90.8 -0.23 (-0.25%) Sell

TROW is a falling knife, continues to bleed every investor trying to catch it

13 min read

TROW was among the worst performers today. On a longer term basis, investors in PRICE T ROWE GROUP INC made -0.02% per day. Tuesday's performance of -0.25% was a significant underperformance compared to it's daily average.

[Themes containing TROW]

Buy-and-Hold investors in TROW experienced a maximum drawdown of -18.77% over the last three months. It lost -18.12% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +18.12% for investors.


TROW has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, TROW outperformed the SP500 index on 53% days.

During the last three months TROW was mostly loss making and delivered on average -0.3% per day. It's best return during this period (of +3.66%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -5.96%) was on Wednesday, 10 Oct, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -12.39% losses to investors. This was followed by a bullish trend that started on 12 Oct, 2018 and ended on 17 Oct, 2018. This bullish trend delivered +4.16% to investors.

TROW had 6 profitable and 6 loss making months over the last year. During the last year, TROW underperformed SP500 index on monthly return basis. TROW was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -11.71% compared to -7.75% returned by SP500 index in Dec 2018. TROW had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -20.18%. It is interesting to note that both TROW and SP500 index significantly outperform during months when quarterly/annual results are announced.

"The man who begins to speculate in stocks with the intention of making a fortune usually goes broke, whereas the man who trades with a view of getting good interest on his money sometimes gets rich.

TROW is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in TROW's volatility from 24 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that TROW has significant positive skewness in it's return distribution. This indicates that investors can expect TROW to recover from drawdowns quickly. Which makes TROW a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in TROW derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in TROW), three instruments that are extremely volatile are VIPS, GNK and OPNT. They must all be evaluated prudently and investors are better off avoiding them at the moment.

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