Tim Armour puts to task his fellow business magnate Mr. Warren Buffet. Warren Buffet has wagered a staggering $1 million that he hopes to use by investing in an S&P 500 passive index fund. By doing so, Warren hopes to get better investment returns as compared to a group of hedge fund managers. However, Tim Armour tends to disagree with this marketing strategy.
According to Tim, Warren Buffet is wrong on his investment strategy because the risks associated with passive index investments are unknown and unpredictable. Tim Armour also believes that though passive index returns are a haven when it comes to retirement, they are not safe when markets crumble down due to inflation. Apart from this, Tim notes that a good number of managed funds tends to do worse than the market share. Tim Armour believes that it will be hard to know which types of funds will be performing better, therefore, making Buffet’s ideology less than appealing.
The dynamic nature of dealing with issues as exhibited by President Trump has sent shockwaves in the market platform. According to Tim Armour, President Trump ideology is likely to promote faster economic growth, higher inflation, and an increase in the level or interest rates.
After the shocking election of Trump as the president of the United States, many market shares plummeted, and the level of asset prices changed dramatically. Tim Armour sees these dramatic changes as being real and advises each investor to believe in the changes and brace themselves for what is to come.
Tim Armour is the current chairman and CEO of Capital Group, a company that deals with asset financing and investment management. Tim became the chief executive officer of the organization in the year 2015 after the untimely death of the then CEO, Mr. James Rothenburg. Tim holds a Bachelor’s Degree in Economics from Middlebury College based in Vermont. To know more click here.