How Efficient Content Marketing Pays Off an Organisation?
The power and dominance of content has increased manifold in the recent years, as content has the ability to transform a business completely. There are many companies that are producing content over decades, and they are still doing it. This is mainly because of tremendous benefits possible from content, provided it is marketed in a correct way. There are many factors that are required to be considered in doing appropriate content marketing.As for example, it is important that the content to be marketed should be targeted to specific audience, and it should provide relevant message to the target audience selected. It is also important that the content to be produced should be free from any kind of errors, and it should also refer to facts and figures, so that its overall authenticity can be proved to the intended target audience. The content to be marketed should have the potential to be sharable because social media has a significant impact in making content available to intended target audience easily. The selection of appropriate marketing medium is important, as the use of article and blog posting sites such as Forbes, Entrepreneur, and Huffington Post provides a good platform to reach millions of visitors, and the trust factor on the content posted on these reputed sites is also higher. By way of considering these strategies, it can become possible to do content marketing in an efficient way.According to Alex Ionides, there are different important ways in which efficient content marketing pays off an organisation. The benefits from content marketing are far better as compared to the benefits possible from traditional marketing methods utilised by most of the organisation. The most important reason for which content marketing is attracting more and more of attention is because people have shown interest towards online media such as social media, blogs and websites in order to gather relevant information. The medium such as television is not considered as the primary source of getting information especially by the younger generation of people. There is increasing level of trust shown by people especially on content in order to make relevant decisions. Content marketing has been emphasised more because it is not only attractive, but it has also been beneficial in generating significant amount of revenue. The prediction with respect to the revenue generation from content is expected to the voice US dollar 300 billion by 2019. This indicates the possibility of generating positive returns from doing content marketing in an efficient way.Content marketing is beneficial in the sense that it accounts for less effort and cost as compared to outbound marketing strategies applied for marketing businesses. At the same time, content marketing also accounts for generating higher leads as compared to outbound marketing strategies applied by organisation. There are thousands of promotional messages that are used by companies in order to target their customers. However it becomes annoying for people and they do not respond to any of those promotional messages that are placed in front of them, and simply ignore them. What they prefer actually is non intrusive content that they can easily access and rely on. With this strategy of content marketing, it can be possible to build a good customer base and at the same time, it helps in developing the brand profile as well. However it is important to intelligently pitch the content among the target intended audience through different channels, in order to achieve better pay off from content marketing strategy. The use of social media, email marketing, info-graphics, and also the consideration of video in providing relevant information is important, from the point of view of seeking the attraction of intended audience.Content is also highly valued by search engines like Google, and it pays significant importance to unique and quality content. Websites and blogs that provide unique and relevant content have better chances of getting indexed in major search engines, and this provides a good platform to marketers in reaching the intended target audience. However the content strategy needs to be right so that it’s easier for the search engine to index and promote it at the top to allow users to easily access to it. The conversion rate is also significantly higher among the customers in selecting a particular product over others after being informed through relevant and appropriate content. According to a study, 77% of people read online reviews before making a decision to purchase a product. They rely mostly on reviews rather than on the word spoken by sales people. The decision to purchase a particular product is highly influenced by the reviews seen by them across different online platforms. Getting positive reviews is therefore an important strategy from the point of view of doing efficient content marketing.With search engines supporting unique and relevant content, and people looking for authentic information, businesses should focus on targeting these areas to promote their content. Content marketing is an important strategy for businesses to achieve a great level of success. The probability of achieving multifold benefits in higher in case of content marketing as compared to traditional outdoor marketing strategy provided it is applied strategically.Further details on marketing strategies can be accessed at: https://australianassignmenthelp.com
How to Find Best SEO Company?
