3.67 +0.09 (+2.51%) Buy

Time to party for IAG investors as it outperforms broader market

13 min read

IAMGOLD CORP (Foreign) was among the best performers today. It returned +2.51% to close at 3.67. During the last week it returned +6.07% and saw a maximum drawdown of -2.6% before bouncing back.

[Themes containing IAG]

Buy-and-Hold investors in IAG experienced a maximum drawdown of -28.64% over the last three months. It lost -6.14% during this down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +2.69%.


IAG has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, IAG outperformed the SP500 index on 51% days.

During the last three months IAG was mostly loss making and delivered on average -0.05% per day. It's best return during this period (of +8.45%) was on Thursday, 15 Nov, 2018. While it's worst loss in the same period (of -8.26%) was on Wednesday, 7 Nov, 2018. There was initially a bullish trend during this period which started on 10 Oct, 2018 and went on till 15 Oct, 2018. The bullish trend returned +6.92% to investors. This was followed by a bearish trend that started on 6 Nov, 2018 and ended on 14 Nov, 2018. This bearish trend lost -26.32% of investor capital.

IAG had 3 profitable and 9 loss making months over the last year. During the last year, IAG underperformed SP500 index on monthly return basis. IAG was also a more risky investment than SP500 index as it's worst month in the last year, Aug 2018, returned -25.82% compared to -7.75% returned by SP500 index in Dec 2018. IAG had a longer winning streak of losing months than SP500 index. It went down in 6 straight months (from Jun 2018 to Nov 2018) during which period it delivered -66.07%. It is interesting to note that both IAG and SP500 index significantly outperform during months when quarterly/annual results are announced.

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

IAG 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 IAG's volatility from 5 Oct, 2018 to 29 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 IAG 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.

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

On a general note (since you are interested in IAG), three instruments that deserve special mention are TYHT, AYTU and RGSE. They have all outperformed the market and must be closely watched for investment opportunities.

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