Advice to the Advisors

Sheaff Brock Institutional Group | Client Handholding During Market Volatility

Market Volatility Handholding 2.0

Make no mistake—your clients are talking about them. No, not the scandals and shootings—it’s the ups and downs of stock market volatility. “Watching the stock market daily in 2017 made for a rather dull sport, even though it was a boon for investors as stock indexes notched record after record. Not so this year,” writes Anna-Louise Jackson in nerdwallet.com. The talking heads are out in force, encouraging clients’ concerns: “We’ve got so many competing narratives, it will take a while [...]

Advice to the Advisors

Sheaff Brock Institutional Group | VIX | The "Fear Factor"

When Market Volatility Causes Client Fear, Cite the “Fear Factor”

The VIX, ticker symbol for the Chicago Board Options Exchange’s Volatility Index, has the nickname “fear factor.” Paradoxically, a high VIX is not necessary bearish for stocks, you can remind clients, because market volatility refers to upward movements in the market along with downward ones. What a high VIX reading does mean is that investors are seeing significant risk that the market will move sharply, whether up or down. The VIX tends to be low in “ho-hum” times, when [...]

Advice to the Advisors

Sheaff Brock Institutional Group | client watching tv needing comfort care for investment market volatility

Financial “Comfort Care” During Market Volatility

Comfort care, in geriatrics, involves offering attention to the psychological and spiritual needs of the patient and the patient’s family. These days, it seems, financial advisors are being called upon to provide comfort care to their investors, many of whom are suffering from market volatility-induced manifestations of the investor fear factor. It’s no exaggeration to say that advisors today serve as our industry’s “financial health psychologists,” understanding how psychological, behavioral, and cultural factors contribute to our clients’ financial health—or [...]

Advice to the Advisors

Market Volatility Roller Coaster Ride | Sheaff Brock Institutional Group | Advice to Advisors

At the End of the Day, Market Volatility can be Bullish

“Somewhere along the line, the word ‘volatility’ became code for a declining stock market,” Robert Burgess notes in Financial-Planning.com. “The simple fact is the recent swings are closer to what is considered normal, and investors should be thankful,” Burgess asserts. Rising volatility, he predicts, will lead to a healthier market, with better “price discovery,” which is a fancy way, he states, of saying greater differentiation in the values between good and bad stocks. It may be time to have “the [...]

Advice to the Advisors

Sheaff Brock Investment Advisors | woman with a bad cold on the couch

Advisors, Pass It Along: Recent Market Pullback Very “Precedented”

“Dow plunges 1,033 points and sinks into correction,” the money.cnn.com headline practically jumped off your clients’ computer screens February 8th. Now what? They’re wondering. Is this the beginning of The End? Whoa….Stop that anxious caller or visitor right there. This “correction”?  The word “unprecedented” is simply misplaced in describing the volatility we are now experiencing. The pattern for the S&P 500, you need to explain, has been to correct every 18-24 months, with the last correction event having occurred 25 [...]

Advice to the Advisors

Sheaff Brock Institutional Group | Financial Advisors | Investment Panic | Market Volatility

There are 3 Classes of Investors—Behavioral Science can Help Advisors Deal with the Other 2

Mitigating panic seems to have become, these days, part of your job description as a financial advisor. Dr. Stephen Wendel, head of behavioral science at Morningstar, advises using a behavioral approach. Not only can dialing down the panic meter help you cope, Wendel suggests, but it is likely to improve investor outcomes. Wendel describes investors in simple terms: There are those wealthy enough to meet all their financial goals with cash, and then there’s everybody else. Members of the first [...]

Advice to the Advisors

Sheaff Brock Institutional Group | Active vs Passive Investment Strategy | Core and Satellite appraoch

The Core & Satellite Approach to the Market of Stocks

When it comes to advising investors, RIAs must don teachers’ caps. Clients have become comfortable (perhaps in their do-it-yourself years before meeting you) with either a largely passive (index fund) approach to investing or, at the opposite extreme, have become used to populating their portfolios with individual stock picks. Going forward, those clients now look to you for insight. Few discussions have the potential for you to offer them true guidance more than the passive vs. active “debate.” Active [...]

Advice to the Advisors

Sheaff Brock Institutional Group | Technical Analysis | Fundamental Analysis | Investment Advisors

Sector Allocation Using Technical Analysis—Alert for the Underloved

Dorsey Wright & Associates, now owned by NASDAQ, is an independent registered investment advisory firm based in Richmond, Virginia. The DWA point-and-figure charting service is just one of many value-added research tools used by Sheaff Brock investment management to enhance investment management for client portfolios. As value investors, Sheaff Brock investment managers are always on the alert for “underloved” sectors which, while having been temporarily out of favor, are coming back into notice. The Sheaff Brock Dividend Growth and Income [...]

Advice to the Advisors

Sheaff Brock Institutional Group | Option Overlays may be Misunderstood

Diversifying Income Sources with Option Overlay Strategies

In a 2010 Songfacts interview, rock songwriter Eric Burdon complained that he’d really been misunderstood: “by my mom, my dad, school teachers, a couple of the women that I married. I’ve been misunderstood all of my life.”In a 2010 Songfacts interview rock songwriter Eric Burdon complained that he’d really been misunderstood: “by my mom, my dad, school teachers, a couple of the women that I married. I’ve been misunderstood all of my life.” Options, Sheaff Brock Managing Director Dave Gilreath laments, [...]

Advice to the Advisors

Sheaff Brock Investment Advisors | compliance, operations, financial planning, portfolio management & trading, sales & marketing and more

Outsourcing may be Key to Your Growth as an Advisor

Since, in the volatile market environment of this decade, it’s much more difficult to add value in the investment management area than it was during the previous 20 years, as thewealthadvisor.com points out, it may make sense for advisors who are pressed for time and want to focus on their core competencies to consider outsourcing options. At Sheaff Brock, we’ve found that very truth to be self-evident. Advisors with an orientation towards practice growth must keep time free for community [...]