Search engine optimization (SEO) is a must if you have utter seriousness of making your website work potentially well and have real business worth from it in times to come. SEO is a comprehensive and fruitful activity and if you really want to stay in online business network for long and good time, it is very important to have SEO done for your website with the help of expert professional of the field. When you go for a detailed search for SEO services, it is relevant and beneficial to hire best SEO Company to get success results in quick time.You’ll surely find a suitable SEO Company for your business website on the Internet. It is a vast source of selection and has ample of SEO companies available to get hired. Out of so many options, you need to select the best one for you.A best company for SEO is the one which is professional and also understands your business requirements. If you do not have best SEO firm working for your online business, then you will loose your money and of course valuable time. Thus, first step towards successful SEO campaign for your business website is to choose best SEO service provider.How To Find Best Search Engine Optimization Company?1. Check the credibility of SEO Company – When you go for website SEOservices, it is very important to check the credibility of SEO services offered by the company. Check which type of clients they have catered to and what type of services for SEO have been offered to their clients. This will give you fair idea and confidence that the company you are choosing is best for your website.2. Read Clients’ Testimonials – Best SEO Company has clients speaking for themselves. If you are hiring a company which has good work experience, then clients will speak about their services definitely. The clients’ testimonials are records available on a company’s website and you can read through them to get right perception.3. Check experience of the company – Best SEO firm will have desired experience in the SEO field. Moreover, it will have experienced team of SEO experts, which will give advantage of choosing the best line of SEO services. Right SEO service providing company will also provide apt SEO consultants ready to assist you at any point of time.Adhere to these points by heart and be assured to get hold of right and best SEO service providers working for your website requirements. Start hunting for suitable SEO company right away else your will be left far behind in the increasing competition.
What Comes First: Business Strategy or Tax Strategy?
Any business advisor will tell you the answer, but what’s happening in the real world?Here are a few examples:VATWhen Jeanne started her exercise class business, she decided after taking advice that she wouldn’t register for VAT. It makes sense. If you want to compete with everyone else then you can’t charge 20% higher prices to include VAT. But now she’s stuck. She can’t grow the business beyond the VAT threshold because she would have to increase her prices or take a significant reduction in margin. Now she’s contemplating setting up separate businesses to boost her earnings. It’s quickly going to get complicated – she can do without all the distraction of doubling the admin work.Five years in to running his hair salon, Scott takes a day off a week and shuts early some days just to limit his takings to keep them below the VAT threshold. But he’s living hand-to-mouth.Which came first in these two cases: tax strategy or business strategy? The payoff of course is that both businesses reduce their tax bill, but at what cost?I’m sure this isn’t what was intended when a VAT registration threshold was included in the VAT legislation created in 1973.Income TaxJohn runs a sole-tradership and draws money from the business as he needs it and, more importantly, when it’s available during the year. His accountant then finds the most tax efficient way at the year-end to distribute his drawings between salary, expenses and dividends. Cashflow is not managed proactively, so while John knows what’s in the bank he doesn’t keep track of every due payment or receipt so he sometimes draws too much and leaves the business short of cash. This regularly causes him to have sleepless nights.Norman runs a limited company and runs it the same way. He takes no salary as such and reinvests most of the profits into the business to fund growth. He restricts his drawings to pay as little tax as possible. He’s looking to exit the business in 3-5 years. Unfortunately, because he’s not taking any kind of salary, let alone a market rate salary, he has no idea how profitable the business truly is and is complicating things for himself when he eventually come to sell.Ken is looking to buy a new vehicle for his business, that he will use personally too, in order to reduce his tax bill. However, his tax savings are less than savings he’ll make obtaining a vehicle this way compared to some of the alternatives.Which came first in these cases – business strategy or tax strategy? Again, the payoff is a lower tax bill, but at what cost in terms of business growth and equity?These examples are not rare. Many micro-businesses and SMEs are operated in a way that minimises tax liabilities. Their business strategy is defined by their tax strategy. In the real world, it seems, tax strategy more often takes priority over business strategy.And in every case described it is stunting the growth potential of the business. That may be OK in some cases, where the owner doesn’t want to grow. However, where they do it is holding them back. In any case, all businesses should be looking to grow at least a little just to overcome the effects of inflation!So what’s the solution? Some say that the government should change the tax rules to benefit SMEs even more. Others might point out that accountants are well placed to help business owners put business strategy before tax strategy. However, both of these “solutions” abdicate responsibility. Governments will forever tinker with tax rules, shaving a bit here and adding a bit there. The overall result is added complexity, confusion and probably a ligher wallet. Tax advisers will prioritise minimising the tax bill because that’s their job and the tangible, immediate benefits show how good they are at it.The solution then is for business owners to recognise that a successful business should pay taxes. That a successful person contributes to society by paying taxes. And to be successful means developing and implementing a business strategy that will achieve their goals not minimise tax.With a business strategy in place, then a tax strategy can be applied to mimimise the tax liability of that strategy without strangling business growth.So how do you create a business strategy? There are books written on the subject, but here are the essentials:
Define what you want to achieve, or start with the end in mind as they say. I don’t believe anyone really starts out wanting to build a sub-£78,000 turnover business. Many settle for that, but few start with that ambition. Starting with the end in mind allows you to pre-think what the business needs to look like in terms of turnover, profits, headcount, infrastructure, etc.
