January 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.

Long Term Portfolio

The Long portfolio started the year positively following its strong close to 2023. Anticipation is high for the upcoming earning season, with expectations that many companies will meet and possibly exceed expectations in some market sectors. Despite the geopolitical risk, which sadly is becoming the norm rather than an outlier, most market participants have a reasonable confidence level for the year ahead.

Short Term Portfolio

Bond markets, along with global equities extended their Santa rally into January as economic data showed that inflation has continued to moderate which has increased expectation that interest rates have peaked. Despite this optimistic outlook, there is a counterbalancing risk that inflation could bottom out and begin to rise again. Central banks must navigate this delicate balance. Nevertheless, with the potential for more positive economic data and improving conditions, there seems to be more commentators pointing to the likelihood of interest rate cuts within the current financial year.

Micro Cap Portfolio

The small cap market performance locally in January was a combination of continued strength in Industrials rising close to two per cent, and weakness in Resources falling almost two per cent.

Market commentators are of the view that the most likely direction of interest rates is now down supported by data pointing to a lowering inflation both globally and domestically.

The February earnings season will present a number of interesting data points to discuss in the small cap market with expectation that Industrials will continue to outperform.

This portfolio is currently positioned with an overweight position to faster growing Industrial businesses that the fund managers we employ believe are relatively cheap for the growth on offer.

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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