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Weekly Commentary 9/25/15

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America is seeing increased consumer spending in health care, transportation and construction. These details were released this morning when the Commerce Department of the United States reported that the second quarter Gross Domestic Product rose 3.9% vs the expected 3.7%.
Last week Janet Yellen, Chair and representative for the Federal Reserve Bank, held off on increasing interest rates because of global downward pressure on inflation. The initial reaction of not increasing interest rates and talks about full employment growth has reflected in a temporary boost to the global markets today. However, Janet who spoke at a conference last night, suggests that a rate rise is likely to happen before the end of 2015.
How does this affect me?
Interest compounding at zero rate levels will impact anyone saving for retirement. On a $10,000 retirement portfolio with no contributions, the difference of 50 basis points or 0.50% can be as significant as $1,690.5 over 20 years. To get around this, investors have been more concentrated on stocks with higher risks in search for quick short term gains. Even though we are years away from normal interest rate levels, consider focusing on stable growth in order to overcome the low rate environment we are experiencing today.
With the third quarter coming to an end, the markets should be relatively calm next week. More excitement will begin once earnings season starts in October.
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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