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.

10 Steps to Starting a Small Business

IntroductionIf you are looking for the most effective way of starting a small business without spending a lot of wasted money and time, this article is a great place to start. The advice you get from this article may be a totally new way of approaching your new small business. As I provide each of the following steps, I will give you very good reasons for why this method is the best. I provide business planning services for many new small businesses. In so doing, a business plan is often an essential aspect of getting funding.The Secret To Starting A Successful Small BusinessLet me tell you the one single factor that will assist you in obtaining funding – Customers! If you already have customers before you go to banks, friends, colleagues or relatives for money, I assure you that your efforts in raising money will be greatly reduced. I cannot tell you how many times that I have been really excited about new business ideas that my customers have brought to me. I can tell you this though, that the banks see dozens of new business ideas every day. Dozens… Their excitement level is measure a little differently.How To Get Small Business FundingYou know what the only thing banks get excited about?… Money and only money. The closer your are to making profitable sales when you ask for funding is the only way that you are going to get heads nodding behind walnut desks. Imagine yourself going to a bank dressed in your best business outfit for a loan. Think about how truly confident you would be in asking for this money, when you know that you already have the names of customers that would purchase your product now if you just had funding.How To Get Customers Before You Have A BusinessesSo you may be wondering how will you have customers before you have a business. The answer is that nearly any business that you can conceive of now has informational products that can be purchased on the internet. Whether it is a farm, auto shop, hair salon, or home improvement. These businesses all have audio or video or e-book products that can be sold on the internet that complement these businesses. How about a video product that you sell to women entitled “How to Maintain Your Hair Between Hair Appointments,” or audio podcast program series for farmers to listen to on “Advanced Crop Yield Methods” while they are busy on the tractor. All of these can be created and sold easily on the internet with a simple website. So the idea is to move into the info business first, then formalize the business into its fuller implementation after proof of concept.So let me me summarize the 10 steps to starting a small business:10 Steps To Starting A Small Business1. Market ResearchWhat is market research? Simply stated, market research is knowing that the number of customers you think are out there for your product really exist. To translate your product into customers, it is only essential that you identify the keywords that characterize your customers’ Google searches. You can easily get these numbers free through the use of the internet. Google’s AdWords Keyword Tool (adwords.google.com/select/KeywordToolExternal?defaultView=2) is easy to use and after you get a free account, it is awesome in getting quantitative data to know 1) how many people are looking for what you want to sell 2) how many competitors already are out there. Once you have a website done in the next step, you can use the brand new Google Search Based Keyword Tool (google.com/sktool/#) to refine your market research. If you have a website type in your url and your keywords.2. Build WebsiteYou website initially needs to do only two things – 1) let others know that you exist and who you are 2) communicate to them that you know their needs in terms of what are their pains and desires and how you product is absolutely the best solution for them in the world. Your website does not need to cost more than $1,000 and can be put together in a matter of days (not weeks or months). If you want to do it yourself, you can use Word Press or call us.3.Traffic and PromotionUse Google Analytics to track the number of visitors to your website to ensure that you are getting the attention to your message that they deserve. Before you get people to your site, you will need to do some promotion to ensure that this happens. There are a lot of ways to do this, but having the website 1) optimized for on-page manageable factors (meta tags, title, attractive web address (url)) and 2) getting a large number of back links to your website are the most controllable factors.4. Build List of Customers – Email opt-inWhen customers get to your website, this is where you want to get the big prize – the customer list. In order to get a list of customers, you offer them a free written, audio or video product that provides some truly valuable information to them in exchange for the their e-mail address and name. It is important to note that you will only get a sustainable business if you provide something of significant value as a “give away” at this point. I have seen many – free PDF reports, “how to” audios or videos that are really useful. Make sure that your is too. You can use Aweber or Constant Contact as auto-responder services to obtain the e-mail addresses. These are services that provide the website scripts, capture e-mail lists, provide confirmation e-mail and provide information product.5. Sell Affiliate ProductsAfter you create your website, you will go and find products that are already available that you can sell as an affiliate. What is an affiliate? An affiliate is someone (you) that is selling into a niche market that understands the needs of the customers and can sell products created by someone else. Who is the someone else? Many – Amazon, Commission Junction, Clickbank. Nearly every big internet retailer has an affiliate program. Look at the bottom of their home page for the words “affiliate” or “associate.” They provide the whole shopping experience and you get a small commission for doing so. They will give you the tools to list these products attractively on your website with html scripts that are easily implemented.6. Create information productsNow that you have a good idea of who your customers are and what they want, you can easily create your own information products in writing (e-books), audio or video. All it takes is the ability to write, record, film and edit this information in a near professional manner. The content of these products is what is really important. This process sounds very complex, but can be made very simple by someone that does this on a day-to-day basis.7. Sell own informational products and through affiliatesNow that you have your own information products, you can sell your products on your website and also through affiliate programs such as Clickbank and Commission Junction. You will need to augment your website to allow products to be listed, purchased and to accept payment. Since you are now the vendor of these products you will also need to create a purchase, return and shipping policies (if either of these applies). Most customers will want to know about these things before they purchase from you and often will not purchase until they know that you are reliable and that their money is well spent with you.8. Create business planNow that you have proven your business concept on an informational level (and at an affordable level of investment I might add), you are in a much better position to judge for yourself whether this business is investment grade. What is investment grade in this case? The answer to this comes in the form of another self-question: Would you bet that you will get a good return on the money that you are asking others to invest? There are many good business plan templates available for free. All it requires is to get basic questions answered in each section and to formalize into an attractive and readable document.9. Get fundingGet dressed up as appropriate for the money people. If they are bankers, dress in a suit. If they are family or friends, dress as friends or family. If they are colleagues, dress as a colleague. Be professional and honor their time. Make sure that you keep their interest by asking yourself what is in it for them. That is all that matters to them. For family matters, the issue is a little bit different. They will be concerned with family solidarity. In other words, what would happen if you could not pay them back? Would this permanently disrupt your relationship with them? Think about this before you go to them. When you get money there are two questions you will always need to answer for them up front 1) what will you use the money for? 2) from what source will you pay the money back? Know these answers.10. Formalize business organizationThis is the part that most people think about when they think about starting a business. Do you find it strange that this would be the 10th step in this process? Don’t worry, most other people would too. However, doesn’t it make more sense to formalize the business after it is making money first and then to formalize it? When I speak about formalizing the business, I am talking about 1) creating an appropriate legal entity (corporation, limited liability corporation or other) within your state or country 2) create tax status with the tax authorities 3) publicly announce the business formation through public recording or periodical announcements or both 4) get a checking or bank account. Note that I am not advocating subverting tax or legal guidelines…as a matter of fact I am suggesting that you follow the rules, through making your business profitable first.In SummaryThat is all there is to it. What else is there left to business than that? A business is nothing more than delivering answers to problems (pains or desires) of customers and doing so while making profitable sales. Creating new products is just using lateral thinking to create other related products that meet the needs of customers. And what a great life that is….help other people while you make money.Follow me on Twitter – http://twitter.com/frank_dobner© Copyright – 2008 Frank Dobner

