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.

Skin Care Tips For Healthy Skin Rejuvenation – And Not a Skin Care Product in Sight

Healthy skin care for beautiful skin is all about taking care of your skin from the inside. It’s less about what skin care products you put on your skin and more about what you do to keep it healthy. Healthy skin will always be beautiful skin.Ten per cent of skin ageing is intrinsic, being dependent on your genes. Look at your parents: how has their skin fared as they’ve got older? They are a good indicator of how you might expect your skin to age. Eventually everyone looks older, but some age sooner than others.Other factors – extrinsic, or lifestyle, factors – such as smoking, stress, bad diet and the weather can literally leave their mark in the form of lines, sags and wrinkles. The good news, though, is that you can take charge and choose which ones are going to affect your skin’s ageing by being careful about exposing yourself to the sun, never smoking, sleeping well, eating healthily and avoiding toxins and pollutants.Skin Care Tips 1 – Protect Skin From The SunUp to 80 per cent of premature ageing is caused by overexposure to the sun’s harmful ultraviolet rays: a completely preventable source of ageing. Sun damage causes collagen and elastin to degenerate, as a result of which the skin sags and takes on a leathery appearance and texture, age spots develop and coarse wrinkles and broken blood vessels appear on the skin’s surface.Sun damage over the years can develop into skin cancer, which may stay invisible for 20 years or more. For all these reasons it is vital that you protect your skin, especially the skin on your face, with a sunscreen containing a minimum sun protection factor of 15 (SPF15). (Note that, because of the way in which sunscreen works, it is never necessary to use a higher factor than SPF30, whatever the conditions.)Skin Care Tips 2 – Stop SmokingAs well as polluting your body with thousands of toxins, smoking takes its toll on the skin. As a result, smokers age badly. Smoking promotes the formation of free radicals in the body, which affect skin renewal at a cellular level, as well as restricting the circulation to many areas of the body, thereby starving the skin of the vital oxygen and nutrients it needs for a healthy complexion.Many smokers develop lines that run from their mouth to their nose and have hollow cheeks from the inhaling motion. If that’s not enough to put you off smoking, the fact that it also discolors the skin, hair and nails might be.Skin Care Tips 3 – Steer Clear Of ToxinsToxins found in polluted air, drugs, pesticides, food and food additives, and chemicals are eliminated from the body by the liver, kidneys and lymph system. Good skin depends on healthy blood getting to the dermis and filtering the toxic waste away. An insufficient blood supply or blood high in toxins or accumulated waste under-nourishes and overloads our systems. The skin then becomes a dumping ground for excess unfiltered toxins, which produce free radicals. As a result of toxic overload, we often see deep furrows between the eyes and puffy under-eye bags. But the solution lies in your hands: steer clear of toxins in the first place, boost your circulation and detoxify your body.Skin Care Tips 4 – Get A Good Night’s SleepWe need beauty sleep so that our faces and bodies can relax and de-stress. Go to bed with a clean face for eight hours’ sleep to give your skin cells the chance to regenerate. A lack of refreshing sleep or any kind of sleep deprivation shows itself as saggy eyelids, bags under the eyes and dark under-eye circles, along with a pallid complexion. Keep your bedroom well ventilated and not too dry, otherwise your skin’s moisture will evaporate during the night, giving you dry skin.

What Are Payday Loans

Upon getting information about an upcoming school science fair and the need to consider a topic of interest, many students will typically have no idea where to get started. While the science fair is typically a common occurrence in any school at any grade level, there are different types of topics that should be taken a look at depending on the age of the student. After first taking a look at the many different categories of science projects, you will be able to locate a suitable choice of topic to take to the next level.There is a wide variety of categories that fall under the types of science projects that can be chosen for a school science fair. These include biology, chemistry, physics, microbiology, biochemistry, medicine, environmental, mathematics, engineering, and earth science. While you may not have yet learned very much in any of these categories, don’t be afraid to see what each one entails. Taking a good look at your interests will allow you to focus on the right direction to take.Many resources are also available for those who are unsure as to the topic they are wanting to use to create their science projects. If you take a look at the topics that fall under the biology category, you will likely notice that there are topics that deal with plants, animals, and humans. For those who are in 2nd grade or 3rd grade, an interesting topic may be to determine if ants are picky over what type of food they eat. While this topic might not be of interest to an 8th grader, it is certainly something in the biology category that an elementary school student would enjoy.Along with the biology category, a high school student may want to take a look at diffusion and osmosis in animal cells as this would be a more appropriate topic for the grade level. A student in 6th grade would be more advanced than an elementary school student, but not as advanced as a high school student. At this middle school grade level, a topic of how pH levels effect the lifespan of a tadpole may be of interest.Whichever resource is used to locate a topic for science projects, it is always a good idea to consider the grade level of the student prior to making a selection. It is always assumed to be best to have a project at an appropriate level in order to keep the attention of the student and provide a fun and enjoyable learning experience.