Tag - Sheaff Brock

Advice to the Advisors

Option Overlays Timely and Timeless | Sheaff Brock Institutional Group

Option Overlay Strategies—Timely, Yet Timeless

One over-arching theme in any financial-advisor-to-client messaging is the power of time, with the goal being to select investment tactics which are timely, yet which belong in portfolios based on timeless wisdom. In that context, option overlay strategies, Sheaff Brock posits, become a particularly relevant topic. There’s nothing new about option overlays. In fact, as Institutional Investor explains, the majority of U.S. pension plans have adopted overlay techniques as part of their investment tactics. And, while in investment vocabulary, the term “overlay” can have [...]

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

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

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

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

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

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 [...]

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 [...]