81.51 -0.7 (-0.86%) Sell

CRI investors take a massive hit

13 min read

CARTERS INC was among the worst performers today. It lost -0.86% to close at 81.51. During the last week it lost -2.74% and saw a maximum drawdown of -4.74% before bouncing back.

[Themes containing CRI]

Buy-and-Hold investors in CRI experienced a maximum drawdown of -18.03% over the last three months. It lost -11.88% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +11.88% for investors.


CRI has been underperforming the SP500 index in recent time, after having outperformed till 29 Feb, 2016. Over the last 2 years 11 months and 10 days, CRI underperformed the SP500 index on 47% days. Which indicates that on days CRI underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months CRI delivered profits on 52% days. However, it still managed to end this period in a loss. It's best return during this period (of +3.83%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -5.45%) was on Thursday, 25 Oct, 2018. There was initially a bullish trend during this period which started on 25 Sep, 2018 and went on till 1 Oct, 2018. The bullish trend returned +6.15% to investors. This was followed by a bearish trend that started on 9 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -4.43% of investor capital.

CRI had 3 profitable and 9 loss making months over the last year. During the last year, CRI underperformed SP500 index on monthly return basis. CRI was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -11.11% compared to -7.28% returned by SP500 index in Oct 2018. CRI had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -25.14%. It is interesting to note that both CRI and SP500 index significantly outperform during months when quarterly/annual results are announced.

The Stock Market is designed to transfer money from the Active to the Patient.
-- Warren Buffett

CRI 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 CRI's volatility from 9 Oct, 2018 to 29 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 CRI 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.

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

Based on your interest in CRI you may find it interesting to know that PFE is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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