February 2024

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.

what moves the market - FPW - Fundamentals & Sentiment

Long Term Portfolio

In February, the investment landscape continued its strong momentum from the beginning of the year, with markets maintaining their upward trajectory. The Long portfolio posted a solid month of return.

The reporting season met expectations, further bolstering investor confidence and sentiment. Amidst this upbeat and buoyant atmosphere, positive market performance was observed across various sectors, reflecting optimism about economic recovery and corporate earnings.

As we navigate through the ongoing opportunities and challenges, the outlook remains positive, underpinned by resilient market fundamentals and continued optimism in the investment landscape.

Short Term Portfolio

In February, global markets showcased resilience, with portfolios embracing a ‘risk-on’ stance reaping rewards. Central banks effectively managed to alter expectations regarding the timing and magnitude of rate cuts for the year. The consensus in the market is that rate reductions are more likely to commence around mid-2024, with an emphasis on gradual adjustments aimed at transitioning policy rates from restrictive to neutral levels.

Anticipating a decline in interest rates in the latter part of 2024, we foresee a steepening of yield curves, with longer-term bond yields maintaining a range around current levels. This steepening is expected to enhance the appeal of interest rate duration for investors.

Micro Cap Portfolio

With the macro theme of inflation and interest rates parked for now, fundamentals drove the market in February. February is part of reporting season and this year we saw smaller companies outshine their large cap peers.

When equity markets are being judged on fundamentals it creates an opportunity for active funds management to shine. This portfolio outperformed the market with a 3.56% return against the backdrop of the S&P/ASX 100 index achieving on a 0.89% return for the month.

We continue to favour managers who seek growing companies with strong balance sheets in this portfolio.

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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