9.04 -0.31 (-3.42%) Sell

SLM investors take a massive hit

13 min read

SLM CORP significantly underperformed today. It lost -3.42% to close at 9.04. It's recent 5 day performance has been +0.86%, -1.69%, -2.38%, -2.32% and -0.1%.

[Themes containing SLM]

SLM is currently in a down trend. The current bearish signal has generated a profit of +18.56% for investors in the last three months.


SLM has been underperforming the SP500 index in recent time, after having outperformed till 21 Apr, 2017. Over the last 2 years 11 months and 9 days, SLM outperformed the SP500 index on 51% days.

During the last three months SLM was mostly loss making and delivered on average -0.39% per day. It's best return during this period (of +2.55%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -4.95%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 2 Oct, 2018. The trend delivered -7.84% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +4.08% to investors.

SLM had 6 profitable and 6 loss making months over the last year. During the last year, SLM underperformed SP500 index on monthly return basis. SLM was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -11.98% compared to -7.28% returned by SP500 index in Oct 2018. SLM had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

"It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.

SLM is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in SLM's volatility from 17 Sep, 2018 to 11 Dec, 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 SLM has significant positive skewness in it's return distribution. This indicates that investors can expect SLM to recover from drawdowns quickly. Which makes SLM 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 SLM. Therefore, SP500 must receive a lower allocation than SLM in your portfolio. SLM usually has shorter drawdown period than the SP500 index.

Based on your interest in SLM you may find it interesting to know that XENE and COOL have both performed similar to SLM and can be considered by investors as alternative investment options.

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