Anchor Capital shares its first quarter investment strategy for 2022

Anchor Capital, a leading investment firm, has shared its first quarter investment strategy for 2022 in an exclusive interview with CNBC Africa. Co Chief Investment Officer at Anchor Capital, Nolan Wapenaar, discussed the current state of the Chinese economy and its implications for countries like South Africa. With China experiencing its slowest pace of growth in 18 months, Wapenaar highlighted the challenges facing the Chinese economy, including pressures on the property sector and soft consumer environment. However, he also noted the potential for stimulus measures from the Chinese government, which could benefit commodities like iron ore and coal, boosting South Africa's exports. This presents a potential tailwind for South Africa in the latter part of the year, providing confidence in commodities and mining stocks. Moving on to global markets, Wapenaar addressed the withdrawal of monetary support in the US and its impact on asset allocation and management. He emphasized that consumers emerged from the 2020 crisis with stronger balance sheets, supporting economic activity and earnings growth. While certain sectors like tech stocks may face pressure with stimulus withdrawal, companies with visible earnings and strong fundamentals remain attractive investment opportunities. As the US is expected to show strong economic performance, Wapenaar highlighted the importance of differentiation in investment strategies while maintaining a positive outlook for equities. When discussing specific sectors in the US market, Wapenaar noted that interest rate hikes and peak hawkishness could lead to increased volatility in various equity categories. However, he emphasized the importance of focusing on individual stocks with solid compounding potential rather than making drastic portfolio shifts. Anchor Capital's investment approach remains centered on long-term compounding, with a focus on identifying companies poised for sustainable growth across different sectors.