BBA: How Can a Degree in Marketing Help in Your Career?
Bachelors of Business Administration is a very common choice among people who are interesting in management. There are various kinds of BBA courses, some people opt to do a generic or a specialised course. If you are interested in marketing management, analysis of the market and advertising, you can do a specialised course of BBA in Marketing. The course helps develop communication skills along with quantitative analysis. There are standard subjects of management but the core focus is on marketing and advertising. Marketing is an important social process for any company as it helps them target the right and intended audience. It doesn’t mean selling but instead consists of economic activities like production of goods, merchandising function, physical distribution of goods, and many other supportive functions. It prepares a firm to act in times of distress and the individual is trained in how to undertake crucial tasks such as competitor analysis.What does the course teach?Marketing management deals with applying principles of management and business principles to promote and sell products or services. The evolved form of marketing management course also includes digital marketing along with the traditional forms. Managing the marketing is very important for any business. Every aspect including financial services like loans and banking require marketing. Through BBA students learn business processes and practices and understand how economics works in the world marketplace. It benefits the students by giving practical training in management which can help them to adjust and work in big or small organizations. The course is also very rewarding in terms of the perks, incentives and salary package and is therefore a preferred choice of career.Some of the subjects that the course teaches are:Organizational behaviourPrinciples of ManagementBusiness CommunicationMarketing ManagementMarketing ProcessMarketing EnvironmentTargeting and PositioningProduct ManagementBrand ManagementHR managementFinance managementPricingDistribution ManagementMarketing Information systemsConsumer BehaviourMarketing ResearchCustomer Relationship ManagementInternational Marketing ManagementThe course equips you in skills like decision making and management. The advantage of doing a BBA course is that you can get a job in any industry ranging from media to automotive or fashion. You can also opt for a job in private or public sector as everything requires marketing. Marketing also teaches you how to understand consumer behavior according to which the company changes their strategy.What is the scope of BBA Marketing in India?Students who have graduated with a marketing degree, they can make a career in sales as an executive or go into research analysis. The course usually requires students to write a thesis or a dissertation which can help in higher studies. You can opt for a generic or a specialised Masters in Business administration. Marketing is also offered as a specialised subject in masters. After pursuing your masters, you can work as Chief Executive Officer (CEO) or Chief Operating Officer (COO). The most important thing is that any marketing manager needs to be use new business strategies and strategic tools, technology and processes and adapt to new situations.The research that you do in your bachelors can also helpful market analysis and studying the fluctuating market and making a strategy according to it. After their bachelors in business administration, some common careers may include the following:Sales managerPromotions managerPublic relations managerAdvertising managerMarketing managerMarketing strategistBrand managerPR specialistMarketing managerAdvertising professionalMarket analystSource by Stratford University
Why Is SEO Important for a Website?
SEO was pretty simply a few years back, but fierce competition as well as other marketing techniques including pay-per-click (PPC) advertising have driven website owners to take immediate action to make sure their websites are SEO friendly.In this article, we’ll discuss a few techniques involved on a website that makes it easily recognizable by the major search engines. After all, what’s the use of having a website if it cannot be found? It was in the start of the internet boom that websites appeared in the search engine results as they were created. Now it takes a lot effort, patience and proven techniques in order to be found on the web.Many people, including company owners or bloggers create websites not specifically for themselves but in order to reach out to other people to either educate them on a particular matter or to sell a product or service. SEO definitely helps in improving this visibility of the website. Since search engines now use specific algorithms to rank websites, the SEO methods and techniques used on any given website must conform to these methodologies. This technique is normally referred to as “white hat” SEO listing.Keywords and LinksIt is all about keywords and backlinks that make a website SEO friendly. A basic formula to understand is great content plus quality links equals search engine success. The SEO techniques target the search criterion that is based on text, images and links. These are targeted based on web preferences. SEO methods deal with all the content and design of a website and create aspects that are easily recognizable by the search engines.The techniques used in SEO may require editing the entire content of the website in order to make relevant keywords part of the content. Keyword implementation is a very important aspect of SEO. These are words or phrases that people type in the search engines when they are looking for good results. It is important for websites to have these keywords implemented in the content in order to rank high. I recommend that the first, second and third paragraphs of any page should include at least one of the keywords or key phrases. The second important aspect is the structure of the website that should be easy to navigate by the end user as well as the search engines.The more simple the code and the faster your server loads your website, the better ranking your website will have.Another great technique is to get link generation. You can accomplish this by requesting others high ranking sites point to your website. As the search engines find more of your links, your site’s popularity and ranking will start increase. Also, I highly recommend using Google’s new backlink tool.Categories of SEOIt is also important to understand that there are two very important categories of SEO; white hat SEO strategies and black hat SEO strategies. The white hat strategies use the natural methods to derive results whereas black hat strategies use various quick and illegitimate techniques that might provide a high ranking to a website but can also cause the site to be blacklisted when caught. In most cases, your site can be permanently banned from ever getting found! If you’re planning on hiring someone or a company that specializes in SEO services, be sure to choose a reputable company who implements only white hat SEO services.Evolution of SEOThe development in SEO techniques and methods are still evolving as newer technologies and methodologies are being developed to achieve high search engine rankings and generating relevant traffic through appropriate marketing. This is also because the search engines change their algorithms frequently and the SEO techniques need to be updated with them to perform better. SEO is the buzz today and if you’re concerned about being lost in the thousands of websites being developed daily, then you need to get your website ready for SEO.
