Advice to the Advisors

lineup of workers, Sheaff Brock Institutional Group and the labor shortage, where are the workers?

The Short and the Long of the U.S. Labor Shortage

“Millions are out of a job. Yet some employers wonder: Why can’t I find workers?” reads a recent NPR Morning Edition headline. Post-COVID, some industries are thriving and eager to hire. After the loss of 22 million jobs over the course of the pandemic, with only a little over half of those since recovered, one would think that workers would be clamoring to fill those remaining employment openings. Employers are certainly looking to hire; NPR cites Labor Department statistics [...]

Advice to the Advisors

big bad wolf, little red riding hood, Sheaff Brock reviews "big bad tax hikes"

The Big Bad Tax Hike—Calming Client Fears

The Biden administration has made no secret of its intention to effect tax hikes, identifying the two prime targets as corporations and individuals making more than $400,000 annually. While it remains unclear just how much of this tax-raising agenda can progress from proposal to law, your clients are being told daily by the talking heads that big, bad tax changes are on the way. Tax hikes may well be on the way, and soon. Still, those increases may not be [...]

Advice to the Advisors

shopping mall, sheaff brock REIT investing, stores in a shopping mall

The Multifaceted Role of REITs in Post-Pandemic Portfolios

“REITs and the 516,000 properties they own and operate will play a key role in bringing America back together,” Matthew Bechard, Editor-in-Chief of REIT Magazine predicts. JR Humphreys, portfolio manager of the Sheaff Brock Real Estate Income & Growth strategy, is in agreement. To be sure, Humphreys admits, certain areas of real estate were negatively, even severely, impacted by the pandemic, including: shopping malls “big box” stores restaurants gaming facilities hotels apartments office buildings In contrast, even at the pandemic’s height, [...]

Advice to the Advisors

young girl blowing bubbles, Sheaff Brock CIO on Market Bubbles

Debunking Market Bubbles

“The next time a client tells you that stocks are in a bubble, consider a polite way to say, ‘I don’t think that word means what you think it means,’” John Waggoner wrote back in August of 2016, citing Wharton School of Finance professor Jeremy Siegel. An overvalued market isn’t necessarily a bubble—the market must be 100%-200% above its fundamental value before it’s a bubble, Siegel taught. Counseling clients about stock market bubbles is an indispensable part of a financial [...]

Advice to the Advisors

Sheaff Brock innovation, Dow Jones has potential to hit 50,000, innovation and disruption in 2020s

“20 for 20” Innovation Will Spur a Roarin’ 20s Act II

2020 was not a very good-news year, for either clients or advisors, Sheaff Brock Chief Investment Officer Dave Gilreath concedes. On the other hand, he reminds us, the stock market is a forward-looking animal, and clues indicate rosier times ahead. In fact, there is a very real potential for the Dow Jones Industrial Average to hit 50,000 by the year 2027, Gilreath states. That’s because the decade of the 2020s, like the decade of the 1920s, will be marked [...]

Advice to the Advisors

sheaff brock, democratic congress, democratic white house, economic impact, markets

Debunking Popular Myths About Post-Election Market Direction

Politics has become such a hot-potato topic that most financial advisers trying to avoid it when talking with clients, Jeff Benjamin observes wryly in Investment News. Whether Democrat or Republican, educating clients and debunking myths that keep clients from making reasoned investment decisions is nevertheless part of an advisor’s job. “People are polarized, but it’s the adviser’s job to focus on what the potential political impact would be on the investment portfolio.” “I’m often asked by advisors and their clients,” [...]

Advice to the Advisors

Sheaff Brock Institutional Group, Sheaff Brock research and analysis, investment data analysis

Sheaff Brock Revs Up and Drills Down to Enhance Research

The word rev is an abbreviation for revolution, alluding to the rate of rotation of an engine, dictionary.com explains. The purpose of revving? To enliven, or stimulate…. The words “enliven” and “stimulate” precisely describe Sheaff Brock managing partners Dave Gilreath and Ron Brock’s intent in inviting research analyst Tom Kaiser to become the newest member of the wealth management firm’s research team. A 2009 graduate of Indiana University’s Kelly School of Business, Tom Kaiser spent five years at Fitch Rating in [...]

Advice to the Advisors

2020 Year-End Tax Planning | Sheaff Brock Offers Tips for Advisors

Estate and Tax-Planning Amalgamation for 2020 Year-End Planning

With control of the Senate remaining unclear until after the January runoff election, advisors are finding their clients “erring” on the side of caution, challenged by the need to make year-end tax planning decisions. The possibility of a split government gives hope that the more significant tax increases proposed under Biden’s tax plan will prove difficult to put into effect, Sheaff Brock Vice President Tiffany VanHook observes. Meanwhile, the most practical tax-planning approach, she suggests, is for advisors to [...]

Advice to the Advisors

math calculations on chalkboard, Sheaff Brock money managers, arithmetic of loss

Softening the Harsh Arithmetic of Loss

Sometimes serving as an advisor can feel like teaching a course about cancer to medical students. When it comes to investments, it might be said that the market itself is the greatest of teachers, but that attending class isn’t always fun. Just as those doctors-to-be, learning about the ravages cancer can cause, persist in hoping the lesson applies to others, never to themselves, your clients tend to persist in their denial of the arithmetic of loss and the potential [...]

Advice to the Advisors

Sheaff Brock Asset Allocation, pie chart, 60/40 portfolio, Sheaff Brock money management

Ye Olde Pie Chart? Perhaps It’s Time to Fugetaboutit

The old rule of thumb for asset allocation—the one many investment clients used the fix on—was subtracting their age from 100 to learn the percentage of their portfolio that belonged in stocks. (CNN Money now points out that, with Americans living longer and longer, a more appropriate calculation would use the number 110 or even 120 minus their current age!) That calculation may have been primitive and one-size-fits-all, but the concept, of course, was solid. The whole idea behind asset [...]