Tag - Dave Gilreath

Advice to the Advisors

Option Overlays Timely and Timeless | Sheaff Brock Institutional Group

Option Overlay Strategies—Timely, Yet Timeless

One over-arching theme in any financial-advisor-to-client messaging is the power of time, with the goal being to select investment tactics which are timely, yet which belong in portfolios based on timeless wisdom. In that context, option overlay strategies, Sheaff Brock posits, become a particularly relevant topic. There’s nothing new about option overlays. In fact, as Institutional Investor explains, the majority of U.S. pension plans have adopted overlay techniques as part of their investment tactics. And, while in investment vocabulary, the term “overlay” can have [...]

Advice to the Advisors

Sheaff Brock Institutional Group | Post Midterm Elections Healthcare Stocks

Post-Midterm Election So-Now-What Questions on Healthcare Stocks

Now that the November 6 midterm elections are in the rearview mirror, having resulted in no clear “sweep” on either side of the aisle, investors are asking a number of “so now what?” questions. Well, as one Sheaff Brock research partner, Strategas Securities, LLC, observes, funding for the National Institutes of Health is unlikely to decrease, which is a positive for life sciences tools companies. Even though a Texas judge ruled the entire ACA unconstitutional in December, Strategas commented shortly [...]

Advice to the Advisors

Dividend Growth Stocks | Potential to Take the Baton as Leaders | Sheaff Brock Institutional Group

Dividend Growers Might Steal the Baton

As advisors, having watched our clients move through the “banana peel” month of September and the “jinx month” of October, months known for stock market price drops, it’s crucial for us to prevent volatility-induced panic selling, keeping our investors’ vision focused on the months—and years—to come. Sheaff Brock Managing Director Dave Gilreath is doing just that. “Dividend growth stocks could become the leaders,” he predicts, “taking the baton from growth stocks.” Even assuming that growth in our economy slows to [...]

Advice to the Advisors

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

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 [...]

Advice to the Advisors

Sheaff Brock Institutional Group | Technical Analysis | Fundamental Analysis | Investment Advisors

Sector Allocation Using Technical Analysis—Alert for the Underloved

Dorsey Wright & Associates, now owned by NASDAQ, is an independent registered investment advisory firm based in Richmond, Virginia. The DWA point-and-figure charting service is just one of many value-added research tools used by Sheaff Brock investment management to enhance investment management for client portfolios. As value investors, Sheaff Brock investment managers are always on the alert for “underloved” sectors which, while having been temporarily out of favor, are coming back into notice. The Sheaff Brock Dividend Growth and Income [...]

Advice to the Advisors

Sheaff Brock Institutional Group | Option Overlays may be Misunderstood

Diversifying Income Sources with Option Overlay Strategies

In a 2010 Songfacts interview, rock songwriter Eric Burdon complained that he’d really been misunderstood: “by my mom, my dad, school teachers, a couple of the women that I married. I’ve been misunderstood all of my life.”In a 2010 Songfacts interview rock songwriter Eric Burdon complained that he’d really been misunderstood: “by my mom, my dad, school teachers, a couple of the women that I married. I’ve been misunderstood all of my life.” Options, Sheaff Brock Managing Director Dave Gilreath laments, [...]

Advice to the Advisors

Sheaff Brock Institutional Group | REITs investing | real estate income and growth portfolio

Why the Timing’s so Right for REITs

There’s nothing “new” about Real Estate Investment Trusts, companies that own and manage income-producing real estate. In fact, REITs came on the scene more than sixty years ago and have increased in popularity with income-seeking investors. Since, by law, REITs are required to maintain dividend payout ratios of at least 90%, the dividend yield can represent a strong advantage over both equities and bonds. Investing in REITs also offers simplified tax treatment as compared with direct ownership of income-producing [...]

Advice to the Advisors

Sheaff Brock Investment Advisors | Risk Management for Performance Outcomes

Risk Management as Important as Return on Investment

You might say risk management is even more important than return, asserts Sheaff Brock Managing Director Dave Gilreath. In the long run, he believes, risk management can lead to good investment outcomes. And, while nonprofessionals invariably focus on return, expecting their advisors to “beat the market,” that expectation, he feels, is essentially flawed. As a recent BlackRock study on market upside/downside demonstrates, “the preponderance of evidence suggests that market timing is difficult and rarely adds value.” Instead, emphasizing “low capture [...]

Advice to the Advisors

Sheaff Brock Institutional Group put options index income portfolio strategy investments

With Put Options, Portfolio Strategy is of Premium Importance

While put option buyers are interested in insuring their risk, put option sellers (also called put writers) are willing to take on that risk in exchange for additional portfolio income, explains Dave Gilreath, Sheaff Brock Managing Director. That income takes the form of premiums paid by the put buyer to the put seller. Put writing is a strategy whereby an investor writes a contract, selling that contract to a buyer. The contract obligates the put seller to buy shares at [...]

Advice to the Advisors

Sheaff Brock portfolio management fundamental research and analysis

Managing Portfolios with Fundamental Analysis

While technical analysts look for general stock movement patterns, fundamentalists look at individual companies, examining the earning potential and value of each stock. A corporation’s earnings, expenses, assets, and liabilities are all important factors, and fundamental analysts are looking for shares that may be undervalued at the present time by the investor community. There are two categories of fundamentalist buyers, Sheaff Brock Managing Director Dave Gilreath explained in an interview with our Institutional editor: 1. The value fundamentalist looks at price-to-book, [...]