August 2021

By Forrest Private Wealth

At Forrest Private Wealth, our investment philosophy underpins our financial planning advice, which ensures our client’s wealth benefits from long-term exposure to equity markets. We believe holding a well-diversified portfolio of predominantly dividend-paying businesses over a long-term period is essential in financial planning for wealth accumulation and, ultimately, retirement planning.

By following our retirement planning process, a Forrest Private Wealth financial planner stays true to their investment advice, ignoring the noise and pressures of the market to provide their clients with a stress-free retirement. At Forrest Private Wealth, our financial planners capitalise on an investment philosophy that provides predictable income streams from equity markets, setting clients up for their desired retirement.

Long Term Portfolio

August reporting season came with a flurry in the domestic market with many meeting, if not exceeding, earnings expectations. Global equities were also broadly positive as investors welcomed strong corporate earnings and improving economic conditions. Both domestic and global exposures positively impacted in the Long account with another solid month recorded. On the surface equity markets continue to remain resilient during a period marked by a very uneven global economic recovery as countries and regions are forging divergent paths to a post-pandemic world. We do however expect markets to remain volatile in the near term as genuine investor debate continues about how the world will look on the other side of the pandemic ebbs and flows.

Short Term Portfolio

As the east coast grapples with the Delta variant risk, the RBA, contrary to most pundits decided to slow its bond buying from $5bn a week to $4bn on the grounds the lockdowns will delay but not derail the recovery. To cover the risk and provide a bit more monetary policy certainty, the RBA will push its bond buying of $4bn a week rate out to mid-February. Prior to the Delta lockdowns, the slowing of the program was likely to occur around the end of the calendar year. Short of a major further change in the economic outlook, we are unlikely to see any significant policy changes from the RBA out to February, with the focus now more firmly on fiscal policy to help with the recovery. This will be welcome news to many along with the view that Australia will hopefully be back to around its pre-Delta economic levels in the second half of next year.

Forrest Private Wealth’s discipline in providing financial planning, retirement planning, and wealth management services to its clients allows our clients to benefit from years of experience providing financial advice through major impacts to equity markets where staying the course has helped them.

Forrest Private Wealth has a dedicated team of financial planners and support staff providing clients with peace of mind in working towards and achieving their life goals.


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