Investment Options – Is Your Advisor Giving You the Information Needed to Succeed?

How soon would you want to know if your investment advisor wasn’t telling you about the three major investment types? If you’ve only heard of two – Variable and Fixed, then you may have a problem.Unfortunately, many investment advisors routinely fail to present all three types: Variable, Fixed, and Indexed as valid investment choices to their clients. This is normally because they are unable to offer all three options or they have a personal dislike for one or more of these investment types.So what is the difference in these investment types and what do the terms mean? The simplest answer is that these terms define how interest is earned on your investment. More specifically, it tells you how your money is invested and if your money is protected from market fluctuations. Let’s take a look at these various investment options.VariableA Variable investment is one where your money is typically invested in stocks or mutual funds. The performance of these stocks or funds varies and is not guaranteed – hence the term “variable investment.” Variable investments have many key benefits. They allow you to earn interest by investing in a single company (individual stock), multiple companies, or a specific segment of the market (mutual funds). You can even invest in an entire Index like the Dow Jones or S&P 500. Also, variable investments allow for the greatest return and historically have outpaced all other investment options.Sounds pretty good, right? It is, as long as you have the tolerance to lose money as well. The volatility of variable investments is a major concern for many investors. The “upside” or growth potential is nearly unlimited, unfortunately so is the “downside” or risk of losing money.One other adverse factor that Variable investments face is the cost. Most have either fees or loads associated with the underlying investments. These fees or loads can reduce the performance by as much as 3.5%, although 1-2% is more common. These fees or loads are applied even in down years so it is definitely something to consider.FixedA Fixed investment offers a pre-determined or fixed interest rate for a specified period. This is most commonly seen with bonds, CD’s, annuities and universal life insurance products.Fixed investments have three major advantages over the other options. First, they provide a guaranteed or known interest rate that is disclosed prior to making your investment. Second, fixed investments are generally designed to protect your initial or principal investment.A Fixed investment also has two major pitfalls. First, because they provide a known or guaranteed interest rate, they generally provide a lower rate than what may be available when you’re willing to risk your principal. Second, they normally have restrictions or penalties associated with any withdrawals made during the fixed interest rates term period. This is especially true with CD’s and annuities.Overall, Fixed investments can be a great option for those not willing to risk some or all of their money, older clients using the investment interest to provide or supplement their income, and clients looking to provide a hedge against other, more aggressive investments.IndexedUnlike Fixed and Variable investments, Indexed investments are somewhat unique to the insurance and annuity marketplaces. An Indexed investment shares traits of both Fixed and Variable investments, but with one major difference – how interest is earned.With an Indexed investment the underlying funds are not directly invested in the stock market or an Index, nor are they directly invested in a bond, CD, or other fixed investment. They are however, secured by bonds or other conservative investments which provide a minimum guaranteed interest rate similar to a fixed investment.Generally, this minimum or fixed rate is lower than what is available in a purely fixed product. This is because Indexed products offer a higher maximum interest rate over Fixed investment products. The Indexed products determine the maximum interest earned using a formula based on three factors, all part of an option purchased by the insurance or investment company. They are the participation rate, the cap rate, and the reset period.The maximum interest earned provides “upside” potential while at the same time eliminating “downside” risk. In essence, it is like having the growth potential of a Variable investment with the “downside” protection of a Fixed investment. There is however a trade-off.An option, sometimes referred to as a call or put option, provides investment returns (interest earned) based on the growth of a specific market Index like the S&P 500 or Dow Jones. The option allows for lower initial costs, a pre-determined strategy for establishing current and future interest crediting, and ensures that money can’t be lost due to market fluctuations. The option also caps (limits) upside potential or growth.Many opponents of Indexed investments point to this limiting of growth, especially in years were the Index or stock market exceeds the Index (option) cap or participation rates, as the Achilles heel of these products. There is also some controversy over the way the Index rate is determined in future years.While Indexed products do have a minimum cap and participation rate that is known for the entire term period, the current or maximum cap and participation rates normally reset on an annual basis. This makes it difficult to determine what will happen in subsequent years. Some advisors avoid these products claiming that the difference between the current and minimum rates creates client confusion.No matter which type of investment you choose, it is important to get the facts and options available for each. Each of the investment choices outlines provides different advantages that need to be weighed against their disadvantages, however they all have different uses and can all be viable choices when planning your financial future. As always, it is important to consult your “Financial Professional” to find out which of these investment choices is right for you.

