Don't buy INCOMEINEQUL THEME now, it is a risky investment

Income Inequality has destroyed investor wealth today. It gained +0.94% to close at 1243.32. It's recent 5 day performance has been -0.81%, -0.59%, -1.97%, +0.84% and -0.29%.

[Theme constituents]

~INCOMEINEQUL showed a strong down trend over the last 3 months. During this period ~INCOMEINEQUL lost -24.02% and saw a maximum drawdown of -25.25%. There was a short signal during this period which returned +23.09%.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

~INCOMEINEQUL has been underperforming the SP500 index in recent time, after having outperformed till 23 Aug, 2018. Over the last 2 years 11 months and 14 days, ~INCOMEINEQUL underperformed the SP500 index on 47% days. Which indicates that on days ~INCOMEINEQUL underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

~INCOMEINEQUL returned losses on 61% days in the last three months. During this time, it delivered on average -0.42% per day. It delivered it's worst daily return of -4.92%, during this period, on Friday, 7 Dec, 2018. There was initially a bullish trend during this period which started on 25 Sep, 2018 and went on till 27 Sep, 2018. The bullish trend returned +0.63% to investors. This was followed by a bearish trend that started on 28 Sep, 2018 and ended on 5 Oct, 2018. This bearish trend lost -5.34% of investor capital.

~INCOMEINEQUL had 6 profitable and 6 loss making months over the last year. During the last year, ~INCOMEINEQUL underperformed SP500 index on monthly return basis. ~INCOMEINEQUL was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -9.1% compared to -7.75% returned by SP500 index in Dec 2018. ~INCOMEINEQUL had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both ~INCOMEINEQUL and SP500 index significantly outperform during months when quarterly/annual results are announced.

If you don't value your time, neither will others. Stop giving away your time and talents. Value what you know & start charging for it.
-- Kim Garst

~INCOMEINEQUL 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 ~INCOMEINEQUL's volatility from 28 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 ~INCOMEINEQUL has significant positive skewness in it's return distribution. This indicates that investors can expect ~INCOMEINEQUL to recover from drawdowns quickly. Which makes ~INCOMEINEQUL a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~INCOMEINEQUL), two mid cap instruments that deserve special mention are RHT and LULU. They have significantly outperformed the overall market.