Tag - Sheaff Brock Managing Director Dave Gilreath

Sheaff Brock | Pre-Election Investment Plan Based on Historical Data Since the 1930s

If-Then Investment Planning Prior to an Election

In classical logic, a connection is made between two statements, implying that if P (the proposition) is true, then Q (the next statement) is also true. If Sarah works overtime, she’ll be paid time-and-a-half. If I study, then I’ll get good grades. If I get good grades, then I’ll get into a good college. You get the idea—If statement #1, a given fact, is true, then statement #2 is a new fact that may be deduced from statement #1. Just [...]

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

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 [...]

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

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 [...]

Sheaff Brock looking at COVID-19 Rate of Change | woman looking at bad news on phone

News Bad; Market Strong? Pay Attention to the COVID-19 Rate of Change

It’s a puzzlement—how can the market be this strong when the news continues to be so bad? A certain calendar date may offer a clue. On March 23, 2020, two things happened. The COVID-19 death “rate of change” peaked, with a steady descent following. At the very same time, the stock market bottomed, then began a sustained rise. To be sure, the news continues to document a rising pandemic death toll. According to Johns Hopkins, on March 23rd the number of [...]

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 [...]

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

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 [...]

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 [...]

Taking the elevator down | option overlay for returns | Sheaff Brock

Option Premiums Can Provide Additive Returns During the Elevator Ride

“Stocks often take the elevator down and the stairs up,” Sheaff Brock Managing Director Dave Gilreath comments, referring to the strong rallies following the stagnant markets in 2004–2005, 2011–2012, and 2015–2016. “The stock market often takes a breather before rallying up to a higher plateau,” Gilreath adds. With the Dow Jones “stuck” for the past year-and-a-half, he observes, it’s not unreasonable to anticipate another “stair-climbing” period. In an earlier First Trust Monday Morning Outlook report, Chief Economist Brian S. Wesbury, [...]

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 [...]

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 [...]