53.53 -0.89 (-1.65%) Sell

LNC investors take a massive hit

13 min read

LINCOLN NATIONAL CORP was among the worst performers on Friday. It lost -1.65% to close at 53.53 which is it's 52 week low, down -37% from it's 52 week high.

[Themes containing LNC]

LNC is currently in a down trend. The current bearish signal has generated a profit of +16.62% for investors in the last three months.


LNC has been underperforming the SP500 index in recent time, after having outperformed till 1 Feb, 2018. Over the last 2 years 11 months and 10 days, LNC underperformed the SP500 index on 48% days. Which indicates that on days LNC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months LNC was mostly loss making and delivered on average -0.32% per day. It's best return during this period (of +3.67%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -6.89%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 9 Oct, 2018 and went on till 15 Oct, 2018. The trend delivered -9.99% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 8 Nov, 2018. This bullish trend delivered +13.48% to investors.

LNC had 4 profitable and 8 loss making months over the last year. During the last year, LNC underperformed SP500 index on monthly return basis. LNC was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -14.99% compared to -7.28% returned by SP500 index in Oct 2018. LNC had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -24.8%. It is interesting to note that both LNC and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Even though the quotes above come from some of the most intelligent people on Wall Street, the ideas behind them are both quite simple and insightful.

LNC is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in LNC's volatility from 18 Sep, 2018 to 11 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 LNC has significant positive skewness in it's return distribution. This indicates that investors can expect LNC to recover from drawdowns quickly. Which makes LNC 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 LNC. Therefore, SP500 must receive a lower allocation than LNC in your portfolio. SP500 index usually has shorter drawdown period than LNC.

On a general note (since you are interested in LNC), if you are evaluating LNC as an investment candidate, then you should read about INFY which has delivered similar performance and can help diversify your portfolio.

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