LVZ Advisors

Dr. Genetski – August Report

lvzadmin — Wed, 11 Aug 2010 12:44:41 +0000

Economic reports indicate that the pace of business activity has slowed. Current dollar GDP slowed to just over a 4% annual rate between the first and second quarters. In June, consumer spending and personal income showed no change from May.

With Fed policy turning less accommodative, some slowdown in activity was likely to occur. Even so, the economy seldom moves smoothly one direction. Even if it did, reported numbers often provide misleading information. They are rough estimates based on limited data.

The ISM surveys of purchasing managers provide some of the more reliable information on business activity. July numbers show that both the economy and new orders continue to increase, albeit at a slower pace than earlier in the year. This suggests that the reported pause in spending in June was an aberration.

While Fed policy continues to show no change in liquidity through June, the relationship between liquidity and spending can be fairly loose. Since the slowdown in recent months appears greater than anticipated, it would not be surprising for business activity to show some modest signs of improvement in the months ahead.

Full Report

July 30, 2010 – Portfolio Reallocation

lvzadmin — Fri, 06 Aug 2010 19:11:26 +0000

Lorence & Vander Zwart announces a recent multi-sector portfolio reallocation that encompasses all portfolios, with the highest level of effort made to match moves across all platforms. All trades were made on July 30, 2010.

Through careful and exhaustive due diligence, the LVZ Advisors Portfolio Committee has concluded that the stock market pull-back from May through July was a correction in a recovering global economy.

Portfolio Reallocation pdf

LVZ Q2 2010 Report

lvzadmin — Wed, 28 Jul 2010 20:41:34 +0000

Though the economy is recovering/growing, investors in equity markets seem to disagree. After beginning the year with anticipation for growth, domestic markets were derailed by debt problems in the EU and the oil spill in the Gulf of Mexico. Add to these prominent stories of persistently weak employment data, high US debt levels and following the high GDP level reached in 4Q09, prospects for 2010 became more tentative.

We continue to see strength in the economy but GDP comparisons to previous recoveries show this time around to be relatively weak, leaving doubt about sustainability and the ability to create jobs. Because of this, we are reading investor sentiment to be waning. We should experience increased volatility, trending positive toward year-end as growth numbers stabilize. It won’t be high growth – but it will be growth.

Read Full Report

Dr. Genetski – July Report

lvzadmin — Mon, 19 Jul 2010 15:33:27 +0000

Preliminary numbers suggest that spending grew at a 5%-6% annual rate in the second quarter. With inflation close to 1%, it means that real growth was roughly in the vicinity of 4%-5%. Moreover, fairly strong numbers for new orders suggest that the economy will continue to expand in period immediately ahead.

The economic numbers tell us where the economy has been. Stock prices often tell us where investors expect the economy to go. One of the reasons that stock prices often respond positively or negatively in advance of the economy is because stock prices are more sensitive to monetary policy changes than the overall economy.

Introducing the new LVZ Advisors Faith Based Portfolio

lvzadmin — Wed, 30 Jun 2010 18:52:10 +0000

Our Faith Based portfolio utilizes asset allocation strategies to create portfolios that are comprised of morally based investments. The Faith Based Portfolio is offered in all our allocations from Aggresive Growth to Pure Income. It is also available for both Qualified and Non-Qualified accounts with a $25,000 minimum. Call LVZ to learn more. (800) 851-7214

Faith Based Portfolio Fact Sheet

In the World of Managed Money, Advisors Still Add Value

lvzadmin — Wed, 23 Jun 2010 16:40:16 +0000

Recent article written by Gerri Leder and published in the June 2010 issue of OnWallstreet Magazine. This short article talks about the value reps. add when they can focus on the clients goals and the direction of the financial plan. The money management can be left to the people whose full time job it is to research and evalute funds while the advisor keeps a handle on the overall plan.

Link to article online: http://www.onwallstreet.com/ows_issues/2010_6/in-the-world-of-managed-money-advisors-still-add-value-2666996-1.html

Dr. Genetski Monthly Update

lvzadmin — Thu, 06 May 2010 21:27:00 +0000

Just when you thought it was safe to go back into the water, here come the sharks. Let’s start with some good news. As the charts on economy show, business activity is picking up nicely. The economy is growing. New orders are soaring and profits are strong.

All this is to be expected. The acceleration in the pace of business activity follows the Fed’s shift to an expansive monetary policy this past year. Following a normal 6-9 month lag, spending has recovered.

In spite of the recovery, stock prices have wavered over the past two weeks before today’s sharp decline.

Commentators attribute the weakness in stocks to problems in Greece. Problems in Greece should be simply problems for Greece. Unfortunately, the European Union, the IMF and (according to some reports the Obama Administration) have committed to helping Greece try and close its deficit

Dr. Genetski Monthly Update

lvzadmin — Fri, 09 Apr 2010 15:41:06 +0000

Recent developments suggest that the pace of business activity continues to improve. Economic data for March show significant gains in many areas.

The most encouraging news is in the area of new orders. The ISM surveys for both manufacturing and service companies show a sharp increase in new orders. This indicates that the improvement in the pace of activity will continue in the months ahead.

The improvement in the economy follows the shift in Fed policy. After several years of monetary restraint, the Fed shifted to an expansive policy somewhere between late 2008 and early last year.

There is a typical 6-9 month lag between a shift in monetary policy and a pickup in spending. The pickup in spending began right on schedule last summer when the economic downturn came to an end.

Dr. Genetski Monthly Update

lvzadmin — Fri, 05 Mar 2010 17:28:08 +0000

The pace of business activity continues to improve. Early trends show wages and salaries as well as real consumer spending increasing at roughly a 3% annual rate in January from their fourth quarter averages. This is above the 1%-2% rates of increase for these measures in the fourth quarter.

Fourth quarter real growth was at a strong 6% annual rate in spite of weak 1%-2% gains in wages and real consumer spending. One of the big contributors to the fourth quarter growth was a change in inventories amounting to $122 billion. Notably, inventories fell by $17 billion in the fourth quarter. Since this was less than the $139 billion drop the previous quarter, it counts as an addition to total output.

Dr. Genetski Monthly Update

lvzadmin — Fri, 05 Feb 2010 16:13:06 +0000

The pace of business activity improved going into the fourth quarter of the year with current dollar spending advancing at just over a 6% annual rate. This was the fastest increase in current dollar spending in almost four years.

The increase in spending tends to confirm the fact that the Federal Reserve had loosened monetary policy earlier in 2009. The lagged impact of this easing became apparent toward the end of the year and has continued into this year.

The challenge at this point is to interpret recent monetary developments. These developments determine the extent to which current dollar spending will continue to improve this summer and fall.

Dr. Genetski February Update