Most Capitalist investors, place small sums of money into medium businesses. It is a smart investment strategy that brings averagely-fast profits. Such investors opt for only sustainable, low-cost investments which provide the sudden fast and quick growth.
Tim Armour thinks otherwise
Analysts say that this is not the qualified investment plan. Tim Armour, chief executive officer of Capital Group, says that many small capital investments provide poor or mediocre long-run returns; due to the accompanied excessive trading and management fees. Particularly with the recent change of markets, many low-cost investments are too risky a maneuver.
Tim Armour, also the chairman of Capital Research and Management, says that market change is mainly due to the recently experienced high economic growth, higher interest rates and a rising state of inflation. He says that markets have shown late signs of fatigue where most equities have struggled to set new bond market standards.
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Recent change in global regimes has also led to modification of asset prices, and he is clear to sound warning of an incoming turbulence in the global markets. Armour gives the example of Pimco which by last year had achieved great results after reducing the number of its capital investments.
He says that Pimco consolidated its investment funding into one large entity. And by last year November, Pimco had one of the most secured and defended bond markets. Tim Armour concluded says that average income does not guarantee safe retirement. Tim Armour says that funds need not be invested into several averagely performing investments are they provide no safety during market slumps.
About D. Armour
Tim Armour, a holding equity manager, joined Capital in 2015. He attended the Middlebury Economics College and was an intern at the Associates Program of America. He has also managed other financial groups like the Capital Income Builder of America. He was also a Capital analyst investor of the other US and global telecommunications companies and lives in the US.
Learn more about Timothy Armour: http://www.cnbc.com/2017/02/27/warren-buffett-is-wrong-about-this-investment-strategy-commentary.html