Starting An Internet Marketing Business Online
Are you looking to start an internet marketing business online? If so, you need to know exactly what you’re getting yourself into. Don’t think you can just enter into this industry and expect to start making millions of dollars within the next 6 months. I get requests from people all the time telling me that they want to be making $5,000 per month within 3 months. And these are people who have never sold a thing online!One thing that you need to know is that when starting an internet marketing business online, you “kind of” have the world at your feet. There’s plenty of places to advertise, there’s plenty of ways to get free traffic to your site, there’s plenty of business owners looking to learn how to do effective marketing online, and etc. So you can be kind of spoiled once you get your hands on some training materials.But understand that you are operating in a HIGH competition arena. A smart thing that you could do is to offer internet marketing services to local small businesses in your area. Most offline small business owners don’t have a clue about how to market their business online. But in the online world, people have training thrown at them all the time.So I guess the best question to ask yourself is: “How am I different?” Right?? You don’t want to be a “me-too” person when marketing your products and services online. This applies if you choose to be a coach, consultant, or sell products such as books, CD’s, DVD’s, or even magazines. So how are you different? How will you separate yourself from the pack and differentiate yourself from everyone else online who are making the same claims as you?It’s something you need to think about when launching your own internet marketing business online. Where most people get tripped up at is when, they read someone’s free eBook about internet marketing, and then go and buy a large resell rights package that is ALL ABOUT internet marketing.Each product in the package contains something about internet marketing. More often than not, the resell rights bundle may contain products about:Email marketing
Forum marketing
YouTube marketing
General internet marketing
Consumer buying behavior
Copywriting
Etc (the list goes on and on)
And most of these people spend YEARS trying to figure out a way to sell these products – if not sell them as a bundle. OR if not resell the same offer that they bought to receive these items. After years of failure, they usually leave feeling depressed, broke, and convinced that making money online is impossible… if not a scam. And this is just not true.All of these kinds of products are supposed to teach people about niche marketing. Especially a general product about internet marketing. The real pros who sell internet marketing products successfully sell them primarily for a good reason: THEY SELL THEM FOR VERY HIGH PRICES.They sell one course about internet marketing at $200. Then they backend sell you for another similar course at $500. Then they sell you another similar course with huge bonuses for $1000. Then they sell their 3-day seminar and invite you to attend… for the price of $2000. THEN they convince you to sign up for their monthly newsletter or membership website, and charge you $50/month to join.How rich do you think you would be if you were to successfully get people to buy your products at these price ranges?Meanwhile, you’re being convinced that selling $19 eBooks will save you from your day job. This is just not the case. To make $100,000 by selling $19 eBooks, you would have to sell 5000 eBooks per year. That comes out to 416 eBooks per month. Which means you would have to sell 104 eBooks per week. Which thus means you would have to sell 14 eBooks per day.How are you going to sell 13 eBooks per day and you’re struggling to make even a dime of profit selling a $5 eBook on eBay? You have to learn a lot about internet marketing if you want to make a lot of money in this business. ESPECIALLY if you’re selling information about “internet marketing”. If you’re not a guru and have been selling other niche products successfully online, don’t enter into this broad arena.The gurus who are selling “internet marketing” products successfully have a plan that have worked well for them over the years. EVEN IF they lose money on the first sale of getting that first customer, they know how to recoup their lost, and then still profit on the next sale that they make from that customer.They know their numbers. They know their sales conversion rate, their cost per lead, cost per sale, and their average long term value of a customer. Let me ask you a question:If you knew that for every 1 customer you acquired, that you were going to make an average of $5000 over the lifetime of that customer spending money with you… would you care if you lost $5 just to acquire them in the first place? Of course you wouldn’t care.But I’m sure you would care if you were spending $5 to acquire them, and then not selling to them again to recoup your profits. That would mean that for every customer you get, you would be losing $5 per sale… forever. You have to market to these customers over and over again to recoup a frontend loss. This is called “backend marketing”.If you want to get started online in the internet marketing business, you have to bring your A-game and have a mathematical plan of how you’re going to make money. There’s a lot to learn, but once you gain an understanding of how marketing online works (and how marketing in general works)… you’ll be well on your way to success in your business.If you’re going to buy a resell rights bundle package, at least READ the information in the products you acquired so that you can know how to sell them successfully. Don’t be a hopeless cause.
