47.66 -0.48 (-1.0%) Sell

BBT is a falling knife, continues to bleed every investor trying to catch it

13 min read

BB&T CORP has destroyed investor wealth today. It delivered -1.0% to close at 47.66. It's recent 5 day performance has been -0.48%, -4.65%, -0.72%, +0.99% and -0.65%.

[Themes containing BBT]

BBT showed a bearish trend over the last 3 months. During this period BBT delivered -7.92% and saw a maximum drawdown of -11.2%. There were 2 short signals during this period that returned a cumulative of +4.45% to investors.


BBT has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 27 Dec, 2016 to 2 Oct, 2018. Over the last 2 years 11 months and 3 days, BBT underperformed the SP500 index on 48% days. Which indicates that on days BBT underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

BBT returned losses on 56% days in the last three months. During this time, it delivered on average -0.12% per day. It delivered it's worst daily return of -4.65%, during this period, on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 8 losing days, which started on 21 Sep, 2018 and ended on 2 Oct, 2018. This bearish trend lost -6.58% of investor capital.

The last 12 months saw BBT's investors making profits in 5 months and incurring losses in 7 months. BBT was less consistent in delivering monthly returs than SP500 index. BBT significantly outperformed SP500 index in Jan 2018, when it returned +10.56% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. BBT had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -5.17%. It is interesting to note that both BBT and SP500 index significantly outperform during months when quarterly/annual results are announced.

Never spend your money before you have earned it.
-- Thomas Jefferson

BBT is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in BBT's volatility from 11 Sep, 2018 to 22 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that BBT has significant positive skewness in it's return distribution. This indicates that investors can expect BBT to recover from drawdowns quickly. Which makes BBT a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

BBT has more chance of extreme outcomes than the SP500 index. Therefore, BBT must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than BBT.

Based on your interest in BBT you may find it interesting to know that EHC, AAXN and ZBRA are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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