Emerging Markets Consumer THEME

1065.03 +0.78 (+0.07%) Sell

Optimize theme

Prayers for EMERGINGMKTCONS THEME investors as it was among the worst performers

14 min read

Emerging Markets Consumer is a falling knife that can bleed you if you catch it today. It increased by +0.07% to close at 1065.03. During the last week it delivered -3.81% and saw a maximum drawdown of -4.03% before bouncing back.

[Theme constituents]

~EMERGINGMKTCONS is currently in a bearish trend. The current bearish signal has generated a profit of +11.29% for investors in the last three months.


~EMERGINGMKTCONS has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 21 Mar, 2018 to 9 Nov, 2018. Over the last 2 years 2 months and 1 days, ~EMERGINGMKTCONS underperformed the SP500 index on 47% days. Which indicates that on days ~EMERGINGMKTCONS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~EMERGINGMKTCONS was mostly loss making and delivered on average -0.17% per day. It's best return during this period (of +5.64%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -4.51%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 4 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -9.75% of investor capital.

The last 12 months saw ~EMERGINGMKTCONS's investors making profits in 4 months and incurring losses in 8 months. ~EMERGINGMKTCONS was less consistent in delivering monthly returs than SP500 index. ~EMERGINGMKTCONS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -8.5% compared to -7.75% returned by SP500 index in Dec 2018. ~EMERGINGMKTCONS 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 -18.96%. It is interesting to note that both ~EMERGINGMKTCONS and SP500 index significantly outperform during months when quarterly/annual results are announced.

"I grew up in Finance.

~EMERGINGMKTCONS is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in ~EMERGINGMKTCONS's volatility from 27 Sep, 2018 to 1 Nov, 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 ~EMERGINGMKTCONS has significant positive skewness in it's return distribution. This indicates that investors can expect ~EMERGINGMKTCONS to recover from drawdowns quickly. Which makes ~EMERGINGMKTCONS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~EMERGINGMKTCONS you may find it interesting to know that RHT and LULU are both mid caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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
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