Search for alternative investments is on for AMT investors as it underperforms broader market
14 Dec, 201813 min read
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AMERICAN TOWER CORP showed weakness today. It fell by -0.12% to close at 166.6. During the last week it increased by +0.25% and saw a maximum drawdown of -1.19% before bouncing back.
AMT is currently in a bullish trend. Over the last three months 2 bullish signals in AMT have generated a profit of +9.57% for investors.
AMT has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 7 Feb, 2017 to 14 Dec, 2018. One must note that AMT is currently at it's peak outperformance to the SP500 index which makes it a good investment candidate. Over the last 2 years 11 months and 10 days, AMT outperformed the SP500 index on 53% days.
During the last three months AMT was mostly profitable and delivered on average +0.2% per day. It's best return during this period (of +5.32%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -3.36%) was on Tuesday, 20 Nov, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 5 Nov, 2018 and went on till 14 Nov, 2018. This bullish trend returned +7.26% to investors.
During the last year AMT had 9 profitable months and 3 loss making months. AMT returned profits in more months than SP500 index. AMT significantly outperformed SP500 index in Oct 2018, when it returned +8.18% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. AMT had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both AMT and SP500 index significantly outperform during months when quarterly/annual results are announced.
My old father used to have a saying: If you make a bad bargain, hug it all the tighter.
-- Abraham Lincoln
AMT is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in AMT's volatility from 19 Sep, 2018 to 31 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that AMT has significant positive skewness in it's return distribution. This indicates that investors can expect AMT to recover from drawdowns quickly. Which makes AMT a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in AMT derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.
AMT has more chance of extreme outcomes than the SP500 index. Therefore, AMT must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than AMT.
Based on your interest in AMT you may find it interesting to know that NSPR, APRN and SBOT have all shown remarkable performance and qualify to be on every investor's watchlist.
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