Anchor Capital’s 2024 global stock picks

As 2023 draws to a close, investors are reflecting on a year that saw some recovery after the disastrous 2022 market performance. Peter Armitage, CEO & Co-CIO of Anchor Capital, shared insights on the current market conditions and the investment opportunities that lie ahead in 2024. The year 2023 saw a rapid increase in interest rates, with the US rates hitting 15-year highs. While major tech companies thrived, many others struggled, creating a need for careful stock picking. Looking forward to 2024, Armitage remains cautiously optimistic, foreseeing a gradual decline in interest rates and improved economic conditions. However, he warns that valuations are high, requiring a bottom-up approach to investing. Amidst this backdrop, Anchor Capital has identified five global stock picks for 2024 that present attractive opportunities for investors. These picks include Citi, Estelador, Rentokil, Scottish Mortgage Investment Trust, and Starbucks. Each of these companies has unique qualities that make them compelling investment options. Citi, a global bank, has undergone a restructuring to improve its return on equity, offering substantial upside potential. Estelador, a longstanding business with exposure to China, presents value after a recent decline in earnings. Starbucks, known for its global presence, remains a strong contender for growth, especially in emerging markets. Additionally, the absence of tech and AI stocks in Anchor Capital's current selection reflects a strategic move to diversify away from sectors that have experienced significant gains in recent years. Instead, they have chosen to include Scottish Mortgage Investment Trust, a UK-listed trust with investments in smaller technology businesses. Despite the challenges and uncertainties in the market, Anchor Capital's approach to identifying quality businesses with strong growth prospects underscores their commitment to delivering value for investors in 2024 and beyond.