President and CEO of Calamos Investments John Koudounis warned of volatility in the markets due to the uncertainty of the Presidential election during a Q&A at the Concordia annual summit taking place this week in New York.
“There’s no question there’s been volatility and there’s going to continue to be volatility as certain policies of each administration are more favorable for the market than others,” he said replying to a question by Laila Maiden from Business Insider.
He revealed that a lot of fund managers are advising clients not to make any moves ahead of elections because nobody knows of the outcome and nobody knows if a particular policy will be implemented Congress is divided.
Koudounis who recently was named “Global Investments Leader of the Year” by CEO Today, welcomed the reduction in the interest rate by the Fed but argued they should have done it earlier.
“Do I think that 50 basis points was warranted?”, he wondered. “Typically, a jumbo cut like that is reserved for a time of crisis or if we think we’re going into a recession. Some people might say it was political because we want to stimulate the economy before the elections.
“I’m not gonna go to the political thing, but there’s different ways to look at it. Now, if you look at consumer confidence in today’s numbers, it’s at a three-year low. So it does warrant that rates come down.”
He added that the reduction by 50 basis points will not make much of a difference. “The amount is a fraction of what they have to do. So 25-50, will not make a difference. It’s got to go further down.”
Koudounis on Calamos’ EFTs
Recent statistics show that almost 50 percent of American households are running out of money in their retirement years. And this includes people who thought that they were prepared, that they invested and they diversified into stocks and bonds.
“There’s a big mistake that people make, which is when they invest in, let’s say, the S&P, they’re projecting annualized 10 percent returns and they think it’s going to look like that until you get to your retirement years,” Koudounis said. “That’s not how it works.”
He says that Calamos Investments provides products, such as the structured ETF programs launched this year, that could help clients navigate through these volatile times.
“ETFs are 100 percent principle protected on the downside. And what we do is they’re benched off certain indices. We have the S&P, the NASDAQ and then the Russell 2000. So we have a product where if you buy it the day that we launch it and you keep it for a year, we have a cap rate. And through options we can guarantee a certain cap rate.
“For instance, the S&Ps are in the low 8 percentages. And if you keep it for the year, you will guarantee to get anything up to, let’s say the low 8s. If the market runs to 20 percent, you’re only going to get 8 percent. But if it goes down 20 percent you’re not going to lose your money. You’re stopped at flat.”
Koudounis says that Calamos Investments advises its clients to keep their money in the market but be careful and manage it by adding certain products that can help control the risk.
“In the ETF we’re able to bring them to mom and pop where they can invest $25 worth and get these products where before you had to have an entire team who charged a lot of money come into your portfolio to do these structures of options to protect you from the downside and give you some of the upside.”
Concordia is an “intersection where Wall Street meets sustainability”
The Concordia Summit 2024 began with a bang on Monday morning, when diplomats, business professionals, and non-for-profit representatives from all over the world descended upon the Sheraton Times Square hotel to facilitate private-public partnerships and network.
Co-founders Matthew Swift and Nicholas Logothetis opened the summit applauding the conference’s 14th iteration and its strength through representation and diversity. The summit included many A-List attendants, including Harry, the Prince of Sussex and the President of the Dominican Republic, Luis Abinader, as well as the Secretary General of NATO, Jens Stoltenberg and Saudi Prince Abdulaziz Bin Talal Al Saud.
John Koudounis and Calamos Investments have been strong supporters of Concordia. “It’s very unique when you can get so many people in government and business and healthcare and all the different areas together to try to discuss solutions.
“To say that we’re solving the world’s problems is it would be overstepped, but it’s a great place to discuss, to start, to think about things and to bring together people from all over the world. It’s an intersection where Wall Street meets sustainability.”
Koudounis’s dedication to Calamos and philanthropy
Serving as a driving force behind improving strategic initiatives, Calamos Investments President and Chief Executive Officer John Koudounis plays a critical role in delivering innovative solutions to business development and expanding product breadth for the firm’s global base of clients.
Under his leadership, firm profitability and AUM growth have increased substantially.
When Koudounis joined the firm in 2016, he became the first designated CEO hired by Founder John P. Calamos, Sr., as part of Mr. Calamos’ succession plan. Koudounis has more than 35 years of financial services experience including executive leadership in the global securities business and a deep background in global capital markets.
Koudounis is also celebrated for his exceptional leadership and unwavering dedication to philanthropy, extending beyond his professional roles to active involvement in community and religious organizations.
Throughout his illustrious career, Koudounis has exemplified the values of Philotimo through his contributions to Leadership 100, The Metropolis of Chicago Foundation, and numerous other charitable endeavors.
In 2020 he led a coalition of Chicago’s business leaders to raise more than $1 million in a humanitarian campaign for COVID-19 relief and recovery.
Theresa May Joins John Koudounis at Calamos NYC Office for fireside meeting
Former UK Prime Minister Theresa May attended a private event held at Calamos NYC offices in conjunction with Concordia. The event featured a fireside meeting between Koudounis and May discussing the way society and business can work together to combat modern slavery and human trafficking.
Nearly a year ago, the former head of the UK government launched the “Global Commission on Modern Slavery and Human Trafficking” and she has always had a deep rooted interest in this cause. Before becoming prime minister of the UK, May also helped get the ‘UK Modern Slavery Act of 2015’ put into law.