A New Health Care Insurance Policy

Some health care insurance companies, are nowadays grateful for their employee’s idea of dropping the client’s policies and cancel the payment for their health care medical expenses, admit recent investigations in health care insurance domain. Since this new policy, many other investigations started targeting all other health insurance companies.Moreover, another important change in health insurance policy is that, as many Americans accept the idea that, smokers should pay a larger sum of money for their health care insurance. Why? Simple: it is already known the fact that a smoker is more prone to danger than a person who has never smoked in his/her life.And the danger refers to health care medical issues, of course.This is also a way of determining as many people as possible to quit smocking.Health care insurance programs and medical health care issues have been concerning USA presidential candidates since always. Even Barack Obama the actual president of USA, has in plan to face the health care medical system, and improve it, by taking out all problems that are harming it. His perfect health care program would be the one covering all medical care expenses by the health insurance company. The estimated number of uninsured in USA, points out to 45 million, people who need to face the actual medical care insurance system. A first idea would be that, by raising health care insurance taxes for smokers, then the uninsured would have to pay less, since the smoker’s number is bigger than medical uninsured.The need for a reformation of health care system is obvious and it is one of the president’s main objectives, because after the economy, medical health care system, and insurance health care policy come second.Barack Obama is fighting to convince employers to determine Americans to share his new health care policy plan. His plan will require larger companies providing insurance to entire nation, and in return they will receive small tax credits for the medical care expenses.
Unfortunately many workers are still depending on their employers regarding health benefits, and the entire system is facing difficulties already. The numbers are concerning: 62.9% of Americans under the age 65 had “employer-based” coverage during 2007, falling from 68.3% during 2000. This indicates that instead of an improved situation in health care system, the evolution was tragical, meaning that thing have been getting worse and worse for the past 7 years.Experts and qualified persons, do not sympathise much the idea of eliminating the fee advantage for “employer-based” coverage which would only oblige younger workers to abandon their office plans. In this case, medical costs for the remaining employers would surely skyrocket. So it seems that MCCain’s idea could do more damage than good to the entire health care system.
On the other hand Barack Obama’s approach is extremely different. As said previously, the president wants to establish larger companies to provide “meaningful coverage” for their clients. In case they do not provide health care insurance, they would have no other option but to subsidize the entire cost of a national plan.

Online Training Options for Health Care Careers

The amount of medical services needed in the United States opens many possible career choices for students. The health care field requires numerous professionals to carry out specific duties within a community or inside a hospital. Students are able to enter a career in health care by choosing to complete education through an online school.There are many avenues that can be taken when students decide to enter a distance learning school for the health care profession. Career training can be pursued in areas like health education, health information technology, public health, and more. Students should research the health care field to decide on the right educational program that will facilitate the best learning for their career goals. Some degree and career options available through online study may include:*Health EducationWorking to inform others how to gain a healthy lifestyle can be pursued from an associate to doctoral level of education. Training prepares students to understand diseases, health issues, and wellness practices thoroughly so they can help others reach good health. Tobacco use, teenage pregnancy, nutrition, physical fitness, and community health are subjects explored inside an online program. Becoming a health educator on these issues and much more is possible upon graduation of a concentrated program.*Health Information TechnologyThe medical history of patients is extremely important. When completing education students learn how to ensure all information is accurate by understanding the field and its technology. Online schools provide degree opportunities at the associate’s, bachelor’s, and master’s degree level. Students can expect to study medical terminology, data analysis, anatomy, information management, health insurance information, billing, and coding. The examinations of these different topics prepare students to step into the workplace as health information technicians.*Physician AssistantProfessionals work to conduct a variety of tasks from recording patient histories to casting broken bones. The standard educational requirement is having a bachelor’s degree before entering a training program. Most online colleges provide a graduate training at the master’s degree level. Students should expect to take online classes in pharmacology, biochemistry, pathology, and internal medicine. Programs require a hands-on experience course where students visit a hospital located in their hometown and work with physicians and their patients. Some colleges offer associates and bachelors degree programs.*Public HealthMany career options are available to students that seek education in public health. Administrative duties and procedures for health related practices are studied inside a degree program. This can include working with homeless and foster care children. Students learn about community health, environmental health, promoting wellness, and more. Online colleges provide training through undergraduate study and graduate-level degrees.Health care is a broad field that allows students to follow their passion into a satisfying career. Accredited online colleges provide several educational options to train students to become health educators and health care workers. Full accreditation is provided to quality educational programs by agencies like the Distance Education and Training Council ( http://www.detc.org ). Students can begin education when they’re ready by exploring the different available options.DISCLAIMER: Above is a GENERIC OUTLINE and may or may not depict precise methods, courses and/or focuses related to ANY ONE specific school(s) that may or may not be advertised at PETAP.org.Copyright 2010 – All rights reserved by PETAP.org.

