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 [...]

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 [...]