GLADSTONE INVESTMENT CORPORATION

9.39 -0.51 (-5.44%) Sell

GAIN investors take a massive hit

13 min read

GLADSTONE INVESTMENT CORPORATION is a falling knife that can bleed you if you catch it on Monday. It lost -5.44% to close at 9.39. On a day when the overall market breadth was 34%, it closed higher than 14% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing GAIN]

GAIN is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +11.78% for investors.

Trend

GAIN has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, GAIN underperformed the SP500 index on 47% days. Which indicates that on days GAIN underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

GAIN returned losses on 62% days in the last three months. During this time, it delivered on average -0.3% per day. It delivered it's worst daily return of -5.44%, during this period, on Monday, 17 Dec, 2018. There was initially a bearish trend during this period which started on 28 Sep, 2018 and went on till 12 Oct, 2018. The trend delivered -8.65% losses to investors. This was followed by a bullish trend that started on 23 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +5.42% to investors.

GAIN had 6 profitable and 6 loss making months over the last year. During the last year, GAIN underperformed SP500 index on monthly return basis. GAIN was also a more risky investment than SP500 index as it's worst month in the last year, Jan 2018, returned -12.42% compared to -7.28% returned by SP500 index in Oct 2018. GAIN had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.

Glamour is what I sell, it's my stock in trade.
-- Marlene Dietrich

GAIN 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 fall in GAIN's volatility from 19 Sep, 2018 to 4 Dec, 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 GAIN has significant positive skewness in it's return distribution. This indicates that investors can expect GAIN to recover from drawdowns quickly. Which makes GAIN 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 GAIN. Therefore, SP500 must receive a lower allocation than GAIN in your portfolio. SP500 index usually has shorter drawdown period than GAIN.

Based on your interest in GAIN you may find it interesting to know that PRQR, I and HEAR have all shown remarkable performance this year and deserve to be on every investor's watchlist.

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