53.92 -0.04 (-0.07%) Sell

THO continues its fall as more investors loose confidence

13 min read

THOR INDUSTRIES INC underperformed on Friday. It returned -0.07% to close at 53.92 which is it's 52 week low, down -65% from it's 52 week high.

[Themes containing THO]

THO is currently in a down trend. The current bearish signal has generated a profit of +41.36% for investors in the last three months.


THO has been underperforming the SP500 index in recent time, after having outperformed till 29 Nov, 2017. Over the last 2 years 11 months and 10 days, THO underperformed the SP500 index on 47% days. Which indicates that on days THO underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

THO returned losses on 66% days in the last three months. During this time, it delivered on average -0.89% per day. It delivered it's worst daily return of -12.96%, during this period, on Thursday, 20 Sep, 2018. There was initially a bearish trend during this period which started on 17 Oct, 2018 and went on till 29 Oct, 2018. The trend delivered -24.81% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 5 Nov, 2018. This bullish trend delivered +15.26% to investors.

On monthly basis, THO delivered losses in more months over the last year, than profits. THO delivered profits less regularly than SP500 index. THO was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -20.48% compared to -7.28% returned by SP500 index in Oct 2018. THO had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jan 2018 to May 2018) during which period it delivered -44.18%. It is interesting to note that both THO and SP500 index significantly outperform during months when quarterly/annual results are announced.

Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down.
-- Warren Edward Buffett

THO 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 THO's volatility from 8 Oct, 2018 to 6 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 THO has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

SP500 index has more chance of extreme outcomes than THO. Therefore, SP500 must receive a lower allocation than THO in your portfolio. SP500 index usually has shorter drawdown period than THO.

On a general note (since you are interested in THO), three large cap instruments that deserve special mention are AMZN, CSCO and V. They have all outperformed the market and must be closely watched for investment opportunities.

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