Stop-loss on the minds of OFFFURNISHINGS THEME investors as it significantly underperforms

Office Furnishings was among the worst performers on Tuesday. It returned +1.62% to close at 1220.6. On a day when the overall market breadth was 34%, it closed higher than 71% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.

[Theme constituents]

~OFFFURNISHINGS is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +14.74% for investors.

Trend

Monthly Performance

Alpha (outperformance)

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Volatility

Return distribution

~OFFFURNISHINGS has been underperforming the SP500 index in recent time, after having outperformed till 29 Dec, 2016. Over the last 2 years 11 months and 14 days, ~OFFFURNISHINGS underperformed the SP500 index on 47% days. Which indicates that on days ~OFFFURNISHINGS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~OFFFURNISHINGS was mostly loss making and delivered on average -0.29% per day. It's best return during this period (of +2.98%) was on Friday, 21 Sep, 2018. While it's worst loss in the same period (of -3.8%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 19 Sep, 2018 and went on till 21 Sep, 2018. The bullish trend returned +5.24% to investors. This was followed by a bearish trend that started on 8 Nov, 2018 and ended on 14 Nov, 2018. This bearish trend lost -3.96% of investor capital.

~OFFFURNISHINGS had 7 profitable and 5 loss making months over the last year. During the last year, ~OFFFURNISHINGS underperformed SP500 index on monthly return basis. ~OFFFURNISHINGS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -9.41% compared to -7.75% returned by SP500 index in Dec 2018. ~OFFFURNISHINGS had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.

"Surplus wealth is a sacred trust which its possessor is bound to administer in his lifetime for the good of the community.

~OFFFURNISHINGS 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 ~OFFFURNISHINGS's volatility from 19 Sep, 2018 to 21 Sep, 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 ~OFFFURNISHINGS has significant positive skewness in it's return distribution. This indicates that investors can expect ~OFFFURNISHINGS to recover from drawdowns quickly. Which makes ~OFFFURNISHINGS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~OFFFURNISHINGS), two large cap instruments that deserve special mention are PFE and V. They have significantly outperformed the overall market.