TEN is a falling knife, continues to bleed every investor trying to catch it
07 Dec, 201813 min read
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TENNECO INC is a falling knife that can bleed you if you catch it today. It returned -4.38% to close at 30.16. It's recent 5 day performance has been -0.76%, -6.17%, +0.36%, +1.23% and -4.17%.
TEN is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +26.3% for investors.
TEN has been underperforming the SP500 index in recent time, after having outperformed till 2 Feb, 2017. Over the last 2 years 11 months and 3 days, TEN underperformed the SP500 index on 48% days. Which indicates that on days TEN underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
TEN returned losses on 62% days in the last three months. During this time, it delivered on average -0.52% per day. It delivered it's worst daily return of -8.5%, during this period, on Monday, 29 Oct, 2018. There was initially a bullish trend during this period which started on 13 Sep, 2018 and went on till 20 Sep, 2018. The bullish trend returned +10.24% to investors. This was followed by a bearish trend that started on 9 Oct, 2018 and ended on 19 Oct, 2018. This bearish trend lost -20.37% of investor capital.
On monthly basis, TEN delivered losses in more months over the last year, than profits. TEN delivered profits less regularly than SP500 index. TEN was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -18.0% compared to -7.28% returned by SP500 index in Oct 2018. TEN had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -39.32%.
"The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.
TEN 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 TEN's volatility from 10 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.
SP500 index has more chance of extreme outcomes than TEN. Therefore, SP500 must receive a lower allocation than TEN in your portfolio.
On a general note (since you are interested in TEN), three instruments that have performed similar to TEN are KEP, SAH and AUO. They must all be evaluated as alternative investment options and for diversification.
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