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.

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.

Optimum Nutrition Will Improve Your Overall Health In Less Than 30 Days

Optimum nutrition is considered to be a revolution in health care. When you fuel your body with optimum nutrition, you are giving yourself the best possible intake of nutrients to enable your body to function and be as healthy as possible. The nutrition is what helps your body perform all sorts of basic functions…detoxification, strengthens your immune system, provides natural antioxidants, and provides digestive enzymes…to name a few.Preventing or reversing disease-states is but one more function of optimum nutrition. Science is showing us every day that nutritional deficiency is contributing largely, if not actually causing, illness and disease in our bodies. But optimum nutrition is about more than just keeping disease and illness at bay. It is about living optimally, where we have room to stretch our physical, mental, and spiritual “muscles” to the full, without overstepping the threshold at which cellular health in any of the systems of the body becomes threatened.Your nutritional goal should be to give yourself the best possible intake of nutrients to enable your body to function and be as healthy as possible. Optimum nutrition consists of eating the right amounts of nutrients on a proper schedule to achieve the best performance and the longest possible lifetime in good health. When you are providing the proper balance of nutrients to your body, your daily diet will consist of the right quantities of protein, fat, carbohydrates, vitamins, minerals, and fiber to maintain a healthy body and to sustain the desired level of activity for the best quality of life.Apart from being essential to general good health, optimum nutrition is so fundamental and powerful that it can speed healing and improve weight, energy, immune functions, sleep, mental acuity, feelings, attitude and just about any aspect of your being. It is a state of profound physical, mental and emotional well-being. Optimum nutrition is within all of our grasps; it starts with a commitment to a lifestyle.HEALTHHealth is not merely the absence of pain or tension, but it is a joy in living; a real appreciation of what it is to have a healthy body with which to experience the many pleasures of this world. While it may sound simple…this isn’t an easy task.Because of the nature of processed food and depleted soils, most nutritional experts believe that the current diet provides enough vitamins and minerals for survival, but not for optimal health. Minimizing the intake of processed foods is essential for restoring your digestive health.Many health benefits are due to another group of health-promoting nutrients called phytochemicals, which are found in fresh, raw fruits and vegetables. Now, that’s coming back to the basics. Yet many people continue to be surprised that something as simple as coming back to basic nutrition, balancing your diet, and keeping healthy can go a long way to relieving daily aggravations such as skin problems, slowing down signs of aging, and keeping you looking better year after year.QUALITYSo, the fact is that food is not only vital fuel, but also fundamental “medicine”…and it is vital that we pay attention to the quality and quantity of fuel that we feed our bodies. Optimum nutrition helps the body to cleanse and repair itself, restore energy levels, rebalance hormones, the blood sugar level, brain chemicals, and generally improve one’s quality of life. The quality and balance of our food intake is therefore a key factor in determining our overall health.In whole foods, you will find the greatest concentration of quality nutrition per calorie of intake. Research has shown that optimum nutrition is achieved through the eating of a variety of natural foods that are packed with vitamins and minerals. It is about finding the foods and nutrients that will help you achieve better health and vitality, and avoiding those that may not suit you. Once optimum nutrition is in place, you can look forward to a consistent high level of energy, emotional balance, alertness, physical fitness, resilience against infectious diseases, and longevity.SUMMARYIn short, optimum nutrition is about providing the body cells and tissues with the vitamins and minerals they require to function to their best ability. I am now completely convinced that the concept of optimum nutrition is the greatest step forward in “medicine” for over a century, no less important than Louis Pasteur’s discovery of disease-causing germs or the discovery of genes. If this lifestyle of optimum nutrition is applied from an early age, it is likely to be your best guarantee for a long and healthy life.You should, of course, consult with your health care professional before starting any diet, exercise, or supplementation program. The information provided in this article is for informational purposes only and is not intended as a substitute for advice from your health care provider. Just make sure that you do your own health research as well…it will be a learning experience for which your body will thank you with improved health if you diligently fuel it with optimum nutrition on a daily basis.