The Five Pillars of Marketing Success
Does the following give a pretty good picture of your current marketing activity?You have a website but you’re not really satisfied with it. You go to networking events once in awhile. If someone asks you to give a talk, you’re happy to do it. You post on Facebook and/or LinkedIn semi-regularly. When you find the time, you send an article to those on your relatively small email list. You occasionally set up meetings with colleagues to explore opportunities.Now there’s nothing wrong with any of those marketing activities. And usually, they will result in landing some new clients.But this is not the approach that works to get a steady, predictable stream of new clients.Please don’t tune me out here, thinking, “Well, I really can’t do more than this. I’m already stretched thin. If you give me too much to do I’ll get overwhelmed.”I agree. It’s not that you need to do more marketing, it’s that you need to shift your marketing paradigm from one of “Randomness” to one that is “Focused.”Random marketing is just that; it’s all over the place. You do a little bit here and a little bit there on an inconsistent basis. You are trying to keep your face, name, and message in front of your prospective clients but the results are unpredictable.The Random marketing paradigm is not very effective because it doesn’t gain a lot of momentum. You don’t do enough of one marketing activity to grab the attention of your prospective clients and move them to take action.The Focused Marketing Paradigm is very different. It’s based on repeatedly communicating very directly to your target market with a very definite end in mind. It gets the attention of your prospective clients and they ultimately take action.The Focused Marketing Paradigm has Five PillarsUnderstand and implement these five pillars and I promise you’ll see a shift in your marketing results.Pillar One: Focused GoalsA Random goal is saying something like, “I’d like to attract a few more clients to my business.” Not very compelling is it?A Focused goal is much more specific. “My goal is to land 3 new clients in the high-tech plastics business in the Houston area with an average project size of $30,000 each by the end of the year.”The more detail, depth, and specificity about the goal, the better. You’ve really thought through what you want to achieve and also have confidence that you could deliver if you did reach your goal. It’s so real to you that you can taste it.What is the Focused Goal for your marketing?Pillar Two: Focused Program or Service Random programs or services are generalized consulting, coaching or training programs. “I offer management consulting and training to corporations.” Kind of vague, right? But this is what I hear all the time.A Focused Program or Service is more tangible. “I offer the high-tech plastics industry Management Acceleration Programs for emerging leaders in the industry.”In my business, I’ve always offered programs: The Marketing Mastery Program, the Marketing Action Group, and the More Clients Club. And each program has very specific parameters, deliverables, and objectives. It sure makes intangible services easier to market and sell.What is the Focused Program or Service you’re offering?Pillar Three: Focused Target MarketIn the above example, the target was the “high-tech plastics industry.” But it’s more common to hear things like, “I work with large companies who want to increase productivity.” This is too general and it makes it hard for clients to know if you understand them and can help them.A Focused target market is where you are absolutely clear what kinds of people or companies can most benefit from your expertise. And then you articulate that clearly.I worked with a financial planning company last year that targeted middle class families in the Buffalo New York area. Guess who they attracted to their practice? When people read about who they worked with on their website, they said, “That’s Us!” and called them.Who exactly is your Focused Target Market?Pillar Four: Focused Message and Value PropositionA Random message or value proposition tends to be too general and can be hard to pin down. It avoids making a promise that is meaningful to the prospective client.Messages such as, “We offer the best service in the industry,” or “Smart insights into great management,” are meaningless to your prospective clients. The value is not immediately obvious.A Focused message or value proposition zeros in on exactly what your clients get and what it means to them. I admit that this can be the marketing pillar that is hardest to pin down. Ultimately you have to test a number of different things.For the re-launch of the More Clients Club, my current value proposition is: “Everything Self-Employed Professionals Need in One Place to Attract More Clients.” And now, of course, I’m bending over backward to deliver on that promise.And a marketing message or value proposition is much more than a sound bite. Your message must permeate every aspect of your marketing, from your website to the emails you send out. Your prospects need to be constantly reminded of the value you offer.What is your Focused Message or Value Proposition?Pillar Five: Focused Marketing StrategyA Random marketing strategy is much like the