Capital Groups Opinion about the Chinese Market Volatility

Often, in the stock market, when one country does something volatile, it’s felt around the world.

A spokesperson for Capital Group, Timothy Armour, gave his viewpoint about China’s actions. Considering the six-year bull run America has been on, it’s sparked rising markets in other parts of the world. Every time there’s a market shift doesn’t mean that things are going badly.

What’s really happening most of the time is the market correcting itself. Every time the economy dips below a certain point, the economy adjusts to adapt to the current situation. So when the economy goes back on the rise, the markets make another adjustment, seeming to cause market volatility. Timothy Armour later went on to assure people that periodical market correction is healthy.

Tim also believes that the U.S. economy is not growing as strongly as it could be. Tim hopes that Federal Reserve will start raising the U.S. interest rate soon. Although it may not sound like a good thing, raising the interest rates now actually has long-term benefits. When the interest rates are low, investors tend to take undue risks with no high returns. Higher interest rates direct capital flows to areas where returns are lacking.

Read more: Timothy Armour, Capital Group CEO, Says Post Trumo Change in Markets ‘Is Real’

Despite what many might think about China’s recent decisions, Tim believes that its actions are just part of an economy transition. China, which was primarily a closed, investment-led economy, is now becoming an open, consumer-lead economy. Before, it was very difficult for individuals to partake in many of China’s investment opportunities.

Since an entire country is changing its economy stance, turbulence is to be expected. Switching from a closed market to an open market will take a lot of time. It’s a very rocky process.

Learn more about Tim Armour on Angel.co.

The Battering Accomplishments of Kenneth Goodgame

Mr Goodgame is an accomplished captain of industry. He is the current SVP CMO at True Value Hardware Corporation. Before that, he was working for Black and Decker. During his time there, he has accomplished quite a lot. For instance, he initiated the pay-to-play program of vendor supported advertising. Since he joined the company, he also managed to get it to appear on national television. It was the first time that had happened in almost a decade. Additionally, he improved savings to about 10% annually from a measly 2%.

One of the strategies that Goodgame uses is utilizing the end cap. Kenneth Goodgame understands how important it is to have a strong end cap game. He has managed to boost customer purchases of the company’s products by leveraging end caps.
Some of the True Value Changes

Under Goodgame’s leadership, the company was able to adjust its merchandising and pricing strategy. One of the things the company has done is to reduce opening price points. According to the company, there is no money to be made there. The company wanted to differentiate itself from discount competitors while offering clients more value.

Another strategy that True Value adopted was adding regional buyers. The move was aimed at making assortment relevant while boosting the productivity of products. The company developed a tool called the Geo-Demographic Analysis. It is aimed at measuring the dynamics of trade areas.

The move was a huge change from past strategies where Basic, Expanded, and Dominant were the only assortment choices. However, the company had ignored the geographic requirements for its retailers. The new move saw the company focus more on meeting the geographic needs of its consumers such as rural, suburban, and urban.

Another strategy that the company adopted was getting innovative products at the end caps. Before Kenneth Goodgame, the company did not pay much attention to innovativeness. However, since the adoption of the strategy, it is quite clear that will change. Although the company always has these items, they have not been given the visibility they deserved. To encourage shoppers to buy these items, they would be offered at a discount.

Another strategy that Goodgame adopted in his end cap game was to leverage seasons. Since requirements change by season, he knew that would affect sales in a big way. Thus, it ensures that the stores are making sales even in seasons when sales go low.

Since True Value announced a new team, the company has moved quite far. While it used to be a market leader, the new team should get it back to the top in just a short while. Goodgame and the new top-tier team at True Value were the extra jolts that the company needed. The company’s forecast has been quite positive in recent times.

Kyle Bass’ Predictions At SALT 2016 May Be Questionable

Kyle Bass has an interesting history that some don’t realize. He was made renown in 2008, when successfully he managed to predict a coming economic collapse. His prediction contended that the novation of sub-prime lending loans was the facilitation of a credit bubble whose days were numbered. He made this prediction with information of the “insider” variety. Bass worked for one of the banks that initiated the meltdown. Right before it collapsed, he let slip information to the mainstream media which arguably facilitated said collapse. Certainly the economic environment that made the collapse happen wasn’t Bass’ doing, but he definitely had some involvement in toppling the house of cards.

Bass regularly profits from the declination of large, previously successful economic bastions. Take big-time pharmaceuticals, for example. Bass uses CAD, the Coalition for Affordable Drugs, to get infirm individuals and their families onboard petition efforts which have decimated the prices pharmaceutical companies sell their medicine for. When their stock declines on Wall Street, Bass–who is expecting this–short sells his holdings at the most opportune times. He gets millions and the sick are deprived of future advancements. Developmental funds must be suspended when income is stymied.

Lastly, Bass is involved with socialist despot Cristina Fernandez de Kirchner, who is well-known as somewhat of a scourge in Argentina. De Kirchner has defaulted the country twice in only 13 years, though Bass seems to approve. He never criticizes her leadership.

With these things in mind, when Bass says that 18 months from now, or within that time, a large economic downturn is expected, his words aren’t to be ignored. The question is, what are his motives?

At a recent SALT 2016 Q&A, Bass noted that he expected China to have a big economic implosion in the near future. He compared that market to America’s before the 2008 collapse. Specifically, he noted that there were resemblances between today’s market and that of March/April 2007, indicating possible economic downturn very soon.

While some financiers also involved in the Q&A agreed with Bass, there were definitely those that didn’t. Their general consensus seemed to be the market was neither bear nor bull, but waiting to go one way or the other.