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What Is Commercial Construction?

The term commercial construction is used to refer to any kind of construction project where the eventual outcome will be a commercial property rather than a residential property or industrial property. It can include warehouses, hospitals, sports centres, shopping centres and hotels, as well as some types of reconstruction and refurbishment of historic buildings. One commercial construction firm may not necessarily be responsible for all aspects of the creation of a commercial property from conception to completion, and a variety of different people may be involved, however some well-established construction firms are able to take complete control of all aspects of the construction process.Commercial properties differ from residential properties because commercial properties are not intended as full time homes, and therefore the needs, rules and regulations connected to commercial properties differ from those associated with residential properties. Those who are wishing to build a commercial property, or adapt a former residential property into a commercial property are usually required to get planning permission in order to be able to do this. If special planning permission is required, it must be properly obtained before any physical work is carried out, or else the owner may be required to undo or remove all the work which has been carried out.There are different types of commercial construction companies available. Some construction companies will only be contracted once planning permission is received, and once all surveying etc has been called out at the place where the construction will take place. These companies will work according to the pre-approved architectural blue prints which have been commission by outside investors who wish to develop or build a property for commercial use. Other types of commercial construction company will take charge of the whole process from conception to completion, having either designed and funded the project themselves, in the hope that they will be able to sell or lease the property when it is completed, or having been contracted out by a private investor.It is one of the construction company’s responsibilities that all commercial properties adhere to all local commercial building regulations, and if any of these regulations are not adhered to fully, then the construction company may be liable for any damages. In recent years, building regulations for commercial properties in many countries have been extended to take into account changing environmental standards.As well as being partial responsible for the health and safety of those who will use the commercial property once it is completed, commercial construction companies must take partial responsibility for the health and safety of its own workers. Any building site is a dangerous place to be, so it is important that all workers in construction companies understand the rules and regulations which are put in place and designed to help to keep them safe. All construction workers should be taught the importance of wearing the correct protective clothing whilst they are on the building site or using building equipment: hard hats and high visibility jackets can help to save lives.

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.