30.75 -0.59 (-1.91%) Sell

Doubt in the minds of FWONA investors as it destroyed investor wealth

13 min read

LIBERTY MEDIA CORP significantly underperformed today. It fell by -1.91% to close at 30.75. It's recent 5 day performance has been +2.42%, +0.03%, -2.08%, +5.82% and +1.86%.

[Themes containing FWONA]

FWONA is currently in a bearish trend. The current bearish signal has generated a profit of +3.15% for investors in the last three months.


FWONA has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 7 Jan, 2016 to 30 Nov, 2018. Over the last 2 years 11 months and 9 days, FWONA underperformed the SP500 index on 47% days. Which indicates that on days FWONA underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

FWONA returned losses on 56% days in the last three months. During this time, it delivered on average -0.15% per day. It delivered it's best daily return of +7.51%, during this period, on Tuesday, 18 Sep, 2018. The longest stort-term trend during this period was 9 losing days, which started on 1 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -12.75% of investor capital.

During the last year FWONA had 6 profitable months and 6 loss making months. FWONA returned profits in fewer months than SP500 index. FWONA significantly outperformed SP500 index in Jun 2018, when it returned +16.65% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. FWONA had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -19.13%.

"I believe that through knowledge and discipline, financial peace is possible for all of us.

FWONA 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 FWONA's volatility from 14 Sep, 2018 to 7 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that FWONA has significant positive skewness in it's return distribution. This indicates that investors can expect FWONA to recover from drawdowns quickly. Which makes FWONA 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 FWONA. Therefore, SP500 must receive a lower allocation than FWONA in your portfolio. FWONA usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in FWONA), three small cap instruments that deserve special mention are AAXN, BURL and EHC. They have all outperformed the market and must be closely watched for investment opportunities.

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