Insights Exchange
by Private Clients

August 2023

Despite a great deal of pessimism at the start of the year, the first half of 2023 has turned out to be much better than expected, with global markets performing strongly over the first half of this year. This outcome, albeit concentrated in specific market segments, would not have been predicated just a few months ago when headlines were pointing to an imminent global recession and the world’s major central banks were aggressively hiking rates. This demonstrates the futility of trying to time markets based on prevailing sentiment and short-term predictions, and informs our view of remaining invested in quality companies over the long term. 

In this series of videos, Bruce Whitfield and the Private Clients investment team discuss markets and share their views on where we are currently seeing opportunities.
Global Market Overview

Markets are fighting back this year, with Artificial Intelligence emerging as the unexpected theme and The Magnificent Seven capturing investors’ attention.  In this video, Andrew Dittberner, Chief Investment Officer at Private Clients by Old Mutual Wealth discusses the current market conditions, the proliferation of AI and the likely beneficiaries. He also cautions about rising valuations and explains how we construct concentrated investment portfolios geared for the long term.

Specific mentions: Magnificent Seven, Artificial Intelligence, NVidia, Apple, Berkshire Hathaway, identifying quality companies, distinguishing between signal and noise, quality investment philosophy and process

Duration: 16:25

Opportunities in Global Healthcare

While the global healthcare sector has lagged the broader market this year, healthcare stocks have defensive characteristics that can bolster a portfolio during times of economic uncertainty. Watch as Victor Mupunga, Head of Research at Private Clients by Old Mutual Wealth unpacks how healthcare earnings are expected to rise over the next year and highlights some of the healthcare stocks we hold within the Private Clients Global Equity Portfolio.

Specific mentions: Johnson & Johnson, Danaher, Zoetis

Duration: 08:11

Opportunities in the Local Market

Over many years and even decades, South Africa has proven itself apt at incubating some truly world class businesses. And despite some significant headwinds, local entrepreneurs continue to build businesses that are able to withstand the gravitational pull of a sluggish economy. Watch as Tasneem Samodien, Research Analyst at Private Clients by Old Mutual Wealth explains how some of the companies within the Private Clients Core Equity Portfolio have been successful at creating their own economies.

Specific mentions: Shoprite, Mr Price, Stor-Age, ADvTECH, OUTsurance

Duration: 12:00

Closing Thoughts

To conclude this edition, the panel share key insights into navigating the uncertainty in the current environment, the futility of trying to predict the future, capitalising on current opportunities and the power of remaining invested for the long term.

Duration: 08:36