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
Global share markets pushed higher again in June, led by continued strength in the
artificial intelligence sector. Chipmaker NVIDIA reported quarterly revenue up 85% on the same period last year, on the back of ongoing data centre investment worldwide.
The gains have been concentrated in a relatively small number of very large companies, and not every part of the global market has moved in step with them. That’s a useful reminder of why a long term portfolio holds a broad mix of companies and regions rather than leaning into whatever is performing best right now.
Different parts of a diversified portfolio tend to have their moment at different times, and staying the course through that is usually what pays off over years rather than months.
Short Term Portfolio
The Reserve Bank held interest rates steady at 4.35% in June, pausing after three rises since the start of the year. If you’ve got money in cash or term deposits, that’s welcome news: attractive savings rates are still available while the pause holds.
The Bank flagged that another rise is still on the table if inflation doesn’t keep easing, so this calm could be short lived. For investors who value certainty and income over growth, June’s pause offered a bit of stability in an otherwise unpredictable year for rates.
Micro Cap Report
Smaller companies have had a mixed year globally, and it’s a part of the market worth keeping an eye on given the allocation here.
In the US, small cap shares have had their strongest run in years, while other markets, including our own, have been choppier as investors work through uneven sector performance. Coming into the year, smaller companies were trading cheaply against their larger peers by historical standards, and that gap has closed more slowly in some markets than others. Smaller companies are more volatile by nature, and returns can vary widely between individual names and regions.
Patience through periods like this is usually what allows a dedicated small cap allocation to pay off over the long run.
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.