Tag - Sheaff Brock

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 | Investment portfolios | Preferred Income Portfolio | portfolio workhorse

Harnessing Twin Risks can Turn Preferreds into Portfolio Workhorses

In any income portfolio, two “bug-a-boos” are credit risk and call risk. When it comes to preferred stocks, interest-yield-hungry investors tend to over-emphasize the former, even as they devote less than due attention to the latter, observes Sheaff Brock Senior Portfolio Manager JR Humphreys. “Investors in search of solid income from their portfolios often select preferred stocks rather than Treasury securities or ETFs based on Treasury bonds. One reason behind this decision is that preferred stocks generally pay dividends of [...]

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 [...]