S&P GLOBAL INC.

166.62 -2.87 (-1.72%) Sell

SPGI investors hurt by serious losses

13 min read

S&P GLOBAL INC. was among the worst performers today. It fell by -1.72% to close at 166.62. During the last week it fell by -1.48% and saw a maximum drawdown of -1.72% before bouncing back.

[Themes containing SPGI]

Buy-and-Hold investors in SPGI experienced a maximum drawdown of -21.98% over the last three months. It fell by -21.16% during this strong 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. The net profit from Short signals was +14.72%.

Trend

SPGI has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 3 Feb, 2016 to 18 Jul, 2018. Over the last 2 years 11 months and 10 days, SPGI outperformed the SP500 index on 57% days.

During the last three months SPGI was mostly loss making and delivered on average -0.36% per day. It's best return during this period (of +3.47%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -4.23%) was on Friday, 28 Sep, 2018. The longest stort-term trend during this period was 9 profitable days, which started on 29 Oct, 2018 and went on till 8 Nov, 2018. This bullish trend returned +9.42% to investors.

During the last year SPGI had 7 profitable months and 5 loss making months. SPGI returned profits in fewer months than SP500 index. SPGI was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -8.88% compared to -7.28% returned by SP500 index in Oct 2018. SPGI had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.
-- William A. Feather

SPGI is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in SPGI's volatility from 17 Sep, 2018 to 29 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 SPGI has significant positive skewness in it's return distribution. This indicates that investors can expect SPGI to recover from drawdowns quickly. Which makes SPGI a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in SPGI 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 SPGI. Therefore, SP500 must receive a lower allocation than SPGI in your portfolio. SPGI usually has shorter drawdown period than the SP500 index.

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

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