MSCI INC.

153.89 +1.91 (+1.24%) Buy

MSCI investors hold onto their investments as it marginally outperforms

13 min read

MSCI INC. is looking better than most other alternatives on Wednesday. It grew by +1.24% to close at 153.89. On a day when the overall market breadth was 35%, it closed higher than 84% of the market. In comparison, the benchmark SP500 index closed today at +0.54%.

[Themes containing MSCI]

MSCI is currently in a up trend. Over the last three months trading long signals has not been a profitable strategy for MSCI's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -14.76%). It is therefore better to tread with caution in the current uptrend by limiting your allocation to MSCI.

Trend

MSCI has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 8 days, MSCI outperformed the SP500 index on 55% days.

During the last three months MSCI was mostly loss making and delivered on average -0.23% per day. It's best return during this period (of +4.21%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -5.37%) was on Wednesday, 10 Oct, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 15 Oct, 2018. The trend delivered -15.64% losses to investors. This was followed by a bullish trend that started on 5 Nov, 2018 and ended on 8 Nov, 2018. This bullish trend delivered +5.39% to investors.

MSCI had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of MSCI and SP500 index were the same. MSCI was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -16.36% compared to -7.28% returned by SP500 index in Oct 2018. MSCI and SP500 index, both had periods of 6 consecutive profitable months.

An investment in knowledge pays the best interest.
-- Benjamin Franklin

MSCI 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 MSCI's volatility from 3 Oct, 2018 to 2 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 MSCI 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.

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

On a general note (since you are interested in MSCI), EHC is a small cap that deserves to be closely tracked for investment opportunities.

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