Tag - Sheaff Brock Managing Director Dave Gilreath

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,” [...]

Sheaff Brock Revs Up Research

The word rev is an abbreviation for revolution, alluding to the rate of rotation of an engine, dictionary.com explains. The purpose of revving? To enliven, or stimulate…. The words “enliven” and “stimulate” precisely describe Sheaff Brock managing partners Dave Gilreath and Ron Brock’s intent in inviting research analyst Tom Kaiser to become the newest member of the wealth management firm’s research team. A 2009 graduate of Indiana University’s Kelly School of Business, Tom Kaiser spent five years at Fitch Rating in [...]

addition and subtraction card, Sheaff Brock money managers, arithmetic of loss

Stay Invested to Help Soften the Arithmetic of Loss

The stock market, it might be said, is the greatest of teachers, but attending class isn’t always fun. One of the harshest lessons the market has to impart to investors concerns the arithmetic of loss. Quite Like medical students learning about the ravages cancer can cause, investors understand the potential of portfolio losses, yet persist in hoping the lesson applies to others, never to themselves. Fact is, as the arithmetic of loss shows, a given percentage of gain is never [...]

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

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 [...]

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 [...]