RAYMOND JAMES FINANCIAL INC

75.38 -2.04 (-2.71%) Sell

Doubt in the minds of RJF investors as it ranked among the worst performers

13 min read

RAYMOND JAMES FINANCIAL INC was among the worst performers on Friday. It fell by -2.71% to close at 75.38. On a day when the overall market breadth was 35%, it closed higher than 11% of the market. In comparison, the benchmark SP500 index closed today at -0.0233%.

[Themes containing RJF]

RJF is currently in a bearish trend. Over the last three months 3 bearish signals have generated a profit of +8.55% for investors.

Trend

RJF has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 7 Apr, 2016 to 22 May, 2018. Over the last 2 years 11 months and 3 days, RJF outperformed the SP500 index on 52% days.

RJF returned losses on 51% days in the last three months. During this time, it delivered on average -0.3% per day. It delivered it's worst daily return of -5.35%, during this period, on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 8 losing days, which started on 18 Oct, 2018 and ended on 29 Oct, 2018. This bearish trend lost -19.87% of investor capital.

During the last year RJF had 6 profitable months and 6 loss making months. RJF returned profits in fewer months than SP500 index. RJF was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -16.95% compared to -7.28% returned by SP500 index in Oct 2018. RJF had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both RJF and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Based on my own personal experience - both as an investor in recent years and an expert witness in years past - rarely do more than three or four variables really count. Everything else is noise.

RJF 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 RJF's volatility from 10 Sep, 2018 to 7 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that RJF has significant positive skewness in it's return distribution. This indicates that investors can expect RJF to recover from drawdowns quickly. Which makes RJF 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 RJF. Therefore, SP500 must receive a lower allocation than RJF in your portfolio. SP500 index usually has shorter drawdown period than RJF.

Based on your interest in RJF you may find it interesting to know that EPIX and NVCN are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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