Sheaff Brock Money Management | clouds with sunlight and blue sky shimmering through | glimmers of hope in stock market news

Glimmers of Optimism Breaking Through the Outbreak

With bad news abounding—confirmed virus cases, virus deaths, unemployment, and falling corporate earnings—how could stock market news possibly include an upswing? “Markets don’t need good news to advance,” explains Sheaff Brock Managing Director Dave Gilreath, “only an inkling of better news.” Stock market prices are predictive, Gilreath adds, often moving up on anticipation of better news. On one very recent day, for example, cruise line, hotel, casino, airline, and restaurant stocks gained more than 10%, flying in the face, of [...]

Sheaff Brock Reviews Benefits of Charitable Giving for 3-Generation Families

Charitable Planning Can Cure the 3-Generation Curse

The American version of the old Chinese saying, “Wealth does not pass three generations” is “Shirtsleeves to shirtsleeves in three generations.” Whenever there is a lack of financial literacy, and wherever family values are not emphasized, Vernon Wong of First Hawaiian Bank emphasizes, there exists the very real danger that the wealth will dissipate by the third generation. The wealth attribution rate is surprising high, agrees Augusta Dwyer of Globe Wealth, affecting 90% of family fortunes. Of course taxes, inflation, [...]

Street Sign of Worst and Best | Double Decade Stock Market | Sheaff Brock

Believe It or Not — Stellar 2019 Ends Second-Worst Double Decade in History

“For investors, the past decade was a marvelous run, but that tells only half the story,” Ben Carlson writes in Fortune. Not only were the 2010s the first decade since 1850 that the U.S. did not experience a single recession, the stock market has hit more than 200 new all-time highs on the S&P this decade alone. A chapter in Chip and Dan Heath’s book, The Power of Moments, offers a valuable perspective. Research has found, the authors note, that [...]

Holiday "gift bags" filled with last-minute ideas for investors' year-end planning | Sheaff Brock

A Potpourri of Year-End Planning Ideas

Just as retailers—and etailers—are out in force with eleventh-hour holiday gift ideas, financial companies are offering “gift bags” filled with last-minute ideas for investors’ year-end planning. And, while it’s never too late for financial planning, there are certain December deadlines and cutoff dates, as Kiplinger.com details: RMDs Required Minimum Distributions from IRAs, 403(b)s and 401(k)s must be completed by December 31. However, for the year in which you turn 70.5, you may defer your first RMD until April 1st of the [...]

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Does Your Stock Position Have a Customized Protection Shield?

Wealth created by holding a single stock over time is a fairly common finding. In fact, as the Sheaff Brock investment team has been traveling to lecture at Financial Planning Association meetings around the country, advisors have continually mentioned the challenge they face helping clients who own a concentrated position in a single stock. Concentrated positions that comprise more than a quarter to a third of your entire portfolio holdings often happen as part of a benefits package for a [...]

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Are You Mr. A or Ms. B.? — Customized Financial Planning Solutions

There are six steps to the financial planning process, the CFP Board explains: Establishing and defining the client-planner relationship Gathering client data, including goals Analyzing and evaluating the client’s current financial status Developing and presenting recommendations and/or alternatives Implementing the recommendations Monitoring the recommendations For any client, financial planning is about a whole lot more than investment selection. But if you happen to be a “Mr. A” or a “Ms. B,” your advisor may need to seek out unique, customized [...]

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 [...]

Talking with investment advisor about option strategies | Sheaff Brock

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 [...]

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 [...]

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 [...]