Investment strategist weighs in on strategy amid market turmoil

As global markets reel from a wave of volatility sparked by escalating trade tensions and growing recession fears, investors are facing a stark question: how do you position a portfolio in times like these? With equities in bear market territory, bond yields plunging, and capital rushing to safe havens, the traditional playbook is being tested. Nolan Wapenaar, Chief Investment Officer at Anchor Capital, provided valuable insights on the current market conditions and strategies for navigating through the turbulence. Wapenaar highlighted the challenges posed by the sudden shift from high growth expectations to potential deglobalization and trade wars, leading to a significant correction in pricing earnings ratios. Despite recent selloffs and uncertainties, Wapenaar emphasized the importance of patience and capital preservation. He advised investors to sit tight, allowing their asset allocation to work for them while closely monitoring key macro signals such as U.S. labor market data and European responses. In terms of building a model portfolio, Wapenaar recommended diversification into European companies and potential opportunities in Chinese equities amid expectations of stimulus measures. He also suggested considering U.S. bonds for defensiveness, emphasizing their role as a hedge instrument in uncertain times. Ultimately, Wapenaar's approach focused on a cautious yet strategic outlook, balancing resilience and opportunity in a rapidly evolving market landscape.