collection of marketing activities I outlined at the top of the article. You’re just all over the place, throwing something at the wall, hoping it will stick, with no organized system or plan.A Focused marketing strategy is more like a putting on a theatrical production. You have the script, the actors, rehearsals, and opening night, all executed on a strict timeline.Two examples:For my Marketing Mastery Program, I held a series of introductory teleconferences, invited those interested to apply for the program, interviewed each applicant, and then converted 50% into participants. Over a 6-week period, I filled my business for a full year – four years in a row.A career coach in one of my programs recently filled her practice in three months with a focused campaign of personalized emails designed to get appointments with her ideal clients. Then she converted a large percentage into paying clients.That’s the power of a focused marketing strategy.You need to identify the right marketing strategy for your business, but even more important is the way you organize and implement the strategy.Developing a focused strategy is the most complex and challenging of the Five Pillars. You can’t just put together something haphazardly and hope you get the equivalent of a professional Shakespearian production.What is your Focused Marketing Strategy?If you work to build a focused plan with these five solid pillars, your marketing will work better and faster, attracting more of your ideal clients, usually at a higher rate.I recommend you work on one pillar at a time. Write them out and fine-tune them until you feel confident and excited about them. Yes, you will need to do some research and study to make sure your plan is viable. But this is certainly better than spinning your wheels with a random strategy that is going nowhere.Cheers, Robert
Fifty Years of Technology Gone?
Technology has come a long way in the past fifty years. So if I told you something about all the great technology in the past fifty years I could go on forever!But instead lets just focus on some of the great technology we’ve enjoyed for the past fifty years, but has unfortunately disappeared much too soon due to the replacement of even newer technology.Let’s begin back around the late 1960′s, and into the 1970′s with the development of the simple 8 track cassette which was the new technology for listening to music at the time. In order to listen to the 8 Track Cassette you just had to have an 8 Track Player, and if you did you were all set to enjoy some music.Now personally I’m old enough to have been around during that great period of time to have seen the success, and the fall of the 8 Track player. Can you believe that I actually still have some of my old 8 Tracks from back at that time, but I’m not able to play them due to no longer having an 8 Track Player to actually play them on.But besides 8 Tracks there were also the 4 Track Cassettes which at the time was actually developed just prior to the 8 Track, but had a short life primarily because it had only two tracks, meaning that when you actually wanted to listen to a different song you would have to push a button on the player to change the track. But with the 8 Track you actually had four tracks which gave you a better selection of songs to choose from which was much more popular with people who bought them.As time proceeded much smaller Cassettes were on the market also for listening to music, but these cassettes were much more compact than the 8 Track Cassettes were. So now we had both the 8 Track Cassettes as well as the compact smaller Cassettes to enjoy listening to music, but as time continued on before you could say “8 Track Cassettes” they we’re gone! Leaving us with only the smaller Cassettes to listen to and to enjoy.So the only other format to listen to music at that time was the standard Photograph Record Player which of course had been around for many years. But as time passed by once again soon the Cassettes were no longer available as well. So now you would no longer have to worry about tapes breaking, or coming out of the cartridges with either the 8 Tracks, or the Cassettes alike, so now both Cassettes are gone. While we still had the Photograph Record Player to enjoy listening to music however it may just be until the next big technology came along, and so just what and when would that be?So that next big technology that allowed us to listen to music that sounded better than ever was the Compact Disc (CD), and this format was no longer a tape, but a disc. I personally can still remember the time when the local record store took all of the photograph records off their selves, and replaced them all with Compact Disc’s (CD) that was impressive for me because that was a major change from the Records that I grew up with, and had enjoyed playing for years, but were no longer available at what was one time called the “record store” as it had all changed now to the CD’s.Now for changing the players from the standard Record Player to the CD Player, and to enjoy listening to music was probably one of the biggest changes ever for the listening of music. This technology change from records to CD’s was a much better sound which eliminated the “pops” that records typically would have. So today we still