PSA investors elated by performance

PUBLIC STORAGE outperformed the broader market today. It increased by +2.22% to close at 203.47. During the last week it delivered -4.89% and saw a maximum drawdown of -6.96% before bouncing back.

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Buy-and-Hold investors in PSA experienced a maximum drawdown of -7.95% over the last three months. It delivered -2.28% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.

Trend

Monthly Performance

Alpha (outperformance)

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Volatility

Return distribution

PSA has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 7 Apr, 2016 to 3 Oct, 2018. Over the last 2 years 11 months and 10 days, PSA underperformed the SP500 index on 48% days. Which indicates that on days PSA underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months PSA delivered profits on 53% days. However, it still managed to end this period in a loss. It's best return during this period (of +2.6%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -3.34%) was on Friday, 2 Nov, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 5 Nov, 2018 and went on till 14 Nov, 2018. This bullish trend returned +4.88% to investors.

The last 12 months saw PSA's investors making profits in 6 months and incurring losses in 6 months. PSA was less consistent in delivering monthly returs than SP500 index. PSA significantly outperformed SP500 index in Jun 2018, when it returned +7.09% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. PSA had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

It is not the man who has too little, but the man who craves more, that is poor.
-- Seneca

PSA 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 PSA's volatility from 2 Oct, 2018 to 2 Nov, 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 PSA has significant positive skewness in it's return distribution. This indicates that investors can expect PSA to recover from drawdowns quickly. Which makes PSA a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

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