dwacpnd.info

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.

If you’re like me, you first heard about nutrition in school, and thought, “boring.” All the dietary facts and statistics are like dates and events in History class. Once we start learning why the events happened, history becomes interesting and relevant to us now. When we learn why it’s important for our current and future lives, good nutrition goes from boring to interesting and essential. Forget the boring details, this article is all about how to keep from having a weak and tired, mentally slow, impoverished, diseased, short life…now you’re interested!Forget Nutritional Values: Most health articles are all about how much of this you should have or that to avoid…what is good and what is bad. You can find that anywhere. Until you know why that stuff is important, none of it matters. It just sounds like someone lecturing you on how to live. I don’t know about you, but I’m too busy living to want to spend much time being preached at. People preached at me for years about smoking being bad for me, but until I experienced what it was actually doing to me, I wasn’t interested in quitting. Once I knew why to quit, how to quit was easy. Once you know why to have good nutrition, how to do it will be easy, too.Nutrition And Energy Now: Stop drinking liquids for 2 days and tell me how you feel. Tired? Go 3 days and you’ll be dead. Water is essential. Every nutrient works the same as water on a slower scale. The worse your nutrition is, the less energy you will have to live your life. When we’re young, we can usually go a long while before we crash, but the crash is certain if we don’t have a balanced, healthy diet. When we’re older, we can feel the crash coming…trust me. The first thing nutrition does for you is give you energy for the physical activities of life, today.Nutrition And Mental Ability: It isn’t just for physical activities. How fast you learn and whether you can work through thinking problems all depend on good nutrition. Deficiencies in some cases can actually cause you to have the symptoms of Alzheimer’s Disease, or Schizophrenia, for example. By maintaining good nutrition, you can improve your ability to learn and process information. Tests of students at all age levels have confirmed this. Mental ability has to do with more than learning facts and solving problems, though. Social success depends on picking up and understanding subtle clues. Often, people are considered slow because poor nutrition causes them to miss those clues and react inappropriately. If you’ve ever been laughed at by your peers, it’s possible a good diet can help prevent that.Nutrition And Income: Energy, mental ability, education and social skills all combine to determine how we do in the business world. Since all of these things can be improved, the relationship is obvious between good nutrition and how much money or satisfaction you have, professionally. One executive put it this way, “It isn’t that people are angry, uncooperative and don’t want to work, it’s just that they’re ill due to their poor nutrition choices.” Diet changes your emotions; how you see things, how you react to things, what you feel. It’s no accident that some executive interviews occur over a meal. Employers know that people who follow good nutritional habits are better, more productive, more cooperative, healthier employees.Nutrition And Disease: It’s probably very obvious to most people that poor diet and disease are related. Many major diseases, like heart disease and diabetes, have been linked to nutrients for most of our lives. What isn’t as obvious is the link between good nutrition in general and almost every disease, from the common cold and flu, to cancer. Good, balanced nutrients give your body what it needs to fight off minor colds and the terrible, frightening, crippling and life-threatening diseases. Even if you have a genetic pre-disposition toward certain diseases, good nutrition can reduce the risk of actually getting most of them. Daily, scientists are finding more and more evidence of the importance of diet in fighting, preventing and curing diseases.Nutrition And Long, Quality Life: I guess it’s obvious if the above is true, your life will be longer. Many studies over the past 6 decades have confirmed a strong relationship between nutrition and longevity. They’ve also found that the quality of life is greatly enhanced.Why is nutrition important? Because you can have more energy, more mental ability, more money, less disease and more life by simply making sure you have a good, balanced intake of nutrients. Now that you know why, here’s a resource for information on the what and how of good nutrition. Knowing why it’s important will help you navigate the sea of information on vitamins, minerals, proteins, fats, carbohydrates, antioxidants and everything else that’s out there. Enjoy!

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.