National Economic Reforms Science And Technology Directives
In the last half of the 20th century it was President Kennedy who took up the gauntlet of outlining a national directive focusing on science and technology. The course that the United States chartered then propelled America into the space age. No longer was man confined to this planet alone. We reached for the stars and did the impossible. We put a man on the moon, built the International Space Station, launched the Hubble Telescope which opened up the universe for all of mankind, and sent the Voyager on a never ending quest to “boldly go where no man has gone before.”This all came about because a sitting President had the courage and took the leadership to lay the groundwork for the United States to act on a decisive plan of direction which open up so many windows of opportunity for millions of Americans. Some how for the past five decades the United States lost the exuberance that prevailed when President Kennedy pointed this country in a new direction.Sure, there have been many marvels along the way in technology, science, and medicine. The Internet for one has opened up a whole new world filled with opportunities never before imagined. Heart transplants are now almost a routine procedure. So many more wonders have come into existence since the early 1960′s but, the leadership to identify and implement a national plan of direction that would put the United States onto the path toward that brighter future hasn’t happened since we put a man on the moon. It is within National Economic Reform where there is a direct plan of direction for the United States. Article Six is probably the most ambitious directive there is. But, this component is vital for the future of America and really the rest of the world. Implementing National Economic Reform is crucial for the future of not only the United States but for all of mankind especially when the Science and Technology Directives are realized.The United States must recognize and take decisive action on five fronts now outlined in Article Six of National Economic Reform. One of the most important issues is the extent of Global Warming has on humanity and economies all over the world. This first directive is probably one of the more contentious and ambiguous issues today. We have to accept the facts as they present themselves.First of all mankind has relied on the fuel of the first and second industrial revolution for far too ling. Today’s technology has afforded the United States to dispense with any and all types of fossil fuel while at the same time ushering in alternative lower cost green energy to supply the energy needs of this nation. There is no excuse other than Greed to keep the American public held hostage by the major fossil fuel conglomerates. Energy independence is realistic now using affordable alternative energy. The Third Industrial Revolution is now beginning and it is under the directive of Science and Technology in National Economic Reform that the energy of the tomorrow will emerge. We must remember that when the first Industrialized Revolution unfolded the fuel that ushered in a new found way of life was all based on fossil fuels. What followed was a feeding frenzy of drilling and mining which only created and environmental catastrophe that is unfolding today. Yet, in the United States our governmental officials for the most part are in a state of continued denial that our industrial infrastructure, that by the way was built and continues to use fossil fuel, is the cause of all the environmental impact that global warming is having all around the globe.All of civilization is at a critical juncture today. We have developed more technologies in the shortest amount of time than in any other period in history. The sad fact today is that there are multitudes not only in the United States but all over the world that are left with-out the benefits that these technologies could bring. More and more people are facing dire living conditions here and over seas. Over one billion people are literally starving to death. The threat of Global Pandemics is as real as it gets. We have and are continuing to develop better technologies to eradicate hunger and the threat of a Pandemic today. But, the resolve to use the technologies that we have and develop more for the betterment of all of mankind is predicated by the implementation of National Economic Reform’s Science and Technology Directive.The scientific community all support that drastic changes in the earths delicate condition will cause events of biblical proportions if man continues the use and consumption of fossil fuel. The world today faces mass extinctions of marine life caused by mans destructive nature in pollution of our oceans. It is imperative that the United States change direction, the continued misguided ideologies and attitudes that have prevailed for far too long if this nation is ever going to rise out of the ashes of our economic crisis. Within the Science and Technology Directive like a Phoenix rising to lead the world in alternative energy. It reminds one of that opening to the Six Million Dollar Man,” We have the technology to make him better, faster, and stronger.” Well guess what people, we actually do.To understand what has occurred in the last hundred years of the industrial revolutions that has caused a global crisis is