Black Gold THEME

910.142 -25.39 (-2.79%) Sell

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Prayers for BLACKGOLD THEME investors as it significantly underperforms

14 min read

Black Gold significantly underperformed today. It delivered -2.79% to close at 910.142. During the last week it delivered -8.92% and saw a maximum drawdown of -8.92%.

[Theme constituents]

~BLACKGOLD is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +28.32% for investors.


~BLACKGOLD has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 13 Dec, 2016 to 18 Dec, 2018. One must note that ~BLACKGOLD is currently at it's worst performance to the SP500 index which makes it a bad investment candidate. Over the last 2 years 11 months and 14 days, ~BLACKGOLD underperformed the SP500 index on 52% days.

During the last three months ~BLACKGOLD was mostly loss making and delivered on average -0.52% per day. It's best return during this period (of +3.47%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -4.62%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -12.45% of investor capital.

The last 12 months saw ~BLACKGOLD's investors making profits in 7 months and incurring losses in 5 months. ~BLACKGOLD was less consistent in delivering monthly returs than SP500 index. ~BLACKGOLD was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -15.97% compared to -7.75% returned by SP500 index in Dec 2018. ~BLACKGOLD had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both ~BLACKGOLD and SP500 index significantly outperform during months when quarterly/annual results are announced.

The speed of your success is limited only by your dedication and what you're willing to sacrifice.
-- Nathan W. Morris

~BLACKGOLD is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in ~BLACKGOLD's volatility from 20 Sep, 2018 to 6 Dec, 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 ~BLACKGOLD has significant negative skewness in it's return distribution. This indicates that ~BLACKGOLD is very risky for short-term investment and can significantly underperform for long durations.

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

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

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