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.

Nutritional Health Supplements – How I Was Wrong About Them

It was my opinion that everybody gets enough nutrients in their diets and that nutritional health supplements were a waste of money. Having played competitive sports for many years, my belief was that women’s or men’s health supplements are only for athletes or body builders. I was wrong! The health benefits of supplements are for everybody and anybody who lead busy, stressful lives. Physically active or inactive, healthy or unhealthy we can all benefit from an herbal nutritional supplement or natural vitamin supplements. I learned this the hard way through personal experience.I had not realized that proper nutrition can be difficult to achieve for many people. Healthy living is difficult when most people do not get enough nutrients in their diet. For example, many cannot get the recommended daily allowance of fruit and vegetables each day. Forgetting nutritional supplementation is no longer an option if we want total nutrition. Unfortunately, the problem is bigger than I thought when you consider all the factors that come into play;Many fresh foods are no longer meeting their optimal nutritional potential. In many cases they are grown in soil that has been farmed excessively and are picked before their prime so they do not over ripen during transportation to market.
Vitamins and minerals may be lost during storage, preparation and cooking.

The purchasing and eating of less nutritious processed foods is common for many who do not have to shop and prepare meals from ‘scratch’.

During the busy week when we do cook, our meals may not be varied enough to offer a variety of nutrients.

We may not change our diet when we need to with age. As we age we need different nutritional supplementation as we digest and absorb certain vitamins and minerals differently.

Some nutrients are simply hard to obtain. For example, the Essential Fatty Acids (EFAs) available in Salmon oil capsules.

In general, there is a lack of education on nutritional health supplements, healthy food options and cooking.

In my particular case my wife was more at risk. Although, we did eat healthy meals we were not aware of the health benefits of supplements. Unfortunately, we were also dealing with a lot of stress at the time. Stress plays a large role in what nutrients you are using and absorbing in addition to the fact that the ‘knot-in-her stomach’ was inhibiting her appetite. Many women are more in need of herbal nutritional supplements or natural vitamin supplements simply because they consume fewer calories than men.As a result this lead to higher levels of stress and fatigue. Weak, she was prone to illness and mood swings. Hair loss, poor skin complexion and digestive system problems followed. It was a vicious circle leading to more stress and fatigue. It took a this extreme situation for us to realize the need for supplements for general health. A necessary solution for many to meet their daily nutritional needs is simply nutritional supplements whether its women’s health supplements or multi-vitamins, herbal nutritional supplements or natural vitamin supplements. The benefits are obvious;
Improved energy

Reduced frequency of mood swings

Less prone to fatigue and depression

More resilient to stress and illness.

Better overall health as we feel better mentally and physically.
Based upon my wife’s fatigue and illness, we had waited too long and she was in need of a nutritionist. In addition to joining a gym (which helped her appetite) my wife was recommended to take a few key women’s health supplements;
Salmon oil capsules because of the benefits of the Omega 3 Essential Fatty Acids. General good health, improves brain function even reduces the symptoms of PMS. It has also been shown to help anger, depression and stress.

A digestive health supplement; as we age and enter different stages of life our nutritional needs also change. Digestive health supplements may be required as our ability to digest certain foods changes with age. Some vitamins and minerals may be consumed very quickly others may not be absorbed into the body as readily. Lactose and gluten (found in wheat products) may be more difficult for our body to process as we age.

Multi-vitamins or a targeted multi-nutritional kit to promote general health with women’s specific needs in mind.
All these nutritional supplements were easy to find and even available on-line which works well with her busy schedule.My wife’s situation was an excellent example of how women are susceptible to the effects of poor nutrition. She has demonstrated the benefits of total nutrition via nutritional supplements and a healthy diet. Today, she is healthy and living a physically active lifestyle. I am grateful that she is such a wonderful role model to our daughters and others who may also be in need of nutritional health supplements and a better, balanced life.For more information on nutritional supplements, general nutrition, physical activity and stress management please visit www.bamboohealthproducts.com

What We Have Here Is A Failure To Communicate

The results of this past election proved once again that the Democrats had a golden opportunity to capitalize on the failings of the Trump Presidency but, fell short of a nation wide mandate. A mandate to seize the gauntlet of the progressive movement that Senator Sanders through down a little over four years ago. The opportunities were there from the very beginning even before this pandemic struck. In their failing to educate the public of the consequences of continued Congressional gridlock, conservatism, and what National Economic Reform’s Ten Articles of Confederation would do led to the results that are playing out today.. More Congressional gridlock, more conservatism and more suffering of millions of Americans are the direct consequences of the Democrats failure to communicate and educate the public. Educate the public that a progressive agenda is necessary to pull the United States out of this Pandemic, and restore this nations health and vitality.

It was the DNC’s intent in this election to only focus on the Trump Administration. They failed to grasp the urgency of the times. They also failed to communicate with the public about the dire conditions millions have been and still are facing even before the Pandemic. The billions of dollars funneled into campaign coffers should have been used to educate the voting public that creating a unified coalition would bring sweeping reforms that are so desperately needed. The reality of what transpired in a year and a half of political campaigning those billions of dollars only created more animosity and division polarizing one extreme over another.

One can remember back in 1992 Ross Perot used his own funds to go on national TV to educate the public on the dire ramifications of not addressing our national debt. That same approach should have been used during this election cycle. By using the medium of television to communicate and educate the public is the most effective way in communicating and educating the public. Had the Biden campaign and the DNC used their resources in this way the results we ae seeing today would have not created the potential for more gridlock in our government. The opportunity was there to educate the public of safety protocols during the siege of this pandemic and how National Economic Reform’s Ten Articles of Confederation provides the necessary progressive reforms that will propel the United States out of the abyss of debt and restore our economy. Restoring our economy so that every American will have the means and the availability of financial and economic security.

The failure of the Democratic party since 2016 has been recruiting a Presidential Candidate who many felt was questionable and more conservative signals that the results of today has not met with the desired results the Democratic party wanted. Then again? By not fully communicating and not educating the public on the merits of a unified progressive platform has left the United States transfixed in our greatest divides since the Civil War. This writers support of Senator Bernie Sanders is well documented. Since 2015 he has laid the groundwork for progressive reforms. He also has the foundations on which these reforms can deliver the goods as they say. But, what did the DNC do, they purposely went out of their way to engineer a candidate who was more in tune with the status-quo of the DNC. They failed to communicate to the public in educating all of us on the ways our lives would be better served with a progressive agenda that was the benchmark of Senators Sanders Presidential campaign and his Our Revolution movement. And this is way there is still really no progress in creating a less toxic environment in Washington and around the country.