Timothy Armour, the Chairman, and Chief Executive Officer of Capital Group is expecting a favorable change in the market in the coming years. He was discussing the different prospects of the market considering the change of baton in the U.S. administration. He says that the changes under Trump administration are “huge and real.” The changes are profound and are long-term effecting considering the some of the stagnated sectors are expected to get a boost while some others may fall down. He says that the changes will be different across the sectors and the market has already signaled it.
He says that the sluggish period of the economic era and subdued interest rates wouldn’t be there during Trump period. However, he expects that there could some level of fluctuations in the market considering many of the new government’s policies are uncertain. He also pointed out the fact that the globalization is getting major transformation as many of the countries including the U.S. started looking inward. He predicted that the industries like banking are expected to a major surge in the market, while utilities and real estate would struggle to keep the momentum.
Earlier Tim confirmed that the shift in the performance of the industries could also boost up the economy in total and bring a positive mood across the country. He noted that the interest rates have gone up for the second year consecutive, and this has helped the banks to make better results, but it can affect the corporate earnings. However, considering the general notion of market growth, companies may earn more, and it may finally translate into a steady and fast growth that helps in the earnings of corporates ultimately. He has concerns about the global troubles, as it can override the concept of corporate earnings and growth.
Tim started his career with Capital Group in 1983 as a candidate in the Associate Program of the investment management firm. Later, he promoted to Equity Investment Analyst and took care of global telecommunication companies and U.S. based servicing firms. Later, he became an Equity Portfolio Manager in the firm and helped the firm in diversification and restructuring for the firm. He was elevated to Chairman and CEO of the firm in 2015, in the wake of the demise of the then CEO James Rothenberg.
He helped the firm to spread its arms across the world and driven transparency inside the firm. His 33 years of experience in investment management has helped him to develop long-term goals based on growth for the firm. He is an economics graduate from Middlebury College.