Trump Tax Plan THEME

1148.62 -2.49 (-0.22%) Sell

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

14 min read

Trump Tax Plan significantly underperformed on Tuesday. It fell by -0.22% to close at 1148.62 which is it's 52 week low, down -20% from it's 52 week high.

[Theme constituents]

Buy-and-Hold investors in ~TRUMPTAXPLAN experienced a maximum drawdown of -18.8% over the last three months. It fell by -18.46% 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 +12.09%.


~TRUMPTAXPLAN has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 6 Jun, 2017 to 26 Jun, 2018. Over the last 1 year 11 months and 14 days, ~TRUMPTAXPLAN outperformed the SP500 index on 52% days.

~TRUMPTAXPLAN returned losses on 64% days in the last three months. During this time, it delivered on average -0.31% per day. It delivered it's worst daily return of -4.7%, during this period, on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 8 losing days, which started on 21 Sep, 2018 and ended on 2 Oct, 2018. This bearish trend lost -4.24% of investor capital.

During the last year ~TRUMPTAXPLAN had 8 profitable months and 4 loss making months. Profitable number of months of ~TRUMPTAXPLAN and SP500 index were the same. ~TRUMPTAXPLAN was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -12.47% compared to -7.75% returned by SP500 index in Dec 2018. ~TRUMPTAXPLAN and SP500 index, both had periods of 6 consecutive profitable months.

He who loses money, loses much; He who loses a friend, loses much more; He who loses faith, loses all.
-- Eleanor Roosevelt

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

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

Based on your interest in ~TRUMPTAXPLAN you may find it interesting to know that AYTU, AMRH and TYHT have all shown remarkable performance and qualify to be on every investor's watchlist.

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