40 years in the stock market, Sheaff Brock CIO Dave Gilreath, dollar bill with gears

A Bad Start, But We’ve Been Here—And Worse—Before

There's something familiar about all this…haven't we been here before? Wait a minute….all these things are familiar—the war, the inflation, the economy, the politics, the societal unrest…. Indeed, we have been here, four decades ago, for example. In fact, Sheaff Brock Managing Director Dave Gilreath was there, 40 years ago. And, after more than forty years in the business of investment management, he's decided it's all about perspective. 40 years ago? Double digit inflation.40 years ago? Interest rates in the teens. [...]

crossroads in the woods, value stocks, growth stocks

Value Stocks Could Hit the Comeback Trail

“Already, some small cap value stocks are outperforming the broader category of small caps,” observes Sheaff Brock Managing Partner Dave Gilreath. There are various indications, Gilreath adds, that the long period in which growth stocks dominated the stock market may be moving towards an end. Growth vs. value With both growth and value stocks, there is an expectation that, over time, they will outperform the overall market, but the two types of stock don't tend to do that at the same [...]

REITs Help Relieve Inflation Fears

According to Nareit.com (the worldwide membership organization for real estate companies), REIT dividends have outpaced inflation as measured by the Consumer Price Index in all but two of the last twenty years. What's more, Nareit authors add, while real estate investment trusts have not proven to be the only inflation hedge, “their comparatively low correlation with other assets also makes them an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns.” To be sure, inflation is [...]

Sheaff Brock REIT, 5G, cell phone towers, real estate investing

Real Estate in Recovery Mode Plus

Portfolio Manager JR Humphreys ends every presentation with a reminder that real estate is an asset class that “has everything to offer,” including the potential for both rising dividend yields and capital appreciation. Inflation? Real estate investments serve as a hedge, Humphreys explains—as the cost to replace structures rises, the value of existing buildings goes up. Portfolio Manager JR Humphreys ends every presentation with a reminder that real estate is an asset class that “has everything to offer,” including the [...]

black swan swimming, sheaff brock assesses the post-pandemic market

On the Tail of a Black Swan, Market Trends to “Normal”

As far as black swan events go, the COVID-19 pandemic would certainly qualify for the title. Back in a 2007 book, finance professor Nassim Nicolas Taleb used the phrase “black swans” to describe very rare and impactful events that could not have been predicted. In terms of the stock market, Taleb characterized the 2008 financial crisis as a black swan event. While many consider the 2020 pandemic to be a second example of a black swan event, Taleb believes the [...]

images of individual workers, labor shortage, Sheaff Brock Investment Advisors

Where Have All the Workers Gone?

“Millions are out of a job. Yet some employers wonder: Why can’t I find workers?” reads a recent NPR Morning Edition headline. Post-COVID, some industries are thriving and eager to hire. After the loss of 22 million jobs over the course of the pandemic, with only a little over half of those since recovered, one would think that workers would be clamoring to fill those remaining employment openings. Employers are certainly looking to hire; NPR cites Labor Department statistics [...]

big bad wolf with little red riding hood, Sheaff Brock reviews potential tax hikes

Who’s Afraid of the Big Bad Tax Hike?

“Tax increases may not be the obstacle that many investors expect,” according to Fidelity Viewpoints. Other economic factors may play a more important role, especially when sizable federal spending serves as an offset. Sheaff Brock Managing Director Dave Gilreath tends to agree. “The global economy is a good policeman of tax rates,” Gilreath says, with money flowing to where ‘it’s treated best.” If tax rates in the U.S. are judged to be “too high,” capital will flow to other [...]

shopping mall as part of REITs portfolios | JR Humphreys explains

REIT Investing in the Wake of the Pandemic

“REITs and real estate owners have played an important role across the country throughout the pandemic,” writes Matthew Bechard, Editor-in-Chief of REIT Magazine, predicting that “REITs and the 516,000 properties they own and operate will play a key role in bringing America back together.” JR Humphreys, portfolio manager of the Sheaff Brock Real Estate Income & Growth Strategy, definitely agrees. There were certainly areas of real estate which were negatively, even severely, impacted by the pandemic, Humphreys admits, naming: shopping [...]

girls blowing bubbles, Sheaff Brock CIO looks at market "bubbles"

Market Bubbles and the Big Picture

A basic characteristic of financial bubbles, Troy Segal wrote recently in Investopedia, is the suspension of disbelief while a speculative stock price surge is happening. It’s only after a bubble has burst that it is recognized, much to investors’ chagrin. The term “bubble” itself refers to a situation in which a stock, or even the entire stock market, exceeds its fundamental value by a large margin, Segal explains. There’s no doubt that the advent of commission-free investing apps such as [...]

innovation of the Roarin' 20s, stock market trajectory, Sheaff Brock

Innovation Set to Spur New Roarin’ 20s-Style Market

The stock market is a forward-looking animal, explains Sheaff Brock Managing Director Dave Gilreath, yet signs indicate that clues to what lies ahead may be found in our Roarin’ 20s’ USA past. There is a very real potential for the Dow Jones Industrial Average to hit 50,000 by the year 2027, Gilreath states. That’s because the decade of the 2020s, like the decade of the 1920s, will be marked by both disruption and innovation. “Confidence in the recovery is growing rapidly,” [...]