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Sheaff Brock Advises Advisors on Clients' Fear of Volatility

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Sheaff Brock Advises Advisors on Clients' Fear of Volatility

Registered Investment Advisory Firm in Indianapolis, Indiana

PR Newswire

INDIANAPOLIS, Aug. 15, 2018 /PRNewswire/ -- Sheaff Brock Investment Advisors, LLC, Managing Director David S. Gilreath, CFP,® acknowledged the market's return to greater volatility in 2018 after a fairly smooth ascent during 2017. Gilreath believes the resulting fear and angst of today's investor gives advisors the opportunity to help clients leverage volatility through options strategies for additional incremental returns.

Sheaff Brock Investment Advisors (PRNewsfoto/Sheaff Brock Investment Advisor)

In a recent article for wealthmanagement.com, Gilreath explains the primary obstacle. Because typical views regarding the investment market are based upon rising values, the approach for options strategies may seem counterintuitive. Additionally, public perception of options as high-risk investments may have been fueled by publicity of over-leveraged funds and derivatives' debacles during the 2008 financial crisis and others earlier in 2018. 

Gilreath recommends developing a strong options strategies approach and educating clients to distinguish it from those previously notorious situations. He suggests that advisors:

  • Emphasize volatility as a natural part of the market, with a potential benefit to accept and exploit it while managing risk
  • Volatility options strategies may offer limited return with limited risk when used to produce side income
  • Give examples demonstrating excessive risk and the perils of high leverage
  • Make sure your clients read informational materials that you recommend, rather than leaving them to find their own sources online

Advisors who use a detailed education plan to explain the benefits and risks of option strategies may be able to help their clients regard volatility as an opportunity for diversification and income.

Gilreath, Managing Director and Chief Investment Officer for Sheaff Brock, is a 30-plus year veteran in the financial industry. As a founding principal of Sheaff Brock Investment Advisors, David Gilreath shares responsibility for setting investment policy, asset allocation, and security selection for the company's managed accounts. He has contributed to the investment column of the Indianapolis Business Journal, the financial markets column for ABCNews.com, and the Investor Toolkit on CNBC.com.

Gilreath is based in the Sheaff Brock corporate office in Indianapolis, Indiana.

About Sheaff Brock Investment Advisors, LLC:
Sheaff Brock is an SEC-registered, fee-only independent investment firm focusing on innovative investment strategies that strive to enhance the portfolios of both growth- and income-oriented investors. The firm manages $1.04 billion in assets nationwide as of 12/31/2017. Sheaff Brock principal David Gilreath is a contributor of investment news to ABCNews.com, CNBC.com, and Investopedia.com. Please visit sheaffbrock.com for more information.

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SOURCE Sheaff Brock Investment Advisors, LLC

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