Look at what’s already available in the market and come up with something different. That might be a different target market, or a different way of delivering what you offer. But to avoid competing on price (like Jeanne) you must have something different to offer your target market, not just a little better, or smaller, or bigger, or faster, or whiter, but completely different.
Figure out which people would want to buy that difference and why they would buy it – why should they care enough to part with their hard-earned cash?
Figure out how to tell people about it and how they can get hold of it most easily.
Then create a plan to help you understand how the cashflow will be generated to achieve your goal. Too few business plans are written to aid understanding of the specific steps involved in achieving a goal and the risks associated with those steps. Write yours with those two things in mind.
Follow the plan step by step and adapt it regularly as you gather real world data to support or otherwise your business idea.
Discuss with your tax advisor/accountant how to minimise the tax liability of the plan and impress upon them that changing the plan is not an option.
If you’re already in business, it’s not too late to figure out a more effective strategy to achieve your goals. The best time to start is today.
What You Should Expect From A Children’s Disco Entertainer: The Equipment
So you’ve booked your children’s disco entertainer; you’ve got the confirmation of booking. The day arrives, and he’s going to be bringing all of his stuff. Shock horror! What will he be bringing with him? Did you forget to ask?Well not to worry! This guide will give you a reasonable idea as to what you can expect your entertainer to bring with him as part of the price, and what you will probably have to pay extra for.Of course, this is a guide only, and all disco entertainers are different. The bottom line is to check what he will be bringing!Essential equipmentSpeakersThe first thing to consider is the speaker system. Most speakers will be loud enough for an average function of say 0-30 children. However, larger sets of children, such as a school year, can be exceptionally loud when in the same hall. This means that the disco will need to be loud enough for all the children to hear him.CD Player/iPod/otherWithout CDs, there is no music! Well, that’s not strictly true. The entertainer may make use of an iPod or other similar device to play the songs with instead. Please be aware that there are certain licenses to be adhered to when music is in non-CD format. If the entertainer isn’t using CDs, then he or she may require something known as a pro-dub license.LightsWhat is a disco without lights? Most DJ entertainers will bring a lightshow with them, but not all lightshows are equal! Where one entertainer might turn up with a single light, other entertainers will come with a much more impressive lighting rig. Remember to ask about the entertainer’s lightshow. Most entertainers with a decent show will have had pictures taken to show you.Common equipmentBubble MachineA lot of entertainers bring a bubble machine with them. These are brilliant fun for children of any age and will often get them jumping around trying to catch as many bubbles as they can before the music even starts!If the entertainer is bringing a bubble machine, then you should ask about safety aspects such as a slippery floor. Your entertainer should bring a non-slip mat or similar safety feature to counteract this potential safety hazard.Smoke MachineChildren also love smoke machines, and they are able to enhance any lightshow. They turn a laser or LED light from just a collection of dots on the floor into a beautiful array of light.Depending on the exact smoke machine, please be wary that there is a chance of setting off a fire alarm if too much is used. To counteract this problem, it may be plausible to leave a window or door open to let the smoke disperse naturally after it has done its job.
Thanks for reading!