Which Men’s Underwear Is Best for Sport

Following the end of the Summer 2012 London Games we have become a nation full of renewed enthusiasm for sport and have started to dust off the gym back, air the trainers and splash out on some new trendy gear. As more people join gyms and sports clubs they may be interested to learn the importance of choosing the right underwear for sport.Men often over look the most important things in their sports locker such as their choice of sports underwear and this is probably because they are an item of clothing which doesn’t allow them to flash a sporty designer logo. Yet they are probably the most important piece of your sports attire you will purchase because a testicular trauma is probably going to be far more painful than anything else you might sustain from incorrect sports wear.High impact sports account for the most reports of testicular trauma and it is hardly surprising when you think about how much bouncing and jerking around they have to sustain during a game of rugby for instance or even running. Women appreciate the importance of supporting bouncy parts during sport and have been wearing sports bras for a long time. Yet, how many men still wear their regular undies to the gym, loose fitting boxers and baggy briefs that have very little support or sports benefits whatsoever.So what exactly are the important features we need to look for when considering what underwear we pull on for the gym? Here are some top tips of key features you should look for.Support is probably going to be the most important feature to look for when choosing suitable underwear for sport. Traditionally men’s underwear consists of a pouch at the front formed by two vertical seams either side of the pouch to provide shape. However, this type of construction offers little support or control. More supportive underwear often features a shaped pouch that incorporates a semi circular seam that passes under your ‘giggleberries’ to cup and support. These are by far the most supportive and having ensured you have chosen the correct size will be probably the comfiest design you will be able to find for sport.Fabric are an imported aspect and there are many types of natural and synthetic fabrics to choose from, which have developed a long way technically. Often the best type of fabric for sport is a cotton rich or a cotton modal fabric as these offer a soft, natural and breathable experience. This is important when it comes to allowing air to circulate and reach the skin as will as wicking moisture away from the body to minimize the potential for fungal rashes to occur or irritation. However, there are equally some very good synthetic microfibers available and ones that even offer anti bacterial properties to reduce the unwanted effects of body odor to develop.Finally, you will want to consider the overall construction and quality as you will be putting them through some enduring paces whilst at the gym. Many of the comfiest fabrics and underwear can be on the thin side or even incorporate perforated mesh material to make them cooler and more breathable, which is fantastic. However, all I would say is do not compromise on quality as this is one item of clothing that needs to standup to doing its job. Take a close look at the stitch and look for a quality finish. Double stitch seams and soft quality internal wash labels are a good indicator that the manufacturer has not cut corners, hence you should be able to expect the rest of the garment to be of good quality.