have CD’s available, but with all the other means that people have to enjoy music on the internet, and elsewhere the CD’s are just not as popular as in the past, and perhaps the day may just not be too far off before it also becomes difficult to find them as well.Now what about the technology that brought us the Video Cassette Recorder (VCR)? Well first with the Video Cassette Recorder basically there were two different types of tapes that were available to use on your VCR. First there was the Beta Cassette, and latter there was the VHS Cassette. You can still purchase the VHS Cassette even though it may be very difficult to do so, but as for the Beta you can no longer find it due to the simple fact that the Beta Cassette was much smaller than the VHS Cassette was, and so as a result less storage space to record was available.The Video Cassette Recorder (VCR) was nice because you could record your favorite TV Show at any time, and then play it back to watch it at your convenience anytime you choose to do so. I personally recorded, and purchased many different Cassette’s that soon had grown into a large Video Cassette Library that I still in fact have. But are you aware that Beta, and VHS were both tapes as were the 8 Tracks, and the small Cassettes, and now that’s all old technology, and you may recall what happened to them. YES… they were replaced with the new technology just as the Video Cassette Recorder was.Now what new technology was going to be next? What great technology replaced the Video Cassette Recorder? The answer is the DVD Player! and it is still a current technology enjoyed today, but again has no tape because its simply a disc. Does this sound familiar? Of course the 8 Track Tape technology which changed to CD’s, and now with Video Tapes on the VCR changing the technology to DVD’s.So when you set down to enjoy music as well as watching movies all this technology may only be the beginning. And to fairly discuss all technology advances would require something short of writing a book. So I have focused only on the technology in which I have discussed in part due to it actually being a big part of my life as I grew up. So no matter if you personally experienced this technology or not I sincerely hope that you will find it all as fascinating as I did, and you will follow the continuous changes of technology as it is related to music, and movie entertainment.So now we can only wait for the next great technology change that gives us something we’ve never experienced before, in the mean time continue to follow the forever changes in technology.
Kids’ Party Entertainers – How To Make The Party Fun
When it comes to hiring kids entertainers for your child’s next birthday party, the problem is often in the choosing. After all, there are so many choices out there! To make things easier for yourself, narrow your pickings down by (1) deciding on a party theme, and (2) taking your child’s age group into consideration.Everything Starts With The ThemeHaving a party theme to work with makes everything easier! When you have a theme, it’s a lot easier to choose the right kind of kids party entertainers. Choosing the food and drinks, the decorations, and the party favours is also a lot simpler when you have a theme handy.Consider The Child’s AgeAnother thing to consider when choosing children’s party entertainers is your child’s age. Younger kids won’t mind having clowns around, so no worries there. Just make sure the clowns aren’t scary — you know how some people are with clowns!It’s often better to offer something unexpected and unfamiliar when it comes to entertainment. Kids may like quieter, more mature, and more creative kids entertainers, such as face painters, balloon artists, comedians, and magicians. Even themed pony shows are great ways to keep the kids occupied throughout the party.What’s Your Budget?There will always be entertainers out there who charge ridiculously cheap rates, and it’s tempting to hire such entertainers when you’re on a tight budget. But remember the saying “you get what you pay for” and a first birthday or a 5th birthday only gets celebrated once, why risk the memories hiring a cheap kids party entertainer (newbie, less experienced performers). It’s a whole lot better to shell out a little extra money for the peace of mind of working with true professional entertainers.Check Their BackgroundHere’s one last tip to consider — when choosing kids party entertainers, check their track record. How long have they been in business? What are people saying about them? Are there any places on the Internet where people have left feedback about them? (Hint: log on to Facebook and see if they have a fan page.)Also, don’t hesitate to call them up. When talking to them, trust your gut – do you feel like you can trust them? Would you be comfortable having these entertainers around your kids?Here’s a bonus tip: If you’re in Australia, check if the entertainer has a Working With Children Police Check (WWCC) card. Also, check if they carry public liability. They are, after all, running a business – make sure they’re 100% legit! While things almost never go wrong at a kid’s party, it’s always better to work with a team of entertainers who are passionate enough about their profession to cover all the bases!
