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.

When Payday Loans Could Come in Handy

Payday loans are simple. Often referred to as payday advance, this is a type of loan used to address unexpected expenses that crop up before the next payday. In other words, it can be your fast and easy solution to your immediate needs.While there are countless criticisms against this type of financial grant, there are numerous advantages as well. Probably the most important of all is the fact that it don’t need collateral and they do not require a bagful of documents. As such, getting a Canadian payday loan, for example, might be a great idea. As long as you have the discipline to pay off your loan on time, then you don’t end up suffering from enormous finance charges.Here are a couple of instances when payday loans would come in handy:Medical BillsYou cannot predict when you – or your loved one – will get sick. Sometimes, regardless of how well you take care of your body, and how many kinds of vitamins you use, sickness catches you right in the face. And in a time when prices have been surging, saving for medical expenses will be your last priority.This is when it would be a wise move for you to take advantage of payday loans. Anyway, by availing of this service, you promise to pay up your loan on your next payday. So, as long as no complications will come your way, you will once again be debt-free after your payday.Household BillsYes, household bills are supposed to be part of the monthly budget. You will be pathetic if you don’t set aside a certain percentage of your salary to take care of electric, water, phone and internet bills. So you would ask: why should you need payday loans to pay off household bills when they are supposed to be budgeted?Simple. Remember that payday loans are only – ideally – used for emergency. So when you’ve been billed way larger than the usual amount, then that’s the time when a payday loan will come in handy.For example, before, it is okay for you not to use air-conditioning units during summer. With global warming, however, it’s impossible for you to breath inside your home without the aid of these appliances. Naturally, if you’ve been using your aircon units more than usual, your electricity bills will go up. And this is something that you’ve not properly forecasted. As such, you will be over your budget and you would need additional funds to cover for the “over-sized” bills. And where can you get quick and easy cash than through payday loans?Payday loans are not that deceptive. Critiques label them as such because they lure low-income families to quick money in exchange for high interests. If they don’t have other sources for additional funds, naturally, they are prone to fall prey to payday loans.But this need not be the case always. As long as you know how to control yourself and as long as you can logically and sincerely distinguish “emergency” from “quasi-emergency,” then you won’t have to deal with financial problems emanating from payday loans.Payday loans are specifically made to address emergency needs. Only when you abide by this “rule of thumb” shall you be able to protect yourself from ridiculous finance charges!Money Loans Company – Payday Loans and Cash Advance20 Eglinton Ave. EastToronto, Ontario, CanadaM4P 1A9

SEO Book – Can You Learn SEO From Scratch by Reading Books?

If you’re reading this article, most probably you already know (or at least suspect) that Search Engine Optimization is like a key to Fort Knox for any online entrepreneur. Why? Because proper SEO opens your website the door to leading positions in search engines. The higher your website ranks in search results pages, the more ready-to-buy users find you, not your competitors first. And they buy from you, not from your competitors. Your top position in Google multiplies the dough you get twofold, threefold and (pardon my play on words) Google-fold.OK, SEO is a rock-solid way to make your on-line business flourish. But what if you hadn’t even heard the word “SEO” till yesterday? The Internet sea abounds in screaming “SEO in two days” and “SEO book for noobs” headlines. But can you really zero-base learn SEO – for which SEO companies charge up to $5,000 a month – on your own? By simply reading about it? The answer is YES. SEO is no rocket science if you have the right source to ladle out your knowledge.So where is the knowledge treasure-house for a self-taught SEO?Some old hand SEOs would claim – the only way to get on-the-nose SEO tips is searching through forums and blogs, where professionals share their real-life experience.Well, digging deep into these sources can be very informative. This is a perfect way to enrich your SEO wisdom: pick up some useful know-hows and savvy tricks and techniques. But only if you already have your SEO-mindset stable. I mean, if you’ve already learned the basics of SEO science. If not, how can you tell a worthy piece of advice from useless scribbling by muddle-heads who often swarm on such forums and blogs? Besides, it’ll take you ages to gather the pieces of SEO-puzzle together and get a complete picture of how to SEO your website.SEO books are another pair of shoes. All you need is packed together for you. No surfing through dozens of websites. But here you should also keep in mind several important points:- The Internet world and SEO principles are changing at supersonic speed. What was good for website promotion yesterday may turn out to be a complete waste of time today. In what way would the authors keep up with this speed of changes? In no way, unless their SEO book is a day by day updated e-book. That’s why the SEO book you can really trust is an e- book- Does “Search Engine Saturation” or “Traffic Referral Rates” sound clear to you? Would you like your SEO book to speak the language you don’t understand? Definitely, no. You need SEO things made easy as ABS. So you need an SEO book that speaks plain English- The ultimate goal of your learning SEO is being able to actually optimize your website, not only use some SEO terms, isn’t it? If so, a solid-cheesy-theory book is a waste of your precious time. Make sure your SEO book gives practical advice and step-by-step guidance for your page optimization- On the other hand, learning something parrot fashion is also no good. You are to UNDERSTAND WHAT, HOW, and WHY you are doing. Otherwise, a small deviation from a studied scheme – and you are deadlocked. Pick up the SEO book that not only orders you what to do, but explains why you should do thisThese criteria considerably narrow your range of choice. One of the books I’ve recently come across that perfectly hits the spot is “SEO in Practice”. It is an all-round online SEO guide by a 9-year experienced SEO pro Dan Richmond. He leads you by the hand into the world of Search Engine Optimization, pointing each step you should take and clarifying all whys and hows so that a child could understand.To top it all, keep in mind: whatever way to dig into SEO you choose, it’s your zeal that grows the fruits to reap. There is no one but you to knock in the knowledge into your head.