LEGALIZED INSIDER TRADING.

By Natalie Pace, CEO and founder, NataliePace.com, and contributing writer and commentator on Cavuto on Business, Forbes.com and Kiplinger's Personal Finance

Learn the Secrets of the #3 Stock Newsletter on The Street!

Finding winners among companies that BUY BACK stock, featuring The BuyBack Letter, with 14.3% annualized gains, on average over the past five years (ending 3.31.05), according to Hulbert's Financial Digest.

This is an excerpt from an article by Natalie Pace that was published in Kiplinger's Personal Finance.

David R. Fried, Editor The Buyback Letter

David Fried profits on insider information without risking jail time. Rather than try to hit up the honchos for hot tips, he does it the legal wayÑby investing in companies that are repurchasing their shares. "When a company buys back its stock," says Fried, "it's an enormous vote of confidence by those who know it best - the company's senior executives."

Fried puts his views to the test in two online newsletters, Buyback Letter Standard Edition and Buyback Letter Premium Portfolio. Over the past five years, according to the Hulbert Financial Digest, the portfolios in the older Standard Edition gained an annualized 14.3%, on average. That beat the Wilshire 5000 by almost 17 percentage points per year and makes the Standard Edition the 3rd best-performing newsletter. Fried, 48, also manages more than $50 million, investing only in companies that have announced buybacks.

Dividends get the headlines, but buying back stock is another way to reward shareholders. And corporate America has been handing out lots of goodies. Last year, companies announced $233 billion in repurchase-programs, according to Thomson Financial. That's up from $101 billion in 2003.

Click to read the rest of the article on Kiplinger.com, and to discover how David Fried's strategy works. . In order to read it for free, you must read it in April!

If you are not already an NataliePace.com subscriber, a monthly subscription is less than one grand latte. More buzz for your buck. Sign up online at the Join Now link on the NataliePace.com home page.

For more information on The BuyBack Letter stock newsletter, read the below Q&A with David Fried and call 888.289.2225, or go to www.BuybackLetter.com.

Q&A with David Fried

The Buyback Letter editor and money manager, with the 3^rd best risk-adjusted returns in the U.S.

FAQs (frequently asked questions)
Q: What does The Buyback Letter look for in a company?
A: Strong management, a good business plan, substantial buyback already occurring, and the likelihood of doubling our investment in 2-4 years.

Q: Don't companies often announce buyback plans and then not follow through on them?
A: Yes. In fact, the announcement of a buyback plan can be a strategy used by a company to try to boost its stock price. The company presumes that investors will be impressed and will perceive that the buyback plan indicates some insider knowledge that the stock is currently undervalued. We track buyback announcements and The Buyback Letter only recommends companies that have already followed through and begun to repurchase shares, and that make it through our other filters.

Q: Aren't companies better off reinvesting their profits back into the business and not buying back their own stock?
A: Each situation is different, but the companies we recommend are generating enough cash to both reinvest in their businesses and buy back their stock.

Q: Aren't companies better off acquiring other businesses instead of buying back stock?
A: No! When companies make acquisitions away from their core businesses, they often squander billions in shareholder money. Some famous examples are AT&T's acquisition of National Cash Register and Coca-Cola's acquisition of Columbia Pictures. Both subsequently divested these ill-fated ventures.

Q: Is The Buyback Letter going to tell me when to get out of the market?
A: We are not market timers at The Buyback Letter. We have never seen a market-timing system that was reliable. In fact, it is during market declines that companies will repurchase the most stock and thus set the stage for the next growth spurt in their stock price. We believe that successful investing is a disciplined process, and through our calm, rational approach we can maximize our stock market returns.

Q: Does The Buyback Letter use stop loss orders?
A: No. When you sell stock in a company that has an ongoing program to buy back its own shares, it may very well be the company itself that is on the other end of the transaction. They have more information than you do and, more often than not, will be on the winning side of the trade. Our price targets are based on a 2- to 4-year window. Price fluctuations along the way are expected.

Q: Do you always sell when a price target is hit?
A: Not always. If a company is still repurchasing its shares, we will continue to hold the stock. Often a company committed to share repurchases will finish one repurchase commitment and then announce an additional buyback plan. If the fundamentals are still in place that make that company a good value for us, we will continue to hold that stock.

Q: How often do you recommend stock buys and sells?
A: The short answer is, "As often as is necessary." The longer answer is that it generally varies with each portfolio. For example, in the Health and Bio-Tech Index, there is anywhere from 60%-80% turnover each quarter. In the Buyback Dogs portfolio, there might be three trades a year. I make recommendations I believe will improve the rate of return, yet I am not changing simply for the sake of change. There is no reason to waste time buying or selling stocks, if it is not likely to improve your return.

Q: What if I don't like some of the stocks within your established portfolios?
A: We recommend that you buy all the stocks in a given model portfolio, and that you do not "cherry pick" by selecting only certain stocks. The portfolios were designed to work as a group of stocks, not as single stocks, and the success of each portfolio is built on that strategy. Cherry picking will expose you to unacceptable risk. Our theory is that a group of buyback stocks will outperform the market. We have not been able to accurately predict, with certainty, exactly which stock in any given portfolio will be the high flier. But together, they are designed to soar.

Q: What about the same stock being in two different portfolios? It doesn't make sense to buy it twice.
A: If you are buying two portfolios, and a certain stock is listed in each portfolio, please add the two proportions together when you make your purchase. You will then have more of that particular stock than you would of the others, since it reflects a position in both portfolios.

Q: If I select stocks I like from your recommendations, building my own selected portfolio, what's so bad about that? I will still get buy-sell-hold recommendations on those stocks in your Buyback Letter to take appropriate action, won't I?
A: Yes, you will always get the recommendations, and we have no way of knowing which of our subscribers bought which stocks in what quantity. But from year to year, like all investors, we are not sure exactly which stocks will outperform. If we knew that, we would have mythical investment powers! We do know that the Hulbert Financial Digest has consistently rated The Buyback Letter in the top 10 among all investment newsletters, both for overall returns and for risk-adjusted returns. We're definitely doing something right, and our strategy, which you subscribe to and which we also hope you follow, is this: choose several model portfolios that suit your personality and goals, buy all the stocks in those portfolios, generally modeling the percentage of your stock holdings by following our models. Then take our monthly advice on what to buy, sell and hold, and you will have gained the advantage of The Buyback Strategy. This will put you head and shoulders above the rest of the investing pack.

The Next Google.

