THE NAVIGATOR – ANCHOR’S STRATEGY AND ASSET ALLOCATION, 3Q23

The Navigator: Anchor’s Strategy and Asset Allocation, 3Q23

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.

Throughout much of the past twenty years, there has always been a good reason not to invest. There are always storm clouds on the horizon, risk factors making investing uncomfortable as markets and the media fret about what may happen down the line. Most of these risk factors also pass us by without becoming actual events. Over the past quarter, we have been anxious over the risk of stage-8 and stage-12 loadshedding, the possibility of the US defaulting on its debt, China invading Taiwan, and China’s property bubble imploding. In the end, these sources of angst and volatility never materialised. So, do not let possible risk factors hold you back from investing. Experience has taught us that those who start investing earlier and have the confidence to stand by their investment strategy over time have better returns. There is something to be said for periodically measuring your progress against your investment plan and making asset allocation shifts from time to time. However, for the most part, investing is a long-term game where strategic planning and patience are rewarded.

You may notice there are not many changes to our asset allocation views since our previous edition of The Navigator – Anchor’s Strategy and Asset Allocation, released on 14 April. The global economy remains in the last part of the rate-hiking cycle, where 80% to 90% of rate hikes are done, but we are not quite there yet. Markets are forward-looking, and we think one should gradually shift towards asset allocation for the peak of the rate hiking cycle. Typically, this would mean leaning slightly more into risk, although investors need to be careful as certain pockets of equity look rather fully priced, as explained in this report. We think that bonds, both globally and domestically, have some appeal. Overall, we retain our view that a sensibly balanced investment portfolio is the way to go.

In terms of investing, our point is that a number of the risk factors that have been weighing on markets seem to be dissipating. We are hoping for a period of relative calm before the US and South African (SA) elections confront markets in 2024. Overall, this is as good a time to upweight your investments. Anchor strives to help you achieve the best outcomes within your risk tolerances and objectives. We see opportunities in all asset classes, and this document highlights some of the best opportunities we believe to be available.

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 fundspersonal share portfoliosunit 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.

 

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