Investopedia Archives - Sheaff Briefs

sheaff brock, goldfish swimming, stay positive in down market

15 Nov

Amidst Waves of Smart-Sounding Terminology, Keep Swimming

"When financial talking heads spew out a word salad of unusual terms, it makes them sound almost undoubtable," admits Sheaff Brock Managing Director Dave Gilreath. Next to market mavens using terms such as “quantitative tightening,” “yield-curve inversion,” “reversion-to-the-mean,” “earnings drought,” and “Fibonacci lines,” with the negativity backed up with oceans of data, it can be hard to keep the faith. But faith, Gilreath explains, is precisely what bullish investment folks rely on—faith in corporate resilience, human ingenuity, and the [...]

Walking Dogs | Dogs of the Dow Investment Strategy | Sheaff Brock | Bulls of the Dow

09 Jan

A Bullish Approach to “Dogs of the Dow”—Part Two

The well-known “Dogs of the Dow” concept focuses on choosing, out of the 30 stocks that make up the Dow Jones Industrial Average, those ten with the highest dividend yield. Based on investors’ intent to “buy low, sell high,” the guiding principle of “Dogs of the Dow” is that the dividend payout can be used as a measure of the average worth of the company, with a high yield signaling that the company is near the bottom of its [...]

By Sheaff Briefs Editor Perspectives, Portfolios
Bulls of the Dow, dividend yield, Dogs of the Dow, Dow Jones Industrial Average, downside risk, income from dividends, Investopedia, Investopedia.com, long-term investors, Revelation Investment Research, Sheaff Brock Bulls of the Dow, Sheaff Brock Managing Director Dave Gilreath Read more...

Sheaff Brock | Dogs of the Dow Strategy - bulldogs in the office

16 Dec

A Bullish Approach to “Dogs of the Dow”—Part One

Nearly thirty years in use, the term “Dogs of the Dow” is hardly new to investor vocabulary. The concept—out of the 30 stocks that make up the Dow Jones Industrial Average, choose the ten with the highest dividend yield. Dogs of the Dow is based on investors’ intent to “buy low, sell high.” The premise, as Investopedia explains, is that blue chip companies such as those included in the DJIA rarely alter their dividend payouts. The dividend can thus be [...]

By Sheaff Briefs Editor Perspectives, Portfolios
Al Root, Barron's, blue chip, CNBC, DJIA, Dogs of the Dow, Dow Jones Industrial Average, highest dividend yield, Investopedia, Michael B. O’Higgins, S&P500, Sheaff Brock, Sheaff Brock Bulls of the Dow, Sheaff Brock Dave Gilreath, Small Dogs of the Dow, Yun Li Read more...

two puppies | the difference between SPX and SPY | Sheaff Brock

06 Aug

SPY and SPX—What’s the Diff and Does the Difference Matter?

In a rather cryptic and historical intro to the subject of options, Yahoo Finance states: “When it comes to the battle of SPY versus SPX, the first may have more volume, but the second has more value.” Size comparison: The SPDR S&P 500 (NYSE symbol SPY) is, in fact, the most widely traded contract on option exchanges. The SPX S&P 500 index options have far lower trading volume, but each contract is ten times the size of a SPY. Underlying security: Underlying the [...]

By Sheaff Briefs Editor Perspectives, Portfolios
actual volatility, ETF, exchange-traded fund, fundamental stock analysis, implied volatility, index options, Investopedia, market index, overlay, put selling, S&P 500 Index, Sheaff Brock, Sheaff Brock Index income Overlay portfolio, SPDR S&P 500, SPX, SPX S&P 500, SPY, stock market risk, technical stock analysis Read more...

Risk and Volatility | Lesson from Warren Buffett | Sheaff Brock

24 May

The Lesson Warren Buffett Says Hasn’t Been Taught in Business School

“Risk is not the same as volatility, but that lesson has not customarily been taught in business schools,” Warren Buffett observes. “Volatility is far from synonymous with risk.” In a 2015 letter to shareholders, the Berkshire Hathaway CEO wrote about the difference between risk and volatility. Many investors, he observes, “conflate these concepts, costing themselves money.” Yes, stock prices will always be far more volatile than cash-equivalents, Buffett concedes, but over the long term, currency-denominated instruments are far riskier than [...]

By Sheaff Briefs Editor Perspectives
Berkshire Hathaway, Chicago Board of Options Exchange, diversified stock portfolios, investment risk, Investopedia, market volatility, Risk and volatility, Sheaff Brock Director Jim Murphy, VIX, Volatility Index, Warren Buffett Read more...

Geopolitical Risk | Map of the World | Sheaff Brock

24 Oct

Geopolitical Risks One Factor in Investors’ “Wall of Worry”

“While a ‘wall of worry’ may sometimes consist of a single economic, political or geopolitical issue significant enough to affect consumer and investor sentiment, it more commonly comprises concerns on numerous fronts,” Investopedia explains. “The markets’ ability to climb a wall of worry reflects investor confidence that these issues will be resolved at some point.” Of course, “even when the financial markets are growing at a healthy rate, under financially sound circumstances, investors always find reasons to worry,” Investopedia [...]