By Natalie Wynne Pace, CEO & Founder, NataliePace.com, and contributing writer and commentator on Cavuto on Business, Forbes.com and Kiplinger's Personal Finance

An Internet Company Which is Positioning Itself to be the Next Cinderella IPO. Feature article and Report Card.Ê

Natalie Pace CEO & Founder, NataliePace.com

I don't like buying ANYTHING in April. We're heading into the summer doldrums. Everyone is panicked about oil, interest rates and inflation. Every time oil spikes, the markets drop, and the analysts are saying oil could hit $100/barrel this summer. The Vice Chairman of Goldman Sachs and the Vice Chairman of the Milken Institute concur that gains will be hard-picking this year. (Read the archived March article, "Stock Picker's Market" if you haven't already.) You don't have to be Cassandra to see that we're poised for a fire sale this summer, and odds are stocks are going to be cheaper during the back-to-school stock sales in September.

There's really only one rationale that works for this articleÑfor going against my natural bargain hunter instincts. Since I can't get these numbers or this incredible new hot stock out of my head, I'm going to sashay right into the spotlight. Buying this stock now is like dressing for the Oscars. It is a once in a lifetime thing that you just do. You are probably overpaying for your getup, but there's the hope that when the spotlight zooms in, you look like a million bucks and everyone rushes to buy one off the rack!! So, either we all end up with awards, or stranded on Mr. Blackwell's Worst Dressed List, stuck with the designer duds through a long hot summer, and hoping for a few Christmas weddings (an IPO or the Santa Rally) to get our money's worth from a second wearing.

Stepping up to the microphone, I whisper, "The Award goes to MySpace.com." Yes, you heard me right. MySpace.com is the next Google. That web site that your teenager hides when you walk in the room. The one you can't understand why anyone would spend a minute on because it looks so bland. Let me warn you that MySpace.com is a rabbit hole. Once you fall in, you'll be suspended in time. The average TIME users spend on MySpace.com is a whopping 170 minutes per month, which is five times the average 33 minutes spent on Google (per comScore Media Metrix).

MySpace.com was the 7th most trafficked web domain on the Internet, with 4.6 billion page views, in February 2005 (per comScore Media Metrix), placing it just behind Google in page views. "It's amazing to see MySpace right next to names like eBay and Hotmail on the traffic charts," said MySpace President, Tom Anderson. "We're just a year and half old and right behind Google. I think everyone at MySpace feels like we've arrived."

Source: Graham Mudd, Senior Analyst, comScore Media Metrix www.comScore.com

If you haven't tried it, that's cool. Some people insisted on riding in carriages after the car was invented. Imagine a Spam-free online experience where you not only know exactly who is sending you a message, but you can also read up on their interests and check out their friends to find out whether or not you wish to block or receive future correspondence. Imagine keeping in touch with college alumni through group bulletins and topics of interest. Imagine promoting your own business FREE of charge to people who are hungry for your information.

The MySpace.com founders had a dream, and over twelve and a half million people have signed up to share it with them, in under 18 months of operation. There are 12,481,505 registered members as of 4.2.05, with over 67,0000 new members signing up DAILY. (I hear the groan of a million entrepreneurs, at least their starving stomachs!!)

Internet social networking is today what television was in the 50sÑthat new box that hypnotizes us into staring at it for hours on end. Don't think that advertisers haven't noticed the trend. According to Sanford C. Bernstein & Co. research, Internet advertising will total $11.5 billion in 2005, just behind television ad revenues of $17.2 billion. Impulse buying is now just a click away, and yes, the Myspace.com revenue model is, now, 100% online Internet advertising.

Granted, Yahoo, the #1 site, rules online and they launched their own social networking division on March 29^th. But Yahoo also has a $47.55 billion market capitalization, a budget for content, 7,600 employees and a late start. MySpace.com is owned by Intermix Media, Inc., with 228 employees, a $237.6 million market capitalization, their content doesn't cost a dime and, despite the smaller resources, they've exploded into 7^th position.

Much of MySpace.com's growth has been viral, friend to friend. "Our model of creating a lifestyle portal around a Social Network seems to be resonating with our users," said Chris DeWolfe, CEO of MySpace. "We hope to continue our growth by creating new features for our users to meet, interact, find entertainment and express themselves creatively." Richard Rosenblatt, the CEO of Intermix Media, attributes the 92% growth in domestic web traffic on Intermix Media sites to "the success of our viral content offerings, innovative community features and powerful marketing approach."

If that weren't exciting on its own, it appears that Intermix and Redpoint Ventures , MySpace.com's new venture capital partner and minority shareholder, are positioning MySpace.com as a spin-off IPO, and they are investing millions to hire the experienced executives necessary to pull off competing with the likes of MSN, Yahoo and AOL. In a press release, Richard Rosenblatt issued the statement, "This new arrangement is expected to enable MySpace, Inc. to attract and retain top tier managers by tying the equity component of their compensation directly to MySpace's success. We believe that this transaction will enhance MySpace.com's value for Intermix's stockholders and allow us to most effectively monetize this subsidiary moving forward."

Lisa Terrill, the former vice president of finance and controller of IAC/InterActiveCorp's Ticketmaster unit, became Intermix's company's new chief financial officer on March 21, 2005. Geoff Yang, a founding partner of Redpoint Ventures, and board member of Ask Jeeves (ASKJ) and TiVo (TIVO), among others, joined the newly formed 5-person MySpace.com Inc,. LLC (MSI) board last month.

From Zero to $125 million in under 18 months: IPO 2006?
According to the Myspace.com 8-K filing on February 11, 2005, "Each Principal Stockholder has agreed to vote its shares of MSI stock in favor of any acquisition, sale or public offering of MSI approved by MSI's board of directors." Any buy-out of existing stockholders, over the next twelve months, will be based upon a valuation of $125.0 million. It appears that the original team behind MySpace.com is committed to supporting the vision and experience of Richard Rosenblatt and Geoff Yang. Many have moved aside to head up divisions and few are selling their shares, with insider selling this year topped by Thomas Flahie, the former CFO, who sold $1.13 million in February, and Brad D. Greenspan, with $4.5 million sold, and 5 million shares remaining, at a current value of $37.1 million (per MoneyCentral.msn.com).

Let's talk revenue. Google, another site that is almost entirely driven by online advertising revenue, had GAAP revenues for the quarter ending December 13, 2004 of $1.032 billion, up 101% year over year. Net income, GAAP, was $204 million or $.71 per share. Intermix most recently projected $21-$22 million revenue for the 4^th quarter ending 3.31.05, and a small net loss with positive EBITDA. Fiscal year 2005 is expected to be approximately $76 - $77 million, or 33-35% annual growth. 3^rd quarter revenues were $20.3 million, compared to $14.1 million a year ago. Intermix is reporting an update on 4^th quarter earnings and a forecast for 2006 on April 12, 2005, at 4:30 p.m. EDT (1:30 p.m. PDT). You can join the conference call by dialing (877) 699-1062.

