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.

Mary Kay Cosmetics Makeup and Skin Care Product Use

Fascination with makeup occurred at a young age. But when we start experimenting, we don’t always use the best face, body and cosmetic products. This is truly because we can only afford the stuff from the five and dime.As we mature, we learn that our skin requires special attention. It takes a little time and effort to maintain good skin that is glowing and totally flawless. Sometimes, based upon your skin type, special care needs to be taken. Such as a customized products for acne. So you should care for your skin as it asks you to. It shows you what needs to be done to keep it healthy. Mary Kay Cosmetics Makeup and Skin Care Product use enhances and helps maintain good skin.There are five essential steps when using Mary Kay Skin Care Products for good skin results:1. Cleanse: Removes makeup, impurities, excess oil and environmental pollutants2. Exfoliate: Exfoliates dead surface cells to re-texture and refine the skin’s surface3. Freshen: Completes the cleansing process as it helps tone, soothe and re-hydrate the skin4. Moisturize: Increases skin’s ability to retain moisture and forms a protective shield to reduce moisture evaporation and improve skin’s resilience and elasticity5. Protect: Evens skin tone for a flawless finish and shields from the environmentNote: A Moisturizer with Sunscreen SPF 15 helps protect skin from premature aging due to incidental sun exposure.Your skin may also require customized skin care and color products. For instance, you may need to:Smooth and softens fine facial lines, Minimizes the appearance of fine lines and wrinkles, Reduce puffiness under the eyes or have sensitive skin. Mary Kay Cosmetics offers customized products to care for skin that needs additional support in keeping the skin clear.Sensitive skin is defined as skin easily irritated by topically applied products or environmental factors. Be sure that you use a customized skin care and color product that says “suitable for sensitive skin”. Mary Kay Skin Care Product are made for sensitive skin.Blemish-Prone Skin – Acne or blemish-prone skin is a remarkably common skin condition. While many adolescents may experience acne, this condition also can appear for the first time in adults in their 20s or 30s or even later in life. Generally, however, if you had acne as a teenager, you are more likely to have it again as an adult. Eighty to 100 percent of all teenagers have acne to some degree, and an increasing number of adult women also have some acne. It may require a dermatologist’s care.Most Mary Kay Cosmetics Makeup and Skin Care Products have customized skin care products fit the specific skin care needs of most people. It takes a little time to determine what is actually needed by use. Symptoms of extremes in skin types, such as acne, overly dry or oily, can be improved through proper skin care use. It’s very important to remember that skin care products and cosmetics will help the skin look and feel good, but will not cure skin disorders. That’s when dermatology care is worth investigating.Note: In addition, once acne is present, excessive scrubbing or frequent cleansing will not control it, and any rough manipulation of the skin may further irritate and inflame the lesions or even lead to the formation of new acne lesions.When choosing a color cosmetics always go for the latest trends. It’s usually refreshing and fun to make the change. This also ensures assures freshness of the products.Pamper and care for your skin all over. Use the very best in body care. Layer your body care products on the skin before applying the fragrance because it can extend the wear time of the fragrance.Find a fragrance is completely unique and one with “staying power”. Different ingredients come into play in the fragrance at various stages of the perfume’s life on the skin.Perfumers distinguish between the various parts of the fragrance in the following way: The first impression of the fragrance. It is the initial impact of the scent on the sense of smell. The heart of the fragrance unfolds and develops a few minutes after the perfume is applied to the skin. The final impression of the fragrance . It is the most lasting part and can last several hours after the fragrance is applied.That’s because each one can include up to 1,000 different ingredients, which vary not only in how they smell but also in their “staying power” on the skin. Different ingredients come into play in the fragrance at various stages of the perfume’s life on the skin.Remember that the whole body needs care. And remember to make yourself feel special everyday!

Business Loans In Canada: Financing Solutions Via Alternative Finance & Traditional Funding

Business loans and finance for a business just may have gotten good again? The pursuit of credit and funding of cash flow solutions for your business often seems like an eternal challenge, even in the best of times, let alone any industry or economic crisis. Let’s dig in.

Since the 2008 financial crisis there’s been a lot of change in finance options from lenders for corporate loans. Canadian business owners and financial managers have excess from everything from peer-to-peer company loans, varied alternative finance solutions, as well of course as the traditional financing offered by Canadian chartered banks.

Those online business loans referenced above are popular and arose out of the merchant cash advance programs in the United States. Loans are based on a percentage of your annual sales, typically in the 15-20% range. The loans are certainly expensive but are viewed as easy to obtain by many small businesses, including retailers who sell on a cash or credit card basis.

Depending on your firm’s circumstances and your ability to truly understand the different choices available to firms searching for SME COMMERCIAL FINANCE options. Those small to medium sized companies ( the definition of ‘ small business ‘ certainly varies as to what is small – often defined as businesses with less than 500 employees! )

How then do we create our road map for external financing techniques and solutions? A simpler way to look at it is to categorize these different financing options under:

Debt / Loans

Asset Based Financing

Alternative Hybrid type solutions

Many top experts maintain that the alternative financing solutions currently available to your firm, in fact are on par with Canadian chartered bank financing when it comes to a full spectrum of funding. The alternative lender is typically a private commercial finance company with a niche in one of the various asset finance areas

If there is one significant trend that’s ‘ sticking ‘it’s Asset Based Finance. The ability of firms to obtain funding via assets such as accounts receivable, inventory and fixed assets with no major emphasis on balance sheet structure and profits and cash flow ( those three elements drive bank financing approval in no small measure ) is the key to success in ABL ( Asset Based Lending ).

Factoring, aka ‘ Receivable Finance ‘ is the other huge driver in trade finance in Canada. In some cases, it’s the only way for firms to be able to sell and finance clients in other geographies/countries.

The rise of ‘ online finance ‘ also can’t be diminished. Whether it’s accessing ‘ crowdfunding’ or sourcing working capital term loans, the technological pace continues at what seems a feverish pace. One only has to read a business daily such as the Globe & Mail or Financial Post to understand the challenge of small business accessing business capital.

Business owners/financial mgrs often find their company at a ‘ turning point ‘ in their history – that time when financing is needed or opportunities and risks can’t be taken. While putting or getting new equity in the business is often impossible, the reality is that the majority of businesses with SME commercial finance needs aren’t, shall we say, ‘ suited’ to this type of funding and capital raising. Business loan interest rates vary with non-traditional financing but offer more flexibility and ease of access to capital.

We’re also the first to remind clients that they should not forget govt solutions in business capital. Two of the best programs are the GovernmentSmall Business Loan Canada (maximum availability = $ 1,000,000.00) as well as the SR&ED program which allows business owners to recapture R&D capital costs. Sred credits can also be financed once they are filed.

Those latter two finance alternatives are often very well suited to business start up loans. We should not forget that asset finance, often called ‘ ABL ‘ by those Bay Street guys, can even be used as a loan to buy a business.

If you’re looking to get the right balance of liquidity and risk coupled with the flexibility to grow your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success who can assist you with your funding needs.