Advice to the Advisors

Warren Buffett Lesson on Risk and Volatility | Sheaff Brock Institutional Group

24 May

The Lesson Many of Your Clients Were Never Taught

“That lesson has not customarily been taught in business schools,” Warren Buffett observes, referring to the concept that “Volatility is far from synonymous with risk.” In a 2015 letter to shareholders, the Berkshire Hathaway CEO wrote about the difference between risk and volatility. Many investors, he observes, “conflate these concepts, costing themselves money.” Of course, the fact that stock prices will always be far more volatile than cash-equivalents must play a part in any advisor-client discussions of portfolio design. But, [...]

By Advice to the Advisor Perspectives, Portfolios, Possibilities
Berkshire Hathaway, CNBC, Index Income Overlay portfolio strategy, market risk, market volatility, option overlay strategy, risk and volatility, Sheaff Brock Director Jim Murphy, Warren Buffett Read more...

Advice to the Advisors

Trade Wars | Wall of Worry | Sheaff Brock Institutional Group | Climbing Wall

03 Oct

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 [...]

By Advice to the Advisor Perspectives
balance of trade, Chinese tariffs, CNBC, First Trust, global trade issues, goods and services, investment goals, Sheaff Brock Managing Director David Gilreath, small and mid-cap stocks, tariffs, tax policy, trade wars, Trump administration, Wall of Worry, world trade Read more...

Advice to the Advisors

Demystifying the S&P 500 Index | Sheaff Brock Institutional Group

24 Sep

S&P 500 Index Demystification Points

“The age of advisors relying on ‘trust me’ is over,” Capital Ideas’ Ron Carson asserts. “Clients want to feel empowered.” At Sheaff Brock, we couldn’t agree more; these regular advisor e-letters are designed with client empowerment in mind, providing tactics for strengthening your clients’ self-confidence relative to making financial decisions. For example, while you’ve undoubtedly discussed the S&P 500 many times with your clients, do they really understand what the index is and how it can (as well as [...]

By Advice to the Advisor Perspectives
Amazon, Apple, CNBC, dividends, equity returns, exchange-traded funds, Facebook, index funds, investment markets, market capitalization weighted average, Microsoft, Nasdaq Composite, New York Stock Exchange, S&P 500 Index, Sheaff Brock, value of stock Read more...

Advice to the Advisors

Market Volatility Roller Coaster Ride | Sheaff Brock Institutional Group | Advice to Advisors

04 May

At the End of the Day, Market Volatility can be Bullish

“Somewhere along the line, the word ‘volatility’ became code for a declining stock market,” Robert Burgess notes in Financial-Planning.com. “The simple fact is the recent swings are closer to what is considered normal, and investors should be thankful,” Burgess asserts. Rising volatility, he predicts, will lead to a healthier market, with better “price discovery,” which is a fancy way, he states, of saying greater differentiation in the values between good and bad stocks. It may be time to have “the [...]