It's not a wild stretch of the imagination to think that Intermix, based largely upon strength in Internet advertising revenue from Myspace.com, will increase their prior projections, and it is possible that earnings will positively smash the projections. According to ComScore Media Metrix, MySpace attracted nearly 9 million unique visitors for the month of February, up 55% from over 5.8 million unique visitors in December 2004, and more than 8 times the 1.1 million in June, 2004. Advertisers include NBC's exclusive, first-ever Webcast of The Office, T-Mobile, Sony and more. With the increase in unique visitors, the incredible stick of the site and the ability to boast page views behind Google, the sales team had plenty of reasons to charge more than an 8% increase in advertising from the company's third quarter.

It is rare that I find a buying opportunity in April, but MySpace.com is making all the right moves to prove the brightest star on the red carpet, with the legs to stay in headlines over the long, hot summer. Click to review the numbers of Intermix (AMEX: MIX), alongside its powerhouse competitors, including Google, MSN and Yahoo.

Summer Doldrums: Do You Know the Seasons of the Markets?

By Paul Woods, President & CEO of Odyssey Advisors, LLC

Paul A. Woods, President & CEO Odyssey Advisors, LLC

One of the things professional investors grudgingly accept as they gain experience is that the stock market is mostly unpredictable. We can't get investors in at the bottom and out at the top. When we try, we sometimes end up doing the reverse. Yes, there's no shortage of systems or market letters out there that claim amazing results and dazzling track records. Reality, however, is that if you spend a lot of money for one of these, the only thing you can count on is that someone besides you will be a bit richer.

Until someone develops a crystal ball that works, predicting the stock market is going to remain extremely difficult. That being said, however, many investors still enter certain times of the year with a bounce in their step while other periods produce a queasy feeling in the pit of their stomach. There is a lot of evidence out there that indicates some times of the year tend to be more rewarding than others for investors.

We looked at monthly returns from 1971 to be able to compare the S&P 500 with the The NASDAQ. In a nutshell, July through October is usually the worst time of the year to own stocks. The golden period in the stock market usually starts in November and ends after January, but returns usually remain positive through June. Following are average monthly returns from March 1971 through October 2003É

By month, average returns were as followsÉ

Interestingly, this appears to be a global pattern. Historic returns on European and Japanese stocks tend to show the same pattern of high returns in the winter and low returns in the summer. Psychologists have come up with tortured explanations for this phenomenon that involve daylight periods and psychology, but it may not be that complicated.

Once third quarter earnings are reported, investors usually begin to look at earnings expectations for the following year. As investors begin to gain more confidence that earnings will be higher in a year, money begins to flow into stocks again. In addition, cash usually flows into the stock market from bonuses and contributions to retirement plans around the end of each year.

Summer is usually a holding period. There's not much in the way of new cash flowing into the equity markets, and it's still too early to get a handle on the following year. Most people go on vacation sometime during this period, and the stock market tends to get the blahs. For what it's worth, September tends to be the worst. It's the only month that usually produces negative returns for both the S&P 500 and the The NASDAQ.

We also looked at the volatility of monthly returns, and one thing stood out. Halloween belongs in October, because that's the scariest month for investors. Notable stock market crashes have occurred in 1929 and 1987, but there have been enough good years to offset the bad ones. Overall, however, October produces the widest range of returns. The only thing investors know for certain is that October will usually be an exciting month. There's usually a sigh of relief when it's over.

The NASDAQ stocks showed a few differences versus the S&P 500. Both tended to have lousy Septembers. However, for the The NASDAQ, July is typically also a down month. A partial offset was that The NASDAQ stocks showed very high returns in January. The explanation for this is known as the January effect. The NASDAQ is made up of stocks in more small companies. These tend to be riskier companies and those that are down usually come under selling pressure at the end of each year as investors take losses to offset gains for tax purposes. Once the year ends and the tax selling pressure is lifted, these stocks usually recover the following January.

To avoid volatility and below-average returns, it's tempting to get out of the stock market in June and get back in November. However, it's important not to get too cute. If investors are diversified and have some exposure to both markets, average returns are still much higher than the current monthly returns on cash equivalents. If trading costs and short-term capital gains taxes are factored into the mix, doing nothing is usually a pretty good strategy in most years.

Paul Woods is the CEO of Odyssey Advisors, where he manages investments for high net-worth individuals, families and institutions. He can be reached at 310.568.4700.

Information has been obtained from sources believed to be reliable however Odyssey Advisors LLC does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this material and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.

Brokers and Lovers: It Pays to Pick a Good One.

By Natalie Wynne Pace, CEO & Founder, NataliePace.com, contributing writer and commentator on Cavuto on Business, Forbes.com and Kiplinger's Personal Finance

10 Hard Questions to Ask Your Broker and Yourself

Natalie Pace CEO & Founder, NataliePace.com

Arguably, your broker and your life partner are the two most important decisions that you'll make in your life. (You don't get to choose your familyÉ) So, why do we spend so much time, attention and money on the courtship, wedding and honeymoon, and so little on finding the perfect someone to oversee the estate?

Many investors approach finding a financial professional like they do finding a job, thinking they have to sell themselves to win the relationship. Instead, you should be treating the broker as you would a fiancée. Don't sell yourself to them. Make sure that they are worthy of you. Dig into their past. Ask the hard questions. Your life, your needs, your risk tolerance and your areas of expertise are specific to you, and if any financial professional starts laying out a cookie cutter plan for your money, that is the first red flag that you're dealing with a salesperson, instead of a professional who is looking to develop a mutually beneficial long-term relationship.

Ideally, your certified financial planner, real estate broker and other financial professionals are here to find the perfect investments based upon your needs. So, why is it that so many of us expect them to be mind readers, and then fire them if the shoes don't fit or the investments don't pan out? If you're looking for a remodel in downtown Los Angeles, you don't want to consult an estate broker in Beverly Hills. Likewise, if you have major tax considerations and need to protect an existing portfolio, you don't want to hand the reins to a hedge fund manager.

Is your financial planner someone you can respect, admire and honor through thick and thin? If not, you're setting yourself up for losses, because at the first sign of real trouble, you'll be faced with the hard truth that you knew all alongÑit was a bad match to begin with. You don't want to be stuck in the foxhole with a jerk. An experienced professional will be an ally, seeing you through the hard times and drinking to success on the other side. All markets - real estate, bond and stocks - have their rallies and their pullbacks. Investing, like life, isn't a fairy tale, but if you pick an outstanding partner, it can be a rich and rewarding adventure.

