Tag - Sheaff Brock Managing Director Dave Gilreath

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

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

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

Sheaff Brock Institutional | Economic Indicators Through the Windshield

Indicate to Your Clients—Economic Indicators Point Upwards

Leading indicators, those pieces of data economists view looking forward “through the windshield,” continue in an upward trend.  In addition to stock market and interest rate data, economic indicators include: real gross domestic product (GDP) money supply stock futures the Consumer Price Index the Producer Price Index current employment Much of the data for economic indicators is compiled by: the Conference Board’s Consumer Research Center the U.S. Department of Labor’s Bureau of Labor Statistics the U.S. Census Bureau Who uses leading indicators [...]

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 [...]