast here.
Written by Dani, May 09th, 2013
Right now, the Federal Reserve is in the market because the economy would not be able to grow without its involvement. We have a situation where interest rates are artificially low and so people are wondering what to do with their savings accounts and CDs – how do you make money on your savings without interest?
We continue to believe in the bond market for investors, but we know that it’s tempting to get into stocks because of dividend yields. Many investors are afraid of a bond market bubble and so hesitate to invest in bonds. However, we will say it again – we believe that bonds are the place to be for the majority of your portfolio.
Even if bonds do decline, you’re still getting an income stream and you are not exposed to risk and losses like in the (right now, very volatile) stock market. There are decent income streams available in the bond market, you have to be wise about what you buy and why. Also, you don’t have the downside risk in bonds that you have in the stock market.
For more information, please check out this excellent article and presentation by Jeff Gundlach. We think that he makes some excellent points and we encourage you to take this advice seriously. If you have questions about how to use bonds in your portfolio, please call our offices at 800-391-1118.
This is a podcast summary. For more information, please listen to the entire broadcast here.
Written by Dani, May 03rd, 2013
Strategies are very important to us and we think that every investor should have one – particularly when it comes to the issue of legacy.
How do you want to be remembered, and what’s most important to you? Most people want to make sure that their loved ones, favorite causes and estates are taken care of. It’s very important to have a living trust, in order to avoid a long, painful and expensive experience for your family in probate court.
You want to pass on your assets to your children and grandchildren, and you want to avoid NIGO – a financial insider’s acronym for “Not In Good Order”. If something is messed up – a signature missing, a plan out of alignment, a trust written in order to keep your legacy intact and in good standing for your heirs and loved ones.
If you’ve built up a sizable portfolio, you owe it to yourself, your loved ones and your values to have clarity about your legacy and your expected tax burdens and concerns for the future. Call us today to discuss your needs, legacy, charitable wishes and hopes for your future, at 1-800-391-1118.
This is a podcast summary. For more information, please listen to the entire broadcast here.
Written by Dani, May 01st, 2013
There’s not a lot out there today for growth, we’ll be honest. A lot of investors are hiding out in “safe” consumer stocks like Johnson & Johnson, Costco and Coca-Cola. However, one of these days the wind will change, and these companies are not good growth choices, because their recent growth is an emotional one, not a logical one.
Our favorite growth themes (for long-term growth) are:
- Energy (alternative technologies, oil, batteries, etc.)
- Agriculture (fertilizer, ag business, etc.)
- Emerging Markets
These are just items to keep on a watch list and be aware of. For more information on these topics, we encourage you to attend one of Doug Fabian’s live presentations (there are two coming up in May 2013, you can see more information on those here) and continue listening to our podcast.
Written by Dani, April 30th, 2013
Three unusual things happened last week in the markets, which illustrate this point:
- Twitter flashcrash: The Associated Press Twitter account was hacked, and a false tweet was sent out, describing an explosion at the White House. It took three minutes for the AP to retract this false story, but in that time, the stock market crashed about 1%. Twitter is a new medium for instant action and this kind of technology creates volatility.
- The Charles Schwab brokerage site was down for about 24 hours – blocking access to brokers. Again, this was just a glitch, but it proves that technology is a factor in our financial lives.
- The Chicago board options exchange went down for about three hours as well. Another example of the havoc wreaked by even minor disturbances in service.
Mark Cuban, the owner of the Dallas Mavericks and a well-known technology mogul, had a great quote about the fallout from the AP Twitter event last week (read his full comments here): “What’s going to happen when there’s a real event? Do you really thing that there’s going to be any bids at all?” he said. “All we have are circuit-breakers that we hope will work. And then after the circuit breakers, what happens?”
We agree, and believe that it’s important that you have diversification and safety in your portfolios. In this day and age, we are dependent on technology. This dependence adds volatility to an already unstable market, and it’s important for investors to be aware. Our advice is this: plan for these events ahead of time, realize that changes are inevitable and preparation is invaluable.
This is a podcast summary. For more information, please listen to the entire broadcast here.
Written by Dani, April 23rd, 2013
Doug will be speaking live on May 9 in Santa Barbara for the American Association of Individual Investors. For ticket information and more details, please call our offices at 800-391-1118.
Also, Doug will be presenting at the Money Show on May 14-15 in Las Vegas. See the Money Show website for ticket information – we look forward to seeing you at one of these events!
As always, if you have questions about the state of your portfolio or market action, email questions or concerns to askdoug(at)dougfabian(dot)com.
Don’t forget about our podcast! For more information about our investing perspectives, listen to the broadcast here.
