81.53 -2.07 (-2.53%) Sell

FMX investors dump it

13 min read

MEXICAN ECONOMIC DEVELOPMENT INC (Foreign) is a falling knife that can bleed you if you catch it today. It fell by -2.53% to close at 81.53. It's recent 5 day performance has been -1.13%, +0.08%, +4.38%, -0.64% and -1.2%.

[Themes containing FMX]

FMX is currently in a bearish trend. The current bearish signal has generated a profit of +14.31% for investors in the last three months.


FMX has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 19 Feb, 2016 to 6 Jun, 2018. Over the last 2 years 11 months and 10 days, FMX underperformed the SP500 index on 48% days. Which indicates that on days FMX underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months FMX was mostly loss making and delivered on average -0.28% per day. It's best return during this period (of +4.38%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -5.63%) was on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -7.27% of investor capital.

During the last year FMX had 6 profitable months and 6 loss making months. FMX returned profits in fewer months than SP500 index. FMX was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -14.8% compared to -7.28% returned by SP500 index in Oct 2018. FMX had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both FMX and SP500 index significantly outperform during months when quarterly/annual results are announced.

"A bull market is very much like being in love. You don't realise its value till It's gone.

FMX is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in FMX's volatility from 2 Oct, 2018 to 9 Nov, 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 FMX has positive skewness in it's return distribution. This indicates that investors can expect FMX to make attempts to recover from drawdowns quickly. Which makes FMX a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

On a general note (since you are interested in FMX), two instruments that deserve special mention are NFEC and PRQR. They have significantly outperformed the overall market this year.

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