132.56 -2.41 (-1.81%) Sell

Don't invest in IEX now, it is a volatile investment

13 min read

IEX is a falling knife that can bleed you if you catch it today. On a longer term basis, investors in IDEX CORP made -0.06% per day. Friday's performance of -1.81% was a underperformance compared to it's daily average.

[Themes containing IEX]

IEX showed a strong bearish trend over the last 3 months. During this period IEX fell by -13.87% and saw a maximum drawdown of -20.26%. There was a short signal during this period which returned +11.58%.


IEX has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 25 Jan, 2016 to 20 Mar, 2018. Over the last 2 years 11 months and 10 days, IEX outperformed the SP500 index on 54% days.

During the last three months IEX was mostly loss making and delivered on average -0.23% per day. It's best return during this period (of +4.05%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -4.24%) was on Thursday, 11 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 21 Sep, 2018 and ended on 28 Sep, 2018. This bearish trend lost -3.96% of investor capital.

During the last year IEX had 5 profitable months and 7 loss making months. IEX returned profits in fewer months than SP500 index. IEX was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -16.07% compared to -7.28% returned by SP500 index in Oct 2018. IEX had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -17.97%. It is interesting to note that both IEX and SP500 index significantly outperform during months when quarterly/annual results are announced.

The speed of your success is limited only by your dedication and what you're willing to sacrifice.
-- Nathan W. Morris

IEX 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 IEX's volatility from 25 Sep, 2018 to 29 Oct, 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 IEX 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.

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

Based on your interest in IEX you may find it interesting to know that APRN has shown remarkable performance and deserves to be on every investors' watchlist.

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