Working with Capital Group, Timothy Armour has amassed over 33 years of experience working in the investment industry. Before coming to Capital Group, Tim obtained his bachelor’s degree in economics, studying at Middlebury College.
Previously, Tim worked for Capital as an equity investment analyst. He managed global telecommunications and United States service companies. Tim entered work at the Capital Group through his participation in The Associates Program. He currently holds the positions of chairman and principal executive officer of Capital Research and Management Company, Inc.and chairman of the Capital Group Companies Management Committee, along with the title of equity portfolio manager. Mr. Armour is based out of Los Angeles.
According to Mr. Armour, some of the major financial themes to pay attention to in the coming year will include interest rates. The federal government recently raised rates for the second time in 2 years. However, the single most important issue for Armour is corporate earnings. Corporate earnings growth will rely heavily on the expansion of global domestic product around the world, rather than solely in the United States. According to Armour, the public expectation since the election is for global product growth.
Another huge factor for Tim Armour this year is the fact that in recent years there has been a sizable decline to the rate of growth in the United States relative to the rate of growth outside of the United States. According to Timothy Armour, the goal of the public should almost certainly be to get the global economy working at the proper level of efficiency. In Armour’s mind there are a few questions that need to be thought of going into today’s market. Which businesses will thrive with high interest rates? Which will fumble. Will inflation come into play? This would also change which industries would thrive.
Companies that have a lot of pricing power would actually do much better in an economy touched by inflation. According to Armour, the market since the election is telling us that we are in a key moment of inflation. Banks, for example, were not exactly doing stellar if one looks at statistics before the election. As the election drew near, things changed. Post-election, banks are doing extremely well. They benefit from higher interest rates. These are the sorts of things that Tim Armour considers to be the important factors to look at today, from a purely economic minded perspective.