Timothy Armour is one of the investment advisers who are positive that Trump’s election may lead to a better economy. This is despite the fear in most investors who feel that the surprise election of Trump may lead to poor returns for their portfolios.
Armour’s career began in 1983 when he joined Capital Group through an associates program. He had just completed his Bachelor’s degree in Economics at Middlebury College. Thanks to his great commitment, Armour was appointed chairman of Capital Group in 2015. Capital Group is one of the world’s largest and oldest investment management companies that create high-conviction portfolios for the investors. The company holds over $1.4 trillion in Assets.
Armour has had massive experience in investment and finance and thus uses this knowledge to advise both existing and potential investors. Due to the existence of many expensive investment funds, investors have become too cautious of their investment. They would rather make below average returns than trust hedge fund managers with their money. Warren Buffet is one such investor. He says that it is better to invest in an S&P 500 passive index fund than hedge funds.
Timothy Armour however argues that despite investors seeking to be safe, they need to understand the products offered to them. He argues that most of the investors do not analyze the products and as a result end up lacking the necessary knowledge. For example, an online survey form last year showed that most investors do not know that during mark downturns index funds expose them to 100% volatility and losses.
Rather than fearing hedge funds, Armour advises investors to have active managers working for them. These are managers who are willing to sacrifice their time to understand the market trends and thus risks associated with them. These managers will earn them high returns, better that those made under the index funds.
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