Preventing Identity Theft As A Business Owner
However, in a new twist of events, consumers are no longer the only people affected by identity thieves, as businesses have now become prone to the development in the criminal enterprise of business identity theft with quite a number of businesses losing a lot of revenue in the process. What usually happen is that, a criminal will hijack the identity of a particular business and use it to establish a string of credit with banks and other lenders.This in turn leads to a damage that can be very devastating to the victim’s business. A business could risk having a spoilt credit history therefore raising the chances of being denied credit, a move that will definitely paralyze your operations. Anyone looking to protect their businesses from identity thieves should ensure they have good privacy protection system.After a number of businesses reported huge losses due to this, many business owners have turned to seeking help on how to keep their businesses safe from the business identity thieves. Some effective guides have been put in place to ensure consumers and the businesses are thoroughly combating the menace to avoid and reduce the threats businesses face from identity theft. Below are ways which businesses use to prevent identity theft.Protecting Business Records and Data.As much as business identity theft is a high-tech crime that affects those shopping, communicating and doing business online, most business identity thefts takes place offline. Some of the common tactics used by these frauds includes stealing wallets and ladies’ purses, interrupting or rerouting mail and going through garbage so as to obtain sensitive information.To counter this and ensure privacy protection, most businesses today maintain records that are important to run their operations and totally shredding all the unnecessary documents or records. However, while doing this it is advisable to put any document that you must keep in a very secure location. This guarantees businesses their privacy protection and ensures smooth running free from identity thieves.Protecting Their Businesses Online.Technology has eased life with the introduction of a couple of online services that makes our lives much easier and better. Many people do a lot of their transactions online today. However, caution is advised for businesses which strive to secure their identities. Most of them have resorted to not sharing their financial documents, sensitive personal information or account numbers via platforms like e-mails or any other web-based services.This has proved to be helpful for many business owners as their financial privacy protection is sorted, therefore running smoothly without having to worry about business identity thieves.Monitoring Activity.Actually, this goes without saying, anything that you do not keep your eye on, will definitely face some external disturbance. Therefore, the best method to detect possible identity theft is to be aware and monitor activities around your business. Most businesses do this by monitoring their credit reports more often. Some businesses have gone a step further and registered, rather signed up for credit monitoring service. Among ways to ensure your privacy protection, this is among the most effective.Protecting Customers.When thinking about protecting yourself from identity theft, a business should also consider doing the same for the personal and sensitive information of its clients. By protecting their customers, businesses today have experienced less identity theft because, by protecting their customer’s privacy, it keeps them safe as there are no loopholes. Customers can at times be the targets of the identity theft putting both them and the business at risk.Watching out For Phishing Scams.Many people have fallen prey to scams and lost quite a lot of money to fraudsters who trick people into divulging their confidential personal and business account information e.g. account number, passwords and user names. Businesses have therefore become alert on such and are avoiding any persuasions to click or open up any attachment in emails as doing so could connect them to fraudulent websites or causing a spyware to be installed in their computer therefore putting their privacy protection at risk.Subscription to Email Alerts.There are many genuine online platforms that offer free email alert services that can notify one when business registration information has been changed or updated. Many businesses have embraced the idea and have enrolled for such services because it provides them with early warnings of potential fraud. Using email alert has improved business operations since business owners are notified of any fishy transactions on the go and can therefore quickly act on them, saving their business great deal of money and reputation.Filling Annual Reports and Renewals on Time.On top of the administrative risk of dissolution of a business for failure to file, business identity thieves are on the lookout for businesses that are classified as suspended, inactive or in default. These crooks believe that if a business fails to keep up with normal annual business filling, then they will not realize when information has been changed until it is too late. Businesses are countering this by ensuring they file their returns well in advance to ensure their privacy protection.Many businesses have counted major losses following attacks by business identity thieves who give them sleepless nights. In a bit to recover from the losses, most of them hike prices so as to cover for the cost of ensuring smooth operations, in terms of both the business and consumer’s privacy protection. This has led to incessant cases of hiking that has instead turned consumers into victims of high product prices. The cost of business identity theft costs businesses across the world an estimated $221 billion in a year therefore becoming the newest threat to both small and big businesses around the globe. However, following the few ways we have listed above, business owners are able to dramatically reduce the chances of experiencing business identity theft.
