11.47 -0.08 (-0.69%) Sell

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

13 min read

ISBC is a falling knife that can bleed you if you catch it today. On a longer term basis, investors in INVESTORS BANCORP, INC. made +0.04% per day. Tuesday's performance of -0.69% was a significant underperformance compared to it's daily average.

[Themes containing ISBC]

ISBC showed a down trend over the last 3 months. During this period ISBC lost -9.11% and saw a maximum drawdown of -18.72%. There was a short signal during this period which returned +7.87%.


ISBC has been underperforming the SP500 index in recent time, after having outperformed till 8 Dec, 2016. Over the last 2 years 11 months and 7 days, ISBC underperformed the SP500 index on 48% days. Which indicates that on days ISBC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ISBC was mostly loss making and delivered on average -0.13% per day. It's best return during this period (of +9.93%) was on Tuesday, 6 Nov, 2018. While it's worst loss in the same period (of -4.46%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 18 Oct, 2018 and went on till 24 Oct, 2018. The trend delivered -11.28% losses to investors. This was followed by a bullish trend that started on 25 Oct, 2018 and ended on 30 Oct, 2018. This bullish trend delivered +9.4% to investors.

ISBC had 4 profitable and 8 loss making months over the last year. During the last year, ISBC underperformed SP500 index on monthly return basis. ISBC significantly outperformed SP500 index in Nov 2018, when it returned +9.84% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ISBC had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -7.36%.

"After two decades of personal finance reporting, I've heard every excuse in the book for not saving money. That said, none of them really hold up - at least over the long term.

ISBC 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 ISBC's volatility from 17 Sep, 2018 to 6 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that ISBC 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 ISBC. Therefore, SP500 must receive a lower allocation than ISBC in your portfolio. SP500 index usually has shorter drawdown period than ISBC.

Based on your interest in ISBC you may find it interesting to know that HQY and EHC are both small caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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