19.38 -0.42 (-2.17%) Sell

Looking to invest in CASH? Avoid at the moment as it delivered massive losses

13 min read

META FINANCIAL GROUP INC delivered massive losses on Tuesday. It fell by -2.17% to close at 19.38. On a day when the overall market breadth was 34%, it closed higher than 7% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.

[Themes containing CASH]

CASH showed a strong bearish trend over the last 3 months. During this period CASH fell by -31.07% and saw a maximum drawdown of -31.07%. There was a short signal during this period which returned +29.54%.


CASH has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 26 Jan, 2016 to 11 Jan, 2017. Over the last 2 years 11 months and 14 days, CASH outperformed the SP500 index on 49% days. Which indicates that on days CASH outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

CASH returned losses on 64% days in the last three months. During this time, it delivered on average -0.57% per day. It delivered it's worst daily return of -5.9%, during this period, on Tuesday, 4 Dec, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +9.51%) started on 25 Oct, 2018 and went on till 31 Oct, 2018 while the bearish trend (which returned -10.85%) started on 18 Oct, 2018 and went on till 24 Oct, 2018.

During the last year CASH had 4 profitable months and 8 loss making months. CASH returned profits in fewer months than SP500 index. CASH significantly outperformed SP500 index in Jan 2018, when it returned +26.49% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CASH had a longer winning streak of losing months than SP500 index. It went down in 7 straight months (from Jun 2018 to Dec 2018) during which period it delivered -63.85%. It is interesting to note that both CASH and SP500 index significantly outperform during months when quarterly/annual results are announced.

"There can be no rise in the value of labour without a fall of profits.

CASH 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 CASH's volatility from 20 Sep, 2018 to 31 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

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

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

Based on your interest in CASH you may find it interesting to know that IX, VIPS and GNK are all extremely risky investment candidates that must be evaluated carefully. Investors with low risk profile are better off avoiding them till their performance becomes more consistent.

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