Online Education to Become a Teacher

You might want to consider acquiring an online degree if you are interested in becoming a teacher. The field of education is one that gives you plenty of opportunities to try out different roles. As a teacher, you can focus on early, middle, or secondary aged students. You can also take on administrative roles with an online degree focused on teaching.Kinds of Online Degrees:
Similar to any other field, there are lots of options available for you when it comes to online degrees. To start with, you can go for a bachelor’s degree in education. You can become a teacher in any college or university by earning this degree along with a certificate in teaching. Normally your college major will decide which subject you are going to teach. Once you have earned a bachelor’s degree in education, you can further go for a master’s degree in education. This degree can come in real handy for individuals who want to advance their career.Different Areas in the Field of Education:
The education field consists of various specializations that include elementary education, early childhood education, administration, higher education, secondary education and middle school. Each of these specializations needs a specific educational qualification and certification for becoming a teacher. For example, it is mandatory for teachers to get a license from the state in which they are teaching.Online Bachelor’s in Education:
To start a career in teaching, you need to earn a bachelor’s degree in Education. The course structure of this online degree program includes planning lessons, handling discipline related issues, psychology of learning and making sure that students do not face any problem in understanding concepts. You can earn between $25,000 and $30,000 as a first year teacher with an online bachelor’s degree in education.Online Master’s in Teaching:
Certified teachers can attain promotions as well as pay raises with the help of online a master’s in teaching degree. Another good thing about this degree program is that it gives teachers more opportunities in private schools and universities. Upon graduation you can also enroll in a PhD in education degree program.Schools Offering Online Education Degrees:o Western Governors University: Regionally accredited by the Northwest Commission on Colleges and Universities, Western Governors University offers Bachelor in Education, Masters in Teaching, Masters in Education, Higher Education, Secondary Education and Special Education.o Ashford University: Regionally accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools, Ashford University offers Associate, Bachelor and Master degrees in teaching. Some of the programs conducted by Ashford University are Bachelor in Education, Masters in Teaching, Masters in Education, Masters in Teaching, Higher Education, Early Childhood Education, Secondary Education and Elementary Education.o Grand Canyon University: Accredited by The Higher Learning Commission of the North Central Association, Grand Canyon University offers Bachelor of Science in Elementary Education, Master of Arts in Teaching, Master of Education in Secondary Education and Master of Education in Special Education.The acquisition on an online degree in education can help individuals in acquiring better career opportunities and go for well-paying jobs. But before enrolling in an online college or university, you need to make sure that it is accredited.

A Pall Settles Over America

I see it in their eyes, downcast and wary. I see it in their steps, shuffling and tentative. When they talk, they use a word I rarely hear, depressed.

These are the producers, those who make the country work. Hourly and salaried employees and managers, who go to their jobs every day, work hard and provide for themselves and their families.

They’re the kind of people who have been with us since the country began. Back then, we called them Pilgrims, sod-busters, and settlers. Today they go by many names, Physician, Technician, Engineer, and Laborer. But for all of them, life has a rhythm, just as it did two centuries ago, that comes from our agricultural heritage.

Spring has always been the time for planting, and looking forward to the year ahead. Summertime is when they cultivate the crops. Fall is harvest time when we enjoy the fruits of our labor and thank God for blessing us. Winter is the time of austerity, the time to prune, the time to cut back.

But not this year. This year, we are still in harvest time. Yet the pruning has already begun. Major companies across this land are already cutting back, eliminating staff to reduce.

For thousands of laid-off workers, it comes at the worst possible time. Just before the holidays. A time when many who have children will have to cut back this Christmas. There will be little joy for those who lost their jobs these holidays.

If you’ve lived through a corporate “downsizing,” you know that anxiety runs high. No matter how often the boss has assured you that you will be kept on, you’re never sure about your future. Should you start looking for a new job now, or wait? Does the boss know what lies ahead, or might he be on the corporate chopping block? There is no job security once layoffs begin.

But there is much more to our collective angst this year than at any time in our memory. These corporate cutbacks are merely reflecting a more significant issue, an issue that is nationwide.

Our country is headed in the wrong direction. That is a sentiment shared by three-quarters of us. And we’ve felt that way for a couple of years. Producers know that the country should be operating better. Yes, there were all difficulties associated with the Pandemic. But those are now behind us.

