Tag - S&P 500

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 [...]

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 [...]

Post-Midterm Elections and Health Stocks | Sheaff Brock Investment Advisors

The Other Side of Midterm Election What-Ifs

With the midterm elections now in the rearview mirror, with no clear “sweep” on either side of the aisle, investors are asking a number of “so now what?” questions. As one Sheaff Brock research partner, Strategas Securities, LLC observed even prior to the midterm election, funding for the National Institutes of Health is unlikely to decrease, which is a positive for life sciences tools companies. Even though a Texas judge ruled the entire ACA unconstitutional in December, Strategas commented shortly [...]

Dividend Stocks could take the Baton from Growth Equity Stocks for Income | Sheaff Brock

Dividend Stocks Could Take Baton from Growth Equities

“High dividend stocks appeal to many investors living off dividends in retirement because their high yields provide generous income,” simplysafedividends.com observes, almost stating the obvious. Why, exactly, is it that some dividend-paying stocks offer much higher yields than others? There are several possible answers, the authors explain: a high yield reflects a company’s mature status (think utilities and telecom companies) some companies have unique business structures that require them to distribute cash flow to investors some stocks use financial [...]

Market Effects of Midterm Elections | Sheaff Brock Perspective

Market Effects of Midterm Elections

“A quick look at historical performance shows that stocks often see rough sledding in the September of years that feature midterm elections,” MarketWatch comments, adding that it was not “clear that the midterm congressional elections on Nov. 6 … would be enough to derail the bull market.” One thing that has characterized midterm seasons, Sheaff Brock Managing Director Dave Gilreath notes, is greater stock price volatility. In fact, he notes, midterm years have been more volatile than the average. The [...]

Late-Year Investing | Sheaff Brock Perspectives

Important Things to Keep in Mind for Late-Year Investing

Not for naught has September been dubbed “the banana peel month” and October the “jinx month” for investors, Sheaff Brock Managing Director Dave Gilreath observes wryly—some of the largest “slip and fall” and “crash” incidents seem to relate to late-year investing. To be sure, the worst September ever for the S&P 500 (a 30% drop) happened a long time ago. Still, with six more September investing drops since then, the month of September has the dubious distinction of having surpassed [...]

Geopolitical Risk | Map of the World | Sheaff Brock

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 [...]

REITs | Bricks in the Wall of Worry? | Sheaff Brock

Real Estate Investment Trust Valuations—Bricks in the Wall of Worry?

The “Wall of Worry,” an informal expression used in financial jargon since the 1950s, refers to a market uptrend that occurs when there is significant uncertainly about stock price sustainability. But what about REITS? Are these stock/real estate hybrids bricks in the “Wall” as well? “Long before investors fell in love with Facebook and Amazon.com or even the hot stocks of past generations such as utilities and railroads, real estate inspired dreams of wealth,” writes John Coumarianos. “Some financial advisers and pundits helped [...]

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 [...]