Ziegler Lotsoff Capital Management, LLC

Ziegler Lotsoff Advisor – Q1 2012 Review

admin — Wed, 11 Apr 2012 17:58:10 +0000

Economic data released over the course of the first quarter supports the notion that an expansion remains in place, evidenced by strengthening in private-sector payroll growth and moderate growth in both the manufacturing and service sectors of the economy. The European Central Bank (ECB) began its own version of quantitative easing through the expansion of its 3-year Longer Term Refinancing Operations (LTRO) that was initiated late last year. The program effectively lowered the risk of a potential systemic failure of the global financial system.

Encouraged by falling inflation and worried about global recession risks, other central banks eased or loosened monetary policy in varying degrees, ranging from reserve ratio cuts in China and India to more forceful actions such as rate cuts (ECB, Brazil, Indonesia and several other countries) and additional quantitative easing by the Banks of England and Japan. These actions have helped to sustain the global economic expansion and bolster investor confidence.

To read more download this issue Download Now

New Normal, Old Normal, or Just Normal?

admin — Fri, 24 Feb 2012 22:53:03 +0000

By Ziegler Lotsoff Capital Management’s Red Granite Growth Equity Group

From 1982 through early 2000 the S&P 500 Index grew more than tenfold and P/E ratios expanded from 7.2X earnings to 28.3X trailing 12-month earnings. During this time period index strategies gained greater prominence and the importance of risk-adjusted returns was all but forgotten. All an investor needed to achieve impressive results was to buy and hold a diversified basket of stocks for the long term. After nearly 20 years of P/E expansion and a stock market that climbed steadily, save a few short-lived corrections, many investors came to believe that this environment was normal and that recessions were things of the past.

We believe today’s markets will require a different approach than the passive strategies that gained popularity in the 1990s.

To read more download this insight Download Now

The Equity Risk Premium

admin — Tue, 21 Feb 2012 15:59:32 +0000

By Don Nesbitt, Chief Investment Officer – Core & Value Equities

The S&P 500 Index produced record high operating earnings in 2011, but the Index close at the end of January 2012 was 16% lower than its October 2007 high. Why is the market priced so low in relation to its fundamentals? This report addresses this question by examining the “Equity Risk Premium” in an effort to understand its implication upon investor behavior in the current market environment.

To read more download this insight Download Now

Ziegler Lotsoff Advisor – Q4 2011 Review

admin — Thu, 12 Jan 2012 17:46:20 +0000

Turmoil over sovereign debt issues spilled into the fourth quarter, as chaos in Europe continued to cast a pall of uncertainty on the global economic expansion. Many pundits were calling for a recession at the beginning of the fourth quarter, yet the economic data released throughout the quarter indicated an economy that continued to advance, albeit at a slow rate. However, recession concerns are rightly justified given the large array of problems that threaten to derail the economy.

Europe’s sovereign debt crisis held center stage of events surrounding the global economy this past year. The European crisis has led to pandemonium in global financial markets, as policymakers work towards a resolution of the European Union’s problems and seek to keep its members united. These events have produced higher credit spreads among weaker member’s debt, provoking apprehension that a default can lead to contagion and recurrence of a credit crisis similar to 2008. Authorities were initially slow to respond to the debt crisis, but have begun to move more quickly in addressing the problems. Nevertheless, the structural problems underlying the situation will not be easily or quickly resolved and European events will continue to hold sway over global financial markets.

To read more download this issue Download Now

Holiday Greetings From Ziegler Lotsoff

admin — Tue, 20 Dec 2011 19:33:23 +0000

Ziegler Lotsoff Advisor – Q3 2011 Review

admin — Fri, 07 Oct 2011 20:04:56 +0000

The economic expansion faltered the first half of the year, with an anemic 1.3% in growth posted for the second quarter and a downward revision of first quarter’s GDP to a meager 0.4% growth rate. Some of this slowdown was anticipated, a product of the transitory effects from the “Arab Spring”, Japanese natural catastrophes and weather-related issues in the U.S. However, the foundation of the recovery remains vulnerable to structural headwinds associated with the recent recession, most notably an unemployment rate above 9% in the second year of the recovery, and compromised by the deepening fissures of the European debt crises. The impact of sovereign debt issues were accentuated by the political theater surrounding the eleventh hour passing of a higher debt ceiling on the U.S. budget and reinforced by Standard & Poor’s downgrading of U.S government debt for the first time in the country’s history. At the end of the quarter, these issues left investors with a heightened sense of anxiety over the sustainability of the economic recovery.

To read more download this issue Download Now

Ziegler Lotsoff Advisor – Q2 2011 Review

admin — Thu, 14 Jul 2011 15:50:08 +0000

The second quarter was characterized by weak economic reports consistent with the first quarter headline events that dampened the global recovery and led to the “soft patch” of economic and risky asset performance in the second quarter. The U.S. economy’s 1.9% expansion in the first quarter was a noticeable slowing from the 3.1% growth rate posted in the fourth quarter of last year. However, the slower growth was not altogether unexpected, given the exogenous shocks to the economic recovery produced by the “Arab Spring”, Japanese catastrophes and weather-related issues in the U.S. Each of these events by themselves can have a significant impact upon economic growth, but their impact seems even more substantial when they occur in conjunction with the persistent headwinds of a depressed housing market, lower government spending and an anemic job market. Add a modern-day Greek tragedy in the making to this cacophony of troubles, and it is easy to appreciate the tenuous atmosphere supporting the prospects for sustained economic growth.

To read more download this issue Download Now

Ziegler Lotsoff Advisor – Q1 2011

admin — Wed, 08 Jun 2011 15:17:47 +0000

The U.S. economy’s expansion continued into 2011, supported by a stimulus package passed by Congress at year-end and reinforced by an accommodative Federal Reserve. However, a host of uncertainties continue to hamper the global recovery, with consequences that could undermine U.S. economic growth.