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 Capital Solutions In Canada: Accessing Proper Cash Flow & Commercial Financing

Business capital requirements in Canada often boil down to some basic truths the business owner/financial mgr/entrepreneur needs to address when it comes to financing for businesses.

One of those truths? Knowing the true state of their financial condition and what financing they do and don’t qualify for when it comes to meeting commercial lending requirements in Canadian business.

Business Loans In Canada

Whether you are smaller or start-up firm looking for information on how to get a business loan or a larger established firm looking for growth financing or acquisition opportunities we’re highlighting 3 mistakes that commercial loan seekers like your company need to avoid making when addressing, sourcing and negotiating your cash flow / working capital and commercial financing needs.

1. Understand the true condition of your company finances – These are almost always successful addressed when you spend time on your financials and understand how your financial statements reflect your access to commercial loans & business credit in general

2. Ensure you have a plan in place for sales growth and financial needs as it relates to commercial financing

3. Understand that actual hard facts about cash flow which is, of course, the lifeblood of your company

Can you honestly answer or feel positive about all those 3 points. If so, pass Go and collect $ 100.00!

A good way to address your company’s finance plans is to ensure you understand growth finance solutions, as well as how to manage in a downturn – i.e. not growing, losing money, etc; It’s never fun to fund yourself in an economic or industry downturn such as the COVID pandemic of 2020!

When we talk to clients of new or established businesses it seems they are almost always talking about sales, so the ability to understand and focus on the differences in their profits and cash fluctuations is key.

How do cash flow and sales plans and projections affect the type of financing you require? For one thing sales growth usually starts out by consuming your cash, not generating it. A poor finance plan will drag your business down and addressing financing simply gets tougher and tougher.

Three basics always emerge when it comes to your search for the right business capital and financing.

1. The amount of financing you need

2. The type of financing (debt/cash flow/asset monetization) The business loan interest rate will be dramatically affected by whether you choose traditional or alternative financing solutions. Private business loans in Canada come from non regulated commercial finance companies most often known as ‘ alternative lenders ‘. These lenders are typically highly specialized in one ‘ niche ‘ of business financing and may be Canadian firms or branches of U.S. banks and non-bank lenders

3. How the financing is structured to be manageable with your day to day operations

What Finance Company In Canada Can Meet Your Borrowing Needs & Why Is Capital Important In Business

Let’s identify and break down key financings your firm should know about and understand if they are applicable and achievable to your business. They include:

A/R Financing / Factoring / Confidential Receivable Finance

Inventory finance / floor planning / retail inventory

Working Capital term loans

Unsecured cash flow loans

Merchant working capital loans/advances – these loans are geared toward short term cash needs and are typically one year in duration. Loan amounts are typically 15-20% of your annual sales revenues.

Royalty finance

Asset based non bank business lines of credit

Tax credit financing (SR&ED bridge loans)

Equipment Leasing / Sale leasebacks – Equipment financing in Canada is used by almost 80% of all companies looking to acquire new, and used, assets.

Govt Guaranteed Small Business Loan program – Government Loans in Canada are sometimes referred to as ‘ SBL’, aka Note: BDC Finance solutions are available from this Canadian non-bricks and morter crown corporation. A small business loan via the government-guaranteed loan program comes with true flexibility around term loan duration, market rates, no pre payment penalties, and of course the low personal guarantee that is required by borrowers. These two ‘ government ‘ loan solutions are often perfect for financing a new business.

If you’re focused on not making mistakes in your business finance needs and want to capitalize on the solutions your competitors are probably already using seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow and commercial financing needs.

Stan has had a successful career with some of the world’s largest and most successful corporations.

His employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) In 2004 Stan founded 7 PARK AVENUE FINANCIAL – He is an expert in Canadian Business Financing.

