New Economy Fund Buy Hold or Sell Recommendation
| RNNEX Fund | USD 55.03 0.36 0.65% |
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding New Economy Fund is 'Not Rated'. 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 RNNEX 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 0.0 | Hype Value 0.0 | Market Value 55.03 | Naive Value 53.99 |
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.
New |
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
 |  |
Strong Hold
Market Performance | Modest | Details | |
Volatility | Out of control | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Analyst Consensus | Not Available | Details |
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 | 0.1 | Value At Risk | -1.49 | Potential Upside | 1.31 | Standard Deviation | 0.90 |
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 | 0.04 | |
β | Beta against NYSE Composite | 1.10 | |
σ | Overall volatility | 0.89 | |
Ir | Information ratio | 0.04 |
New Economy Volatility Alert
New Economy Fund has low volatility with Treynor Ratio of 0.08, Maximum Drawdown of 4.74 and kurtosis of 0.27. 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 |
| Fundamentals | New Economy | Peer Average |
| Price To Earning | 22.08 X | 6.53 X |
| Price To Book | 2.61 X | 0.74 X |
| Price To Sales | 1.34 X | 0.61 X |
| Year To Date Return | 8.63 % | 0.39 % |
| One Year Return | 27.52 % | 4.15 % |
| Three Year Return | 1.54 % | 3.60 % |
| Five Year Return | 9.19 % | 3.24 % |
| Ten Year Return | 13.35 % | 1.79 % |
| Net Asset | 21.62 B | 4.11 B |
| Cash Position Weight | 13.06 % | 10.61 % |
| Equity Positions Weight | 86.36 % | 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.
| Daily Balance Of Power | (9,223,372,036,855) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 55.03 | |||
| Day Typical Price | 55.03 | |||
| Price Action Indicator | (0.18) | |||
| Period Momentum Indicator | (0.36) |
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.
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.