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

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.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

~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.