Tag - Sheaff Brock senior portfolio manager JR Humphreys

Sheaff Brock Preferred Stock portfolio | question marks about rising interest rates

Preferred Stock—Expect the Question; Consider the Answer

The unrelenting search for reliable investment income is an important theme in retired clients’ investment plans, and preferred securities certainly share the limelight. What’s more, given the current buzz about the new tax law, it’s hard to ignore the fact that certain features of the law can favor investing in preferred stock, potentially increasing the demand for high-income investment vehicles. The question: As you’re discussing this very topic at the tennis club, expect the question: Interest rates are on the rise. By [...]

Sheaff Brock Preferred Income Portfolio | Impact of New Tax Law on Preferred Stock

New Tax Law Bodes Well for Companies Issuing Preferred Stock

There’s a whole lot of media buzz going on about the new tax law and how good a thing that law is turning out to be for corporate America. Turns out, certain features of the law may be a very good thing for investors in preferred stock as well. What’s that all about? First, by way of quick review, preferreds are hybrid securities, blending traits of both stocks and bonds. Preferreds, like common stock, represent ownership in a company, but [...]

Interest Rate Signs Increasing in Size | Managing Interest Rate Risk for Preferred Stock Income | Sheaff Brock Investment Advisors

Managing Interest Rate Risk in a Preferred Stock Portfolio

If I invest in preferred stock for the income just when interest rates are rising, won’t I be setting myself up for losing money? “Not necessarily,” contends JR Humphreys CFA, CAIA, Senior Portfolio Manager at Sheaff Brock Investment Advisors. Humphreys explains that, “increasing interest rates is usually the result of an improving economy that could lead to credit rating upgrades for the preferred equity, resulting in a higher price.” Many investors have the perception that preferred securities are highly interest-rate [...]

Sheaff Brock Investment Advisors | Indianapolis | Preferred Stock Performance | Asset Class

Will Higher Interest Rates Huff and Puff Your House Down?

Ever since (think back approximately a year-and-a-half) rates began their slow upward movement, income investors have experienced a certain degree of worry about the “big bad wolf” blowing down their carefully constructed investment “abodes.” Thankfully, as Sheaff Brock senior portfolio manager JR Humphreys, CFA, CAIA explains, if you’ve “built” for the longer term (planning a longer holding period), there may be little reason for concern. In fact, Humphreys pointed out in an October interview with our SheaffBriefs editor, since December [...]