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.

Internet Marketing and Its Evolution

Internet marketing is also called as online marketing and it can be defined as the process or promoting a product, brand and service by using the internet. Its broad scopes include electronic customer relationship management, email marketing and also many promotional activities that are done using the wireless media.It can also combine the creative as well as technical aspects of the World Wide Web such as designing advertising, sales and development. Moreover, the process of internet marketing also deals with placing advertisements, creating and this is done throughout various different stages of the customer management cycle.The different types of online marketingThe different types of online marketing have been briefly explained below.Affiliate marketingIt is a type of marketing practice in which the business pays an online retailer or an e-commerce blog or site for each and every visitor or sale that the website can make for the brand.Display advertisingThis type of online marketing process refers to the advertisement banners that are displayed on other blogs and websites to boost traffic for their very own content. This also can increase the awareness of a particular product.Email marketingAs the name suggests, this marketing process involves reaching out to prospective customers by using the facility of email.Inbound marketingSharing of free and valuable content to a target market and convincing them to become their loyal customer is done in inbound marketing. This can also be done by setting up of a business blog.Search engine marketingSearch engine marketing can be defined as a form of marketing that promotes a particular business through paid advertisements. These paid advertisements appear on search engine result pages. This also includes contextual advertising paid placement and a paid inclusion through search engine optimization.Social Media marketingBased on its name, this process of social media marketing is the process of promoting a website by using various types of social networking websites like Twitter and Facebook. This is a very effective form of internet marketing as it can reach a very wide user or customer base.The internet has a unique power of connecting millions of people from around the world. Thus it has the capability to bring your business to millions of people in your target market and this is obviously done around the world. Thus internet marketing can be a very useful tool for promotion. It is one of the important things to remember.

Why Did You Choose Digital Marketing As a Career Option?

