Advice to the Advisors

Dividend Growth Stocks | Potential to Take the Baton as Leaders | Sheaff Brock Institutional Group

Dividend Growers Might Steal the Baton

As advisors, having watched our clients move through the “banana peel” month of September and the “jinx month” of October, months known for stock market price drops, it’s crucial for us to prevent volatility-induced panic selling, keeping our investors’ vision focused on the months—and years—to come. Sheaff Brock Managing Director Dave Gilreath is doing just that. “Dividend growth stocks could become the leaders,” he predicts, “taking the baton from growth stocks.” Even assuming that growth in our economy slows to [...]

Advice to the Advisors

The Confidence Index for Late-Year Investing | Sheaff Brock Institutional

Keep Confidence Index in Mind for Late-Year Investing

True, September has been dubbed “the banana peel month” and October has been called the “jinx month” for investors, Sheaff Brock Managing Director Dave Gilreath observes wryly—with some of the largest “slip and fall” incidents relating to September investing and October crashes. While the worst September ever for the S&P 500 (a 30% drop) happened a long time ago, with six more September investing drops since then, the month of September has the dubious distinction of having surpassed all others [...]

Advice to the Advisors

Sheaff Brock Institutional | Current Geopolitical Risk for Investors

Dealing with Geopolitical Risks on Investors’ “Wall of Worry”

“Even when the financial markets are growing at a healthy rate, under financially sound circumstances, investors always find reasons to worry,” Investopedia authors observe. While a ‘wall of worry’ commonly comprises concerns on numerous fronts, geopolitical issues are undoubtedly affecting consumer and investor sentiment given today’s headlines and happenings. Interestingly, observes Sheaff Brock Managing Director Dave Gilreath, geopolitical risk is lower today than it has ever been. For one thing, there are more democracies in the world than ever before [...]

Advice to the Advisors

The Dow Jones Industrial Average | Sheaff Brock Institutional

The 40,000 Dow Jones Industrial Average—Helping Clients Believe

The S&P 500 index may be the most popular measure used by the financial media and by us professionals in discussing the state of economic affairs, but to our clients, the Dow Jones Industrial Average probably wins the popularity contest. It’s interesting that, while the S&P 500 and the DJIA are remarkably different (500 constituents vs. 30), the performance of the two indices over time has been very similar. In discussing the future of the equity markets with clients, it’s [...]

Advice to the Advisors

Trade Wars | Wall of Worry | Sheaff Brock Institutional Group | Climbing Wall

Talking Clients Off the Trade War Wall of Worry

Your clients aren’t the only ones expressing worries about trade wars—everybody appears to be talking about them, says CNBC’s Elizabeth Schultz, But trade wars are nothing new, she reminds viewers as she interviews International Monetary Fund historian and Princeton professor Harold James. After a period beginning with the Smoot Hawley Act in 1930, continuing through the ”chicken wars” in the 1960s and trade disputes with Japan in the 1980s, there ensued several trade war-free decades. Now, with President Trump’s [...]

Advice to the Advisors

Demystifying the S&P 500 Index | Sheaff Brock Institutional Group

S&P 500 Index Demystification Points

“The age of advisors relying on ‘trust me’ is over,” Capital Ideas’ Ron Carson asserts. “Clients want to feel empowered.” At Sheaff Brock, we couldn’t agree more; these regular advisor e-letters are designed with client empowerment in mind, providing tactics for strengthening your clients’ self-confidence relative to making financial decisions. For example, while you’ve undoubtedly discussed the S&P 500 many times with your clients, do they really understand what the index is and how it can (as well as [...]

Advice to the Advisors

Woman climbing a Wall of Worry | Sheaff Brock Institutional Group on REITs

Talking Investors Down Off the REIT Wall of Worry

Is the current market uptrend simply a function of investors’ “Wall of Worry,” that significant uncertainty about stock price sustainability? But what about REITs? “Long before investors fell in love with Facebook and Amazon.com or even the hot stocks of past generations such as utilities and railroads, real estate inspired dreams of wealth,” writes John Coumarianos. “Some financial advisers and pundits helped fuel the love affair, suggesting that investors could reduce volatility and boost returns by adding real-estate investment [...]

Advice to the Advisors

Midterm Elections and Impact on the Market | Sheaff Brock Perspectives

Midterm Elections — Before and After

Advisors are busy these days answering client concerns as investors eye the upcoming midterm elections with caution, considering factors that might negatively affect stock prices. In fact, Sheaff Brock Managing Director Dave Gilreath pointed out in a recent Knowledge Builder presentation, midterm elections have been inflection points for equity markets in the past, regardless of which party won or lost! True, Gilreath admits, there has always been a correction during a midterm year, but the interesting thing is that the [...]

Advice to the Advisors

P/E Ratio | Price Earnings Ratio for Today's Market | Sheaff Brock Institutional

The P/E and Client Pessimism

Investors have become used to keeping their eye on the price earnings ratio of their pet stocks. In fact, the P/E is a useful way to evaluate the attractiveness of a company's stock price compared to its current earnings per share. As observers of the market, we also know the truth of Josh Kennan’s observation in thebalance.com: “One potential way to know when a sector or industry is overpriced is when the average p/e ratio of all of the [...]

Advice to the Advisors

Yield Curve | Sheaff Brock Institutional Group

Curbing Client Concerns About the Yield Curve

The Fed has really focused on the yield curve, a commentator opined on CNBC's Trading Nation. “While a flat yield by itself isn't bad, when it inverts and the yield curve for the 10-year yield starts to yield less than the three-month yield, that's when the red flags go up for a potential recession." “This is currently the longest time since the yield curve inverted,” Paul Hickey pointed out in that CNBC interview in March. “The bond market has not seen an [...]