The Navigator is Anchor’s quarterly review of the major themes affecting markets. The purpose of the The Navigator is to provide our clients with the insight into Anchor’s thoughts on different asset classes and our near-term market outlook. However, due to the unprecedented impact of COVID-19 on world economies and governments, this edition is devoted to the pandemic and its impact on global markets. Click here for the full document.
March 2020 will be remembered, studied and analysed for a long time as the month when COVID-19 hit and OPEC+ appeared to fall apart. One day we will tell our grandchildren about the months when the world stood still. Before we do that though, we need to survive it. Anchor’s role in trying to survive this is all about making sense of the world around us and what that means for the savings that our clients have entrusted to us. Pandemics, lockdowns and the oil wars are truly new events for all of us. There is no playbook for the governments that must lead, and historical experiences offer limited help for Anchor as we seek to navigate the maelstrom of uncertainty.
Nevertheless, we do know that the risk-off reaction has created investment opportunities in all asset classes. Unfortunately, these opportunities come with great risks. Financial asset prices may well go down significantly from their current levels before they recover. Businesses with weaker balance sheets may find themselves unable to survive and consumer behaviour is likely to change as a result of March 2020. That said, if you can identify quality businesses that will survive and are taking a longer-term view the opportunity set is attractive.
In this edition of the Navigator, we include some of the thoughts from our investment professionals on what this pandemic means to them and how they are seeing it develop in their various spheres of expertise.
The key to successful management of your wealth is an ability to understand the changes to the world in which we live and to adjust (when necessary) your investment portfolios accordingly. As a boutique asset manager, we can navigate these twists and turns of global developments more readily and our team of experienced investment professionals are ideally suited to understand and react to a rapidly changing environment as we pursue exceptional investment outcomes for our clients.