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.

Common Skin Care Mistakes

No-one wants to have dull and lifeless skin, which is why some of us spend all kinds of money on skin care products meant to keep our skin soft and youthful. Although many of these skin care products do actually do what they’re supposed to, the reason many people are unhappy with the results they receive from their skin care product is because the unknowingly fall into many of the common misconceptions of skin care.The best way to take care of your skin is to understand what you skin needs, what it doesn’t need. Take a look at some of these more common misconceptions about skin care, see if you need to tweak your skin care routine.1. Too Much ProductMore is better right? Actually, no it isn’t. Using too much of any kind of skin product isn’t good for the skin. Using too much of an acne treatment, for instance can lead to more severe breakouts, and too much of an eye gel can irritate and burn eyes. Most skin care products absorb directly into the skin, spreading to the affected area, so you really only need a little bit. Body lotions are a little different in the sense that they’re going over the whole body, but you still don’t need a lot, just enough the cover the areas you want without leaving excess on the skin.2. Not Wearing Sun BlockThe sun’s harmful UV rays are the number one cause of wrinkles and sun spots as well as skin cancer. Forgetting to wear a sun screen with an SPF of 40 or higher protects you from sunburn, sun poisoning, wrinkles, and other complications the sun can cause. Remember to re-apply your sun block every one to two hours even if it’s waterproof, as the SPF starts to break down as soon as it touches moisture leaving you unprotected. A good pair of sunglasses is also good to have when out in the sun for a long period of time so to protect the fragile eyes from harsh rays.3. Using The First Product You SeeOne of the biggest mistakes that one can do when it comes to taking care of their skin, is just picking up the first product you see without checking its ingredients. I cannot stress enough how important it is to fully read a skin care products ingredients to see if there is any harsh chemicals. Things like Potassium Hydroxide, SLS/SLES and Parabens are considered to be some of the most common and most harmful chemicals in the skin care world. These substances are known to cause irritation to the skin, burning, inflammation and in some cases they have been linked to cancer.4. Not Being ConsistentIf you apply a wrinkle cream or a moisturizer every couple days, then don’t expect to be blown away with the results. In order for any skin care product to be effective, you must stay on top of its use. If the product says “USE EVERY MORNING AND NIGHT” do exactly that. If you want results from your product, figure out a way to work it into your daily routine of things. A basic skin care regimen should only take about five to seven minutes out of your schedule. A good method for apply any skin care product is right after a shower, as the pores are open and can more easily absorb a product, making it more effective.5. H2OWater is the one constant need other than food that all life on this planet needs. We need water to properly regulate our metabolism, give us energy and to flush the body of wastes. Drinking plenty of water everyday helps to flush out toxins, dirt, and bacteria from the skin that would otherwise cause the skin to look dull and weathered. Start drinking more water and I promise you’ll see a noticeable change in the coming weeks.So, now that you can properly identify some of the things your skin needs and doesn’t need, you should be able to effectively tweak are start your skin care routine for the healthiest and youngest looking skin around. The best things come from nature, so try and stick with all natural skin care products trust me your skin will thank you. Shield yourself from the sun as best as you can, and be as consistent as possible with your regimen. Lastly don’t forget to keep water with you at all times and drink, drink, drink, it can’t hurt. Remember these tips and you’ll be on your way to the best looking skin around.

What is Debt Management?

Debt management is just one of a number of options available to you when facing serious debt problems. These options should be looked at and considered so that you can decide which option is right for your circumstances. Debt management is a term which denotes managing a borrower’s debt. There are many factors which might have been influential in your debt. Debt Management is not a ‘quick fix’ to stop this happening.Debt Management is one of a number of debt solutions available for people struggling to pay off their debts. the CCCS offer free debt advice and counselling. Debt Management is nothing to be worried about. For example, most people need a mortgage to buy a house, it would be unreasonable to think that we should buy our homes with savings. therefore debt is inevitable. Debt Management is the process by which your debts are consolidated into one lower monthly payment. This one payment will be an amount which you can afford, and will be apportioned amongst your creditors.Debt management is not a term that most of us want to think about. And while debt management is necessary in terms of bad debt, it is important to know how to properly use for good. Debt management is a system which will allow an individual or family to pay their creditors. All your unsecured debts are calculated along with your monthly outgoings. Debt management is the most effective solution to dealing with unmanageable debts. It will stop demands from creditors, help you regain control of your finances and create a single affordable monthly payment.Debt Management is an option available for people with high outgoings who are struggling to manage their repayments and can’t get a loan to consolidate these. By utilising a debt management scheme you are able to cut your monthly outgoings by up to half and only make realistic repayments. Debt Management is a way out of trouble for many people that is seeing a rise in popularity. From a finance professionals point of view it can be the best advice for a client and also an additional income stream from otherwise declined or rejected mortgage inquiries.Debt Management is an alternative debt repayment plan to an IVA that allows you to pay just one low affordable monthly payment to your creditors. If you qualify for an IVA you should explore that option first before accepting a debt management plan. Debt management is becoming increasingly crucial for many Brits who need help.Individuals may borrow more money to be able to pay creditors or bills, however this is not usually the best thing to do. The most common thing to do is to try and ignore the problem, but this will not make it disappear. Individuals usually get into a debt problem because they are living beyond their means and supporting their spending habits with credit cards. A debt consolidation loan may appear to solve things by paying off the existing debts but unless this loan is affordable it can lead to even more trouble. I properly run debt management plan will help to bring debts under control once and for all.