A Look Into Alternative Investments
Your investment portfolio will typically include conventional investments such as stocks and bonds both equally important parts of a solid, long-term investment strategy. But, there are many other less-typical investments that can supplement your portfolio and provide you with opportunities to reduce some of the effects of market fluctuations. Consider alternative investments such as commodities, hedge funds, mutual funds with alternative strategies, and futures to round off your portfolio.What are alternative investments?
Alternative investments are asset classes that generally don’t move together with traditional equity and fixed income markets. They usually follow their own cycles. As a result, alternative asset classes have a low correlation with standard asset classes; therefore they may help diversify your portfolio by reducing the overall volatility of the portfolio when traditional asset classes such as stocks and bonds are performing poorly.Historically, alternative investments have been restricted to high-net worth individuals and institutional investors, but these days they are far more available to a wider audience. Alternative investments range from real estate to hedge funds to commodities and can complement a variety of investing strategies. However, they are designed to complement a well-founded portfolio rather than to serve as the focal point of the portfolio.Most people are attracted to alternative investment because they may yield a higher return than traditional investments, but note that potentially higher returns also may carry higher risks with them. What’s important to note is that alternative investments may be more illiquid than their conventional counterparts – they cannot be sold readily like stocks and bonds – and some may need to be held for a longer time horizon. Additionally, there may be unique fees or tax consequences.Alternative investment options for your portfolio
There are many investment products available today and it sometimes may be difficult to clearly identify which investments are conventional or alternative. But below are is a list of common alternative investments along with their potential benefits and risks.Gold
Including a small portion of your portfolio toward precious metals such as gold or silver may offset the performance of other assets in the portfolio such as stocks and bonds, because precious metals typically don’t move in tandem with conventional investments.Gold is typically viewed as a hedge against inflation and currency fluctuations. So when inflation effects the purchasing power of a currency – say the dollar weakens against the euro – gold prices tend to rise. As a result, investors place their money in gold during economic and market downturns.Investing in gold can be accomplished in several ways, including futures funds, exchange-traded funds, mutual funds, bars, and coins. Nevertheless, since precious metals make up a small sector, prices often change dramatically. This type of volatility can create opportunities for investors in the form of high returns but it can equally result in dramatic losses.Hedge fund offerings
Hedge funds have historically been available only to high-net-worth individuals and institutions. Hedge funds are investment pools that manage money for institutions like banks, insurance companies, as well as individuals who meet the federal definition of a “qualified purchaser” in terms of net worth and income.Hedge funds are typically organized as limited partnerships where the fund managers are the general partners and the investors are the limited partners. Hedge fund investments tend to have limited liquidity on a scheduled basis as a result these alternative investments are subject to special regulatory requirements different from mutual funds.Funds of hedge funds invest in a variety of hedge funds with many different strategies and asset classes with the purpose of reducing overall fund risk through increased diversification. Fund of hedge funds are available to investors that meet the accredited net worth standards of at least $1 million. Fees of hedge funds are higher because of the type of portfolio management and increased trading costs.Fund of hedge funds are registered with the SEC under the Investment Company Act of 1940 and as securities under the Securities Act of 1933. They may also come in the form of a private offering which will need to adhere to stricter accredited investor standards. Fund of hedge funds can be complicated investment vehicles which often use leverage, lack transparency, may be subject to restrictions, and may include other speculative practices.Mutual funds with alternative strategies
