Doubt in the minds of HOUSEHOLDPRDT THEME investors as it was among the worst performers

Household Products and Wares ranked among the worst performers on Tuesday. It increased by +0.6% to close at 1236.93. It is currently trading -18% below it's 52 week high of 1511.1.

[Theme constituents]

Buy-and-Hold investors in ~HOUSEHOLDPRDT experienced a maximum drawdown of -17.39% over the last three months. It fell by -16.08% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +12.72%.

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Monthly Performance

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~HOUSEHOLDPRDT has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 27 Apr, 2017 to 16 Nov, 2018. Over the last 2 years 11 months and 14 days, ~HOUSEHOLDPRDT underperformed the SP500 index on 49% days. Which indicates that on days ~HOUSEHOLDPRDT underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~HOUSEHOLDPRDT was mostly loss making and delivered on average -0.27% per day. It's best return during this period (of +2.38%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -3.11%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 8 losing days, which started on 8 Nov, 2018 and ended on 19 Nov, 2018. This bearish trend lost -5.4% of investor capital.

During the last year ~HOUSEHOLDPRDT had 5 profitable months and 7 loss making months. ~HOUSEHOLDPRDT returned profits in fewer months than SP500 index. ~HOUSEHOLDPRDT was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -9.51% compared to -7.75% returned by SP500 index in Dec 2018. ~HOUSEHOLDPRDT had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

Outcome is simply the final score: Who won the game; what numbers came up in a roll of the dice; how high did a stock go. Outcome is the result, regardless of the method used to achieve it. It is not controllable.
-- Barry Ritholtz

~HOUSEHOLDPRDT 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 ~HOUSEHOLDPRDT's volatility from 19 Sep, 2018 to 4 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 ~HOUSEHOLDPRDT has significant positive skewness in it's return distribution. This indicates that investors can expect ~HOUSEHOLDPRDT to recover from drawdowns quickly. Which makes ~HOUSEHOLDPRDT a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~HOUSEHOLDPRDT you may find it interesting to know that VIPS and GNK are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).