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.

Importance of Free Online Business Directories

A lot of free online business directories are getting full attention right now because a lot of customers are getting several benefits from it due to the fact that they hold a compilation of information for different businesses. However rampant these online directories are in our time today, many small businesses still cannot afford it because almost all of them are requiring payment. Given this fact, the question now is despite being required to pay a certain amount, why should people still depend on these directories?First of all, these online business directories are a very good form of advertising for a lot of online businesses out there. Even though the business is just a small one and is just starting out, the fact that a lot of people look into these directories daily already increases the chance that these small businesses will receive more traffic. The job of attracting a lot of people will already be done by these directories given the fact that many people consult them; the only thing you have to do is back this up with interesting enough advertisements to succeed in convincing people to check out your online business. In addition, people will have the liberty to place in as much links they want in these online directories as long as they can really afford it. These directories do not impose limitations to entrepreneurs because anyone who can afford it can simply do as they please with their links.And speaking of limitations, people who visit these directories are not faced with limited choices of online businesses that are already huge and famous. Either small or large businesses are given an equal opportunity when their links are placed in these online directories. Therefore, if you are an entrepreneur who is just starting out with your brand new business, it is a good idea for you to start with online directories because here, it doesn’t matter how long you have been running your own business as long as you choose a field that generally interests a lot of people. Besides, instead of spending your money just to print out advertisement flyers, you can just save them and use them for other things related to making your business more successful. At least with an online directory, even though you spend a small amount for listing your link, you are somehow assured that people will really see your link because people visit these directories daily. Unlike with manual advertising, you will not be sure that people will be able to find their way to your flyers. Therefore you are not assured that the money you spent will really benefit your business in the long run.For those people who are thinking twice about listing their business link to free online business directories, just think about how your money will be more worth spending on them than on the manual process of advertising. Obviously, these online directories will bring in more profit for your business because of how much people patronize them.

Nutritional Yeast vs. Vitamin Supplements

Nutritional yeast is deactivated yeast–often, Saccharomyces cerevisiae–that is yellow in color and has a nutty and cheesy flavor. It is a reliable food source for vitamins, especially B-complex vitamins such as folic acid. It is also an excellent source of protein (52%) and contains essential amino acids–making it a very popular choice for vegans. Some products are fortified with vitamin B12, which is produced separately from bacteria. Because of its rich nutrient content, nutritional yeast is a very good choice to include in a daily diet, instead of taking synthetically formulated vitamin supplements. Some of the benefits of nutritional yeast vs. vitamin supplements are discussed here.1. Flavor When it comes to the flavor of nutritional yeast vs. vitamin supplements, nutritional yeast is the winner. Nutritional yeast has a nutty, cheesy, and creamy flavor that makes it an excellent cheese substitute–in fact, it is often used by vegans as a substitute to parmesan cheese. Nutritional yeast comes in the form of flakes or powder, and can thus be sprinkled to almost anything–from popcorn, bread, and vegetables, to pizzas, pastas, and casseroles.Meanwhile, how many vitamin supplements can be used to flavor or enhance food? This alone gives you enough reason to go for nutritional yeast (vs. vitamin supplements). Because of its unique flavor and the many versatile ways it can be added into food, nutritional yeast (vs. vitamin supplements) are easier to ingest and administer to kids and adults alike. Furthermore, nutritional yeast is low in fat and salt, making it perfect for those who are watching their weight.2. Natural vs. synthetic Nutritional yeast vs. vitamin supplements is different in how they store nutrients. Nutritional yeast is naturally grown–providing vitamins and nutrients at their natural state. It is not processed, and therefore, is a whole, organic, food vitamin. Inorganic vitamin supplements on the other hand–those that are not obtained or extracted from whole foods–are usually synthesized in high concentrates. Some say that vitamins and mineral elements are so complex and dependent upon each other, that when they are separated, they can no longer provide the same nutritional effect on the body.Thus, high concentrations of synthetic vitamins may not be beneficial. On the other hand, nutritional yeast provides vitamins in their complete form–including all their parts and cofactors–because they are derived from whole foods.3. When vitamin supplements are better Of course, nutritional yeast is not always better. Some ingredients and contents of vitamin supplements are not found in nutritional yeast and may be needed to counter deficiencies of meet Recommended Daily Allowances. When weighing nutritional yeast vs. vitamin supplements, it is still advisable to consult a physician to find out what’s best for you.IMPORTANT: Keep in mind that the sale and distribution of nutritional yeast and vitamin supplements are unregulated by the Food and Drug Administration Board. As much as you can, buy only products from a manufacturer that strictly follows and adheres to the GMP standards. This assures you that the product contains the right amount of ingredients and dosage indicated, and that it is free from known contaminants.