Possibilities

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

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

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 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

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 [...]