American Balanced Fund Buy Hold or Sell Recommendation

ABALX Fund  USD 34.05  0.01  0.03%   
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding American Balanced is 'Strong Hold'. Macroaxis provides American Balanced buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding ABALX positions. The advice algorithm takes into account all of American Balanced's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting American Balanced's buy or sell advice are summarized below:
Real Value
33.88
Hype Value
34.05
Market Value
34.05
Naive Value
34.28
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell American Balanced given historical horizon and risk tolerance towards American Balanced. When Macroaxis issues a 'buy' or 'sell' recommendation for American Balanced, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out American Balanced 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 American and provide practical buy, sell, or hold recommendation based on investors' investing horizon and their risk tolerance towards American Balanced. 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 bureau of economic analysis.

Execute American Balanced Buy or Sell Advice

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

Time Horizon

Risk Tolerance

Execute Advice
Sell American BalancedBuy American Balanced
Strong Hold

Market Performance

GoodDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

Not AvailableDetails
For the selected time horizon American Balanced has a Risk Adjusted Performance of 0.0694, Jensen Alpha of (0.0008), Total Risk Alpha of (0.01), Sortino Ratio of (0.03) and Treynor Ratio of 0.067
Our advice module can be used to complement American Balanced investment recommendation provided by average analyst sentiment. It analyzes the fund's potential to grow using fundamental, technical, data market data available at the time. Use American Balanced price to book, year to date return, as well as the relationship between the Year To Date Return and net asset to ensure your buy or sell decision on American Balanced is adequate.

American Balanced Returns Distribution Density

The distribution of American Balanced's historical returns is an attempt to chart the uncertainty of American Balanced's future price movements. The chart of the probability distribution of American Balanced daily returns describes the distribution of returns around its average expected value. We use American Balanced price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of American Balanced returns is essential to provide solid investment advice for American Balanced.
Mean Return
0.06
Value At Risk
-0.88
Potential Upside
0.98
Standard Deviation
0.52
   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 Balanced 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 Balanced 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 Balanced 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 American Balanced'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 American 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
-0.0008
β
Beta against NYSE Composite0.81
σ
Overall volatility
0.53
Ir
Information ratio -0.03

American Balanced Volatility Alert

American Balanced exhibits very low volatility with skewness of 0.04 and kurtosis of 0.0. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure American Balanced'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 American Balanced'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.

American Balanced Fundamentals Vs Peers

Comparing American Balanced'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 American Balanced's direct or indirect competition across all of the common fundamentals between American Balanced and the related equities. This way, we can detect undervalued stocks with similar characteristics as American Balanced or determine the mutual funds which would be an excellent addition to an existing portfolio. Peer analysis of American Balanced's fundamental indicators could also be used in its relative valuation, which is a method of valuing American Balanced by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare American Balanced to competition
FundamentalsAmerican BalancedPeer Average
Price To Earning19.97 X6.53 X
Price To Book2.67 X0.74 X
Price To Sales1.91 X0.61 X
Annual Yield0.02 %0.29 %
Year To Date Return4.69 %0.39 %
One Year Return15.29 %4.15 %
Three Year Return3.94 %3.60 %
Five Year Return7.93 %3.24 %
Ten Year Return9.94 %1.79 %
Net Asset202.13 B4.11 B
Last Dividend Paid0.10.65
Cash Position Weight4.55 %10.61 %
Equity Positions Weight59.30 %63.90 %
Bond Positions Weight2.53 %11.24 %

American Balanced Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as American . 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 American Balanced Buy or Sell Advice

When is the right time to buy or sell American Balanced? Buying financial instruments such as American 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 American Balanced 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 Obamacare Repeal Thematic Idea Now

Obamacare Repeal
Obamacare Repeal Theme
Healthcare and drug manufacturing companies that will most likely be affected by the final stages of Obamacare repeal. The Obamacare Repeal theme has 56 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 Obamacare Repeal Theme or any other thematic opportunities.
View All  Next Launch
Check out American Balanced 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.
You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Please note, there is a significant difference between American Balanced's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Balanced is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Balanced'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.