Will First Eagle price increase in July 2020?
 | By Rifka Kats | Macroaxis Story |
My story will break down First Eagle. We will evaluate why recent First Eagle price moves suggest a bounce in July. First Eagle Overseas slowly supersedes the market. The returns on investing in First Eagle and the market returns of the last few months appear uncorrelated. Strong basic indicators of the fund may suggest signs of short term price drift for investors. We estimate First Eagle as currently fairly valued. The real value is approaching 22.62 per share.
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Reviewed by Michael Smolkin
First Eagle has a beta of 0.2076. Let's try to break down what First's beta means in this case. The returns on MARKET and First Eagle are completely uncorrelated. The beta indicator helps investors understand whether First Eagle moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if First deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of First Eagle Overseas. In general, sophisticated investors focus on analyzing First Eagle stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build First Eagle's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of First Eagle's intrinsic value. In addition to deriving basic predictive indicators for First Eagle, many experienced traders also check how macroeconomic factors affect First Eagle price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Instrument Allocation
The asset allocation of funds such as First Eagle usually varies among a different mix of asset classes. Balanced mutual funds invest not only in bonds, which focus primarily on income, and stocks, which aim for investment growth, but also keep some reserve in cash or even exotic instruments. Below we show the current asset allocation of First Eagle Overseas
DetailsBreaking down the case for First Eagle
The latest increase in of First Eagle short term price appreciation has created some momentum for investors as it was traded today as low as 22.88 and as high as 22.88 per share. The fund managers have been quite successful with maneuvering the fund at opportune times to take advantage of all market conditions in May. The fund standard deviation of daily returns for 30 days investing horizon is currently 5.28. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the First Eagle holdings.
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