CGUS Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: Strong historical returns and optimistic sentiment favor a potential rebound in CGUS pricing. Recent strong price returns reinforce prospects of continued gains.




Bearish Case: Elevated implied volatility indicates market uncertainty. Coupled with recent price stagnation, this suggests potential downside risks. Economic factors could amplify declines.




Potential Outcomes:
  1. 35% chance CGUS rises 10%+ on investor optimism.
  2. 30% probability of a 5% decline due to volatility.
  3. 20% likelihood of flat performance.
  4. 15% chance of major gain from new institutional interest.




Trading Oracle: Initiate a bullish debit spread, buying March $36 calls and selling March $38 calls. High implied volatility favors long spreads with a 2-month horizon. This strategy leverages potential upside while controlling risk. Positive expected returns and strong hedge dynamics.



January 30, 2025


Capital Group Companies Capital Group Core Equity Forecast

CGUS        Capital Group Companies Capital Group Core Equity











Correlated Assets

Assets that tend to move strongly with CGUS



VOO Forecast + Options Trading Strategies   VOO  Vanguard S&P 500 (1.0)


SSO Forecast + Options Trading Strategies   SSO  ProShares Ultra S&P500 (0.99)


BSX Forecast + Options Trading Strategies   BSX  Boston Scientific (0.97)


BCS Forecast + Options Trading Strategies   BCS  Barclays (0.97)


VGT Forecast + Options Trading Strategies   VGT  Vanguard Information Technology (0.96)



Uncorrelated Assets

Assets with little price relationship to CGUS



RIOT Forecast + Options Trading Strategies   RIOT  Riot Blockchain (0.01)


UVXY Forecast + Options Trading Strategies   UVXY  ProShares Ultra VIX Short-Term Futures (-0.01)


AEHR Forecast + Options Trading Strategies   AEHR  Aehr Test Systems (-0.02)


AZN Forecast + Options Trading Strategies   AZN  Astrazeneca (0.02)


FENY Forecast + Options Trading Strategies   FENY  Fidelity Covington Trust - Fidelity MSCI Energy Index (0.02)



Anticorrelated Assets

Assets that tend to move strongly against CGUS



IEP Forecast + Options Trading Strategies   IEP  Icahn (-0.9)


EL Forecast + Options Trading Strategies   EL  Estee Lauder Cos. (-0.9)


LEA Forecast + Options Trading Strategies   LEA  Lear (-0.9)


COTY Forecast + Options Trading Strategies   COTY  Coty (-0.92)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-1.0)









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