The vice president and lead portfolio strategist for Fidelity kept the 300-plus attendees at ASC Trust’s 401(k) and Investment Annual Conference engaged for an hour.
Paul Ma spoke at ASC Trust’s 401(k) and Investment Annual Conference Photo by Maureen N. MaratitaSpeaking on March 5 at the Hyatt Regency Guam to an audience that had mixed levels of familiarity with investment options and strategies, Ma took them through various topics, including why it’s a plus to be part of the United States and Guam’s long-term potential.
He discussed what drives consumer spending and said that “more and more spending is wealth driven” in that 10% of Americans contribute 50% of consumer spending.
He compared wage growth and inflation and the fact that wage growth had increased faster than inflation from 2020 to 2025 to what is called the “Common Man Inflation.” His chart showed inflation had grown faster than wage growth — so, for the average individual in the same five years, the basket of goods and services had increased.
Ma made the point that the Trump Administration will be sensitive to the mid-term elections (which are just kicking off) and factors that people focus on: inflation and the economy rather than foreign policy and immigration. “It’s going to be interesting to watch,” he said.
While he referred briefly to the talk earlier this year of a cap on credit card interest rates in the U.S. to deal with the $1.2 trillion in consumer debt (opposed by the banking industry) what he called ‘the goodie bags” had the corporate audience and its CEOs and top management present paying attention.
“No 1 is corporate tax cuts. Don’t hit the snooze button,” Ma said. “Corporate tax cuts is exciting stuff.”
Ma’s charts showed from 1962 to 2024 that when corporate tax increases, capital expenditure decreases and vice versa. The result is an increase in GDP. With a base line of 8.9%, Ma said, “During years of tax increase, the S&P returned less — 7.4%.” The year of tax decrease, the S&P returned 10.5%, and a year after that 14%.
Ma also talked about deregulation. He said there are “about 2,000 new regulations per year based on Federal Register Data. … For you small businesses that is hard,” he said. Last year, about 1,800 were cut, he said, including un-enforcement of existing regulations.
“That’s a good thing; it will help businesses, especially smaller businesses.”
In addition, Ma talked about federal rate cuts and their positive effect on the stock market, international markets and the difficulty of foreign currency trading, bonds and money markets, and what Kevin Warsh, nominee for chairmanship of the Federal Reserve might say at his Senate hearing.
As to Guam’s tourist markets, Ma said, “I do think Korea and Japan — their economies are recovering for the first time.” And on a hopeful note for the islands, he said. “In a few years’ time, the tourists will come back in droves.”
Ma — who has been with Fidelity for more than a decade — was making his second visit to Guam, and both ASC and he plan he will come back again. Ma hopes to see more of the Micronesian region in the future, he told the Journal.
Presentations on financial planning and the stock market can be dry. But Ma injected humor and incorporated analogies of escalators, and sharks and vending machines. His talk generally equipped investors with thoughts on how to monitor market performance and offered value for those new to stock market investment.
(From left) Isa Koki, controller, Bank of Guam; David Sanford, general manager, Sanford Technology Group LLC; David J. Burger, Burger Comer & Associates; and David J. John, managing director, ASC Trust. Photo by Skyler Obispo
Other expert presenters included Sue Walton, senior vice president and senior retirement strategist of Capital Group, David Burger, managing partner of Burger & Comer, Joshua Gordon, vice president and institutional retirement specialist of Capital Group and David J. John, managing director of ASC Trust. A panel during lunch discussed benefits, salaries and competition for employees.
The conference was sponsored by Bank of Guam, Fidelity and Capital Group. Attendees came to Guam from the Northern Mariana Islands, Palau, the Federated States of Micronesia and the Marshall Islands, and the U.S. mainland.
ASC Trust operates in five locations throughout the region, and manages more than 675 retirement plans, representing 50,000 participants and more than $1 billion in assets. mbj
HONOLULU, Hawaii — More than 170 representatives from Pacific Island nations, the U.S. government, and the private sector convened at the inaugural Pacific Agenda: Investment, Security, and Shared Prosperity Summit held at the Imin International Conference Center at Jefferson Hall in the University of Hawaii Manoa campus from Feb. 23 to Feb. 24.
A new initiative for the U.S. Army Corps of Engineers will not only direct USACE to continue its involvement in the islands but could ensure that several military construction projects in Micronesia move speedily forward.
In a Feb. 2 announcement of a Dec. 19 procedural notice the U.S. Small Business Administration announced that its loans will no longer be available to non-U.S. citizens, typically permanent residents or green card holders as of March 1.
Hugh Cavill, director of government affairs for the Cruise Lines International Association, said Micronesia is positioned well for cruise-based tourism.
