SPDN: An Inexpensive Way To Profit When The S&P 500 Falls

Summary
SPDN is not the largest or oldest way to short the S&P 500, but it’s a solid choice.
This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.
SPDN’s 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&P 500 ETF.
Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.
We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.
Put a gear stick into R position, (Reverse).
Birdlkportfolio

By Rob Isbitts

Summary
The S&P 500 is in a bear market, and we don’t see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or “just hang in there” while the bear takes their retirement nest egg.

The Direxion Daily S&P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.

SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.

Strategy
SPDN keeps it simple. If the S&P 500 goes up by X%, it should go down by X%. The opposite is also expected.

Proprietary ETF Grades
Offense/Defense: Defense

Segment: Inverse Equity

Sub-Segment: Inverse S&P 500

Correlation (vs. S&P 500): Very High (inverse)

Expected Volatility (vs. S&P 500): Similar (but opposite)

Holding Analysis
SPDN does not rely on shorting individual stocks in the S&P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&P 500 does.

Strengths
SPDN is a fairly “no-frills” way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the “market” goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.

Weaknesses
The weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&P 500 will cause SPDN to drop as much as the market goes up.

Opportunities
While inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.

Threats
SPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.

Proprietary Technical Ratings
Short-Term Rating (next 3 months): Strong Buy

Long-Term Rating (next 12 months): Buy

Conclusions
ETF Quality Opinion
SPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.

ETF Investment Opinion

SPDN is rated Strong Buy because the S&P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.

Why You Should Think About Starting an Online Business

The internet has created many entrepreneurs across the globe.Some people not having any experience, tech savvy, or any money have created online businesses that prosper.There are lots of benefits of starting your own online business.If you’re someone who’s on the fence about starting your own business I think you should take some time to reflect on how it could change your life and the benefits are starting one.My reason for starting an online business was not wanting to have to work for someone else.I wanted to have freedom, flexibility with my time, and an opportunity to make money 24 hours a day.If you’re someone who doesn’t like having to punch the clock this post is for you.Today I wanted to discuss why you should start your own online business and the benefits it can offer.Starting Your Online BusinessStarting an online business isn’t as difficult as one might think.You can get your business started with less than about $100.You’ll need web hosting, a domain name, and an autoresponder.Now just because you have these three things does not mean you’ll be well on your way to quitting your job, but it does mean that you have taken the necessary steps to creating an online business that can potentially allow you to quit your job somewhere down the line.If you never get started then you’ll never have the opportunity to get yourself from where you are to where you want to go.Benefits of an Online Business1) Low CostsAs noted earlier to get started with your own online business, the costs are low compared to other ventures.There are some business opportunities on the web that don’t even require you to have a website.So people make a living online just building an email list and marketing various affiliate products or even their own.It’s not like an offline business where you have rent, employees, inventory, and have to drive to every day.With an online business you have the opportunity to work in the bed, the living room, your favorite coffee shop, etc.Anywhere!You can run your business from the power of your laptop and be profitable doing it with the right plan and work ethic.2) You Control Your IncomeOne of the biggest reasons I wanted to start an online business was to be able to control my income.With most jobs there is a cap on what you can make.If it’s salary, you work at the mercy of your boss only to see the same pay every pay period.It it’s by the hour, you only have a limited amount of hours you can work in a day.With an online business it can work for you 24 hours a day 365 days a year.Who wouldn’t want that?What you earn is solely based on YOU and your EFFORTS of creating the kind of business you want for yourself.3. People Spend Money on the InternetIt’s been reported that consumers will spend about $327 Billion online in 2016.That’s a huge amount of money and if you can tap into a small percentage of that you can make a decent living for yourself.It’s all about finding your place on the web and carving out your own little niche.Internet spending is estimated to account for 40% of all retail sales by 2020 and 84% of the world’s internet users now shop online.People enjoy spending money from the comfort of their own home.These are just a few of many benefits when it comes to a business online.If you are looking to start your own online business do your research and figure out your niche.There is money to be made on the internet, but it’s going to take some work.If you are looking for a new way to make a living, freedom, more time to spend with family, or to quit your job then starting your own business could be the way to go.It’s created new lives for countless others and you could be the next.See you at the top.Best Wishes!

