The Navigator: Anchor’s Strategy and Asset Allocation, 2Q23
The Navigator is Anchor’s quarterly review of the major themes affecting markets and gives an overview of our current strategy and asset allocation. Click here for the full document.
The purpose of The Navigator is to provide our clients with insight into Anchor’s thoughts on various asset classes and our near-term market outlook.
Fractures have begun to appear in the global economy as higher interest rates expose fault lines that were hidden from view. Three bank failures in the US and the forced sale of Credit Suisse have reminded us that there are limits to how high interest rates can go. Increasingly, there are signs that we are approaching peak interest rates. Yet, we think the journey to higher interest rates is ongoing, and we fully expect inflation to be with us for much of the next year.
The investment landscape will remain volatile as central banks debate how high rates should go, and animosity between groupings of nations stands in the way of globalisation benefits that have been prevalent for much of the last decade. The consensus is that the next six months will be telling for the globe. Against this backdrop, we have seen asset prices that have risen to varying degrees while cash investments are attractive for the first time in a decade.
In this context, investors should be thinking about how to add risk and when to phase it in. The increased volatility also brings structured products and alternative investments to the fore. We believe that investors should consider upweighting their holding of these.
We continue to caution that now is not the time for wholesale changes to your portfolios. The risk of such changes resulting in permanent losses is too high. However, over time, if you need to adjust your risk tolerances, then a gradual and patient approach towards such changes is warranted. Therefore, we continue to advocate for asset class diversification domestically and abroad.
As you will see in this document, we are cautiously optimistic as to what the next twelve months hold for investments.
The key to successfully managing your wealth is understanding the changes to the world in which we live and adjusting (when necessary) your investment portfolios accordingly. As a boutique asset manager, we can navigate these twists and turns of global developments more readily. 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.
At Anchor, our clients come first. Our dedicated Anchor team of investment professionals are experts in devising investment strategies and generating financial wealth for our clients by offering a broad range of local and global investment solutions and structures to build your financial portfolio. These investment solutions also include asset management, access to hedge funds, personal share portfolios, unit trusts, and pension fund products. In addition, our skillset provides our clients with access to various local and global investment solutions. Please provide your contact details here, and one of our trusted financial advisors will contact you.