Today recovery should be well underway. But it’s not. Despite all the trillions of dollars pumped into the system, our standard of living is falling. Each day inflation marches on; real income is declining. Gasoline, food, and shelter costs accelerate in real-time, but a salary rise comes annually. Corporate raises will arrive at the end of the year and likely come nowhere near the level of inflation we’ve already experienced.

Producers see all of this.

Producers also know that many, perhaps most, of our problems come from Washington. We see that a feeble old man has his bony fingers on the nation’s tiller, steering us straight for the shoals. He, and those who surround him, have a policy of austerity. In their eyes, less is better, and fewer is preferred. We should use less heat this winter, drive smaller, preferably electric vehicles, and eat vegan. And the less we consume, the better. From this perspective, we are the problem. Our destiny is to have shortages and wants. And they’ve pushed us in that direction.

However, these leaders told us last week that we could change everything. By walking into our voting booth, we could make our voices heard. We, the people, could take this country in a new direction that our leaders were indeed subject to the will of the people.

That didn’t happen. Counting votes has become a haze of computational complexity and slow-walking results. So that the incumbents in Washington get the results they want, it’s the complete inversion of the principal and values that the country’s founders intended. But there it is—today’s reality.

It’s the reason the word I hear most often from Producers today is: depression. And I’m afraid that’s where we’re headed.

Sundar Pichai’s Leadership Qualities To Emulate

Sundar Pichai’s Leadership Qualities To Emulate

All over the world, people, including teenagers and students have been inspired and motivated by Sundar Pichai’s success as the CEO of Google and Alphabet Inc.Amongst the success stories of CEOs, Sundar Pichai’s has piqued the interest of many.

Sundar Pichai was born on the 10th of June, 1972 in India to a middle-class family. He attended the Indian Institute of Technology in Kharagpur to study engineering. He received his MBA from the Wharton School of the University of Pennsylvania and his master’s degree from Stanford University.

Pichai joined Google in 2004 and is now the team leader for the Google Drive, Chrome OS, and browser product teams. After 11 years as a Product Manager at Google, he steadily advanced the ranks of the organization and was named CEO in August 2015.

Pichai has established himself as a diplomatic and pragmatic leader who is committed to getting things done. Pichai acknowledged that one of the keys to his leadership is his capacity to delegate authority.

It makes sense that individuals would want to imitate his leadership given how excellent it is both before and during his tenure as CEO. Let’s look at some leadership qualities to emulate from Sundar Pichai.

Empathic:-

Not only is Pichai a person who gives much thought to what the business should do to address the problems in the world, but he also exemplifies humanity, which is the comprehension, compassion, and cunning that lead one to prioritize the welfare of others before personal gain.

People who have worked closely with Pichai have positive things to say about his empathetic nature and desire to promote teamwork at Google.

Mastery:-

In his youth, Sundar Pichai had the ability to memorize any type of number. Each and every aspect of Google’s mission was mastered by Sundar Pichai. Sundar Pichai is renowned for his top-notch technical prowess and product management capabilities. He also makes everything clear with simplicity, clarity, and purity.

To motivate and inspire their team, a leader must excel at a variety of talents.

Vision-minded:-

It is important to have a clear understanding of the business roadmap and the strategies to reach the goals in the era of fierce competition and information overload. Sundar Pichai at Google was elevated to second-in-command to Larry because he was able to express the direction better than the others and stood on the shoulders of giants. In order to succeed, leaders must be able to continuously assess both micro and macro objectives and plan ahead.

Communication:-

As we get farther towards the digital age, where strong emotional relationships are uncommon, he is a great example of the kind of CEO that every firm will require.

Emotional intelligence is reflected in communication skills. In the science and engineering areas, emotional intelligence is not typically seen as the most important trait (or many other fields if we are honest).

Mr. Pichai obviously possesses this in his repertoire of leadership abilities, which makes him a superb fit to lead the science-based organization we know as Google into a future in which they advance every life.

Inspirational:-

Sundar Pichai was able to motivate the team while working at a company with many incredibly brilliant individuals thanks to his work ethic, professionalism, ethics, innovation, risk-taking ability, excitement, and brilliance—qualities the company valued in a leader. A leader must be able to continually motivate their staff to work toward the company’s overarching objectives.

Because of these traits of his, the team works more enthusiastically and with greater motivation under the leadership of Sundar Pichai, who is an amazing leader.

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Industryleadersmagazine.com is Global business leadership platform where you can explore the entrepreneurial process by leaders, business owners, and innovators who drive economies around the world. Industry Leaders Magazine has always been at the forefront for its integrity and authenticity earning recognition from Business leaders internationally.