Mutual funds are offered in many asset categories, including real estate and commodities. Some mutual funds can mimic hedge fund strategies and may be a good option if you’re interested in alternative investments but don’t meet the accredited investor standards.In contrast to hedge funds and fund of hedge funds with their higher fees and possible restricted liquidity, these types of mutual funds are relatively low cost and are very liquid – they can easily be bought or sold in a public market. As a result they are accessible to a wider range of investors and therefore mutual funds with alternative strategies are prohibited by law in using high leveraging to boost yields as is common with many hedge funds.Nevertheless, alternative mutual funds do use aspects of hedge fund investing such as employing both long- and short- investment tactics, trading complex derivative products, and short selling. If you are an investor that is looking to help offset market swings or specific sector swings and you understand the risks that may be involved investing in alternative investments, alternative mutual funds may be something to consider adding to your portfolio.Managed futures funds
Managed futures funds are formed for the purpose of investing assets in the investment vehicles and trading strategies deemed appropriate by commodity trading advisors (CTAs). These specialized money managers use futures, forwards, options contracts and other derivate products traded in U.S. and global markets as their investment vehicles. CTAs are required to be licensed and are subject to the regulations of the National Futures Association and the Commodities Trading Futures Commission (CFTC).Managed futures are speculative in nature, involving high risks, may carry higher fees, and have limited liquidity. Nevertheless, managed futures investments have been popular investments for high-net-worth individuals and institutional investors for the past several decades. Their appeal comes from their ability to provide investors with greater portfolio diversity by increasing exposure to global investment opportunities and other sectors such as commodities.There are several categories of managed futures in terms of structure and investment objectives. They may be available to investors in the form of a private offering subject to higher accredited investor standards according Regulation D guidelines of the Securities Act of 1933.Real estate investment trusts
A popular type of alternative investment is commercial real estate. Until recently commercial real estate has been mostly inaccessible to retail investors and was widely enjoyed by high-net-worth individuals and institutional investors for its potentially higher yields and diversification attributes. Since the inception of real estate investment trusts (REITs), investing in commercial real estate has become available to wider range of investors.REITs pool money from investors and invest the funds in properties ranging from office buildings to apartment complexes to hospitals and warehouses. REITs are offered to investors in two forms: traded and non-traded. Both offer exposure to commercial real estate assets.Publicly traded REITs can be easily bought and sold on a daily basis on active secondary market. However, they tend to be more volatile.Non-traded REITs are illiquid investments appropriate for investors with a long-term investment time horizon of at least 5 to 10 years. Non-traded REITs are not aligned with stock and bond market movements so they add great diversification to a portfolio.Other alternatives
Alternative investment can also include assets such as art, gems, rare collectibles, and antiques. In addition, venture-capital funds are considered alternative investments. These alternative investments can help provide investors with added diversification and can help balance out performance across various market swings.Considering alternative investments
Alternative investments can potentially boost your portfolios returns while helping you reduce market exposure and overall portfolio volatility. However, because of a lack of a secondary market for some alternative investments and restricted liquidity for others, as well as the higher risks associated with them, alternative investments should be used as complements to traditional portfolios consisting of equities and fixed-income instruments.Moreover, because alternative investments often require more professional management than conventional investments, it’s important to look to experienced money managers for help such as your Financial Advisor.Alternative investments include gold, real estate, hedge funds, funds of hedge funds, commodities along with others and are generally used to round off your portfolio’s performance because alternative investments are typically not correlated to traditional markets such as equities and fixed income.Alternative investments are often illiquid, with longer investment time horizons and carry higher risks, and often require professional money managers.Investors must meet a criteria outlined by the law, ranging from product to product, in order to take advantage of alternative investment opportunities.Alternative investments should generally be used to complement existing portfolios and strategies consisting of mainly stocks and fixed-income products.
