Tag - Sheaff Brock Managing Director Dave Gilreath

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 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

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 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

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 [...]