It is very challenging to make correct investments decisions because one does not know beforehand which fund will outperform. At the same time, it is unwise to just make investments before deeply analyzing the nature of the investment.
Warren Buffett has wedged $1million to charity for his successful investments on S&P 500 passive index fund that he claims is better than investing with a group of hedge fund managers. According to him, customers should be strict on product brands.
Tim Armour, CEO of Capital group supports this idea saying that people should mostly trust the managers who invest their own personal money alongside the funds from their clients. People should invest in simple low cost investments that can be held for long periods.
Tim Armour is one of the best and biggest asset managers in United States. He has 34 years of experience in the investments industry. He studied at Middlebury College and holds an economics degree. The Los Angeles based investor started his career at Capital group as a member of The Associates Program. He worked up the ladders landing other jobs in the business such as an equity investment analyst and equity portfolio manager. He is currently the chairman of the company’s management committee, Capital Research and Management Company’s principal executive officer and chairman and the overall CEO of the company.
Armour is one of the few people who have openly acknowledged the economic adverse effects of the election of Trump. According to him the rising rates, the looming inflation and the fast economic growth is just but the beginning. This is after the market showed signs of struggles after the surprise election of president Trump. With the increase in the level of populism and the uncertain policies of the new government, Armour warns that the situation will only worsen but people have to make their own choices whether they believe it or not.