With over thirty years of experience in the financial markets industry, Timothy Armour’s extensive experience gives him a solid industry knowledge including marketing trends. He is therefore well positioned to identify unique investment opportunities and vehicles capable of good returns on investment. Recently he weighed in on the going debate on the suitability of passive and active index funds investment vehicles. Mr. Armour notes that investing in passive index funds as commonly fronted by billionaire serial investor Warren Buffet has several advantages including significant low volatility considering the prolonged market bull run. However, he notes that passive index funds can expose investors to 100 percent volatility during economic downturns. This leads to 100 percent on the part of investors.
On the other hand, he argues that active index funds have the potential of high returns on investment over a short period of time despite their significantly high volatility. Timothy Armour therefore opines that, whether active or passive, these investment vehicles come with significant risks that can lead to financial losses. He therefore opines that the primary key to successful investment finding a good and experienced financial manager that will manage your investment at a reasonably low cost. He advises that investors should opt for financial managers who have also invested in the investment vehicle of choice. This high sense of ownership will drive the manager to manage your financial investment effectively. The Middlebury College alumnus also believes that experience and low management cost are vital for successful management.
Views on the 2015 Market Selloff and Post-Trump Market Changes
Timothy Armour believes that the recent market selloff that originated from China was a normal as it was part of the market cycle. He argued that the markets were curling the risky investments made over the years. He holds that despite the market selloff and economic turbulence in China, the country still remains a robust investment destination with economic growth higher than most countries around the world. He also believes the recent turbulence in the American market following the election of President Trump will normalize over time once concrete policies have been put in place. The current chairman and chief executive officer at Capital Group holds that the markets are simply reacting to the economic policy uncertainties in the country.