10 Things to Know About Your Broker:

1. How many years has s/he been handling portfolios and/or trading stocks and bonds?
2. What is her/his education (university)? (Brokers do not have to be college graduates)
3. What financial certifications does s/he hold?
4. What is her/his investment style?
5. What is her research criteria? (If they rely solely on "what the company tells them to pitch," they are likely more driven by company sales incentives than real gains in your portfolio.)
6. What is the performance of her client's portfolios? (Be careful that you don't get a bait and switch on this one, where they point you to mutual fund pie charts, where the years have been carefully selected to present a positive picture.)
7. Years of employment with current company (and where s/he worked before).
8. Any complaints filed with the NASD? (Call the NASD to verify that there haven't been any complaints.)
9. How much time and energy will s/he give to my portfolio?
10. How many market downturns has s/he personally been through in her field? (Don't confuse wisdom with a bull market. This would be particularly relevant to young real estate brokers right now.)

4 Questions Your Broker Should be Asking You:

1. What is your favorite investment strategy? (Do you have experience making real gains in any one sector?)
2. What is your least favorite investment strategy and why? (Do you hate the THE NASDAQ because you lost money in 2000?)
3. How is your portfolio currently positioned (diversified)?
4. What is your risk tolerance? (No investment is worth a heart attack!)

For more information on the different certification levels for stock brokers and which brokerage might be most suitable for your needs, go to the "How To Find a Broker" article on the home page of www.-Sophia.com, under the Research sub-heading.

For more Common $en$e Investing Tips, to discuss what the experts are saying about the markets, to learn the ABC investment philosophy of NataliePace.com or to chat about your favorite stock, join Natalie Pace in a free teleconference on April 6^th at 5:00 p.m. PST. To register, go to the Calendar section of the www.NataliePace.com website, and click on the registration link.

Please note that Natalie Pace and NataliePace.com are not brokerages or in the business of advising people about their personal finances. NataliePace.com offers the news and information you need to make smarter investment choices (with the help of your financial professional). Always consult financial professionals, including your accountant, before making changes to your portfolio.

Oil, Inflation, Interest Rates, Oh My!

Investors chat one on one with the Managing Editor of the Top Performing Stock Newsletter in the U.S.ÑKelley Wright

#1 On the Street. What does it take? What is the investment criteria? How is Mr. Wright positioning his portfolio in 2005? What does he think of commodities?

Kelley Wright, Managing Editor Investment Quality Trends

Investment Quality Trends (at IQTrends.com) is rated the #1 Top Performing Newsletter for five-year risk-adjusted returns by Hulbert's Financial Digest. That's no small feat, considering the Wilshire 5000 has posted negative annualized returns of -1.4% for the past five years (through 12.31.04), while Investment Quality Trends has booked an impressive, annualized 16.6% gain. Wonder what Mr. Wright's secrets are and how you can use them to sweeten up your own portfolio returns? Read on for an exclusive NataliePace.com Chat with Kelley Wright, the Managing Editor, which subscribers participated in on March 23, 2005.

Question: Do you think the Feds will continue to raise interest rates and if so, how will that affect the markets this year?

The Fed is on a glide path to what they call "normal," which is between 3.5% and 4%. The effects are already being seen. That is to say that interest rate sensitive and consumer stocks will decline, while economically "deep cyclicals" will outperform.

What's an example of a "deep cyclical?"

Banks, insurance companies, mutual funds, anything financial. Caterpillar, Deere, the chemicals.

Should I dump Disney, now that it is finally up to what I paid for it?

Disney falls into a category we call the "Faded Blues," a stock which met our criteria at one time, but no longer does.

What do you think about cotton in the commodities market?

I haven't been following cotton, but all commodities are tied to supply and demand.

What is your view on dividend paying stocks. Is this a good way to generate some residual income?

Dividends are fundamental to return. Stocks that don't pay dividends are speculations, not investments.

Which sectors are particularly sensitive to interest rates?

Obviously the banks, particularly the smaller regionals. Some consumer stocks are going to get hitÑlike Home Depot.

Hasn't Home Depot been buying back stock and reporting strong earnings?

Home Depot is undervalued and a member of our 2005 Lucky 13. They have great numbers, but the perception is changing about interest rates and inflation, so the consumer is starting to pull in their horns, so to speakÉ

How important is cash is one's portfolio right now, and how much cash do you have sitting on the sidelines in the IQ Trends portfolio?

We have about 50% cash right now. Cash is important if there isn't any value in the market.

Is Prudential Insurance on your Buy list?

We do not cover Prudential.

Is it good to buy regional bank stocks?

It will be soon, probably by July or August when they will reach Undervalue and be attractive from our contrarian standpoint.

So, you're seeing the market as overvalued? Is there any difference between the THE NASDAQ and the DOW? The DOW is near its 5-year high, while the THE NASDAQ is still over 50% beneath the high in 2000É

There are some interesting divergences right now. Our methodology is that the stocks we follow have a profile of value. Our profiles are long-term, 25 years or longer, of repetitive extremes of low price and high yield to high price and low yield. One of our internal screens is to look at the percentage of stocks that are undervalued. In our universe, we have one of the smallest percentages ever, since 1966, that fall into the undervalue category. It's at its leanest time ever, in almost 40 years. From that perspective, we don't see a lot of value in how we measure stocks. However, the Dow Jones Index is Undervalued when the dividend yield is 3.0% and Overvalued at 1.5%. Currently the index yields about 2.3%. So there is a disconnect between the stock market and the market of stocks.

Have you measured the THE NASDAQ, or do the majority of the companies listed there not meet your criteria?

We have a few NASDAQ stocks that meet our criteria, but the index itself does not have a profile of value with so few companies that pay dividends.

Is it good to buy international stocks? What areas of stocks are you recommending?

If you are a Modern Portfolio Theorist, there is no such thing as too much diversification. Our expertise is in domestic value, although we do cover some ADRs.

What is an ADR?

American Depository Receipts. These are stocks that track international companies but that are traded on American exchanges. Royal Dutch Shell, by example.

Natalie Pace, CEO, NataliePace.com - Re: International stocks. There is a difference between countries. How do you think an investor might educate herself about which countries are poised for growth, and which for decline? FYI: Hong Kong and Singapore have a long history of accounting standards and Western type market trading, whereas mainland China is new to the system. The economists at the Milken Institute warn that there is a huge difference in risk between investing in Hong Kong and investing in mainland China and/or India. These facts are extremely important.