to look at when the peak of the second industrial revolution occurred. In 1980 is when scientists first really became concerned of the effects of all the carbon being released into the atmosphere by the industrial complexes and our modes of transportation was having. It seems that all through-out history whenever their is a industrial shift using newer technologies an economic revolution also occurs. These new emerging energy sources make it possible to create more independent economic activity. This in turn gives rise to providing more avenues to expand more commercial activity as well. Accompanying all of this newer technology are communication upgrades or so called revolutions which become the foundations where mans ability to organize, manage, and control the newer more stable set of spatial dynamics. All from evolving energy technologies.By 1994 a new convergence of communication and energy was now infiltrating societies. Internet technology and the reemergence of renewable energy sources were about to merge in creating a powerful new infrastructure that will fuel the Third Industrial Revolution. This third industrial revolution has already begun. And, it is about to change the world forever. Just think in the next 50 or so years hundreds of millions of people the world over will be able to produce their own green energy in their homes, in offices, and in factories. Humanity will be able to share with each other an “energy Internet,” just like we are able to now create and share information online today. The democratization of energy will bring with it a fundamental reordering of all human relationships, impacting the very way we conduct business, govern society, educate and engage in civic and cultural activities.It is to this purpose that the Scientific and Technological Directive in National Economic Reform initiate the further development and deployment of Internet energy systems across the country. To date the United States has yet to capitalize of this emerging source of the energy that will revolutionize the whole spectrum of energy consumption the world over. Government procrastination, denial, apathy and indifference have only confounded the American populace as to why the United Stats continually lags behind other industrialized countries in developing new renewable energy systems. Just take a look; in 2006 the European Union laid the groundwork for further development of this Internet technology for energy. Green technologies have all given rise to new medium of communications and infrastructure. It is in Europe and in Japan that have taken the lead in developing and the implementation of renewable green and Internet energy. meanwhile the US is stuck with our antiquated energy policies and infrastructure that still rely of fossil fuel. This is more than enough reason to implement National Economic Reform and it’s Science and Technology directives.The second directive has to be the focus on enough clean fresh water being made available for every American and eliminate the prospect of another drought that caused irrevocable damage to this past summers harvested crops. Again, the United States has the technology to supply fresh water to areas where there are shortages. An intercontinental aqueduct that crisscrosses the country bringing water to areas that need it most is a priority that can’t wait any longer. To those skeptics that continue to say we can’t afford to spend billions of dollars to build the infrastructure that would accommodate this monumental undertaking forget one of the biggest reasons and purpose behind National Economic Reform and that is to have the United States regain it’s financial capabilities. If we constructed the oil pipeline from Alaska we can do likewise for water, our most precious natural resource.The third directive concerns the eventuality of natural disasters. Earthquakes, tornados, hurricanes and major power outages all are facts of life. But what the United states must do to minimize the devastation caused is to have in place better warning systems, safer and sturdier construction that will be able to withstand any contingency that arises out of a natural catastrophe, and have in place relief efforts readily available so that another Katrina like episode will never happen again.The fourth directive is already being considered by scientists the world over. To make what President Kennedy started become more of a reality for deep space travel and realistically transport men and equipment to distant planets space travel has to be reinvented sort of speaking. This is because our known laws of physics has only kept humanity very limited in space exploration. That is until now. It is this forth directive that will have far reaching implications to say the least.We must remember that since the dawn of mankind man has always looked up to the heavens and pondered that ageless question whether we are alone or are there other life forms some where out in the Universe. From the first time man notices those shinning stars above we have become fascinated by the reality of what is really out there. Humanity has always pondered the possibilities of other life forms that could very possibly be inhabiting other worlds. Through-out history even before Ancient Egypt the question of was mankind influenced by Alien life forms has always sparked debate. Stonehenge is one example