Advice to the Advisors

Preferred Stock as Portfolio Ballast | Sheaff Brock Institutional

Preferred Stock as Portfolio Ballast

“Corporate bonds and preferred stocks are two of the most common ways for a company to raise capital,” Ravi Srikant writes in Investopedia, and income-seeking investors, he says, can make good use of both. While bonds make regular interest payments, preferreds pay fixed dividends, Srikant explains, going on to note three qualities the two investment types share: Interest rate sensitivity—the security’s price falls when interest rates rise. Callability—the issuer has the right to call back the security and issue [...]

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

Lens Viewing Downside Risk Analysis | Sheaff Brock Institutional Group

Innovative Research Approach Sees Stocks Through a Different Lens

As the longest bull market in history continues its (generally) upward trajectory, and as debates rage about recent “corrections,” Sheaff Brock portfolio managers continue to focus on analyzing and managing downside risk. Motley Fool, by the way, reminds investors of 5 very important things about corrections: 1. They happen. 2. They rarely last long. 3. We can’t reliably predict them. 4. They only matter in the short term. 5. They represent great buying opportunities. Keeping all five of those “tenets” in [...]

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

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 [...]