Monthly Archives - June 2019

REIT Investing and the New Tax Law | Sheaff Brock

New Tax Law May Favor REIT Investors

The Tax Cuts and Jobs Act is set to deliver significant tax savings over the next decade, which might well help an already healthy economy, says JR Humphreys, portfolio manager of the Sheaff Brock Real Estate Income & Growth strategy. Here’s why, Humphreys continues: One of the central features of the tax bill is a 20% deduction on pass-through income. By law, REITs must distribute at least 90% of their income. And, since the REITs themselves do not pay tax [...]

Two Faces to Show Upside Volatility and Downside Volatility | Sheaff Brock

The Two Faces of Volatility

“Remember that there are two varieties of volatility. Downside volatility is the type to avoid, not generally upside volatility,” Craig Israelsen writes in Financial Planning magazine. Far from doing everything possible to avoid volatility, we should all want portfolios that have higher levels of upside volatility, Israelson asserts. Traditionally, one advantage of building a broadly diversified portfolio is reduced volatility of returns. When higher standard deviation results in impressive upside performance, that is hardly something to be upset about, he observes. The [...]