Entertainment Furniture: Entertainment Cabinets and Consoles
There is a wide selection of entertainment furniture available, including entertainment cabinets and consoles that can hold not just massive flat-screen TVs, but also the entire set of front speakers and the sub woofer, and all the other hi-fi and games equipment you have – including your iPod dock linked up to your TV or hi-fi speaker system.Here is a short review of the entertainment cabinets and consoles available from a selection of American home furniture manufacturers. It is by no means comprehensive, but offers a good range of products offered by three of America’s better known cabinet makers.Stickley FurnitureGustav Stickley and his family were pioneers in many of the techniques used in American furniture manufacturing, and he himself was a forerunner in the American Craftsman style which developed from the British Arts and Crafts Movement. Among these techniques were the extensive use of quarter sawn oak, the unique center post construction that displayed the flecks and rays of quarter sawn oak on all four sides, and also an open type of construction that displayed the jointing methods used.Stickley offers a number of home entertainment furniture options, ranging from a simple stand to a 68 inch TV console with space for up to 6 boxes or DVD storage areas. Some are fully open, while with other models the TV can be hidden behind closed cabinet doors. The Stickley rage of TV consoles is available in a selection of woods and finishes to match your exiting furniture.Simply AmishSimply Amish focuses on simple hand-crafted hardwood furniture, while also offering a high degree of customization. The Simply Amish entertainment furniture includes TV games cabinets with space for the TV, and cupboards and drawers for various components and games consoles.The firm also offers full entertainment cabinets that extend to 128 inches, and provide space for speakers, DVDs, CDs and games consoles. They can also be designed to combine a TV console with display cabinets and ample storage cupboards and drawers.Simply Amish furniture is solidly built with a choice of woods, finishes and colors. You are almost certain to find a wood and finish to match you existing living room furniture. The company also hand-crafts TV bureaus for your bedroom. Every piece of Simply Amish furniture is made just for you, and is tracked though manufacture with your name on it.The Custom ShoppeLike those above, The Custom Shoppe furniture is 100% Made in America, and hand-crafted from 100% solid wood. Both the materials and the craftsmanship are to a very high standard, and every piece is individually made for each client. Not only that, but if you cannot see what you want in the catalogue it can be made just for you to your own design.The Custom Shoppe offers a whole section on its website to entertainment furniture. They offer a wide range, although the firm’s entertainment consoles are particularly impressive. Many of these are customer designs, so good that they were retained in the catalog. Here are just two examples of these:The Kari Home Theater
This is fitted with what is known as the ‘Reversica’ mechanism. This TV cabinet consists of two display units either side of a TV console. The console itself consists of two doors either side of a set of shelves on which rests a flat-screen console that rotates 180 degrees to reveal another display area or bookshelves – whichever you prefer. This a fabulous-looking display unit until TV time, when the central part is rotated to reveal the TV. This is a maximum of 108W x 96H x 28.5D inches.The Raymond Plasma Lift
This is similar to the above, with two display cabinets either side of a display unit. Only, in this case the plasma or LED TV set is raised from the lower cabinet by means of a remote controlled motor. When down, a beautiful 3-shelf display unit is visible, and when up the TV can be viewed. The dimensions of the components of this unit are variable, with a maximum of 126W x 96H x 30.5D in inches.You can even purchase TV lifts that remotely raise a flat-screen TV set at the end of your bed. There are many other types of entertainment furniture available from American furniture manufacturers, and these are just a very small selection what is available. These were chosen to give you an idea of what is possible, and most entertainment cabinets and consoles will conform to one or other of these general designs.However, keep in mind that if you are unable to find something that suits you, you can always have your entertainment furniture made to your own design by a firm such as The Custom Shoppe. This firm is just an example, and by no means the only American furniture manufacturer that will provide this service.