A Look at How Kinesiology Can Improve Your Health

Kinesiology has been defined as the science of kinesiology. Simply put, kinesiology is the study of physical activity or movement. An understanding of kinesiology can be helpful in an incredible number of non-related settings such as the study of sports, kinesiology exercise physiology, human anatomy, physiology, physical conditioning, rehabilitation, and numerous other health-related issues. It can also help those who are trying to get fit or maintain their health.

One can use a basic understanding of kinesiology to examine several common problems that people have such as excessive sweating, difficulty urinating, and difficulty breathing. The most common symptoms associated with these conditions are at an increased pulse rate, dizziness, nausea, or a combination of these. These symptoms are caused by a variety of imbalances in the muscles and tissues that are located around the heart, lungs, and abdomen. By examining these areas in patients who have undergone treatment for one of these conditions, it can be easier to determine the cause and find a solution. It is not uncommon for patients to undergo an extensive amount of medical testing before being prescribed a treatment plan, which is why an understanding of kinesiology will be very helpful. It is important to become an expert in this field due to the fact that there are so many different kinds of treatment available and that not all of them are appropriate for everyone.

Suggested article: Kinesiology Association

A kinesiologist is trained to help diagnose and treat many conditions and diseases that affect the autonomic nervous system, which is why the majority of kinesiology students choose to specialize in this field. While there are various ways that kinesiology can be performed, the three most common ways are through the administration of electric shock treatments, electrotherapy, and massage techniques. Each of these has its own benefits as well as risks. Treating an individual with an electric shock is one of the most commonly performed methods of kinesiology and has been around since the 1950s. However, it is important to note that while this method is widely used, it is far from ideal due to the fact that there is no control over the electric current that is used and it can cause permanent damage to the tissue that it is targeting.

Electrotherapy and massage techniques both use stimulation of the muscles to encourage contractions in order to achieve a desired health condition. While electrotherapy targets specific muscles and regulates the flow of electric current throughout them, massage techniques allow the practitioner to loosen tight muscles and stimulate blood flow throughout the body. Both of these techniques are used to stimulate and improve the health and function of the muscles, tendons, and ligaments. However, kinesiology treats the muscles holistically, which means that there are no specific problems that must be treated or avoided. This type of treatment allows the practitioner to identify the areas of concern and work together with the patient in order to achieve the best results possible.

Kinesiology has some common components that include muscle balance, kinesiology motor skills, and stress management. Muscle balance refers to the ability of the body to coordinate and maintain the proper functioning of all of the muscles and joints. Proper muscle balance also allows for optimal performance and proper health. For example, if one part of a muscle is weak, it will not perform as efficiently as another part that is stronger. This is where kinesiology may come into play.

Suggested article: KA Shop

Kinesiology muscle monitoring is a process where the medical professional monitors the activity of a specific muscle as it is being contracted. The purpose of this is to determine any changes or disruptions in the muscle activity as well as changes in the force used to push it through the range of motion. When these changes are found, the practitioner will then evaluate the patient for possible stress-related conditions. Stress can have a significant impact on the health of an individual and can often lead to tension in the back, neck, and other muscles. By monitoring the activities of the muscles, the practitioner is able to identify the problem areas and develop a treatment plan to address them.

One aspect of physical fitness that many people do not think about is kinesiology. While it is not an exercise science in the strictest sense, it is an exercise science that can provide significant health benefits through improved body mechanics and overall conditioning. In fact, some of the most successful personal trainers and athletes utilize kinesiology methods and philosophies. For example, world record better-broken track and field events often incorporate some element of kinesiology into their practice. As a matter of fact, track and field events were once considered an unfit activity because of the excessive amount of time that the athlete spent in the field running back and forth.

Today, kinesiology plays a large role in improving the performance of athletes both amateur and professional. It also serves as a tool for improving the overall health and conditioning of the human body. Although it has been around for a relatively long time, there are very few instructors teaching the principles and techniques that kinesiology contains. Because of this, many individuals are unaware of how to use the techniques that kinesiology contains to improve their athletic performance and health.