The Future of Technology

The technologies that we are already exposed and used to has already opened up a path to us innovating even further, and this list of both present and upcoming technologies definitely has the potential to transform our lives further.

It is difficult to get definitive clarity about emerging trends, since it is unclear how different jobs will be affected by the new technologies. It is difficult to quantify the impact of robots, AI, and sensors on the workforce because we are at such an early stage in the technological revolution.

Emerging technologies like industrial robots, AI, and machine learning are moving forward rapidly. Advances in AI, machine learning, robotics, and other technologies have increased the rate of change by as much as tenfold. Technology is evolving so rapidly today, making changes and advancements faster, which is driving up the pace of change, until it finally becomes exponential.

A hundred years ago, in 1922, who would have imagined people communicating through virtual reality, artificial intelligence (AI), and being assisted by robot technologies. Virtual reality is almost certain to be even more invasive in the future, with the possibility of manipulating our sensory inputs, making VR entirely indistinguishable from reality.

We are going to be living soon in a future in which our deliveries and goods are transported via transport powered by computers. One of the things that the human race is going to need to do going forward is learn new ways of recycling, reusing, and re-engineering old technologies in order to minimize waste and conserve the earth. In decades ahead, jobs will change, but humans will still have to run a digital world.

More importantly, as machines are becoming smarter and able to perform more human tasks, I believe our unique human capabilities–things like creativity, empathy, and critical thinking–will be even more precious and valued in future workplaces. Rather than buying into a dystopian vision of a future in which all of humanity’s jobs are taken by robots, I believe AI will improve the way we do our jobs. We are lucky to be living in a time when science and technology can help us, streamline our lives, and redefine how we approach everyday life.

Six-in-ten Americans (59%) think that advances in technology will bring a future in which peoples lives are largely better, compared with 30% who think that lives will be mostly worse. Some 59% are optimistic that coming technological and scientific changes will make life in the future better, while 30% believe that those changes will lead to a future in which people are worse off than today. These long-term optimists (i.e., those who agree with the proposition that technological changes will lead to a future in which peoples lives are largely better) are roughly twice as likely as the long-term pessimists to say that changes for the better would occur if personal drones became widely available (28 % vs. 14%) and if lots of people wore devices or implants feeding them digital information about their surroundings (46% vs. 23%).

Yet, there is real risk that gains from technological advances will only benefit certain industries and certain societies, and not broadly translate to improved prosperity and wellbeing. Yet even this pursuit is becoming unattainable to many, with the decline of new jobs created in sectors where new technologies are most quickly being developed.

Interestingly, the information sector is among those expected to see a drop in jobs as technology advances. In the coming years, as long as governments let them, we are going to see technologies within the data sector becoming more accessible and accessible, with startups entering this space. Technology will be more prevalent, cheaper, and easier to use, only increasing the chances for its wide adoption.

These massive changes in technology capability will generate far more touch points with customers, and a new, exponential flood of data about customers. By 2025, Web3 technologies will revolutionize the business world, in much the same way as Web2 transformed access to information.

In time, technology will allow for financial stability and discipline, without requiring individuals to acquire relevant knowledge. As noted by Brookings scholar Kemal Dervis, as technological innovations continue into the future, providing individuals a means of upgrading their skills and knowledge levels will be critical. Technological advancement is an excellent opportunity for helping each and every child to build skills and competencies that can address the biggest problems of the world and create a better future.

This progress will revolutionize the way we tackle optimization problems, train and execute machine learning algorithms, and understand better the physical processes of nature at subatomic levels. No sooner will we train humans how to program, for instance, than AI can do basic programming. Because automation is happening so fast, societies will be unable to reliably predict which skills will be needed, even years in advance.

It will have to sort out all of the tasks with the help of enhanced technical capabilities for execution and control, as well as developing new roles like data analysts and bot managers.

To be noticed in this emerging technology, you need expertise in quantum mechanics, linear algebra, probability, information theory, and machine learning. If you want to set foot into 5G, you need to know about information security, fundamentals of artificial intelligence and machine learning, networking, hardware interfaces, data analytics, automation, an understanding of embedded systems, and need to possess device and project design knowledge.

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.

S&P 500 Biotech Giant Vertex Leads 5 Stocks Showing Strength

Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).

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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.

Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.

Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.

Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.

Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.

Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.

Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.

Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.

The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.

In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.

In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.

Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.

Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.

The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.

Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.

The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).

In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.

S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.

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Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.

Cardinal Health stock’s relative strength line has also been trending up for months.

The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.

Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.

S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.

Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.

Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.

Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.

Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.

Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.

The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.

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STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.

Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.

GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.

The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.

On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.

Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.

During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.

Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.

IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.