Finding the Best Investment Opportunities Now
I once read that NOW is always the toughest time to find the best investment opportunities, and that sometimes it is anything but easy to make money investing. Now is 2015, and once again investment opportunities are out there if we can only find them. Where might we make money investing in 2015, 2016 and beyond?People tend to throw the words “opportunity” and “opportunities” around a lot, especially when they are trying to sell you something (like swamp land or desert properties). For example, “the opportunity of a lifetime” or “one of the best investment opportunities I’ve ever seen”. We all learn sooner or later that real opportunities are the exception; and not the normal occurrence. Let us keep this in mind as we try to find ways to make money investing in 2015, 2016 and beyond.If you have a brokerage account with a discount broker the world of investment opportunities is available to you at a cost of about $10 a trade. In one account you can make money investing by making a bet on stocks, bonds, interest rates, commodities; and in a wide array of markets, both domestic and abroad. Your broker’s website should offer lots of information to sift through, but it won’t tell you where the best investment opportunities will be in 2015, 2016 and beyond.Here’s a good way to look at things: now is always a good time to look for the best investment opportunities, but it may not be an easy time to make money investing. For example, natural gas might look cheap, but it has been going down in price for several years. Interest rates are near all-time lows, but this has also been the case for years. On the other hand, stock market volatility has fallen as stock prices continued to rise. Stocks in general are now quite expensive, and super-low interest rates have made bonds expensive by historical standards.No matter what happens in the markets in the next couple of years, many of the best investment opportunities are available to average investors in the form of ETFs (exchange traded funds) which trade as stocks. If you don’t have a brokerage account go to a financial website like Yahoo Finance and sift through the ETF performance section… looking for the best and worst performers for various time periods. You’ll be surprised by the wide array of opportunities available. Now, you must decide how you want to try to make money investing in them.Let’s look at a couple of extreme examples you could find in early 2015. The best performer over the past 3 years (up 94%) was a Leveraged Equity fund that invests in healthcare stocks with 3x leverage. It was also up 20% in the last 3-month period. The worst performer was a 2x leveraged volatility fund, which was down 90% over the past 3 years and also down 15% over the last 3-month period. Other big losers included: gold stock funds and leveraged inverse equity (stock) funds. The real question is: do you jump on the big winners to make money investing? Or, will the big losers be the best investment opportunities for 2015, 2016 and beyond?Here’s a real extreme example from early 2015. The best investment over the last 3-month period was a 3x LEVERAGED INVERSE CRUDE OIL ETF. It went up 285% (in 3 months). What’s that? INVERSE means that as the price of oil FALLS, the share price of this fund goes UP; and 3x LEVERAGED means it is designed to go up 3 times as much (on a percentage basis) as the drop in oil price. This was one of the very best investment opportunities in the months leading up to 2015, because oil prices then started to fall like a rock. But after a gain like that, it’s probably no longer the best investment if you want to make money in 2015 and beyond. This was yesterday’s opportunity.On the other hand, there’s always the possibility that oil prices will rebound strongly in 2015, 2016, or later. If and when this happens, some of the best investment opportunities will likely be found in oil and other energy stocks (or ETFs) that fell in line with the previous drop in oil prices. Timing and anticipation are the keys to finding the best investment opportunities. You can make money investing by jumping on current winners, but the best investment opportunities are often found when a change in price trend begins.
