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Weekly Commentary 8/17/15

The Chinese currency devaluation last week certainly gave investors a wake up call. First things first, it reminded everyone that we are global investors and you can't hide your portfolio from systemic risk. Even with those economic concerns, the stock market still rose last week even with light volume. This should not come as a surprise since August is generally a slow period for any business and markets can easily move in any direction. High volatility and sideways markets should keep investors on there toes for the rest of the summer. 
The U.S. like any other economy is highly dependent on consumer spending. Month over month the retail sales report has grown 0.6%, annualizing 7% for 2015. Before Amazon Prime Day was initiated, ecommerce sales increased 4.2% in Q2, up 14.1% since last year. We expect consumption to increase for the latter half of the year due to the holiday season and precipitous drops in oil prices. Another tick up for increased consumption can soon happen when wage growth gets back on track. Until then any cost savings from commodity related products will certainly boost the global economy. 
Next week we will learn more from housing data, prepare for back to school/college and see if inflation is in line for the final stretch for the third quarter.
At the time of this commentary Vijar Kohli, 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.
Vijar Kohli is the Portfolio 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, www.goldendoorasset.com. Golden Door Asset Management, LLC is a New Jersey LLC, with its principal office located in Manalapan, NJ.
Vijar Kohli 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 www.carestocks.com.
© 2015 Golden Door Asset Management, LLC. All rights reserved.
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