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New Week, New World 10/26/15

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Happy Monday! In this new week-new world, we are highlighting the effect of interest rates to consumers. Interest rates have been at a record low for some years in order to assist the market in recovering from the effects of 2008. As a consumer you should know the impacts of low interest rates to your wallet.
Why do this matter to you?
Interest rates not only provide you with a picture of how the economy is doing, it also affects your day to day purchasing power. For instance, low interest rates (1) decreases your variable interest payments on loans such as a mortgage or car, and (2) decreases the amount of money your money can earn in a savings or money market account. Interest rates directly impact your purchases and investments.
What does this mean for the world?
As far as the global economy looks, China recently cut its interest rate by 0.25 percent leading to China’s sixth rate cut since November 2014. This has been a scary indication to investors that the economy is slowing in consumer growth – hence the need to entice the market with lower rates. As the world’s two largest economies, China and U.S. demonstrate the obvious uncertainty as to where the market truly stands in terms of stability and growth.
We believe rates will inevitably rise, yet there is no telling exactly when this will happen. The best thing an investor could do is keep a close attention to job growth and consumer trends to be able to navigate through the mountain of economic unknowns.
At the time of this commentary Michael Ojo, his family and/or clients of Golden Door Asset Management held no positions in the stocks mentioned above — although positions can change at any time.
Michael Ojo is the Account Manager of Golden Door Asset Management, LLC,a registered investment advisor specializing in individual and high net worth individual private wealth management. For more information on investing with Golden Door Asset Management, LLC please visit our website, Golden Door Asset Management, LLC is a New Jersey LLC, with its principal office located in Princeton, NJ.
Michael Ojo is also the publisher of CareStocks, a newsletter focusing in on healthcare services, medical equipment, technology and real estate stocks. More information to the newsletter can be found at
© 2015 Golden Door Asset Management, LLC. All rights reserved.
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