Tag - Sheaff Brock

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

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 [...]

Actively Sailing Showing Active Management of Portfolios | Sheaff Brock Investment Advisors

Staying Active with Preferreds

The Sheaff Brock Preferred Income portfolio is an actively managed strategy, and there are reasons why. With the two-part goal of generating income while preserving capital, Senior Portfolio Manager JR Humphreys utilizes both institutional and retail preferred shares. No question as to which side of the ongoing debate about the merits and shortcomings of active vs. passive management is exemplified in the Preferred Income portfolio. So, what is the distinction between active management and a passive approach? Passive investors buy an [...]

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 [...]

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 [...]

Income Investments in 2019 | Sheaff Brock Investment Advisors

Income Investments Take Center Stage Entering 2019

Income investments represent a popular “meme” for pundits these days, and for good reason. In offering innovative portfolio solutions for Sheaff Brock investors who want a balance between risk-avoidance and higher returns, income investments are taking center stage as we enter 2019. “After a tumultuous few weeks in the markets, the steady income offered by yield-focused investments looks very attractive,” Andrew Bary writes in Barron’s. The two drivers, Bary points out, are these: following the erratic market movements, the steady [...]

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 [...]

Sheaff Brock | S&P 500 is a measuring stick of the 500 largest US corporations

Please Welcome to the Stage…the Standard & Poor’s Index!

It’s a measuring stick, a benchmark, a way to discuss our investment markets. But what, exactly, does it DO? The S&P 500 index measures the value of the stock of the country’s 500 largest corporations listed on the New York Stock Exchange or on the Nasdaq Composite. The idea? To provide investors a quick look at the stock market and the economy. And, while many investors first check the Dow Jones Industrial Average, the S&P 500 index is the [...]

Midterm Elections and the Market | Sheaff Brock

Midterm Elections and the Market

Concerned about possible effects of the political scene on the stock market, investors are eying the upcoming 2018 midterm elections with some caution. In fact, Sheaff Brock Managing Director Dave Gilreath pointed out in a recent Knowledge Builder presentation, midterm elections have been inflection points for equity markets in the past regardless of which party won or lost! Source: Strategas Research
 True, there has always been a correction during a midterm year, but the interesting thing, Gilreath notes, is that the [...]

Graphic depiction of the Yield Curve | Sheaff Brock

What’s All This About the Yield Curve?

“The yield curve is not indicating a recession,” the Conference Board’s Consumer Research Center concluded. True, interest rates have begun to inch up, “flattening” the curve. Still, as Sheaff Brock Managing Director Dave Gilreath explains in April’s Knowledge Builder webinar, rates do not appear to be heading towards an “inverted yield curve” (in which short-term rates are higher than long-term rates, a situation that historically has come before a recession). According to Strategas Research, rates “should still be upward [...]

Sheaff Brock | Market Volatility in End-of-Day Trading Volume

At the End of the Day, Market Volatility Happens at the End of the Day

Bet you didn’t know this startling statistic—26% of all stock market trades are done at the very end of the trading day! How does that relate to the market volatility fear reaction that many investors are experiencing these days? Take a closer look. In just the first quarter of 2018, there have been four times as many days with a greater than 1% price move as there were in all of 2017. When weaker job statistics, political scandals, and scuttlebutt [...]