American Fund Portfolio Manager Shares Insight

China’s economy experienced an economic crisis, causing its currency to devalue and market selloff in September 2015. Investors and trading partners across the world became fearful and sought refuge after the drop in Chinese stocks. To help stimulate China’s economy and regain the trust of global investors, the government lowered its interest rate and eased reserve requirements for banks.

American Fund Portfolio Manager Tim Armour shares his opinions on specific areas of interest for investment opportunities in China, interest rates, and the economy in the United States. Mr. Armour has 34 years of experience in the investment management industry, nationally and internationally, and provides informative opinions as an author and Chairman leader.

His educational and career background has provided him with expertise to share with investors based on analysis and global market conditions. Timothy Armour is a Middlebury College graduate, earning an economics BA degree and serving 33 years at Capital Group, in Los Angeles. He joined the firm as an internist and received career growth, serving as Equity Investment Analyst, Equity Portfolio Manager, Chairman, and Chairman of Management Committee. Mr. Armour is presently serving the committee to communicate set strategies and implementation of them. He’s committed to Capital Group and has history contributing to its growth in the U.S., Europe, and Asia.

Related: Capital Group Parent Names Armour Chairman, Replacing Rothenberg

American Fund Portfolio Manager Timothy Armour believed that despite the selloff in China, in 2015, there were alternative investment opportunities. He said there were opportunities outside of the country, but the Chinese internet companies looked more attractive at the time. Corrections of the market benefited these companies for possible investment opportunities after valuations were higher, in 2015. Although, China’s economic growth rate was slow in September, Mr. Armour expected it will be faster compared to other economies. He was confident multinational companies should continue to grow sales in China.

Concerning interest rates and the economy, Timothy Armour says the United States Federal Reserves should have raised its interest rate. The economy wasn’t growing in mid-2015 and near zero interest rates may have caused it to be in stand-still mode. Investors began to take undue risks and were forced to the move their assets to alternative investments. He says when a short term interest rate is raised gradually, the financial system becomes stronger and the economy gets healthier. Mr. Armour is hopeful his advice and opinions on past economic events benefit investors and companies.

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