Good Nutritional Guidelines

It’s difficult to know what exactly makes up a healthy diet. Many are not just concerned for themselves, but for their family, as well. There are a ton of diet plans to find in supermarket checkout lane magazines, each of them claiming to be the easiest and quickest way to lose weight without compromising on nutrition, but which, if any, are the real deal? Unfortunately, many of the foods we love to eat are often the worst to eat when it comes to nutritional value. This is one of the main reasons so many refuse to even think about it, which gives room for the myths and confusion that surround the topic to grow.The most confusing thing of all is the way the “experts” seem to differ on even the most basic of premises, each one contradicting several others from week to week, it seems. New studies always come around to disprove something we all knew was true when it comes to nutrition, and now something that we thought was good for us is now bad for us, or vice versa. Just think about the shifting opinions over the years regarding such things as coffee or red wine. It seems impossible to be knowledgeable about subjects that seems to shift so much, where even some of the basic premises don’t seem consistent.Places to Find Good Nutrition InformationHow good the information may just be a factor of where you get it. All those checkout aisle magazines with their diets of the week are probably not good sources. Some of these may literally have made up their information for that week’s issue. Many of these diets have tailored their information for specific reasons, usually to sell their products or prove some sort of pseudo-scientific point. Anyone can write a book saying anything, fill it with a lot of technical-sounding words and pass it off as fact, but if the studies backing it were not scientifically done and legitimately put together, they are only advertisements shilling whatever the magazine wants to sell that particular week.The best place to get nutrition information is, of course, from a doctor or nutritionist. If news comes from trusted sources such as these, it’s more likely they are acting in the best interests of the reader, not of a company trying to sell you something.Information can be found online, but be careful of it – many of them are merely trying to sell something that really has no nutritional value at all.What Is Good Nutrition Made Of?Everyone has different needs when it comes to nutrition. We all need the same basic nutrients but we may need them in differing amounts. Each person needs a certain amount of calories per day and those calories are divided into protein, fat, and carbohydrate. Someone taller and heavier will generally need more calories than someone smaller and lighter. The more one weighs, the more calories it takes to maintain that weight. Weight loss, then, means having a diet with fewer calories – but it does not mean a drastic cut. Too sharp a drop in calories can actually make it more difficult to lose weight.If you are trying to lose weight by reducing your caloric intake, your nutritional intake may suffer in the process. It is important to not only get the right number of calories, but the right amounts of vitamins, minerals, and macronutrients.What’s the Deal with Nutrition, Anyway?Food is essential to life. The things we eat are used to heal, to help strength the body against illness and injury, and of course, to give us the energy we need to go about our daily business. Everything the human body does, the smallest action and the most complex processes, all get the power they need to function from the food we eat. A steady diet of junk food is poor nutrition and the body will become sluggish and begin to store excess fat. It will also become easier to get ill and it will just be difficult to move around in general. The longer a diet like this continues, the longer the body goes without good nutrition, which means more sickness and more weight gain.To be strong and healthy, a body needs good nutrition. This is the way the human body gets strength to move around and keep active and keep excess weight off.Protein Supplements as an Aid to Good NutritionIt may not be very easy to get all the protein or other nutrients your body needs, depending upon the nutritional goals you’ve set for yourself. Many people try to lose weight by eating less – a lot less than their bodies require to stay healthy. Oddly enough, going from eating too much to eating too little can actually make weight loss more difficult. A body that feels as if its starving triggers a slow metabolism, which means those calories you do ingest are hoarded by the body, instead of burned as energy. And of course it probably still lacks the nutrition it needs to keep the body properly functioning. Using a protein supplement to replace a small meal or as a between meal snack can be the solution to a diet with fewer calories but sufficient nutrition.