July 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

In a month that saw the spread of Delta take centre stage, the Long account posted another strong month. While the focus locally continues to be on case numbers and all things lockdown, it’s worth noting the positive signs playing out abroad on the effectiveness of vaccines to mitigate the harmful health effects of COVID. The UK, one of the larger and earlier adopters of the vaccine, is providing a good lead on what living with COVID looks like. Now into their third wave, and out of lockdown, the virus has not been as bad as expected. And whilst mid-July saw a spike in cases, deaths are only a fraction of previous waves, providing evidence of a return to a more normal life, and a sustainable way of managing COVID is achievable.

Short Term Portfolio

The large spike in COVID cases over east along with the prolonged lockdowns have cooled chatter of an impending rate hike. For months, speculation has been running wild about interest rates rising before the RBA’s long-term ‘deadline’ of 2024. With Greater Sydney under strict stay-at-home orders and several other capitals in and out of short circuit-breaker lockdowns, this chatter appears to have been premature. With many economists now conceding that the RBA is a long way from meeting its conditions for a rate hike as lockdowns halt progress, it has come as no surprise the RBA continued to hold official cash rates at record low levels. In a lower for longer interest rate environment, the Short SMA continues to provide alternative quality sources of defensive income, posting another positive return of 0.24% for the month.

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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