Brics Market THEME

1398.65 +47.57 (+3.4%) Sell

Optimize theme

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

14 min read

Brics Market has destroyed investor wealth on Wednesday. It gained +3.4% to close at 1398.65. It is currently trading -27% below it's 52 week high of 1932.58.

[Theme constituents]

~BRICSMKT is currently in a down trend. Over the last three months Buy-and-Hold has been a better strategy (returning +3.0%) for ~BRICSMKT's investors than shorting it.

Trend

~BRICSMKT has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 8 days, ~BRICSMKT outperformed the SP500 index on 53% days.

~BRICSMKT returned losses on 53% days in the last three months. During this time, it delivered on average +0.06% per day. It delivered it's best daily return of +4.54%, during this period, on Thursday, 1 Nov, 2018. There was initially a bullish trend during this period which started on 18 Sep, 2018 and went on till 21 Sep, 2018. The bullish trend returned +4.66% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -4.79% of investor capital.

~BRICSMKT had 3 profitable and 9 loss making months over the last year. During the last year, ~BRICSMKT underperformed SP500 index on monthly return basis. ~BRICSMKT was also a more risky investment than SP500 index as it's worst month in the last year, Aug 2018, returned -9.0% compared to -7.28% returned by SP500 index in Oct 2018. ~BRICSMKT had a longer winning streak of losing months than SP500 index. It went down in 9 straight months (from Feb 2018 to Oct 2018) during which period it delivered -31.34%. It is interesting to note that both ~BRICSMKT and SP500 index significantly outperform during months when quarterly/annual results are announced.

Empty pockets never held anyone back. Only empty heads and empty hearts can do that.
-- Norman Vincent Peale

~BRICSMKT 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 ~BRICSMKT's volatility from 18 Sep, 2018 to 1 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

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

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

On a general note (since you are interested in ~BRICSMKT), two instruments that have delivered similar performance as ~BRICSMKT are GLRE and DX. They are suitable as good alternative investment candidates that can diversify your portfolio.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Following
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter