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Weekly Commentary 9/15/2015

Learn more at GoldenDoorAsset.com

It is a quiet September. Too quiet.
Investors had a wild ride at the end of August and are now preparing for the moment of the year: the FOMC's Rate Decision on Thursday. This is the first time in six years the Fed will make a decision that is leaning towards rising rates. For those who don't know, rising rates is healthy for the economy. A zero rate environment was satisfactory when the world was at the brink of collapse during the credit crunch because it froze uncertainty. Once the Fed controlled the capital markets, investors had time to restructure his or her portfolios. Expect the markets to stay calm until Thursday with all eyes on the Federal Reserve's looming decision. Fortunately all signs of the U.S. economy are showing strength but investors should note that volatility will rise at the end of this week. 
At Golden Door, we are anticipating an increase of 25 basis points on the near term of the interest rate curve. Financial institutions such as banks are expected to profit the most from this rise since they make most of the spread on lending activity. M&A activity can pick up in this sector as banks will be increasing forecasts as profits begin to pour in. As we enter the holiday season, consumer discretionary can be a sector to keep your eyes on. Later this week we will provide more coverage on the rate decision and how it will impact your stock portfolio. 
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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