Natalie, you bring up an important point, which is one of the reasons we focus on domestic equities. Dimensional Fund Advisors in Santa Monica does a good job with the international markets but they are indexers, so they buy them all. I feel International is an entirely separate skill set.

Beginner's question here. How do we find out if a stock pays dividends. Bear with me ! Is there an easy way to research?

Great question! Most online quote systems have a detailed quote link that will show you tons of financial information, including dividends.

Natalie Pace - Melissa, I find MoneyCentral.msn.com to be particularly user-friendly. You can easily access the research page by going to the NataliePace.com home page, entering the symbol or company name into the Research Now box, and you will automatically be directed to the basic information that you desire - including dividends.

What sectors in domestic stocks are you buying or recommending?

If you haven't yet read the article, "#1 Stock Newsletter" in the NataliePace.com ezine, Volume 2, issue 3, check it out. Mr. Wright and I dig into a lot of his recommendations, and some interesting companies that are on his sell listÉ -- Natalie

What do you value the most in picking stocks now?

Our approach is to let stocks come to us. If they meet our criteria at some point they will become attractive to us, what we call in the Undervalued level. Usually these are out of favor with the conventional thinking, which is typical of a value manager. Right now we are seeing pharmaceuticals, some banks, some industrials, insurance companies (because of AIG).

Do you have any biotech stocks showing up on your radar?

No, because there aren't any that have paid dividends for at least 25 years, one of our primary criterion.

Would you like to recommend some criteria?

Dividend increases five times in the last 12 years. S&P dividend quality rating of at least an "A." 25 years of uninterrupted dividends. Earnings improved in at least 7 of the last 12 years. At least 80 institutional investors and sufficient float, or liquidity.

N. Pace - Uhhh. Errr. In other words, how much does it cost for your stock newsletter! It sounds like it is much easier to subscribe and let you do the research!

We publish bi-weekly on the 1^st and 15^th. Hardcopy (snail mail) is $310 per year. Online in PDF form is $265.

N. Pace -- That's a pretty safe investment. For the price of one seminar, you get access to high quality, time proven stock research from Mr. Wright all year long. FYI: While the Wilshire 5000 produced negative returns over the last 5 years of -1.4%, the IQ Trends portfolio has earned over 16% annualized gains. That's quite a record.

I have variable and fixed funds in the Insurance Company. They pay 3%-3.5% for the fixed fund, but the performance for the variable funds are weak. Do you think it's better to transfer the asset to the better performing mutual funds company? They don't pay 3%.

That will take a long answer, and I would need some more information. Are these qualified funds?

Yes.

AHHHHHH!!!!!! Qualified funds are tax-deferred, so an insurance product is unnecessary to begin with, especially with their high internal costs.

I recently read a story of someone who became financially free by having dividend paying portfolios. Is this quite achievable?

Mike, our entire methodology is built around creating portfolios of stocks with rising dividend trends to achieve more cash flow than you know what to do with.

Is there a way to read more in depth about your methodology and why it works so well. Is it possible to have a sample of the newsletter you have published in the past?

Go to IQTrends.com. There is a link for prospective subscribers. You can download an introduction presentation and a free sample. There is also a link to ask questions. You can email us at info@IQTrends.com or call (858) 459-3818.

N. Pace - At the end of the day, you're likely paying more in fees and losses, much more, than the price of Kelley's stock newsletter. He'll give you the goods on the investment criteria, which has been working for what - four decades now?Ñbut the proof is in the pudding. The returns are UNMATCHED for risk-adjusted returns for the past FIVE YEARS on Wall Street. Tell your friends.

Wow! Thanks for the kind words. Thank you. We do work hard.

We should also point out that Mr. Wirght is going to be at the Las Vegas Money Show on May 9-12, 2005. Go to www.LasVegasMoneyShow.com to find out more information.

Do you have any final remarks on investing in stock markets today?

N. Pace - Read the article, "Stock Picker's Market 2005," which features the research and analysis of the Vice Chairman of Goldman Sachs, among other top financial analysts and advisors. With rising interest rates and inflation, gains may be harder to come by this year. You might also check out the article, "Court the King (Cash) in 2005," in volume 2, issue 2 at www.NataliePace.com.

Desperate Housewife:

Trapped in an Abusive Marriage, a Mother of 4 Asks NataliePace.com's Living Wealthy Team How She Can Afford to Provide a Healthier Home Life For Her Children.

"Many people find themselves caught in abusive relationships by the bonds of money. They stay in jobs with abusive bosses, in marriages with abusive spouses, or in other toxic relationships because they think there is an economic payoff that is worth the pain. The truth is that some situations are soul-killing. You owe it to yourself and your heart to find a way to change this situation." Judith Green

Each month, NataliePace.com provides subscribers with your chance to have four seasoned financial consultants give you a personal money makeover. The Living Wealthy financial consultants are: Carista Luminare-Rosen, Ph.D., Educational Director of Inner Securities and Holistic Wealth Consultant, Stu Zimmerman, Chairman & CEO, Inner Securities and Holistic Wealth Advisor, Gregory Wendt, CFP®, Money Manager and Certified Financial Planner, and Judith Green, Mortgage and Real Estate Financial Advisor. See the end of the article for instructions on how to receive your personal money makeover.

Profile of this month's LIVING WEALTHY Candidate:
Name- Wendy (not a real name)
Age - 36
Married - Yes, but hoping to get a divorce
Children - Four children - ages 16, 11, 8 and 4.
Profession -Stay-at-home mom, 2 years college
Annual Income - Unknown; husband, a dentist, provides me a strict household allowance of $250 per week (he pays the mortgage, and I do not know how much per month, or the total amount owed, nor how much salary he makes).
Net Worth - Unknown; live in a 5-bedroom house bought 14 years ago
Asset Allocation - Unknown
One Year Life Goal - To leave an unbearable marriage and impossible home situation
Five Year Life Goal - To have a meaningful good paying job, and a peaceful home for myself and my children
Ten Year Life Goal - To have a college degree and a financially successful and rewarding professional career.
Deepest Heart's Desires - To change my life so that my children can know that a home can be a place of safety and life can be fulfilling

Greatest Fear/Insecurity about Money - I cannot afford to leave my husband because I cannot provide for my children by myself. I fear I will be unhappy all my life.

Wendy seeks help, in her own words:
I married my husband when I got pregnant in college. He went on to finish dental school, but I only have two years of college. My oldest son is now 16, my daughter is 11, and I have two more boys, ages 8 and 4. Being a mom is a full-time job, and my husband says he "pays" me with a household allowance of $250 a week. That's not much for six people, and I'm also supposed to buy the children's school supplies and clothes.