of just maybe mankind was assisted with the building of that monument. And, there are other all over the world that to this day cannot be explained using our present knowledge and technology.The Roswell case and Area 51 come quickly when we think of Alien visitors. What happened that night in 1947 indicates that we may have just had a visit from some alien life form. To this day there are still conflicting reports of what actually occurred in Area 51. Is there still a cover up of what happened or is it all a hoax in an attempt to create more speculation of the existence of Alien life forms? It really is difficult to comprehend considering the vastness of space and the abundance of other galaxies to think that mankind on earth are the only life forms in the entire universe.This fourth directive has to do with the facts that man by nature is inquisitive, always searching for meaning, answers to the what if’s, the facts of life’s existence and the answers to what really is out there in the cosmos. This has stirred the never ending pursuit to find the answers. Finding those answers lies with developing the technologies that would make it feasible to actually secure the knowledge of what the Universe holds for mankind.The United States was just beginning to develop the technology that would enable man to actually solve some of the mysteries of the Universe with the deployment of the Supercollider that was almost completed in 1993. The experiments that were to be conducted would have enabled scientists to finally realize what Albert Einstein’s Theory of Relativity entailed. Part of the answers remain hidden but, what we do know now that nuclear fusion and atoms accelerate to the speed of light. Roughly one hours ride to Jupiter. The whole concept behind the Supercollider project was to create and prove molecules can move as fast as atoms. We were very close in achieving molecular momentum accelerating to the speed of light and nuclear fusion. Unfortunately congress in their shortsightedness failed to renew the funding for the completion of the Supercollider project. The reality hit home because the cost to dismantle what was already constructed cost much more in tax payers money than that what was needed to finish construction. Just another way Congress still can’t get it right. Today, there has been a renewed interest from the international scientific community. A new smaller version has been completed under the Swiss and French boarder and is more than capable of finishing what the United States tried to do in 1993.Involved in the fourth directive is proving and achieving molecular acceleration equal to that of atomic acceleration. Once we do mankind just might be able to greatly expand our knowledge of our own galaxy and others as well. Albert Einstein proved that atoms accelerated to the speed of light. It is now up to this directive and involving the rest of the worlds scientific community to figure out molecular reconstruction and reconstruction of when molecules achieve the acceleration point of atomic particles and reconstruct the same molecules as before after the acceleration has been achieved. All one has to do to visualize this is look at any Star Trek shows when they say “beam me up.” It isn’t so far from becoming a reality. Without gaining this knowledge mankind will find it next to impossible to be able to reach and explore the far reaches of our own galaxy let alone the rest of the universe.We are close but we aren’t there yet and the prime goal of this fourth directive is to finish the job. Once we do mankind just might be able to like that saying “boldly go where no man has gone before.” It is to this end that the Science and Technology directive focus on bringing together the rest of the international community and other industrialized nations in creating an International Space Exploratory Federation using all the available aerospace contractors and encouraging more countries to provide resources so that more opportunities in developing newer technologies will enable mankind to have the availability to fulfill our ultimate destiny.The fifth directive is in the medical field of advancing and distribution of vaccines and treatments so that any threat of a pandemic outbreak will be held in check. In the United States there is a resurgence of dreaded diseases such as TB, small pox, whooping cough and a whole assortment of other diseases that early vaccinations would practically eliminate any threat of a resurgence of the diseases that are on the rise today. All too often misguided information, lack of funding, or just plan ignorance have placed our society at risk. When the medical community is very much concerned that any outbreak of communicable diseases could at any moment spread like wild fire quick containment and vaccinations are imperative. This fifth directive goes along with National Economic Reforms, Universal Health Care.A plan of direction for the United States is the purpose and guide of National Economic Reform. The Science and Technology Directives outlined will have a direct affect on the future of America. It is the intent of total reform from which the United States will emerge from the quandaries that have befallen this nation. In implementing National Economic Reform in it’s entirety the United States will rise like that Phoenix to lead the world into that brighter future.
