92.49 -0.28 (-0.3%) Buy

Search for alternative investments is on for PG investors as it underperforms broader market

13 min read

PROCTER & GAMBLE CO delivered massive losses on Tuesday. It fell by -0.3% to close at 92.49. It is currently trading +30% above it's 52 week low of 70.94 and is down only -4% from it's 52 week high.

[Themes containing PG]

Buy-and-Hold investors in PG experienced a maximum drawdown of -8.1% over the last three months. It surged by +10.11% during this strong bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +3.47%.


PG has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 9 Feb, 2016 to 6 Jun, 2018. Over the last 2 years 11 months and 14 days, PG underperformed the SP500 index on 50% days. Which indicates that on days PG underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

PG was profitable on 60% days in the last three months. During this time, it delivered on average +0.17% per day. It delivered it's best daily return of +8.8%, during this period, on Friday, 19 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 8 Nov, 2018 and went on till 15 Nov, 2018. This bullish trend returned +2.75% to investors.

During the last year PG had 8 profitable months and 4 loss making months. Profitable number of months of PG and SP500 index were the same. PG was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -9.06% compared to -7.75% returned by SP500 index in Dec 2018. PG had a longer winning streak of profitable months than SP500 index. It went up in 7 straight months (from May 2018 to Nov 2018) during which period it delivered +26.81%.

"There are two kinds of investors, be they large or small: those who don't know where the market is headed, and those who don't know that they don't know. Then again, there is a third type of investor -the investment professional, who indeed knows that he or she doesn't know, but whose livelihood depends upon appearing to know.

PG 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 PG's volatility from 19 Sep, 2018 to 24 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that PG 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.

Investors trading in PG derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in PG you may find it interesting to know that MSFT is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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