My husband works long hours, he says, so he's almost never around, which is good because when he's home he does nothing but tell me how terrible I am as a wife and mother. I tried to get him to couples' counseling at church, but the minister is a golfing buddy, and he told me I should pray and try to be more supportive, which would soothe my husband after a hard day's work and make our home life more pleasant. The children are also suffering as they see how their dad ridicules me, and they witness my fearful and passive responses. The stress is showing up in their grades at school -I am afraid they are being harmed for life. Unfortunately, the stress is eating me up as well, or I'm eating as a result of stress. I've ballooned to 200 pounds.

I know it's time to leave, but I don't know how the children and I could possibly survive without the money my husband provides. This is such a mess. I want to believe there is some way out, but I don't know where to begin, and money seems to be the biggest obstacle.

CARISTA'S RESPONSE:
Dear Wendy,

Thank you for being so vulnerable in sharing your highly stressful and painful situation. Your life mirrors an extreme example of an unfortunately common dynamic in dysfunctional relationships. What you and your children are experiencing with your husband is called co-dependency- more specifically in your case, verbal abuse. Signs of verbal abuse are feeling trapped, afraid and powerless with your partner.

Verbal abusers are often in denial about their abusive behavior and usually cannot acknowledge the harmful impact on the person they are attacking with criticism and intimidation. The one who is receiving the verbal assaults and tolerates them is usually someone who has low self worth, thus the abusive comments commonly leave psychological scars that deepen the feelings of insecurity and anxiety about life.

You wrote that, "money seems to be the biggest obstacle." Greg and Judith will address some financial ideas for you to take action now. I offer you the consideration that your tolerating the psychological abuse is equally if not more of an obstacle.

You need to face the fact that not only is your self-esteem being endangered, but so is that of your four children. It is very unhealthy for them and you when they see you accepting and submitting to your husband's verbal abuse. You are settling for a low quality of life that will cost all of you in lifelong wellness. There is a loss of self-confidence when you internalize the abuse and think what is being said about you is valid. This is very confusing for you, and very stressful for your children to witness. The great news is that both your self-worth and your net worth can be increased with professional guidance. Please seek professional help immediately.

Because it appears that your husband is in major denial about his behavior, you need to be the one to take action to break this pattern. Look in your local yellow pages for counseling which specializes in spousal neglect and abuse. Certainly avoid anyone like the minister who you feel is not a safe and confidential source for you to be totally honest. It is time to let go of protecting your husband at the expense of your own sanity.

You do not have to make this change alone. Here are three excellent websites filled with pro-active, peer support, as well as other resources to help you leave this abusive relationship safely, and to protect your children as well:

http://health.groups.yahoo.com/group/End_Verbal_Abuse/
www.drirene.com/verbalabuse.htm
www.cyberparent.com

As you break the cycle of submitting to a suppressive husband, your renewed self-confidence will give you greater power and clarity to live the life you want to live-- especially with financial and emotional support to guide you each step of the way.

It will take a strong desire and steady effort on your part to do the internal work that will give you and your children a healthy life. You can do it! So many people before you, in almost every town all over the world, have empowered themselves to make similar life-shifting changes. Now is the time, isn't it?

Compassionately Yours,

Carista

P.S. You did not mention there was any physical abuse going on with your husband, which is sometimes linked with verbal abuse behavior. If there is such activity, this makes your need to get out immediate, since you and your children are in true physical and psychological danger. Many women go into denial when this is occurring, hoping the abuse will end by minimizing it, or fearful of the stigma it may give them or their spouse. If physical abuse is going on for you, please look in your local yellow pages under Women's Support Services and seek help from professionals today.

You can check out supportive websites that offer chats and resources by getting online at www.Google.com and using the keywords "physical abuse support", or you can try www.Healthyplace.com to get started in your research. Your health and that of your children is the top priority and there is huge local and national support for you and anyone reading this article who is experiencing any type of abuse or neglect. Take care of yourself, your kids are depending on you to take action now.

All four advisors on the Living Wealthy Team are available for support to make this urgent life change.

Carista Luminare-Rosen, Ph.D., Director of Education, Inner Securities, Inc. To contact Carista directly to share comments or for a consultation, she can be reached at Carista@Innersecurities.com or visit the website www.innersecurities.com.

STU'S RESPONSE:
Dear Wendy:

My heart goes out to you and yours because it sounds like each member of your family, even your husband, is suffering in their own way. One of the keys to Living Wealthy is living healthy. Clearly, as Carista pointed out, you and your family are living neither healthy nor wealthy right now. Congratulations, Wendy, for taking a stand for your family and yourself by not settling for an unhappy and powerless life.

Here's the bottom line: you need to break the harmful patterns that show up in your marriage. You can start by communicating with him in a new way. You are every bit his equal as a human on this earth and it is time for you to share your truths with him, as his spouse or family partner.

Create some quiet time with your husband in a private setting. Sit down with him and look him in the eyes. Tell him from your heart in a caring, yet firm, manner that you cannot and will not continue in the status quo. As a dentist, he may appreciate the analogy that your marriage is dangling like a loose tooth or is diseased like an abscess gum. It is unhealthy for you and the kids to go on this way and. As their mother, you have a sacred responsibility for their health and well-being.

It seems like a long shot that he'll respond affirmatively, but ask him again, this time as a "last call," to go seek counseling alone or with you (from someone other than his golfing buddy). The worst he can say is, "No."

Be prepared that he may continue to try to bully you, threaten or verbally abuse you. Remember, he is not emotionally healthy right now. It's time for you to be the healthy one, and, don't worry about his threats. You have laws that protect your rights.

Consult with a family/divorce lawyer. With their guidance, exercise your legal right and request access to all his (and your) financial information (including the financial data on his practice). If you do file for divorce, you can rest in knowing that you are entitled to receive a significant portion of his financial assets in your name as well.

Wendy, stay the course on breaking these unhealthy patterns once and for all. Get whatever energetic support you feel you need to make it through this turmoil. Continue listening to your heart and doing what you know is healthy for you and your children.

Wishing you a graceful journey,

Stu

Stu Zimmerman, Chairman & CEO, Inner Securities. To contact Stu directly for a consultation, he can be reached at Stu@innersecurities.com or visit the website www.innersecurities.com

JUDITH'S RESPONSE:
Dear Wendy,

When I'm talking with someone in a troubled marriage, my first thought is to encourage the healing of that relationship. However, sometimes that is just not possible, and you seem to have come to that conclusion.

This may seem like small comfort, but many people, like you, find themselves caught in abusive relationships by the bonds of money. They stay in jobs with abusive bosses, in marriages with abusive spouses, or in other toxic relationships because they think there is an economic payoff that is worth the pain. The truth is that some situations are soul-killing. You owe it to yourself and your heart to find a way to change this situation. For you, the good news is that you admit that your present life is horrible, and you deserve to reach for something better for yourself and your children.

