Shadforth news

News from our CEO

28 February, 2021

An update for Q1 2021 from our CEO, Terry Dillon.

Welcome to the first edition of The Edge for the new year in both the Chinese and Gregorian calendars.

According to the Chinese zodiac we are entering into the year of the Ox, a year characterised by attributes such as patience, resilience, and strength.  As investors, these are traits we’ll need in abundance as we adapt and learn to live in a very uncertain world.

It’s been an interesting start to the year with the inauguration of the 46th US President and the beginning of the global rollout of COVID-19 vaccines. Markets have taken up where they left off in 2020 with record low interest rates and massive government and central bank stimulus propelling global equity markets towards record highs.

The recent runup in growth stocks like Afterpay, Tesla, GameStop, and cryptocurrencies like Bitcoin and Ethereum has a decidedly familiar feel to the period leading up to the bursting of the Dotcom bubble in early 2000. However, predicting turning points for these speculative excesses is impossible and often self-defeating.

At Shadforth, we manage risk through disciplined rebalancing and the broadest possible diversification. We remain well positioned given current market fundamentals with our fixed interest portfolios having a shorter duration and higher quality and our equity portfolios overweight to value and higher profitability stocks.

Finally, many of our offices are now starting to reopen to both staff and clients, and our financial advice teams are looking forward to a return to face-to-face meetings with those who feel comfortable doing so.

As always if you have any feedback or thoughts you would like to share with me, please do so via email at ceo@sfg.com.au.