AMERICAN Mutual Fund Quote

Most reasonable investors view market volatility as an opportunity to invest at a favorable price or to sell short against a bearish trend. AMERICAN FUNDS's investment highlights are automatically generated signals that are significant enough to either complement your investing judgment regarding AMERICAN FUNDS or challenge it. These highlights can help you better understand the position you are entering and avoid costly mistakes.

Investors will always prefer to have their portfolios divercified against different sectors. The broad sector allocation increases the possibility of making a profit or at least avoiding a loss. However, this may also reduce the expected return on AMERICAN Mutual Fund. Generally, it depends on diversification level and type but usually, the broader the sector allocation, the less risk can be expected from holding AMERICAN Mutual Fund, and the less return is expected.

Institutional investors that are interested in enforcing a sector tilt in their portfolio can use exchange-traded funds, such as AMERICAN FUNDS 2035 Mutual Fund, as a low-cost alternative to building a custom portfolio. So, using sector ETFs to diversify your portfolio can be a profitable strategy. However, no matter what sectors are desirable at a given time, no single industry should ever make up more than 20 percent of your stock portfolio.

Based on a normal probability distribution, the odds of AMERICAN FUNDS jumping above the current price in 90 days from now is about 58.93%. The AMERICAN FUNDS 2035 probability density function shows the probability of AMERICAN FUNDS mutual fund to fall within a particular range of prices over 90 days. Assuming the 90 days horizon AMERICAN FUNDS 2035 has a beta of -0.0607. This suggests as returns on benchmark increase, returns on holding AMERICAN FUNDS are expected to decrease at a much lower rate. During the bear market, however, AMERICAN FUNDS 2035 is likely to outperform the market. Additionally, the company has an alpha of 0.0087, implying that it can generate a 0.008698 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).

Investors will always prefer to have the highest possible return on investment while minimizing volatility. AMERICAN FUNDS market risk premium is the additional return an investor will receive from holding AMERICAN FUNDS long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in AMERICAN FUNDS. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Although AMERICAN FUNDS's alpha and beta are two of the key measurements used to evaluate AMERICAN FUNDS's performance over the market, the standard measures of volatility play an important role as well.