Author - Advice to the Advisor

Advice to the Advisors

2020 campaign, Sheaff Brock, history of presidential elections and stock market, pre-election investment planning

Advisors Can Help Clients do P-Q Pre-Election Investment Planning

Financial advisors are usually warned against talking about politics with their clients. Not everyone agrees. In “Wealthy Investors and the Election: a Guide for Financial Advisors in 2020,” Spectrum Group reports that, of the 1,054 investors they’d surveyed, at least a third expected their advisors to talk to them about the financial implications of the upcoming presidential election, by way of helping them do some pre-election investment planning. Sheaff Brock Managing Director and Chief Investment Officer David Gilreath finds himself [...]

Advice to the Advisors

Sheaff Brock Institutional Group | Dixie Cups' Growth Strategy | Investor Survival Tactic

Investment and Estate Planning Survivalist Tactics in a Dixie Cup

Before the Spanish flu hit, the company behind Dixie Cups was just another scrappy startup, Kevin Leland points out in fastcompany.com. Once the pandemic hit, because it was hoped disposable cups would help stop the spread of the disease, Dixie used survival tactics to eventually become a household name. The moral of this story, Leland believes, is this:  Timing is one of the crucial stars that must align for any start-up to succeed. But what if the timing isn’t right [...]

Advice to the Advisors

Sheaff Brock Money Managers, the great rotation, spinning top

When the Great Rotation Makes Its Arrival, Will COVID-19 Have Been the Cause?

Anticipating a shift of bond holdings into stocks, Marketwatch, in November of last year, began talking about a 2020 “Great Rotation.” Now, a half year later, Bank of America agrees with that prognosis: “The stars have aligned for more stock gains,” with equities being the most attractively valued in decades as compared to bonds. Advisors will find that, for investors, the coming great rotation will be all about investment yield, observes Sheaff Brock Managing Director Dave Gilreath. Simply put, the [...]

Advice to the Advisors

Sheaff Brock | COVID-19 Rate of Change may be explanation for strong market

The COVID-19 Rate of Change—Just One of Several Market Anomalies to Watch

It’s a puzzlement that has clients biting their nails—and worse. How, they wonder, can the market be this strong when the news continues to be so bad? Here are three important factors worth discussing with them in detail. Anomaly #1: Death Rate v. Rate of Change On March 23, 2020, two things happened. The COVID-19 death “rate of change” peaked, with a steady descent following. At the very same time, the stock market bottomed, then began a sustained rise. To be [...]

Advice to the Advisors

Sheaff Brock Institutional Group | marble columns | value in preferred securities

Recent Events Have Led to Uncommon Value Across the Preferred Securities Market

Preferred stocks, as measured by the S&P Preferred Stock Index, were trading at their highest prices in over two years in mid-February until suffering a (36%) decline through March 19th amid the Coronavirus panic. Prices have recovered, but the index is still down substantially from the average price it has traded over the last 10 years. We believe the sell-off in these shares was the proverbial “throwing the baby out with the bathwater” type of decline and driven by a [...]

Advice to the Advisors

Sheaff Brock Money Management and Stock Market News have Glimmers of Optimism | Sunlight through Tree Leaves

Stock Market News Offers Unparalleled Opportunity for Advisors

With bad news abounding—the escalating number of confirmed virus cases and deaths, unemployment, and falling corporate earnings—how could stock market news possibly have included several sharp upswings? “Markets don’t need good news to advance,” explains Sheaff Brock Managing Director Dave Gilreath, “only an inkling of better news.” Stock market prices are predictive, Gilreath adds, often moving up on anticipation of better news. In times of turmoil, clients turn to their advisors as Subject Matter Experts (SMEs), craving to be assured [...]

Advice to the Advisors

Sheaff Brock Team Reviews Charitable Planning to Meet Family Wealth Goals

RIAs can Become Talk Therapists to Tame the 3-Generation Curse

As Vernon Wong of First Hawaiian Bank emphasizes, there exists the very real danger that the wealth will dissipate by the third generation. As investment advisors, we’re all too familiar with the American version of that Chinese adage: “Shirtsleeves to shirtsleeves in three generations.” While taxes and inflation (along, possibly, with the failure to follow Sheaff Brock’s advice) can all be blamed for wealth attrition, the main reason 90% of family fortunes are affected is simply, as Augusta Dwyer of [...]

Advice to the Advisors

Bulldog wearing a tie | Dogs of the Dow | Sheaff Brock

Different Takes on “Dogs of the Dow”—Part Two

The long-time appeal of the “Dogs of the Dow” concept, Gordon Scott of investopedia.com postulates, is that “it presents a straightforward formula approach.” Out of the 30 stocks that make up the Dow Jones Industrial Average, investors, at the start of each year, select those ten with the highest dividend yield. Based on the principle that the dividend payout can be used as a measure of the average worth of the company, a high yield is seen as signaling [...]

Advice to the Advisors

Calendar Representing Double-Decades of the U.S. Stock Market | Sheaff Brock

Double-Decade Thinking Avoids Duration Neglect

As the decade draws to a close, the first since 1850 in which the U.S. did not experience a single recession and a ten-year period in which the stock market hit more than 200 new all-time highs on the S&P, investment advisors would do well to prep for client meetings by reviewing a certain chapter in the little book, The Power of Moments. Research has found, authors Chip and Dan Heath report, that “when people assess an experience, they tend [...]

Advice to the Advisors

Sheaff Brock Institutional Group | Dogs of the Dow | Jack Russell "superhero" dog

Different Takes on “Dogs of the Dow”—Part One

While some analysts may write off the nearly thirty-year-old “Dogs of the Dow” theory as antiquated, Ian Cooper of chasingmarkets.com disagrees. “Plus,” Cooper adds, “we have to remember that each of the Dogs also pays a healthy dividend.” Antiquated or not, “Dogs of the Dow” is hardly new to investor vocabulary. The concept—out of the 30 stocks that make up the Dow Jones Industrial Average, the strategy involves choosing the ten with the highest dividend yield. The premise, as Investopedia explains, [...]