Asset manager, Tim Armour, believes the Trump presidency will be accompanied by quicker economic growth, high inflation, and rising interest rates. The head of Capital Group noted that the unexpected victory of Donald Trump during the recent elections had resulted into fatigued markets. Although the bond market has so far stabilized, the equities are struggling to set new highs.
The chairman and CEO of the Capital Group has accepted that the market shifts caused by the elections are enormous and real. Such a confirmation by the head of an investment group charged with managing over $1.4 trillion came as a surprise to many people who had previously believed that the economic impact of the election was just a mass media story or a euphoria.
He asserted that although the recent decades have been associated with falling interest rates in the United States, the reign of President Trump could push the trend to the opposite direction. According to Tim, the resulting effects of his presidency are huge and will significantly affect investments across many sectors.
Despite impressive market statistics, many asset managers are still skeptical about the changes. After almost ten years of sluggish economic growth and subdued interest rates, they believe that the decade-long trend will continue. These professionals believe that the market euphoria caused by the election will fade.
As an experienced professional in the field, Tim Armour accepts that market regime changes are not easy to identify. There is always a possibility of many financial experts getting it wrong. However, he is confident that there will be more market turbulence in the coming months. The main cause of this instability will be the many uncertain policies the trump government is expected to implement.
About Tim Armour
Timothy (Tim) Armour is a long serving professional at the Capital Group. The executive leader joined the firm over three decades ago. He rose through the ranks to become a senior leader at the company. In 2015, he was appointed the Chairman and the CEO to replace James Rothenberg who passed away. Despite being in the leadership position, Tim is still an active asset manager at the firm. He manages many assets, including the $100 billion American Capital Income Builder Fund Management.
Tim is a graduate of the Middlebury College, where he studied economics. Before being recruited in the Capital Group’s administration, he participated in the company’s Associate Program. The company is regarded as one of the largest investment firms in the United States.