Tax Inversion THEME

1289.7 -1.6 (-0.12%) Sell

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TAXINVERSION THEME is a falling knife, continues to bleed every investor trying to catch it

14 min read

Tax Inversion was among the worst performers today. It fell by -0.12% to close at 1289.7. It's recent 5 day performance has been -1.76%, +0.54%, -1.03%, +1.14% and -0.18%.

[Theme constituents]

~TAXINVERSION is currently in a bearish trend. Over the last three months 3 bearish signals have generated a profit of +3.39% for investors.


~TAXINVERSION has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 7 Jun, 2016 to 5 Mar, 2018. Over the last 2 years 11 months and 14 days, ~TAXINVERSION outperformed the SP500 index on 53% days.

During the last three months ~TAXINVERSION was mostly loss making and delivered on average -0.17% per day. It's best return during this period (of +2.53%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -2.96%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 7 losing days, which started on 4 Oct, 2018 and ended on 12 Oct, 2018. This bearish trend lost -6.88% of investor capital.

During the last year ~TAXINVERSION had 9 profitable months and 3 loss making months. ~TAXINVERSION returned profits in more months than SP500 index. ~TAXINVERSION was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -9.4% compared to -7.75% returned by SP500 index in Dec 2018. ~TAXINVERSION had a longer winning streak of profitable months than SP500 index. It went up in 7 straight months (from Mar 2018 to Sep 2018) during which period it delivered +16.93%. It is interesting to note that both ~TAXINVERSION and SP500 index significantly outperform during months when quarterly/annual results are announced.

Investing is a business, investment is a project and investor is a promoter.
-- Vijay Kedia

~TAXINVERSION 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 surge in ~TAXINVERSION's volatility from 28 Sep, 2018 to 1 Nov, 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 ~TAXINVERSION has significant positive skewness in it's return distribution. This indicates that investors can expect ~TAXINVERSION to recover from drawdowns quickly. Which makes ~TAXINVERSION a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~TAXINVERSION you may find it interesting to know that ~TRUMPTAXPLAN and ~SOCIALLYRESP have both performed similar to ~TAXINVERSION and can be considered by investors as alternative investment options.

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