Ageism In America – Discrimination Against Older People In Health Care
Older people are the back bone of our society, yet they are frequently treated poorly and suffer discrimination when seeking health care. Many older Americans receive second and third class health care because health care professionals are either not trained to care for the needs of older people, or the provider doesn’t feel that the older person’s health is important enough to warrant better care. Ageism against older Americans is a widespread practice that affects over 50% of American households with older people.When a person reaches the age of sixty, health services are sometimes based on a person’s age. For example, some health care professionals decide not to run certain tests or prescribe certain medications and treatments because they don’t feel that the tests will be beneficial, or that the medication or treatment will work for the patient. Another reason that health care professionals hesitate to provide in-depth care to older people is because they don’t want to put the person though the procedure with the assumption that it would be too tiresome or too hard on the patient. If asked, older people want to go through the tests and procedures in order to take care of their health, but many health care providers don’t ask the patients what their wishes are.In spite of public acknowledgment that ageism by the U.S. health care system does exist, no steps have been taken by the system to remove its bias against older Americans. Ageism continues to be practiced in all levels of health care. In a recent interview with Joe Reynolds,* a 71-year old Oregon resident, Reynolds stated that because he is an older person, health care providers are reluctant to treat him, and some have refused him treatment because of his age. Reynolds has diabetes, and has undergone a heart bypass. He is angry and frustrated with the medical practitioners that he has seen because he has the insurance to pay for his care, and he feels that he can tolerate the tests, procedures and medications. He declared that none of the health care providers is willing to provide the real care that he needs to live as healthy of a life as possible. Reynolds stated, “I’m old so they don’t want to do anything to help me. They don’t ask me how I feel about anything; they don’t ask me for any input about my needs. They just don’t care.”Older people like Reynolds give up and die sooner than they might have if they had been able to receive the necessary medical care. They feel like the cast-offs of society, and rightfully so. Some older people commit suicide instead of being forced to live with pain and other treatable medical conditions that they are unable to obtain treatment for.Preventive care that is routinely provided to younger people is often denied to older people. Screening for life threatening diseases and conditions is provided readily to younger people, but is grudgingly provided to older people, if it is provided at all. Older people are routinely left out when it comes to treatments such as chemotherapy, even though an older person can tolerate it just as well as a younger person. Attitude is also a factor in providing care to an older person. If the attitude of the health care professional is predisposed against providing that health care, the older person will suffer the consequences.The U.S. Health Care System needs to work harder to remove its prejudice against providing adequate and equal health care to older people, and treat them like the deserving American citizens that they are. Older people are the reason that many of our luxuries and comforts are here today. Health care partiality is not the way to treat the people that made this country.*last name changed at the request of interviewee© Copyright 2007 Patti McMann. All rights reserved.
Our Health Care System Crisis
The political struggle continues over the health care system and what will finally evolve after congregational action. The house voted to repeal the healthcare reform bill and to start all over on initiatives that will target the problems in the healthcare industry with fiscally responsible actions. The senate so far has held the party line and supports the current law. Many states are challenging the constitutionality of the law and the mandate for everyone to purchase health care insurance. The constitutionality of this law will probably be decided in the supreme court.No matter what happens in this next round of political shenanigans it is still your health that is on the line. The new system will not help you from getting sick, only you can control your own wellness.With the great controversy raging in the nation over what direction our health care system is going to take it is critical that we as individuals begin taking responsibility for our own wellness. If we don’t take personal responsibility for our own health we may end up relying on a government or private system that can not or will not be able to support our specific problems.The current direction of our congressional leaders is to mandate that 20-30 million people who do not currently have health insurance must by law have health insurance or face a fine. Legislation mandates that insurance companies must make health insurance available to those individuals. There is currently a projected shortage of doctors and the addition of 20-30 million more people will surely result in rationing of care. Some states that have implemented such legislation, such as Massachusetts, are already experiencing unusually long waits to get an appointment with a doctor.As a nation we are in terrible health. Our youth are facing a medical crisis today that often did not appear until middle age. Those in middle age are suffering from chronic degenerative diseases that our parents did not have until the later stages in life. Our elderly population suffers from those same degenerative diseases including macular degeneration, Alzheimer’s dementia and Parkinson’s disease. Why are we having an epidemic of obesity, onset (type 2) diabetes and degenerative diseases? Why can’t we do a better job of preventing disease instead of just treating it once it is discovered?What can we do proactively to ensure that we are doing the very best we can for our bodies? Has the medical community provided us with the all the facts we need to know? What is the real story on how our bodies function and is there anything we can do to ensure they have the capability to fight and win the war against degenerative diseases?Our health care system is under attack and may not be able to provide for us when we really need it. For too long we have depended on the health care system to tell us through early detection what is ailing us. What that really means is that until we show symptoms of a disease the medical community has not been trained to help us. Often that discovery comes too late and we end up in the health care system being treated with solutions designed to cure or mask our disease or to keep us alive while we suffer the ravages of the disease. Wouldn’t it be easier to look for solutions to keep us healthy in the first place? Real preventative medicine would focus on preventing disease not just discovering it, what a novel concept to reduce the strain on our health care system, help people not get sick. Emerging medical science has discovered the intricacies of our bodies’ immune system and reports that keeping the immune system strong and healthy significantly reduces our risk of illness.I believe that through proper investigation and study we can find ways to remain healthy longer. Educating the average person on what the emerging science is finding out about the intricacies of our bodies will reap great rewards, not only for our health care costs but for the individual as well. I am going to dedicate my efforts in researching the medical literature to make a case for preventive health care. We must learn how to optimize our health, the quality of the rest of our lives depend upon it!Look for my next article where I will look at some science based recommendations for beginning your own preventive health care regiment. Visit my blog for information on preventive medicine and the latest health studies.
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.
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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.