volatility Archives - Sheaff Briefs

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

04 Nov

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, [...]

By Sheaff Briefs Editor Perspectives, Portfolios
added cash flow, Brian S. Wesbury, cash-flow benefit, DJIA, Dow Jones Industrial Average, equity portfolio, First Trust Monday Morning Outlook, option overlay, option overlay strategy, Sheaff Brock Index Income Overlay, Sheaff Brock Managing Director Dave Gilreath, Sheaff Brock Put Income Overlay, stagnant markets, stock market risk, strong rallies, volatility Read more...

Sheaff Brock Discusses Risk and Volatility | Child on Teeter Totter

05 May

Is It Smart for Investors to Equate Risk and Volatility?

Value means different things to different people. Therefore risk (the possibility of losing something of value) can also mean different things. For decades, investors defined risk as the chance of permanent loss of capital. Wherever there was volatility in the price of an investment, that meant there was risk. But are risk and volatility really the same? As Sheaff Brock Director Jim Murphy explains, understanding the difference between market volatility and market risk is a key skill for investors to have. Volatility is how [...]

By Sheaff Briefs Editor Perspectives, Possibilities
asset class, efficient frontier, Goldman Sachs, Harry Markowitz, Keppler, market risk, market volatility, Michael Keppler, Modern Portfolio Theory, risk, Sheaff Brock Director Jim Murphy, volatility Read more...

stock market drop and market correction | Sheaff Brock

14 Feb

Just How “Unprecedented” is This Drop? Just How Scared Should I Be?

“Dow plunges 1,033 points and sinks into correction,” the money.cnn.com headline practically jumped off your computer screen February 8th. Now what? you wonder. Yes, the pundits have been saying for some time now that a correction was overdue, that we investors have been waxing complacent, and that what goes up must eventually come down. Is this the beginning of The End? Whoa….When it comes to stock market corrections, the word “unprecedented” is simply incorrect when it comes to describing the [...]

By Sheaff Briefs Editor Perspectives
corporate earnings, Dow correction, equity volatility, Federal Reserve, high employment, inflation, interest rates rising, long-term investment strategy, new job creation, recession, Sheaff Brock, Sheaff Brock Managing Director Dave Gilreath, stock market corrections, volatility Read more...

bad news on a road sign showing fear center of the brain controlling our investment decisions

20 Sep

Don’t Let “False Negatives” Lead to “False Fixes”

Whenever we see portfolio losses, the alarm system in our brain tends to go into overdrive – “Don’t just stand there – DO something!” it silently screams to our more rational selves. And the more often we look and listen to financial media messages, Jay Mooreland, author of The Emotional Investor, points out, the more our amygdala, fear center of the brain, is likely to exert its uncanny power over our actions. When logic is allowed to prevail, on the other [...]