IHS MARKIT LTD.

49.54 -0.72 (-1.45%) Sell

INFO is a falling knife, continues to bleed every investor trying to catch it

13 min read

IHS MARKIT LTD. ranked among the worst performers today. It delivered -1.45% to close at 49.54. During the last week it delivered -2.65% and saw a maximum drawdown of -2.65%.

[Themes containing INFO]

Buy-and-Hold investors in INFO experienced a maximum drawdown of -10.27% over the last three months. It delivered -9.0% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.

Trend

INFO has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 2 Mar, 2016 to 3 Dec, 2018. Over the last 2 years 11 months and 9 days, INFO outperformed the SP500 index on 54% days.

During the last three months INFO was mostly loss making and delivered on average -0.14% per day. It's best return during this period (of +3.67%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -3.7%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 7 losing days, which started on 4 Dec, 2018 and ended on 13 Dec, 2018. This bearish trend lost -8.9% of investor capital.

The last 12 months saw INFO's investors making profits in 8 months and incurring losses in 4 months. During the last year, INFO and SP500 index had the same number of profitable months. INFO was also a less risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -7.18% compared to -7.28% returned by SP500 index in Oct 2018. INFO and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both INFO and SP500 index significantly outperform during months when quarterly/annual results are announced.

The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
-- T.T. Munger

INFO is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in INFO's volatility from 21 Sep, 2018 to 13 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 INFO 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 INFO. Therefore, SP500 must receive a lower allocation than INFO in your portfolio. SP500 index usually has shorter drawdown period than INFO.

On a general note (since you are interested in INFO), two instruments that deserve special mention are APRN and NSPR. They have significantly outperformed the overall market.

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