Financially, you may have more options than you thought. Your lawyer and other advisors can help, but you can also choose to examine the facts, and create better outcomes for yourself and your children. You focused on a job and degree as the primary financial solution. While regular income is important, money also grows in other ways.

You and your husband bought your house fourteen years ago. If we assume you bought it for $220,000Ña reasonable figure for that type of house in many cities in the U.S.Ñwe can estimate its present value by applying a factor for annual appreciation. At 6% per year, that $220,000 house in 1991 is now worth over twice its purchase price at $470,000. At 10% appreciation per year over fourteen years, that house was worth $470,000 in 1999 and is now worth over $835,000.

When all assets are being examined and allocated as you and your husband face issues of division of property and child support, you can factor the value of the house and consider the appreciation.

Although your husband's financial contribution is important, I wonder if he pays the mortgage, in part because he doesn't want you to know some financial details. If you knew what was owed, you could calculate the value of the "free and clear" portion of the houseÑhow much the house is worth over and above the present mortgage. Any mortgage encumbrance on the house is public information, and a title company can research that for you.

A lawyer or financial advisor can offer guidance, but consider that you might keep that houseÑkeeping the potential of future appreciation, and keeping your children more stable--by getting a new mortgage in your name only, with perhaps lower payments available with today's lower payment options. It may be harder for you, with your current job history, to qualify to buy a different house than to refinance a larger mortgage on the house you now share, borrow more money on that house that grew in value, and if necessary, use some of that money to help with the division of assets. While you're at it, make sure you end up with extra money in the bank for emergencies or any monthly shortfall as you establish yourself in your new life.

Also, while you may want to go back to college and pursue a good-paying job, keep in mind that your house grew money while you weren't even paying attention. Real estate may offer you job opportunities and investment opportunities as well. Your children may need more of you in this time of transitionÑespecially your children in those tough teenage years--and real estate, as well as other investment vehicles, can grow money in ways that are unrelated to how many hours you work.

Take heart and remember that you can be more effective for yourself and your children if you are free of the fear and stress in your present life. Even your husband may shift toward a more fulfilling life if things change from the present pain-filled situation, and that can also bring benefit to you and your children.

I wish you courage and blessings.

Judith

Judith Green, a mortgage and real estate financial advisor, specializes in problem solving for clients with more complex or non-traditional lending and credit issues. She can be reached for comments or to request a consultation at createmoney123@netzero.com.

GREG'S RESPONSE:
Dear Wendy:

As Judith said, it appears that you have concluded that the best choice for you is to leave the marriage and figure out how to pick up the pieces from there. You CAN start over and create a wonderful, independent life for yourself. Thousands of women have been where you are, and are now in much better situations.

Aside from the emotional factors, which Stu and Carista have done a wonderful job of addressing, you have shared that your main concern at this point is how you would survive financially outside of the marriage. The good news is that, although you may need to make some adjustments, you will be provided for and you will survive financially.

Modern family law has been created in order to protect people like you who were dependents of the working spouse during the marriage.  To begin with, I would suggest that you contact a person who is a Certified Divorce Financial Analyst,at https://www.institutedfa.com. By the way, I do not have the credential.

If you share with the analyst the details of your situation, they would be able to give you a sense of the amount of money that your husband is likely to be required to provide you in the event of a divorce. You may also find someone to guide you through the divorce process by asking friends and/or family in confidence whom they might recommend.

When you have a sense of the range of money you can expect to receive, you can begin to move forward into making plans for leaving the marriage and starting over.  When the time is right, you will come to a point that you need to raise the issues with your husband. Through working with a competent divorce counsel, and the divorce legal process, I expect that your needs will be met.

Change is often scary, but certainly unavoidableÉespecially in the situation that you are in. I know you will find the strength inside yourself to rise to the occasion and improve your life!

Good luck to you, Wendy.

Gregory Wendt, CFP®
www.gregwendt.com <http://www.gregwendt.com>
Premier Financial Management, LLC
Investment Portfolio Management, Comprehensive Financial Planning, Socially and Environmentally Responsible Investing

If you want to be considered as a candidate for this Living Wealthy column, go to www.innersecurities.com and click on "LIVING WEALTHY."  Fill out the "Living Wealthy Profile" and "IS Quiz" and return to wealth@innersecurities.com.

For more information on the Living Wealthy team, visit www.innersecurities.com or call 707-425-2360.

Hedge Funds Get Trimmed by the SEC.

By Meri Anne Beck-Woods Chairman & CFO Odyssey Advisors LLC

Meri Anne Beck-Woods, Chairman & CFO Odyssey Advisors LLC

Depending on whom you believe, Hedge funds today manage between $600 to $1 Trillion billion in assets. According to the U.S. Securities & Exchange Commission there are 6000 to 7000 Hedge Funds in the U.S. The Bank for International Settlements (BIS) estimates that they manage between $600 million to $1 Trillion in assets. The Street.com's staff reporter Gregg Greenberg wrote in a recent article that he believes there are 8000 Hedge funds managing $1Trillion in assets. In fact in the last decade, Hedge fund managers have been sprouting like dandelions or gas stations in the sixties. Why is that? There are many reasons. Historically, hedge funds were once solely an investment choice for ultra wealthly individuals and institutions. The threshold for investment was extremely high, so few could come up with the necessary minimum amount required to participate. Today the level is much lower and there are more so called "accredited" investors. According to Rule 501(a) of Regulation D of the SEC, access to hedge funds is open to individuals with $200,000 in annual income or $1 million in net worth. With real estate values at such a high level many individuals can easily qualify.

What exactly is a hedge fund? They are similar to mutual funds, in that they are pooled investment vehicles that often invest in publicly traded securities. However they are fundamentally different in several other areas.

Here's where the trimming starts. The SEC recently announced it will require hedge fund managers to register under the Investment Advisers Act of 1940. What this means is that they will be subject to the currently intense auditing process regulated investment managers and mutual funds go through. In recent times beefed up rules and regulations have been developed to prevent Wall Street conflicts of interest, privacy violations, and inappropriate trading practices. This, as well as an increase in the number of SEC auditors and frequency of audits, will significantly reduce the profitability of money management for smaller advisors and favor the large institutions that have the deep pockets to pay for the increased compliance costs.

It remains to be seen how this will effect the individual investor. Potentially you might have fewer choices and more cookie cutter investment management along with less and less personalized service. What is ironic is that hedge funds do not have to comply with these SEC rules and regulations until February 1, 2006.