There is no way to avoid the fact that almost all companies, sooner or later, must include in their digital marketing activities. And with the demand for digital vendors exceeding supply, there are many opportunities for those looking to enter the field. So, what is all this fuss about? Read on to learn more about this fascinating and versatile field. What is the digital marketing? Somehow, digital marketing is not that different from traditional marketing: you have a product that you need to sell, and you’re looking for ways to interact with customers to build brand awareness and, ultimately, “close” a sale. Digital marketing implies, even more, roles and skills than marketing, and it is this flexible nature of the business that makes it so interesting. These are some general areas that a digital marketing professional will likely touch during their training or career:
Digital Marketing Basics
SEO (Search Engine Optimization)
SMM (Social Media Marketing)
SEM (Search Engine Marketing)
Email Marketing
AdSense
Video Marketing using YouTube
Google Analytics
Mobile Marketing
Affiliate Marketing
Content Marketing
ORM
It is a good idea to think about getting training in at least one or two specialty areas, unless you are in administration, in which case you probably need to know a little about all of them. What skills are in demand? The digital economy is debated in every corner of our lives, and it certainly does not go anywhere. There is a strong consideration in digital marketing compared to traditional marketing. Ninety-three of the online activity starts with a search engine and ensures the continued effectiveness of SEO as a superior marketing strategy, while around the eightieth of the citizens Americans, create a purchase on the Internet at least once a month. Anyone thinking of starting or leading a business needs to have a basic knowledge of digital marketing in order to convert clients. There is a lot of space for people looking to enter the world of digital marketing and related careers. According to Smart Insights, some of the most requested skills for 2017 were digital advertising, content creation, content strategy and social networks, which is great news for those who are oriented towards the creative, social and commercial end of the Spectrum. For those who have a more technical mind, there is still a lot of demand and a high-income potential for those who specialize in technology such as SEO and SEM, since this is what can be the basis of what generates profits in any business. Content marketing is based on traffic and anyone with technical knowledge to investigate these patterns is a valuable quality, especially because this type of work is much more advanced with the advent of artificial intelligence. Why choose a career in digital marketing? Digital marketing is a career that has a lot of space for technicians, creatives and business people. There are so many avenues that you can follow; It is best to focus on one or two things that you do better, so you can always learn more from there. If you have a business or communications background, you may want to consider entering the administration. This is a field that changes constantly and is attractive; there is always something new to learn. And if you work in an agency, you will always work with different clients, which means that you will probably never get bored. Beyond this, here are some more reasons to consider this career. There is a gap in digital skills: There is a growing demand for people with digital skills, particularly for those in the middle-income group, specifically soft skills, and according to this study, it is more pronounced in the United States. Therefore, continuing training in this area, even if you are not a technology expert, is a good idea to hold on to the foreseeable future. Versatility: if you choose a professional path or a specialization in this field and decide to pivot later, it is likely that you just need a little training to make the change. In this sense, you can take advantage of existing skills while learning new ones but still stay in the same field. Here there are many options and opportunities for continuous learning, where different skills are combined in different ways. The exchange usually evolves: because the trade grows and changes, there is always something new that attracts attention and can continue and learn, whether or not leading these initiatives or not. Since there will be a variety of specialists working in a particular agency, it is likely that you will work with professionals with a variety of backgrounds, and that everyone will have to come together to develop marketing strategies. Income: when a job has a demand, that means there are more opportunities to negotiate compensation, whether you work in the company or as an independent professional. As long as you “show” your work through the job search process, you can bid more and more the more experience you get. According to the Creative Group, content writers at the beginning of their career will probably start with a salary of at least $ 45,000 and a new SEO specialist will probably get approximately $ 50,000 to start. Be creative: not only are there many opportunities for creatives to do their thing in writing, design and even audio and video production, there is also a lot of space for everyday creativity in a general sense. You will always have to think of new ways to market products, solve problems and attract the public. Train at your own pace: you can start working on building this specific career now, from the comfort of your home and doing it your way. Take online courses, build a blog or website, work on your own social networks, obtain volunteer or independent work, and be on track to create a solid portfolio from the comfort of your own home. For most specialties, there is no need to spend thousands of hours and dollars in the classroom; you can really develop your skills and get training in a way that suits your lifestyle. Work with different people every day: you will always find something new to do in this field and you will have someone new to talk to. Whether it is a new client, a colleague with a notable specialty, or finding fun ways to involve and expand your audience, anyone interested in working with people can reach the social and commercial field of this career. And if it undergoes an additional self-examination, it will stay behind the scenes writing or running on the network. What types of people stand out in this field? All kinds of people can follow a career that touches marketing; It depends on your interests In general, it is not necessary to have a very technical training, although if you know something about web design or coding, it is likely to be ahead of the competition. Because this is such a dynamic field that requires continuous learning, it is necessary to be an entrepreneur, that is, be willing to continually learn new skills and techniques. For this purpose, you must be a creative problem solver. If you are curious, innovative, proactive, a natural, adaptable and creative leader with a good commercial sense; you probably do well in most areas in this field. How do you train as a digital marketing professional? If you already have experience in marketing management, advertising copywriting, Internet development or maybe style, you already have several transferable skills to participate in digital sales. You almost certainly have to start your own personal everything and make a portfolio to make your own distinctive digital presence. It is difficult to be aware of all the latest trends, but getting a solid knowledge of the basic principles of emerging trends such as AI and virtual reality in the context of how they are used for marketing is an excellent place to focus as well..You should definitely make sure your social media streams are consistent with your skills and abilities; In other words, talk about what interests you and learn publicly and as often as you can. Start a blog on Medium and join some Facebook groups in your field of interest. You will also want to look for a complete and reputable training program to obtain official certification in one or more central areas. Once you are officially certified, you will have an advantage among your peers when it comes to looking for satisfying opportunities. If you already have experience in marketing management, advertising copywriting, Internet development or maybe style, you already have several transferable skills to participate in digital sales. You almost certainly have to start your own personal everything and make a portfolio to make your own distinctive digital presence.