After Dinner Entertainment Ideas
Do you want to have high class psychological mind reading entertainment for your guests at events such as weddings, dinner parties, awards ceremonies and small private functions? After dinner entertainment ideas are absolutely remarkable and bound to thoroughly entertain everyone involved. The night will be filled with jaw dropping surprises and mind blowing entertainment.Unique guest speakers will be able to impress guests by understanding them and by influencing their thinking. They can provide sensible methods of being able to get inside the minds of customers, friends and loved ones to help you achieve goals you want to achieve.Why not try after dinner entertainment and corporate cabaret acts. Mind reading cabaret acts will not fail to impress, they will have guests laughing all night and have them completely and utterly amazed. You choose how long you would like your guests to be entertained for, how much mind reading, predictions and psychological entertainment can they handle in one night?Other forms of entertainment include corporate awards dinner performances where the audience will be completely involved and wowed. It is an excellent way of having all your staff feeling like they are involved in the award ceremony as it leaves something for everyone to talk about.It is also possible to have entertainers come and perform at small dinner parties. These are good as the entertainer is able to involve every person in the room on a personal level. This provides a great opportunity for the guests and entertainer to get to know each other.Why not make your wedding day that extra bit special and hire a wedding entertainer. This wedding entertainer will be no ordinary performer though. Whilst youre waiting for the day time wedding meal to be transformed into the evening room your entertainer will be able to keep your guests motivated. They will be mesmerised by mind tricks and the art of persuasion.When thinking about providing amusement for your next corporate event you should really consider after dinner entertainment. Your staff will really appreciate the hard work you have gone to in order to put on a special event. Not everyone can win an award or have their name mentioned so entertainment like this is fantastic for making the night about everyone. After dinner entertainment ideas really will be the icing on the cake for your corporate events. Shop around now to find your perfect after dinner entertainment.
How to Invest Informed
To learn to invest informed and learn how to invest with confidence most people should break the subject down into two parts: investment basics and investing. By tackling topics or articles in the following order you can learn how to invest money as an informed investor without wasting too much time and effort.First get a handle on basic financial concepts, terms and investment basics. Every investment in the world can be evaluated based on just a few simple characteristics. Don’t invest money in anything until you know if it fits YOUR needs for such things as safety, liquidity, growth, and income. Only if you invest informed can you avoid the costly mistakes that are caused by picking an investment that’s not right for you.Then, as a basic investment guide, focus on stocks and bonds because this is where you are most likely to invest money in the future. Once you have a handle on these securities, its time to get familiar with investment markets and how to invest in them. If you don’t understand the stock market, for example, your knowledge of stocks (equities) is of little value in the real world of investing.Learning all about mutual funds should be your next step and shouldn’t be difficult now that you know stocks and bonds. After all, these securities are where most mutual funds invest money for their investors. And mutual funds are where most investors invest money in stocks and bonds in 401k plans, IRAs and other accounts. There are thousands of funds to choose from but 99% of them fall into 1 of 4 general categories.You should also get familiar with other investments like money market securities and annuities before you move from the INVESTMENT GUIDE phase of your education to the INVESTING GUIDE segment. In other words, before you can learn to invest informed you’ll need a clear understanding of all of your major investment options and how they compare in terms of their basic investment characteristics. This is not as difficult as it sounds since the universe of investments can be condensed into only 4 different categories or asset classes: cash equivalents (safe, liquid investments), bonds, stocks, and alternative investments.Investing is the art of putting an investment strategy together and managing your money at a level of risk that’s within your comfort level. Once you understand the investment end of things you need a game plan in the form of a complete investment strategy. Asset allocation is the single most important part of any strategy; and your portfolio asset allocation over time will be the main thing that determines your success or failure as an investor. Concentrate on learning asset allocation: how to invest money (in what proportion) across the 4 asset classes mentioned above.Now you’ll also want to learn to apply various investing strategies or tools to help offset risk while earning higher than average investment returns. The two important things to understand when you get started in the learning process are the following. Learning how to invest is easier than you think if you take the subject one step at a time in a logical sequence. Second, learning to invest informed is actually a two step process: learn investment basics, and then learn investing.Don’t get discouraged if you don’t understand something in an investing article you are reading. Back up and search for another article that covers the topic or area that confused you. For example, if you are confused by an article on bond funds it’s probably because you don’t understand bonds in general. Most people don’t. Most people don’t get much out of an adventure novel, either, if they start reading on page 47.Take fear and anxiety out of investing. Learn to invest informed.
