Friday HighlightJan 20 2023

Three pockets of opportunity for 2023

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Three pockets of opportunity for 2023
The UK saw high turnover of prime ministers in 2022. (PA Wire/PA Images via Fotoware)

To us, this spells a positive market for silver in 2023 – and we are positioning our portfolios to capture this trend.

We are doing this through both traditional silver bullion exchange-traded commodities, as well as active funds that are buying stocks of gold and silver miners to tap into the equity component. 

Putting planet first

After a strong period for broad equity indexes, we expect the next bull market to be fuelled by companies enabling the transition to a sustainable economy – one that is resilient, provides a good quality of life for all, stays within the limits of the planet, and keeps global warming to the two-degree threshold.

The opportunities in driving this transition are not just within renewable energy, but across all facets of sustainability. 

One theme we are particularly excited about in 2023 is the increasing awareness around biodiversity preservation.

More than half the world's economic output is moderately or highly dependent on nature, with ecosystems playing a vital role in greenhouse gas regulation.

Awareness is only now increasing, with calls for mandatory disclosure from corporates around biodiversity growing louder.

We have invested into this theme through both a specific natural capital fund as well as through a series of positive impact and sustainable strategies.

Biodiversity, as well as the climate transition, water and waste management and the transition to a circular economy are just some of the multi-decade themes we believe are going to show strength against broader equities in 2023 and beyond. 

James Penny is chief investment officer and Dan Babington is a portfolio manager at TAM Asset Management