May 2019 - Sheaff Briefs

Talking with investment advisor about option strategies | Sheaff Brock

31 May

Are You and Your Advisor Talking About Options Strategies?

The study results represented good news for the Options Industry Council. The OIC had commissioned global research and consulting firm Cerulli Associates to find out how much interest and involvement there is among financial advisors when it came to including options in client portfolios. The report, published a year and a half ago, highlighted three important developments: One third of financial advisors were already using options in 20% of their client portfolios. Advisors expected to increase the use of options [...]

By Sheaff Briefs Editor Perspectives, Portfolios, Possibilities
Cerulli Associates, Cerulli study, OIC, option overlay, option overlay techniques, option strategies, options, Options Industry Council, options trading, RIAs, risk reduction, risk reduction strategy, Sheaff Brock, Sheaff Brock Director Jim Murphy, Sheaff Brock Option Overlay strategies, stock market volatility Read more...

Risk and Volatility | Lesson from Warren Buffett | Sheaff Brock

24 May

The Lesson Warren Buffett Says Hasn’t Been Taught in Business School

“Risk is not the same as volatility, but that lesson has not customarily been taught in business schools,” Warren Buffett observes. “Volatility is far from synonymous with risk.” In a 2015 letter to shareholders, the Berkshire Hathaway CEO wrote about the difference between risk and volatility. Many investors, he observes, “conflate these concepts, costing themselves money.” Yes, stock prices will always be far more volatile than cash-equivalents, Buffett concedes, but over the long term, currency-denominated instruments are far riskier than [...]

By Sheaff Briefs Editor Perspectives
Berkshire Hathaway, Chicago Board of Options Exchange, diversified stock portfolios, investment risk, Investopedia, market volatility, Risk and volatility, Sheaff Brock Director Jim Murphy, VIX, Volatility Index, Warren Buffett Read more...

Sheaff Brock Discusses Risk and Volatility | Child on Teeter Totter

05 May

Is It Smart for Investors to Equate Risk and Volatility?

Value means different things to different people. Therefore risk (the possibility of losing something of value) can also mean different things. For decades, investors defined risk as the chance of permanent loss of capital. Wherever there was volatility in the price of an investment, that meant there was risk. But are risk and volatility really the same? As Sheaff Brock Director Jim Murphy explains, understanding the difference between market volatility and market risk is a key skill for investors to have. Volatility is how [...]