Benefits Associated With Online Education
Technological advancements have shown its effects in almost every field today and education is no exception to it. Online education is playing a big role in the life of modern students. It has not only opened new career avenues for students, but also it has several other advantages to offer.Initially people were very apprehensive about the whole concept of online education. But with time the point of view has changed a lot and more and more people are enrolling themselves for these courses.Online education has a lot of advantages to offer, some of which are summarized below:Convenience and Flexibility- Online schools have their programs designed on the basis of needs of the students. You can choose the time frame as well as the pace at which you want to learn. You can attend classes anytime as per your convenience. These classes are available 24/7 and as long as you have an internet connection, no matter in what part of the world you are located, you can study easily and conveniently. This system offers a lot of advantages to people who are working and want to have an additional degree. People in jobs find it hard to attend a regular college or course. They can easily attend these classes after their working hours or on weekends.Saves Time and Money- Taking online classes is very cost effective as compared to joining a regular college or university. There is no transportation cost involved and also you don’t need to spend money on buying textbooks and workbooks. All you need is just a computer and internet connection and you can study right from the comfort of your home. All the notes and other study materials are available online. Also in case the college or university you want to take degree from is located in another city or very far from your house, then you have to spend money on renting a house and other living expenses. Online education considerably reduces all these expenses.Beneficial for Students with Disability- There are many students who are handicapped and find it hard to attend a regular school or college. Online education helps them by offering an opportunity to study from their home.Technologically Updated- When you study online, you have access to all the latest learning materials. You can also get study material in either written format or also in multimedia format like videos. This makes the learning process fun and easy to understand.Share and Interact- Online classes help in the development of interpersonal skills. Many colleges offer an opportunity to interact with the fellow students as well as the instructor. This gives a great advantage to students as they can communicate with students from different cities and discuss various things.To have any degree helps a lot in shaping your career. Through online education you can get a number of degrees and diplomas. The standard of online education is improving to meet the needs of both the students and instructors.
S&P 500 Rallies As U.S. Dollar Pulls Back Towards Weekly Lows
Key Insights
The strong pullback in the U.S. dollar provided significant support to stocks.
Treasury yields have pulled back after touching new highs, which served as an additional positive catalyst for S&P 500.
A move above 3730 will push S&P 500 towards the resistance level at 3760.
Advertisement
Pfizer Rallies After Announcing A Huge Price Hike For Its COVID-19 Vaccines
S&P 500 is currently trying to settle above 3730 as traders’ appetite for risk is growing. The U.S. dollar has recently gained strong downside momentum as the BoJ intervened to stop the rally in USD/JPY. Weaker U.S. dollar is bullish for stocks as it increases profits of multinational companies and makes U.S. equities cheaper for foreign investors.
The leading oil services company Schlumberger is up by 9% after beating analyst estimates on both earnings and revenue. Schlumberger’s peers Baker Hughes and Halliburton have also enjoyed strong support today.
Vaccine makers Pfizer and Moderna gained strong upside momentum after Pfizer announced that it will raise the price of its coronavirus vaccine to $110 – $130 per shot.
Biggest losers today include Verizon and Twitter. Verizon is down by 5% despite beating analyst estimates on both earnings and revenue. Subscriber numbers missed estimates, and traders pushed the stock to multi-year lows.
Twitter stock moved towards the $50 level as the U.S. may conduct a security review of Musk’s purchase of the company.
From a big picture point of view, today’s rebound is broad, and most market segments are moving higher. Treasury yields have started to move lower after testing new highs, providing additional support to S&P 500. It looks that some traders are ready to bet that Fed will be less hawkish than previously expected.
S&P 500 Tests Resistance At 3730
S&P 500 has recently managed to get above the 20 EMA and is trying to settle above the resistance at 3730. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
If S&P 500 manages to settle above 3730, it will head towards the next resistance level at 3760. A successful test of this level will push S&P 500 towards the next resistance at October highs at 3805. The 50 EMA is located in the nearby, so S&P 500 will likely face strong resistance above the 3800 level.
On the support side, the previous resistance at 3700 will likely serve as the first support level for S&P 500. In case S&P 500 declines below this level, it will move towards the next support level at 3675. A move below 3675 will push S&P 500 towards the support at 3640.
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.