ETSY INC

51.17 -3.0 (-5.87%) Buy

Search for alternative investments is on for ETSY investors as it underperforms

13 min read

ETSY INC significantly underperformed on Monday. It returned -5.87% to close at 51.17. On a day when the overall market breadth was 34%, it closed higher than 69% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing ETSY]

Buy-and-Hold investors in ETSY experienced a maximum drawdown of -25.07% over the last three months. It gained +2.01% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.

Trend

ETSY has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, ETSY outperformed the SP500 index on 52% days.

ETSY returned losses on 55% days in the last three months. During this time, it delivered on average +0.14% per day. It delivered it's best daily return of +23.7%, during this period, on Wednesday, 7 Nov, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -20.67% losses to investors. This was followed by a bullish trend that started on 21 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +27.61% to investors.

On monthly basis, ETSY delivered profits in more months over the last year, than losses. ETSY delivered profits in more months than SP500 index. ETSY significantly outperformed SP500 index in Feb 2018, when it returned +34.91% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ETSY had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.

I would not pre-pay. I would invest instead and let the investments cover it.
-- Dave Ramsey

ETSY is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in ETSY's volatility from 28 Sep, 2018 to 30 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 ETSY 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 ETSY. Therefore, SP500 must receive a lower allocation than ETSY in your portfolio. SP500 index usually has shorter drawdown period than ETSY.

Based on your interest in ETSY you may find it interesting to know that NSPR has shown remarkable performance and deserves to be on every investors' watchlist.

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