American Funds Buy Hold or Sell Recommendation

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RHGTX -- USA Fund  

USD 16.16  0.14  0.86%

Assuming the 30 trading days horizon, and your above-average risk tolerance our recommendation regarding American Funds 2040 is 'Cautious Hold'. Macroaxis provides American Funds buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding RHGTX positions. The advice algorithm takes into account all of American Funds 2040 available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from RHGTX buy-and-hold perspective. Additionally, take a look at American Funds Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments please use Instant Ratings tool.

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Time Horizon

Risk Tolerance

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Sell American FundsBuy American Funds
Cautious Hold

Volatility

Hype Condition

Current Valuation

Odds of Distress

Analyst Consensus

Not Available
For the selected time horizon American Funds 2040 has a mean deviation of 1.25, semi deviation of 1.82, standard deviation of 1.79, variance of 3.2, downside variance of 5.55 and semi variance of 3.33
Our buy or sell advice tool can cross-verify current analyst consensus on American Funds 2040 and to analyze the fund potential to grow in the current economic cycle. Please makes use of American Funds three year return and cash position weight to make buy, hold, or sell decision on American Funds 2040.

American Funds Trading Alerts and Improvement Suggestions

The fund maintains about 9.06% of its assets in cash

American Funds Returns Distribution Density

The chart of the probability distribution of American Funds stock daily returns describes the distribution of returns around its average expected value. We use American Funds 2040' stock's Value At Risk and its Upside Potential as a relative measure of the distribution. The distribution of American Funds returns is essential to provide solid investment advice for American Funds stock.
Mean Return0.37Value At Risk-3.2
Potential Upside2.41Standard Deviation1.79
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of American Funds historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

American Funds Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to American Funds or American Funds 2040 sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that American Funds stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a American stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
=0.38
β
Beta against DOW=-0.11
σ
Overall volatility
=1.73
Ir
Information ratio =0.11

American Funds Volatility Alert

American Funds 2040 currently demonstrates below-verage downside deviation of 2.36. It has Information Ratio of 0.11 and Jensen Alpha of 0.38. However, we do advice investors to further question American Funds 2040 expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
    
 Better Than Average     
    
 Worse Than Average Compare American Funds to competition

American Funds Fundamental Vs Peers

FundamentalsAmerican FundsPeer Average
One Year Return9.51 %4.15 %
Three Year Return7.46 %3.60 %
Five Year Return7.16 %3.24 %
Ten Year Return10.41 %1.79 %
Net Asset18.94 B4.11 B
Minimum Initial Investment250976.16 K
Last Dividend Paid0.190.65
Cash Position Weight9.06 %10.61 %
Equity Positions Weight79.07 %63.90 %
Bond Positions Weight11.50 %11.24 %

About American Funds Buy or Sell Advice

When is the right time to buy or sell American Funds 2040? Buying funds such as American Funds isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily bases. Although American Funds investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply. Please read more on our stock advisor page.

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Additionally, take a look at American Funds Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments please use Instant Ratings tool. Please also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page