1. September 22, 2015
Friends,
Last week, the Federal Reserve announced that it was leaving interest rates; the Fed Funds Rate at Zero. If
you are a regular reader of these notes, you are not surprised. I completely understand that the Fed wants to
declare victory and move on. Unfortunately, things are a bit more complicated than that.
The Federal Reserve works in a politically charged andelectronically interconnected world and has for the
first time recognized that their actions could affect other less stable economies. You may recall that the IMF
recently provided guidance to the Federal Reserve that raising Interest Rates was a bad idea.
My process is to continuously look for forces of change within the economy. On the Company level it can be a
new product or competitor. On the Macroeconomic level I watch Incomes and GDP. I am on the lookout for
inputs that will quicken the pace of our economy. I think that the US economy is in a stable low growth
trajectory (the new normal). I do not really expect it to change. If anything that glide path may be
endangered by international events that include a refugee crisis in Europe, a Chinese economic slowdown,
withering emerging markets and a limited war in the Middle East complicated by a Soviet incursion into the
Ukraine.
If you have any questions, or would like to discuss further, feel free to contact us directly. My hope is to meet
with all of you this quarter.
Sincerely,
Steve Kaczmarek Eliot Allswang CFA Leon Gaudiosi
631 594 1069 direct 561 289 8134 631 728 6389
New York
www.eastendwealthmanagement.com