Health Care Reform is Here
Health care reform became law on March 23. There are many questions that have yet to be answered, and IQHSA.com has been hard at work to determine how health care reform will affect you and your business. Many specifics of the different reform provisions remain undefined. Due to how the law was written, there is ambiguity and a need for regulatory agencies to provide clarification. In the months and years ahead, we expect federal agencies to issue regulations and guidance on many aspects of the legislation.Here are seven key health care reform components effective this year:1. Small Business Tax Credits – Small businesses up to 25 employees could be eligible for tax credits for the coverage they offer employees.2. Dependent Coverage – Many health insurance carriers have been early adopters of the law that makes health insurance coverage available to adult children up to age 26. These dependent coverage benefits are now available.3. Grandfathering of Existing Policies – This is the “keep the plan you’re on” language used during the reform debate. The law provides that grandfathered plans – plans that were in effect at the time the law was signed on March 23, 2010 – do not need to comply with certain reform requirements (although many apply to grandfathered plans as well). Regulations are expected to clarify what changes can be made to plans without jeopardizing grandfathered status.4. High Risk Pool – The new law requires that health insurers must offer coverage to anyone regardless of health status, and that goes into effect in 2014. High-risk pools are being developed in the interim to insure those who don’t currently qualify for health insurance. While some states already have high-risk pools, Arizona doesn’t. Gov. Jan Brewer has already replied to the Department of Health and Human Services that Arizona – which had the option to create its own high-risk pool or defer to a national pool – cannot afford to create one.5. Mini Exchange – Now commonly referred to as “The Web portal,” this is a first step in the reform legislation that aims to assist consumers by providing private health insurance coverage information (the full exchange will be activated in 2014). Regulations have been issued that define the information insurers and others are required to submit to HHS and many health insurance carriers are compiling the information necessary to meet the May 21, 2010, submission deadline for Phase I.6. Reinsurance for Early Retirees – Health care reform legislation provides for the establishment of a temporary reinsurance program to reimburse participating employment based plans for a portion of the cost of providing health insurance coverage to early retirees. Final regulations have recently been issued that provide more details about the program and the application and claims submission processes.7. Medical Loss Ratios – The affect of the federal law aimed at keeping health insurers’ administrative costs in check is unclear, in part because federal definitions of how carriers will have to calculate medical loss ratios haven’t been determined. We will continue to bring you all the latest on health care reform but in the meantime we invite your comments and questions at IQHSA.com.
Weight Loss Motivation Rules
Successful weight loss Rules for Weight loss motivation.As with any plan there are always rules. Weight loss is no different; after all it is a battle, a battle of mind over body and every battle has rules. Below is what I consider to be the golden rules of weight loss.These are, in order,o You are responsible for yourself and actionso There are downsides as well as ups, take the rough with the smootho Pick the weight loss routine suitable for youo Take the routine seriouslyo And follow through to the endYou are responsible for yourself and actionsRemember, a diet is a selfish action; it is for one person and one person only. A diet should be undertaken for your own needs and desires, not others, for this reason alone it is your very person that is responsible for its success or failure. Pressure is applied more often than not by others and surroundings, but you will have to be strong.There will be up’s and down’sSo, going with the theory that most people will take some time to realize the truth of the magic rules, the first thing that you need to do then to begin your weight loss regime, is to realize that it is not going to be an easy road to walk or run down.There will be many tempting goodies like: cream cakes, full fat coffees, cream cheese bagels, the ever popular Burger chains and so on and so forth, littering your path. It is up to you to resist and not give in to these temptations.I kid you not! It will not be easy so I will not even pretend that we can pass these by without being tempted one or two times and indeed giving into temptation. That would be delusion on a grand scale, and since we are for the moment at least, all about self-honesty, let’s acknowledge the fact that we will fall off the wagon, most do.But as I said earlier, what matters is not that you fell off the wagon in the first place, but what you do with yourself afterwards. Get up, dust off those cookie crumbs and get right back on the weight loss wagon. You can do it.And this is really what you need to realize so early on, the fact that you will fall off the weight loss wagon, and the fact that your road will be literally paved with tempting morsel after tempting morsel.Once you can realize and acknowledge this fact for yourself, you will find that you are better armed to deal with these.You will also find that being prepared for these little wayside problems, makes it easier for you to tackle them head on, and in many cases, makes it easier for you to turn a blind eye to temptation (most of the time).Pick a Weight loss Routine Best For YouYou have decided that you want to lose weight and you are going about trying to find a way to make this a reality.Now you need to take a few minutes away from your busy schedule to deicide exactly what measures you can implement in your lifestyle to make it easier for you to lose weight, and also decide how much time you are willing to devote to doing this.This might be more difficult for you than you think, but the thing is for it not to become daunting at this first hurdle.If you have only a very minimal time frame on your hands to devote to your goal of losing weight, there is no need