Author - Sheaff Briefs Editor

Boring yawn about bonds boring investment style | Sheaff Brock

The Potential Benefits of Bonds’ Boring Investment Style

When Oppenheimer Managing Director Leo Dierckman asserts that bonds should most definitely continue to be included in investment portfolios—even when interest rates are expected to rise—he means what he says. Dierckman believes that bonds serve as the backbone of both individual and institutional portfolios, and help offset the risks of equity and alternative investment holdings. While the portfolio manager admits that interest rates tend to rise when the economy is improving, which can render lower-paying existing bonds less attractive, those [...]

baseball analogy is bonds may deliver singles or doubles and not home runs | Sheaff Brock

Fixed Income is the Portfolio’s “Boring Backbone”

Should bonds continue to be included in investment portfolios even when interest rates are expected to rise? Most definitely, Oppenheimer Asset Management’s Managing Director Leo Dierckman told our SheaffBriefs editor. In fact, Dierckman went on to say, bonds serve as the backbone of both individual and institutional portfolios, offsetting the risks of equity and alternative investment holdings, and reducing volatility. Using an analogy from baseball, Dierckman cautions investors that bonds can reasonably be expected to deliver “singles” and “doubles,” rather [...]

index income strategy requires long-term strategy and patience

In an Index Income Strategy, Optimism and Patience are at a Premium

Investment clients who are bearish on equities—or who do not have the patience to wait through market corrections—need not apply, at least not for becoming invested in the Sheaff Brock Investment Advisors Overlay Strategy. That’s because this particular strategy is intended for long-term, time-premium capture strategy, and is not a trading strategy designed for quick gains. How does the strategy work? For each of three subsequent months, portfolio managers: Sell put options on an S&P 500 ETF (exchange-traded fund) Buy [...]

chess strategy, options portfolio strategy

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 share at [...]

Process for Stock Options | Sheaff Brock

Selling Put Options: A Strategy for Those Who Want a Bit More

There are two main reasons, explain James Cordler and Michael Gross, writing in Futuresmag.com, for the popularity of option selling: investors’ ability to generate reliable income generally positive performance under varying market conditions However, the authors caution, there is no free lunch here, and option selling has its own set of risks. Two mistakes Cordler and Gross see investors make include: selling too many options relative to account size being too concentrated in a particular market sector Dave Gilreath, manager of [...]