Healthcare Services THEME

1470.93 -18.22 (-1.24%) Sell

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Don't even consider investing in HEALTHCARESERVS THEME now, it is a high risk investment

14 min read

Healthcare Services is a falling knife that can bleed you if you catch it today. It returned -1.24% to close at 1470.93. It's recent 5 day performance has been -2.55%, -3.67%, -0.21%, +1.06% and +0.32%.

[Theme constituents]

~HEALTHCARESERVS showed a strong down trend over the last 3 months. During this period ~HEALTHCARESERVS returned -14.13% and saw a maximum drawdown of -16.12%. There was a short signal during this period which returned +10.49%.

Trend

~HEALTHCARESERVS has been underperforming the SP500 index in recent time, after having outperformed till 11 Oct, 2018. Over the last 2 years 11 months and 14 days, ~HEALTHCARESERVS outperformed the SP500 index on 53% days.

During the last three months ~HEALTHCARESERVS was mostly loss making and delivered on average -0.23% per day. It's best return during this period (of +5.31%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -3.99%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 17 Oct, 2018 and went on till 24 Oct, 2018. The trend delivered -8.45% losses to investors. This was followed by a bullish trend that started on 21 Nov, 2018 and ended on 28 Nov, 2018. This bullish trend delivered +6.66% to investors.

On monthly basis, ~HEALTHCARESERVS delivered profits in more months over the last year, than losses. ~HEALTHCARESERVS delivered profits less regularly than SP500 index. ~HEALTHCARESERVS was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -11.89% compared to -7.75% returned by SP500 index in Dec 2018. ~HEALTHCARESERVS and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both ~HEALTHCARESERVS and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Your net worth to the world is usually determined by what remains after your bad habits are subtracted from your good ones.

~HEALTHCARESERVS is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in ~HEALTHCARESERVS's volatility from 26 Sep, 2018 to 7 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 ~HEALTHCARESERVS has significant positive skewness in it's return distribution. This indicates that investors can expect ~HEALTHCARESERVS to recover from drawdowns quickly. Which makes ~HEALTHCARESERVS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~HEALTHCARESERVS), two small cap instruments that deserve special mention are ZBRA and BURL. They have significantly outperformed the overall market.

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