RSG investors incur serious losses
14 Dec, 201813 min read
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REPUBLIC SERVICES, INC. was among the worst performers on Friday. It delivered -0.59% to close at 74.42. On a day when the overall market breadth was 35%, it closed higher than 8% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.
RSG is currently in a bearish trend. The previous short signal in RSG has not been profitable for investors in general. If you are short on RSG at current levels please make sure that your allocation is limited and that your portfolio is well diversified.
RSG has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 4 Jan, 2016 to 20 Nov, 2018. Over the last 2 years 11 months and 10 days, RSG outperformed the SP500 index on 54% days.
During the last three months RSG was mostly loss making and delivered on average -0.01% per day. It's best return during this period (of +2.31%) was on Friday, 26 Oct, 2018. While it's worst loss in the same period (of -2.42%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 4 Dec, 2018 and ended on 12 Dec, 2018. This bearish trend lost -4.82% of investor capital.
The last 12 months saw RSG's investors making profits in 7 months and incurring losses in 5 months. RSG was less consistent in delivering monthly returs than SP500 index. RSG significantly outperformed SP500 index in Nov 2018, when it returned +6.41% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. RSG had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both RSG and SP500 index significantly outperform during months when quarterly/annual results are announced.
The speed of your success is limited only by your dedication and what you're willing to sacrifice.
-- Nathan W. Morris
RSG 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 RSG's volatility from 17 Sep, 2018 to 26 Oct, 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 RSG has significant positive skewness in it's return distribution. This indicates that investors can expect RSG to recover from drawdowns quickly. Which makes RSG 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 RSG. Therefore, SP500 must receive a lower allocation than RSG in your portfolio. SP500 index usually has shorter drawdown period than RSG.
Based on your interest in RSG you may find it interesting to know that AMZN and CSCO are both large caps that have shown remarkable performance and deserve to be on every investors' watchlist.
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