Why Online Education Is More Convenient Than Traditional Learning
Anyone who is born after the 1990′s will take the internet for granted. The 24/7 access to all the knowledge of absolutely every type of information is a blessing. Definitely, the invention of the internet and its rapid evolution in our daily lives has also exposed us to malicious virus, spam emails, pop-up ads and a number of different ways to waste our time. But generally, internet has been regarded as one of the most impactful and positive innovations in the current history. The internet has not only reshaped the society, but also reshaped humanity.It is sad, but our culture has always struggled to reconcile our previous practices with the current technologies. Businesses and corporations are learning the importance of big data and IT departments. Universities are also keeping up their pace with growing demand for research, IT and computer courses. And with the evolution leading towards connected and busy – but inspiring lives on a restricted budget we have urbanized the most competent tools to maximize both money and time. Online education is the newest trend for distance learning and gaining popularity among people who want to get schooled but on their own terms.Why Is Online Education More Convenient Than Traditional Learning?Online education is becoming more popular and is gaining an edge over the traditional education. Following are some of the reasons why:1. Choice Of Schools, Courses And Programs – The benefit enjoyed by the distance learner of shorthand in the 18th century still get to be enjoyed by the online learners. One of the best benefits of online education is your geographic location doesn’t matter at all. Online learners have the advantage to learn which ever course they like from any university.2. Flexibility – This is another advantage that students get in distance learning, from email assignment to photograph recording. You can mold your class schedule and make it fit in your life. Complete the assignments when you have free time and availability. This is especially good for those people who lead a busy life and honestly speaking, nowadays everyone lead a busy life.3. Learning Pace – Online learning allows students to learn everything at their pace, they have the advantage to repeat the same material again for proper understanding rather than speeding up. This is a plus point as you can access the material 24 hours a day and take as much time as you need in reviewing it. If you want to cover it all in a week you can do it easily and if you want to take the time you can cover it in a month, all is fine.4. Lower Stress – We are not saying that online courses are easy or don’t need any hard work. But provided with the flexibility of time, one doesn’t need to get up 7 am in the morning to take classes after staying up all night long completing the barely edited assignment. With the proper timetable setting you can afford to get time to complete what you need to do and when you want to do it.5. Participation – Students in an online class are required to interact with one another through some forum. But in traditional classroom not all students get a chance to speak, whereas in online forums every single student stands their own ground and puts in their point or opinion. This is beneficial for those individuals who are not that confident or are quieter in traditional classes.6. Independence – Since you have to make your own schedule and you can decide yourself when to complete your assignments and submit them. You get a complete independence in your study, plus you won’t be having a negative impact on those students who sadly don’t really care to be there.7. Monetary Savings – College costs are increasing day by day and the price of online courses is just a fraction of that amount. Students now understanding that high prices, don’t mean quality education and an affordable online course can also offer great benefits. Plus online courses don’t bring on additional costs like hostel accommodation and transportation.8. Transfer Of Credits – For college students who need to take summer classes but live far away or have summer jobs, taking online courses is the best solution for them. They can take online classes from a credible college and then transfer the credits to their primary college. This is helpful as students will be able to get college credits while they can enjoy their vacation or fulfill their responsibilities.9. Career Advancement – Additionally taking online courses means you can easily complete entire degrees, do your part-time job or even take care of kids and family. This academic work will also explain any gaps in the resume. Also, additional courses in your resume will show potential employers that you are an ambitious person and want to stay updated with new information and your ready to take new challenges.10. Avoid Commuting – During severe weather conditions colleges or universities may cancel classes. If they don’t cancel the class, then you run the risk of getting hurt if driving in bad weather. In online courses, students don’t get to miss their classes no matter how severe the weather is. With access to discussion boards, chat sessions, reading material and watching lectures, students can access their online course at any time. Many students also find online learning better as compared to traditional learning because it cuts down fuel costs.In the nutshell, more and more colleges and universities are offering online courses either with their traditional curriculum or exclusive courses. And the assistance of online learning keeps on increasing in terms of quality and number. So the question is, whether online education is good enough for you? A study was released in 2010 by the US Department of Education concluding that students who gain education through online learning perform better on an average, as compared to the students who learn the same course from traditional classes. So you got all the facts in front of you and it’s your decision to select the best option for yourself.
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.