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Sheaff Brock Discusses Risk and Volatility | Child on Teeter Totter

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 [...]

Option Overlay Strategies as Timely and Timeless | Sheaff Brock

Timely vs. Timeless—Option Overlays Strive to Be Both

With this month’s over-arching message being the power of TIME—the goal being to discuss investment tactics which are timely, yet which belong in portfolios based on timeless wisdom—the option overlay strategy becomes a particularly relevant topic. There’s nothing new about option overlays. In fact, as Institutional Investor explains, the majority of U.S. pension plans have adopted overlay techniques as part of their investment tactics. And, while in investment vocabulary, the term “overlay” can have different meanings, Sheaff Brock Managing Director Dave Gilreath [...]

Dividend Growth Investing | Sheaff Brock | Time and Money

Dividend Growth Investing in 2019

The new film release, “What Men Want,” is designed to recapture the box office success of the blockbuster Hollywood romantic fantasy of nineteen years ago, “What Women Want.” An investment-world equivalent might attempt to answer the question of “What Investors Want.” It appears the answer is asylum-with-growth-potential, given the tumultuous investment markets which marked the final weeks of the past year. Dividend growth investing, as seekingalpha.com explains, involves the researching and careful selection of high-quality companies that are capable of [...]

Market Volatility | Heart-Shaped Roller Coaster Ride | Sheaff Brock Perspectives

What Is This Thing Called Volatility, Really?

“What is this thing called love, this funny thing called love?” is Cole Porter’s well-sung query, asking the Lord in Heaven above: “Why should it make a fool of me?” Recent market volatility has had many investors asking a similar question about the investment market. “Stock market volatility is a great way to test your nerves as an investor,” writes Leslie Albrecht in MarketWatch.com. The Volatility 101 lesson here for investors, as Albrecht correctly points out, is this: “There’s a [...]

Income Investments in 2019 | Sheaff Brock Investment Advisors

Income Investments Take Center Stage Entering 2019

Income investments represent a popular “meme” for pundits these days, and for good reason. In offering innovative portfolio solutions for Sheaff Brock investors who want a balance between risk-avoidance and higher returns, income investments are taking center stage as we enter 2019. “After a tumultuous few weeks in the markets, the steady income offered by yield-focused investments looks very attractive,” Andrew Bary writes in Barron’s. The two drivers, Bary points out, are these: following the erratic market movements, the steady [...]

Post-Election Stocks | Perspectives by Sheaff Brock Investment Advisors

The Rest of the Post-Midterm Election Story

The performance of healthcare stocks, as we’ve been discussing, has in general “tracked well with the prospects of a divided government.” One Sheaff Brock research source, Strategas Research, remarks that in post-election periods in general, healthcare has been just one of many beneficiaries of a “divided government.” Of course, the December ruling by a Texas judge on the constitutionality of the ACA and the subsequent staying of his ruling during appeal has caused some volatility in the healthcare sector. As [...]

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 [...]

Selling puts on the SPY to help offset market volatility | Sheaff Brock Investment Advisors

Sheaff Brock Sells Puts on the SPY

It has a long name, but the Sheaff Brock Investment Advisors Index Income Overlay portfolio strategy has one simple goal: seeking additional income that is incremental to (meaning on top of) a high-net-worth investor’s existing portfolio. For those investors comfortable with taking additional stock market risk for the opportunity to generate added (net of fees) cash flow, the Income Overlay portfolio is a long-term, bullish play on stock investing using a the SPDR S&P 500 ETF (symbol SPY). This strategy [...]

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 [...]