Precious Metals THEME

691.492 +19.32 (+2.79%) Buy

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PRECIOUSMETALS THEME continues to mint money for it's investors

14 min read

~PRECIOUSMETALS ranked among the best performers today. On a longer term basis, investors in Precious Metals made -0.04% per day. Tuesday's performance of +2.79% was a outperformance compared to it's daily average.

[Theme constituents]

~PRECIOUSMETALS showed a bullish trend over the last 3 months. During this period ~PRECIOUSMETALS delivered +5.27% and saw a maximum drawdown of -15.24%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in ~PRECIOUSMETALS till volatility reduces and a clear trend emerges.

Trend

~PRECIOUSMETALS has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 4 Aug, 2016 to 11 Sep, 2018. Over the last 2 years 5 months and 11 days, ~PRECIOUSMETALS underperformed the SP500 index on 52% days.

During the last three months ~PRECIOUSMETALS delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +5.33%) was on Thursday, 11 Oct, 2018. While it's worst loss in the same period (of -4.15%) was on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 6 Nov, 2018 and ended on 13 Nov, 2018. This bearish trend lost -10.5% of investor capital.

The last 12 months saw ~PRECIOUSMETALS's investors making profits in 5 months and incurring losses in 7 months. ~PRECIOUSMETALS was less consistent in delivering monthly returs than SP500 index. ~PRECIOUSMETALS was also a more risky investment than SP500 index as it's worst month in the last year, Aug 2018, returned -15.95% compared to -7.75% returned by SP500 index in Dec 2018. ~PRECIOUSMETALS had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jun 2018 to Sep 2018) during which period it delivered -21.9%.

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~PRECIOUSMETALS 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 fall in ~PRECIOUSMETALS's volatility from 19 Sep, 2018 to 25 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 ~PRECIOUSMETALS has positive skewness in it's return distribution. This indicates that investors can expect ~PRECIOUSMETALS to make attempts to recover from drawdowns quickly. Which makes ~PRECIOUSMETALS a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

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

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