CRH PUBLIC LTD CO (FOREIGN)

25.5 -0.09 (-0.35%) Sell

The party never started for CRH investors as it destroyed investor wealth

13 min read

CRH PUBLIC LTD CO (Foreign) significantly underperformed on Friday. It returned -0.35% to close at 25.5. On a day when the overall market breadth was 35%, it closed higher than 71% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing CRH]

CRH is currently in a down trend. The current bearish signal has generated a profit of +20.56% for investors in the last three months.

Trend

CRH has been underperforming the SP500 index in recent time, after having outperformed till 10 Nov, 2016. Over the last 2 years 11 months and 10 days, CRH underperformed the SP500 index on 49% days. Which indicates that on days CRH underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

CRH returned losses on 62% days in the last three months. During this time, it delivered on average -0.34% per day. It delivered it's worst daily return of -6.32%, during this period, on Thursday, 18 Oct, 2018. There was initially a bullish trend during this period which started on 17 Sep, 2018 and went on till 20 Sep, 2018. The bullish trend returned +3.65% to investors. This was followed by a bearish trend that started on 4 Oct, 2018 and ended on 12 Oct, 2018. This bearish trend lost -7.99% of investor capital.

On monthly basis, CRH delivered losses in more months over the last year, than profits. CRH delivered profits less regularly than SP500 index. CRH was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -11.47% compared to -7.28% returned by SP500 index in Oct 2018. CRH 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 -35.66%. It is interesting to note that both CRH and SP500 index significantly outperform during months when quarterly/annual results are announced.

I'm only rich because I know when I'm wrong..I basically have survived by recognizing my mistakes.
-- George Soros

CRH is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in CRH's volatility from 19 Sep, 2018 to 11 Dec, 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 CRH has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

On a general note (since you are interested in CRH), two mid cap instruments that deserve special mention are LULU and TWTR. They have significantly outperformed the overall market.

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