Possibilities

Advice to the Advisors

A Divided Congress Post-Election | Sheaff Brock Institutional

Telling Clients the Rest of the Post-Midterm Election Story

As Sheaff Brock research source Strategas Research observes, the performance of healthcare stocks has in general “tracked well with the prospects of a divided government.” In fact, Strategas notes, in post-election periods in general, healthcare has been just one of many beneficiaries. Defense and aerospace “Post election, analysts still predict a budget deal,” Military Times writes, predicting that while defense spending might not experience the hardy growth of fiscal year 18–19,” spending will not decline substantially.” Alternative energy The current administration has been [...]

Advice to the Advisors

Sheaff Brock Institutional Group | Post Midterm Elections Healthcare Stocks

Post-Midterm Election So-Now-What Questions on Healthcare Stocks

Now that the November 6 midterm elections are in the rearview mirror, having resulted in no clear “sweep” on either side of the aisle, investors are asking a number of “so now what?” questions. Well, as one Sheaff Brock research partner, Strategas Securities, LLC, observes, funding for the National Institutes of Health is unlikely to decrease, which is a positive for life sciences tools companies. Even though a Texas judge ruled the entire ACA unconstitutional in December, Strategas commented shortly [...]

Advice to the Advisors

Market Effects from the Midterm Elections | Sheaff Brock Institutional Group

The Perhaps Counter-Intuitive Market Effects of Midterm Elections

If the media firestorms that surrounded the 2018 upcoming midterm elections caused your phone lines to burn up with client inquiries and dire imaginings, you can in good conscience follow the old family doctor “take-two-aspirin-and-call-me-in-the-morning” approach, recommending they look at historical performance data for this very season: “A quick look at historical performance shows that stocks often see rough sledding in the September and October of years that feature midterm elections,” MarketWatch comments, adding that “it isn’t clear that [...]

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

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 | 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 [...]

Advice to the Advisors

Sheaff Brock preferred income portfolio strategy - preferreds may perform well in rising interest rate environments

In a Rising Interest Rate Environment, Preferreds are Particularly Apropos

“We find preferred securities attractive today from fundamental, technical and valuation perspectives,” Nuveen’s Doug Baker and Brenda Langenfeld commented back in December, citing preferred securities’ “history of lower sensitivity to rising interest rates.” “Preferred securities are often more sensitive to changes in credit spreads than other types of bonds. So on a relative basis they may perform well during periods of gradually increasing interest rates,” the Nuveen authors explain. And, while “it may seem counterintuitive to expect an asset class [...]

Advice to the Advisors

Sheaff Brock Institutional Group | REITs investing | real estate income and growth portfolio

Why the Timing’s so Right for REITs

There’s nothing “new” about Real Estate Investment Trusts, companies that own and manage income-producing real estate. In fact, REITs came on the scene more than sixty years ago and have increased in popularity with income-seeking investors. Since, by law, REITs are required to maintain dividend payout ratios of at least 90%, the dividend yield can represent a strong advantage over both equities and bonds. Investing in REITs also offers simplified tax treatment as compared with direct ownership of income-producing [...]

Advice to the Advisors

Sheaff Brock RIA partner investment business performance and growth

Outsourcing Portfolio Management—A Partner, Not a Product

As a Registered Investment Advisor, you’re dedicated to growing and preserving your clients’ wealth, helping them protect their families, and define their goals. Simultaneously, of course, you’re dealing with all the nuances of running a business and of meaningfully participating in your community. As Tevye observed in Fiddler on the Roof, “It isn’t easy…” In many areas of life, even people accomplished in their fields leverage the additional knowledge and skills of others—as valued coaches, consultants, and advisors. At Sheaff [...]

Advice to the Advisors

Sheaff Brock Institutional Group put options index income portfolio strategy investments

With Put Options, Portfolio Strategy is of Premium Importance

While put option buyers are interested in insuring their risk, put option sellers (also called put writers) are willing to take on that risk in exchange for additional portfolio income, explains Dave Gilreath, Sheaff Brock Managing Director. That income takes the form of premiums paid by the put buyer to the put seller. Put writing is a strategy whereby an investor writes a contract, selling that contract to a buyer. The contract obligates the put seller to buy shares at [...]