to despair.Since you have already begun the crucial process, you only need to follow through with it and implement a plan that will enable you to do so despite your busy schedule.Take things one at a time and don’t try to do everything at once. With a limited amount of time on your hands first concentrate on one aspect of your weight loss plan.If you want to implement an exercise regime, then do so. Leave the diet plans for a later date when you are better able to deal with it, or when your exercise routine has become a set part of your life.This way, you will be able to gradually incorporate your entire weight loss plan into your life, without having to leave anything out, or without having to feel beleaguered.The key factor when going through with this golden rule is that you need to find the right balance of diet and/ or exercise for you, the one plan that will fit seamlessly into your lifestyle habits without taking you too out of your way.Take the Routine SeriouslyIf you went through the earlier golden rule, you know that in choosing the best weight loss plan for you, you need to choose one that fits into your lifestyle.The reason you are doing this, is to make this particular golden rule – the one about following through on your weight loss plan – a reality instead of a wish.Many people, myself included, find it easiest to start something; it is the follow through that we find difficult, and because of this, we find it easy to let go of our ideas and plans when the going gets tough.By choosing a weight loss plan that fits naturally into your lifestyle to begin with, you are making it that much easier for you to stay the course and to follow through on your weight loss plans.If you look at it reasonably you will see that what I am saying makes sense. Think about it. If you have great ideas on how to lose weight and put them into action, you can be assured that for the first few days and weeks at least that you will go through with them.But what happens when you have to break through your routine to attend to something else? Since life can never be planned out down to a T, you can be assured of getting these interruptions, and frequently, if you lead a busy life.Well, to begin with, you would try and keep as close to your plans as possible, but there may be one or two days when you need to abandon them altogether to accommodate outside influences.When this happens, which weight loss plan do you think you are most likely to follow through on, once you get back to your normal routine?The one which is great, but which takes you out of your normal routine and which requires you to push and prod yourself to get back into it?Or the one which is maybe not as great as your original grand plan, but which runs more or less parallel to your normal routine, and which you can fall into more easily because it doesn’t require you to go out of your way?I know which one I would chose, but this is because I know myself. I know that if I had to go out of my way over and over again, if I had to push and prod myself to get into my weight loss routine every time life threw a curveball at me that I would not follow through with it.In fact, my life to date is littered with many of these grand weight loss plans and schemes, and for myself at least, I can attest that none of these worked the wonders that they should have. The plans were sound; it was the execution of them that left a lot to be desired!It took a little bit more of down-to-earth thinking, and my realization of the golden rules for me to lose weight successfully and keep it off.What you need to take away from this section, is the knowledge that sometimes life will throw a spanner in the works. You will find your weight loss plans going for a six, but that doesn’t mean that you should quit.Whether you have a “great” weight loss plan, or whether you have a not-so-great weight loss plan in the works, you need to follow through on your original plans and ideas and not give up.It is at this point in your weight loss plans that it’s going to be all too easy to give up and go back to your old ways. Don’t.If you think you might have trouble on the follow through, be prepared for this eventuality and plan for it accordingly.And follow it through the endThe thing that will help you to lose weight, and will also help you to keep the weight off, is if you follow the plan through to the very end with your decision to lose weight.In other words if you have set yourself a target weight, then stick to it. Follow through to the end, and don’t give up.If you have been reading through the earlier sections, or if you have gone down this route before, then you know how much easier it is to start yourself on a weight loss regime than it is to continue on with it.And you will also probably know how much easier it is to follow through on such a course if you give yourself a little nudge, than it is to see it through to completion.Many of us, even if we do manage to successfully drag ourselves through our weight loss routine day after day, will find that it is harder to stay on track as time goes by and your goal comes ever closer.In my case most of the time, even when I followed through to nearly the end, I found myself losing the will to continue.This was mainly due to the fact that I was not as committed in the beginning as I could have been which in turn meant that I was only staying the course because I was forcing myself to do so, and not because I really wanted to.And this meant that when the going got tough, I got going – in the opposite direction most times!Since it was difficult enough to stay the course when things were happening normally in my life, it was near on impossible to stay the course when things went even slightly out of sync.The end result? I would always, always find some way, some little loophole to exploit which would necessitate my going off my weight loss regime.So to see you through to your weight loss target, you need to follow through, and make a conscious decision that you will see it through to the end. But you also need to have that commitment to yourself and to your goal that you will see it through to the end.And really, it is only when you want to do this, when you have the commitment to stick with it come hell or high water, that you will find that you not only lose the weight, but you find that you also keep it off.
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.