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.

Is an Online Travel Bureau a Reliable Option?

Long time ago…But as the Internet began to boss all areas of business, travelers began to face online travel agencies in place of bricks and mortar. These “virtual” guides presented all travel planning ideas and discounts from tour rates offered after acute travelers to leave home. Travelers do not need accessories and accommodated face to face with travel abettor just to accomplish travel arrangements. Now there was an acceptable way to book travel online and acquisition abatement airfares.Reality CheckTraditional stores are still accomplishing active business with the travelers and are an applicable band-aid to booking journey arrangements. However, as active as our lives may be, the online vacation retailers don’t act quick and simple band-aid to award airline tickets without getting you away you’re your home, or even plan – and the brick and adhesive food to apprehend this. Some accepted agencies are as well reaching the web and the enactment of destination sites to board those individuals searching to bound seek for and book your flights. So while the online travel agencies accept not absolutely decimated, the acreage of accepted travel agencies, which accept accustomed an applicable and acceptable another to booking vacations, commercial trips and added travel plans.Life continue to exists in brick-and-MortarConventional honeymoon agencies continue to command an abundant percentage of the industry of travel booking. Your face to face account is what maintains them in business and, depending on the traveler’s needs, an added astute band-aid to book travel arrangements. In case you book a travel arrangement through a travel bureau brick and mortar, which is alive with absolute humans and if you are a common traveler, it’s acceptable to accept a “favored booker” to go for travel admonition and admonition. With online travel agency, you are artlessly interacting with a basic interface that lets you seek and book your travel affairs after accepting to allege with a reside person. Many humans adopt face to face alternation or even would anticipate about application a travel website so as to book travel plans. There’s still one thing to be said on claimed account and accepted travel dealers are really capitalizing on it, aims only casework and amenities to travelers.So where do we go?As one can see, there are advantages and disadvantages to both accepted travel agencies and online. Each offers its own acquaintance and the characteristics that accomplish it altered from others and for altered people. When selecting the best advantage for you, you only charge to ask “What am I searching at a travel agency? The best mode to acknowledgment this catechism is for testing few online travel agencies, analyze them with some artery and mortar, and observe which ones accept the savings, articles and casework you want.

How Do We Determine Nutritional Need?

Today, we’d like to focus on the amount of nourishment and physical exercise our bodies need and how best to accomplish these objectives. It is very important to study and understand our own bodies’ individual needs, in terms of physical needs, caloric intake, and nutritional health. If you know where to look, you will find libraries, doctors, and fitness centers are stocked with nutritional information and guidance for healthy living choices for people of all ages.A healthy body requires nutrition to nurture our bodies and keep them fit and in working order. Every day, the vitamins and minerals we consume in our foods provides us with nutrition we need to thrive.How can we ascertain our individual nutritional needs? Simply by getting more information about our own individual needs and the needs of our loved ones, we can start to make smarter choices on the foods we purchase, prepare, and present to our families.When it comes to day-to-day life, nutrition is defined as what we consume as it relates to what we need to keep our bodies healthy. Thanks to recent participation of the USDA in our daily food requirements and the FDA keeping up the standards of safe eating, nutrition has become more of a common household word.So what actions should we take with regards to nutrition? How can we find out what our nutritional requirements are, how to fulfill them, and in which foods to find the best nutritional value? Nutrition in its own right hasn’t garnered the amount of attention it probably needs. We hear all sorts of buzzwords regarding milk and cereals fortified with vitamins, our daily vitamin intake, and what nutritional value we get from our food choices. But how does all this actually apply to our daily body functions?Our vitamin and mineral requirements frequently outweigh our caloric needs. Here is where supplemental vitamins and minerals are necessary to fill the gap. All these things are part of our basic nutritional needs.Because everyone has individual needs and because there are so many different facets to nutrition, nutrition is a very complex topic. Men and women have very different needs, and even young women’s needs are different from that of older women. Continual education and reevaluation of our nutritional needs as we age is a necessary part of our bodily health.It stands to reason that an athletic middle-aged hiker would have differing nutritional needs from a person who suffered from heart disease. So many different elements factor into our nutritional health, it’s easy to see how it can become so complex. In a perfect world, everyone would have their own scale they could use to determine their bodies’ physical and nutritional needs on a cellular level to recalibrate every so often for optimum nutrition. People need to realize that everyone is different, and a good nutritional education is the key to having our body run as efficiently as it can. The goal of everyone’s life should be good nutrition.