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Weekly Commentary 8/3/2015

With the Athens Stock Exchange reopening and continued turmoil China, investors can expect more than usual volatility as we enter the month of August. Even with most of the S&P 500 earnings released last week, smaller cap companies should have more fluctuations in earnings, which will only enhance market swings.
Last week the PCE base inflation, less food and energy, reported in at 1.8% annualized for the second quarter. This figure was not covered much in the news and is surprisingly close to the 2% target for the Fed. If a strong labor report is released this week then we can increase the likelihood of rates increasing in September. Construction Spending also came out to be higher for June but Consumer Spending still seems to be behind the growth of Disposable Personal Income. 
As the summer slowdown begins, clients should be cautious of concentrated positions in any commodity based revenue streams or high foreign exposure. There is a lot of tension being built up across the global economy that continues to impact U.S. based companies. On a positive note, many consumer indicators are showing signs of optimism including new and existing home sales. 
The main focus for the rest of 2015 should be on market growth and how corporations are investing abroad. Capital spending continues to be weak and the strong dollar has made it difficult for domestic business to expand. Currency fluctuations extend until Europe and China repair their economic machines. Even if the Federal Reserve pushes interest rate spikes to the 4th quarter, this will only perpetuate a stronger dollar.
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, 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
© 2015 Golden Door Asset Management, LLC. All rights reserved.
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