Sheaff Brock, ducks with heads underwater signifying downside risks,
15 Sep

When Diversifying Has Too Many Downsides

Strategies for Concentrated Equity Positions Part One: Covered Calls Whether through love or happenstance, like many investors, you may have ended up with a very large investment position in one company or in several companies within the same industry. Perhaps you received stock from an employer as part of your retirement package. You might have inherited shares from a beloved family member. You might have intentionally built a big position in the shares of a company you admire. Whatever the reason [...]

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

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. [...]

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crossroads in the woods, value stocks, growth stocks
20 Jan

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 [...]

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

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 [...]

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

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 [...]

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

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,” [...]

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Sheaff Brock reviews, Democrat control of Congress, impact on stock market
29 Jan

The Direction of the Market—Debunking Popular Beliefs

It might seem the stuff of a Ripley’s Believe It or Not episode, but, over the past more than 70 years, both the stock market and the economy performed better under Democratic presidents than under Republican leadership. The score for the S&P 500? As Markets Insider chronicles, 10.8% to 5.6% in favor of Democrats.  Oh, well, you might counter. The Great Recession and COVID-19, both of which occurred under Republican presidents, skewed the average downward for the Red team. Sorry, [...]

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slice of pecan pie, Sheaff Brock performance, Sheaff Brock money managers, asset allocation
24 Sep

Re-Sectioning the Pie Chart

The whole idea behind asset allocation is to prevent extremes. Experience has taught us that the three main categories of investment assets—equities (stocks), fixed-income (bonds), and cash equivalents—each behave differently in reaction to any given set of circumstances. The term for this difference is “negative correlation.” Investor.gov, the website of the U.S. Securities and Exchange Commission, explains asset allocation by comparing it to street vendors who sell both umbrellas and sunglasses, two items consumers are unlikely to purchase at the [...]

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Sheaff Brock Money Managers, Investment Survival Tactics, and Dixie-Cups Style for Investment Growth
21 Jul

Investment and Estate Planning Survival Tactics Dixie-Cup Style

Before the Spanish flu hit, the company behind Dixie Cups was just another scrappy startup, Kevin Leland points out in fastcompany.com. Once the pandemic hit, because it was hoped disposable cups would help stop the spread of the disease, Dixie used survival tactics to eventually become a household name. The moral of this story, Leland believes, is this: Timing is one of the crucial stars that must align for any start-up to succeed. But what if the timing isn’t right [...]

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Sheaff Brock, great rotation, spinning top, bond holds shifting into stocks
22 Jun

Will a Great Rotation Make an Early Arrival? Is COVID-19 the Catalyst?

Months before COVID-19 had become the topic of everyday conversation, Marketwatch was talking about the arrival of a “Great Rotation” in 2020, anticipating the shifting of bond holdings into stocks. Now, a half year later, Bank of America agrees with that prognosis: “The stars have aligned for more stock gains,” BOA observes, with equities being the most attractively valued in decades as compared to bonds. For investors, the coming great rotation will be all about investment yield, explains Sheaff Brock Managing [...]

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