Tag - Sheaff Brock Managing Director Dave Gilreath

Post-Midterm Elections and Health Stocks | Sheaff Brock Investment Advisors

The Other Side of Midterm Election What-Ifs

With the midterm elections now in the rearview mirror, with no clear “sweep” on either side of the aisle, investors are asking a number of “so now what?” questions. As one Sheaff Brock research partner, Strategas Securities, LLC observed even prior to the midterm election, 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 [...]

Dividend Stocks could take the Baton from Growth Equity Stocks for Income | Sheaff Brock

Dividend Stocks Could Take Baton from Growth Equities

“High dividend stocks appeal to many investors living off dividends in retirement because their high yields provide generous income,” simplysafedividends.com observes, almost stating the obvious. Why, exactly, is it that some dividend-paying stocks offer much higher yields than others? There are several possible answers, the authors explain: a high yield reflects a company’s mature status (think utilities and telecom companies) some companies have unique business structures that require them to distribute cash flow to investors some stocks use financial [...]

Market Effects of Midterm Elections | Sheaff Brock Perspective

Market Effects of Midterm Elections

“A quick look at historical performance shows that stocks often see rough sledding in the September of years that feature midterm elections,” MarketWatch comments, adding that it was not “clear that the midterm congressional elections on Nov. 6 … would be enough to derail the bull market.” One thing that has characterized midterm seasons, Sheaff Brock Managing Director Dave Gilreath notes, is greater stock price volatility. In fact, he notes, midterm years have been more volatile than the average. The [...]

Late-Year Investing | Sheaff Brock Perspectives

Important Things to Keep in Mind for Late-Year Investing

Not for naught has September been dubbed “the banana peel month” and October the “jinx month” for investors, Sheaff Brock Managing Director Dave Gilreath observes wryly—some of the largest “slip and fall” and “crash” incidents seem to relate to late-year investing. To be sure, the worst September ever for the S&P 500 (a 30% drop) happened a long time ago. Still, with six more September investing drops since then, the month of September has the dubious distinction of having surpassed [...]

Sheaff Brock | Market Volatility in End-of-Day Trading Volume

At the End of the Day, Market Volatility Happens at the End of the Day

Bet you didn’t know this startling statistic—26% of all stock market trades are done at the very end of the trading day! How does that relate to the market volatility fear reaction that many investors are experiencing these days? Take a closer look. In just the first quarter of 2018, there have been four times as many days with a greater than 1% price move as there were in all of 2017. When weaker job statistics, political scandals, and scuttlebutt [...]

Sheaff Brock | Market Volatility's Fear Factor with Boy Hiding in Bed

To Measure Market Volatility, You Oughta Meet VIX

Meet VIX, the ticker symbol for the Chicago Board Options Exchange’s Volatility Index. The VIX, constructed using a wide range of Standard & Poor’s 500 Index options, is a way to express the market’s expectations of volatility over the coming 30 days. What is actually measured by the VIX is the ratio of put options versus call options being bought on the S&P 500. By way of background, the CBOE Volatility Index, originally developed back in 1986, was designed to [...]

Sheaff Brock | Stock Market Volatility as a Sheep in Wolf's Clothing

Market Volatility—A Sheep in Wolf’s Clothing?

“The market is as much about sentiment and psychology as it is earnings and profits,” Avi Salzman stated in Barron’s. As Salzman observed the “tit-for-tat proposals” of tariffs between China and the U.S., he realized that the fear factor was going up regarding a potential trade war. Meanwhile, stocks were also being rattled by an anemic jobs report. Salzman is reminded, he says, of “the importance of perception versus what is reality.” No tariffs have actually been approved or [...]

A couple holding hands | stock market positive feedback may lead to lasting relationships | Sheaff Brock

Stock Market’s Ratio of Positive to Negative Feedback has been Spectacular

In improving team performance through feedback, corporate consultants Jack Zenger and Joseph Folkman report in the Harvard Business Review, the ideal praise-to-criticism ratio is 5:1. Negative feedback grabs attention, they concede, and has the power to change behavior, but it does not make people put forth their best efforts. Only positive feedback truly motivates vigor, determination, and creativity. In his book “What Predicts Divorce,” John Mordechai Gottman finds essentially the same thing in marriage—the single biggest determinant of wedded [...]

stock market drop and market correction | Sheaff Brock

Just How “Unprecedented” is This Drop? Just How Scared Should I Be?

“Dow plunges 1,033 points and sinks into correction,” the money.cnn.com headline practically jumped off your computer screen February 8th. Now what? you wonder. Yes, the pundits have been saying for some time now that a correction was overdue, that we investors have been waxing complacent, and that what goes up must eventually come down. Is this the beginning of The End? Whoa….When it comes to stock market corrections, the word “unprecedented” is simply incorrect when it comes to describing the [...]