36.78 -0.5 (-1.37%) Sell

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

13 min read

LAZARD LTD delivered massive losses today. It lost -1.37% to close at 36.78. During the last week it returned +4.88% and saw a maximum drawdown of -1.37% before bouncing back.

[Themes containing LAZ]

LAZ is currently in a down trend. The current bearish signal has generated a profit of +22.49% for investors in the last three months.


LAZ has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, LAZ underperformed the SP500 index on 50% days. Which indicates that on days LAZ underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months LAZ was mostly loss making and delivered on average -0.38% per day. It's best return during this period (of +4.23%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -8.12%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 17 Sep, 2018 and went on till 24 Sep, 2018. The bullish trend returned +3.19% to investors. This was followed by a bearish trend that started on 4 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -11.18% of investor capital.

LAZ had 4 profitable and 8 loss making months over the last year. During the last year, LAZ underperformed SP500 index on monthly return basis. LAZ was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -17.48% compared to -7.28% returned by SP500 index in Oct 2018. LAZ 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 -28.84%. It is interesting to note that both LAZ and SP500 index significantly outperform during months when quarterly/annual results are announced.

Let's not allow the voice of the people to be overwhelmed by the siren song of those who opposed regulation, who demanded that government should stand aside and let finance and business run the show.
-- David Blunkett

LAZ 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 LAZ's volatility from 25 Sep, 2018 to 7 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 LAZ has significant positive skewness in it's return distribution. This indicates that investors can expect LAZ to recover from drawdowns quickly. Which makes LAZ 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 LAZ. Therefore, SP500 must receive a lower allocation than LAZ in your portfolio. SP500 index usually has shorter drawdown period than LAZ.

On a general note (since you are interested in LAZ), two instruments that deserve special mention are DFBG and I. They have significantly outperformed the overall market this year.

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