New Economy Fund Buy Hold or Sell Recommendation

RNGGX Fund  USD 60.31  0.06  0.1%   
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding New Economy Fund is 'Strong Hold'. Macroaxis provides New Economy buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding RNGGX positions. The advice algorithm takes into account all of New Economy's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting New Economy's buy or sell advice are summarized below:
Real Value
59.42
Hype Value
60.31
Market Value
60.31
Naive Value
60.61
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell New Economy Fund given historical horizon and risk tolerance towards New Economy. When Macroaxis issues a 'buy' or 'sell' recommendation for New Economy Fund, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out New Economy Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual funds such as New and provide practical buy, sell, or hold recommendation based on investors' investing horizon and their risk tolerance towards New Economy Fund. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in price.

Execute New Economy Buy or Sell Advice

The New recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on New Economy Fund. Macroaxis does not own or have any residual interests in New Economy Fund or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute New Economy's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell New EconomyBuy New Economy
Strong Hold

Market Performance

GoodDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Almost mirrors the marketDetails

Analyst Consensus

Not AvailableDetails
For the selected time horizon New Economy Fund has a Risk Adjusted Performance of 0.1152, Jensen Alpha of 0.0189, Total Risk Alpha of (0.03), Sortino Ratio of 0.044 and Treynor Ratio of 0.142
Macroaxis provides unbiased advice on New Economy Fund that should be used to complement current analysts and expert consensus on New Economy. Our investment recommendation engine determines the entity's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. Use New Economy Fund price to earning, year to date return, as well as the relationship between the Year To Date Return and cash position weight to ensure your buy or sell decision on New Economy Fund is adequate.

New Economy Trading Alerts and Improvement Suggestions

The fund maintains about 13.06% of its assets in cash

New Economy Returns Distribution Density

The distribution of New Economy's historical returns is an attempt to chart the uncertainty of New Economy's future price movements. The chart of the probability distribution of New Economy daily returns describes the distribution of returns around its average expected value. We use New Economy Fund price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of New Economy returns is essential to provide solid investment advice for New Economy.
Mean Return
0.17
Value At Risk
-1.23
Potential Upside
1.61
Standard Deviation
0.83
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of New Economy 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.

New Economy 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 New Economy or American Funds 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 New Economy's price will be affected by overall mutual fund 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 New fund'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 NYSE Composite
0.02
β
Beta against NYSE Composite1.11
σ
Overall volatility
0.84
Ir
Information ratio 0.04

New Economy Volatility Alert

New Economy Fund exhibits relatively low volatility with skewness of 0.3 and kurtosis of 0.5. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure New Economy's mutual fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact New Economy's mutual fund price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

New Economy Fundamentals Vs Peers

Comparing New Economy's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze New Economy's direct or indirect competition across all of the common fundamentals between New Economy and the related equities. This way, we can detect undervalued stocks with similar characteristics as New Economy or determine the mutual funds which would be an excellent addition to an existing portfolio. Peer analysis of New Economy's fundamental indicators could also be used in its relative valuation, which is a method of valuing New Economy by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare New Economy to competition
FundamentalsNew EconomyPeer Average
Price To Earning22.08 X6.53 X
Price To Book2.61 X0.74 X
Price To Sales1.34 X0.61 X
Annual Yield0.01 %0.29 %
Year To Date Return11.01 %0.39 %
One Year Return34.26 %4.15 %
Three Year Return4.77 %3.60 %
Five Year Return11.33 %3.24 %
Ten Year Return14.13 %1.79 %
Net Asset21.62 B4.11 B
Cash Position Weight13.06 %10.61 %
Equity Positions Weight86.36 %63.90 %

New Economy Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as New . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About New Economy Buy or Sell Advice

When is the right time to buy or sell New Economy Fund? Buying financial instruments such as New Mutual Fund isn't very hard. However, what challenging for most investors is doing it at the right time to beat the 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 basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having New Economy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Banks - Regional Thematic Idea Now

Banks - Regional
Banks - Regional Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banks - Regional theme has 18 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Banks - Regional Theme or any other thematic opportunities.
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Check out New Economy Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note that the New Economy Fund information on this page should be used as a complementary analysis to other New Economy's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Complementary Tools for New Mutual Fund analysis

When running New Economy's price analysis, check to measure New Economy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy New Economy is operating at the current time. Most of New Economy's value examination focuses on studying past and present price action to predict the probability of New Economy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move New Economy's price. Additionally, you may evaluate how the addition of New Economy to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between New Economy's value and its price as these two are different measures arrived at by different means. Investors typically determine if New Economy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, New Economy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.