After concluding the year of 2016 with the Presidential Election of the United States of America, the Trump period of 2017 appears to be unpredictable for the business world.
Recently, the chairman of the Capital Group, Timothy (Tim) Armour enlightened the global economy with a few of his insights in an interview with the Financial Times. Armour stated that this period of Trump in power is going to result in major changes in the global markets with rapid growths in the economy, growing interest rates, and mounting inflation rates.
According to Tim Armour, the month of January already signals the market to be in exhaustion. This is because he had recognized that new, high limits in equities are in resistance causing difficulties in steadying the values of assets within the bond markets. He mentioned that skeptics who oppose his view are operating their businesses in a different manner. To exemplify, the leading manager of bond funding, Pimco had cut down its properties of more high-risk bonds before the November-held election.
Pimco had strengthened its positions more in cash markets and more secure bond markets. Timothy Armour specifically mentioned that globalization is in threat for the United States as well as the rest of the world and so are the beneficial advantages businesses world-wide enjoy from it. He clarified that he could not tell at this time whether this is good or bad for the businesses within this nation and those in international regions. Armour declared an impressive but gradual upgrade in stock markets from which growth-susceptible and fortified sectors like banks, real estates, and utilities. Armour showed amazement at these gains but still expressed remorse for the defensive, coin interest rate sensitive investments that appear to decrease heavily after past several years of gain.
Timothy Armour is one of the globally renowned asset managers with over three decades of experience in asset management and equity portfolio management. He is the current Chairman and CEO of the Capital Group with additional roles of Manager and Principal Executive Officer for the company’s supplementary branch, Capital Group Research and Management Inc. He entered this company in 1983 with an initiation in the firm’s The Associates Program. Armour acquired the opportunity to demonstrate his leadership skills in his current roles within the Capital Group in the year of 2015. He was nominated for this position after his predecessor, James Rothenburg had passed away. Before serving this company, Armour was an Equity Investment Analyst within various national and international firms of telecommunications service sectors. He earned his Bachelor’s Degree in Economics from Middlebury College.