10.5 -0.48 (-4.55%) Sell

Doubt in the minds of GAIA investors as it was among the worst performers

13 min read

GAIA, INC significantly underperformed on Monday. It fell by -4.55% to close at 10.5 which is it's 52 week low, down -53% from it's 52 week high.

[Themes containing GAIA]

GAIA is currently in a bearish trend. Over the last three months 3 bearish signals have generated a profit of +15.97% for investors.


GAIA has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 10 Feb, 2016 to 25 Jun, 2018. Over the last 2 years 11 months and 10 days, GAIA outperformed the SP500 index on 51% days.

GAIA returned losses on 57% days in the last three months. During this time, it delivered on average -0.66% per day. It delivered it's worst daily return of -11.33%, during this period, on Tuesday, 6 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 29 Nov, 2018 and ended on 7 Dec, 2018. This bearish trend lost -12.47% of investor capital.

During the last year GAIA had 5 profitable months and 7 loss making months. GAIA returned profits in fewer months than SP500 index. GAIA significantly outperformed SP500 index in May 2018, when it returned +25.41% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. GAIA had a longer winning streak of losing months than SP500 index. It went down in 6 straight months (from Jul 2018 to Dec 2018) during which period it delivered -61.9%.

If I finance a bank and I know if the bank will get in trouble, I will be hit and I will lose money, I will put a price on that.
-- Jeroen Dijsselbloem

GAIA 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 GAIA's volatility from 19 Sep, 2018 to 8 Nov, 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 GAIA 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 GAIA. Therefore, SP500 must receive a lower allocation than GAIA in your portfolio. SP500 index usually has shorter drawdown period than GAIA.

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

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