While hedge funds have been all the rage, a major concern is that unsophisticated investors rushing to the corner hedge fund manager's office probably do not understand and are not familiar with the complexity of certain hedge fund investment strategies or even the asset classes many hedge funds use. One fundamental problem is the name. Forget about a rose by any other name, many people mistakenly think that hedge funds use strategies that are hedged to mitigate risk. When in actuality the opposite might be true. Before you decide to put your hard earned money into a hedge fund you should ask some specific questions to assure yourself you are working with an organization that will hold up to increased regulatory scrutiny and not invest in beachfront property in tsunami prone islands off the coast of Indonesia without some insurance.

Here are some of the questions you need the answers to:

1. What is the level of risk the Hedge fund manager will take in the fund's investment strategy? Do you understand the investment philosophy and the actual exposure to emerging market debt and equity securities, exotic fixed income derivatives and the like? When you look at the holdings are they clearly defined and explained in a manner you understand and feel comfortable with?
   
   
2. What is the background of the fund managers and how long have they been in business. Potential investors need to conduct due diligence to find out about the credentials and experience of the Hedge funds founders and principals. I cannot emphasize this enough since there have been so few barriers to entry, regulatory and otherwise, for hedge fund managers in recent years. I recently did some research for a client and found out that the principal manager's educational experience was an undergraduate degree in theology. After over thirty years in the investment business, I believe it is definitely nice to have God on your side however when you are dealing with your life savings, but I suggest financial education and experience with real money is also important.
   
   
3. What are the minimum financial thresholds required for investing in the fund? Is it $10,000 or $1000,000? What are the alternative choices for the level of monetary commitment?
   
   
4. What is the fee structure and how are the managers compensated? Although there are many variations, usually hedge funds charge a management fee of one to two percent of the amount invested, plus a performance-based fee of 20 percent of all capital gains per year. So called "Funds of funds" are subject to two levels of fees, those of the primary hedge fund manager and the sub-advisor.
   
   
5. What are the limitations, if any, to your right to redeem your shares? You need to know, since, unlike mutual funds that usually have more liquidity and can be bought and sold with relative ease, hedge funds are different. They may limit your opportunity to cash in shares and could even impose a "lock-out-period" during which initial investors cannot redeem their investment for a fixed period.
   
   
6. How is the value of the fund calculated? You can drive a truck through the loop holes that allow hedge fund managers amazing discretion in how the assets under management are valued. Particularly if they are privately held securities or other investments not publicly traded. The pricing methodologies and valuation methods are what determine the fund's performance, your investment return and what fees you pay.
   
   
7. Ask your CPA or tax advisor what the implications of ownership in a particular fund will have on your taxes and whether they are positive or negative.

My intent is not to malign all hedge fund managers, as some have done amazingly well. There are also those that have experienced world class losses and have even rocked the financial markets. As always education and information will help you make the right decision. Big returns usually equal significant risk. You just want to make sure your decisions are intelligent and you are not just following the latest fad. .

If you have questions on Hedge Funds or any other investment topic be sure to participate in the April 6, 2005 free teleclass put on by the Network for Empowering Women Entrepreneurs, www.newentreprenerus.com . It will start at 5PM PST. Natalie Pace and I will be on the line talking about investing and managing your money as part of the "Meet the Author's series.

Meri Anne Beck-Woods is Chairman and CFO of Odyssey Advisors LLC, an independent investment advisory firm specializing in equities and fixed income. Meri Anne is a co-author of the book Inspiration to Realization where her chapter "How the Millionaire Next Door can Be You" speaks to everyone's ability to become a millionaire. She can be contacted at mabwoods@odysseyadvisors.com.

Information has been obtained from sources believed to be reliable however Odyssey Advisors LLC does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this material and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.

Copyright © 2005 by Odyssey Advisors LLC

Enjoy Your Money Celebrity Style!!

By Natalie Pace

Hit the Santa Monica Beaches BEFORE the Summer Crowds.

Shhh. It's Off-Season in Santa Monica É When the locals get the glory all to themselves É

Diary of a Day:
One lone surfer and a school of dolphins in a crystal blue ocean on a cloudless, 80-degree day. A blader winding her way up the 19-mile bike path along the shore, past an African drum circle, rollerskating dancers, tricked-out skateboarders, stoner art, sage smudges. The world-famous Santa Monica Pier. Dining with celebrities on farm-fresh vegetables and cuisine inspired by the over 100 cultures that call Los Angeles home. All this and off-season rates!

Loews Santa Monica Beach Hotel 1700 Ocean Avenue Santa Monica, CA 90401 310.458.6700

Sound impossible? Not if you're one of the savvy travelers who is hip to the Santa Monica off-season secret and the premiere beachfront hotel - Loews Santa Monica Beach Hotel. Loews overlooks the Pacific and the Pier, and, if you find the urge to leave this sanctuary, is walking distance from the famous 3^rd Street Promenade and the famous Ivy Gimlet (Ivy at the Shore restaurant) and a short drive to every delight you desire, from night clubs to the opera, from the historic Olvera Street, to dim sum in Chinatown, to Universal Studios.

For almost a century, Santa Monica, Los Angeles' beach town, has been a playground for the stars, and this is your VIP ticket to the most sought-after, exclusive happenings.

Two important tips:

1. Santa Monica is home to many celebrities largely because the locals don't bother them. If you see a celebrity, treat them like a neighbor. Don't gape, gawk or hound them for an autograph - unless you see them offering.
2. If you want a better table in a popular restaurant, the maitre Ôd might accept a tip that is no less than $20 to accommodate you. It's done discretely by offering a handshake and leaving the tip in his/her hand.

Spring: The best time of year
The average temperature in Santa Monica is 78 degrees year-round, clear and sunny. Sure we get an El Nino deluge November through February every few years, but, after the rains, Santa Monica sports the cleanest air quality, the clearest skies, the loneliest bike paths and prime seating at the most exclusive restaurants. Spring-time, the "off season" in Santa Monica, can be warmer than summer's "June Gloom," when the overcast doesn't wear off until noon. Traffic is far more tolerable. Lines at the movies and theme parks are much shorter. The malls are not jam-packed.

Loews' the Premiere Hotel and Location
As if overlooking the Pacific Ocean and the Santa Monica Pier and being walking distance from great restaurants and the Third Street Promenade weren't enough, Loews has their own bike/blade shop on the path and a small park climbing structure for small children, which is strategically located just outside the hotel, so that singles and childless couples can't even hear the frolic and giggles. In fact, the hotel has managed to create an environment that coddles families and singles, with the two distinctly different guests crossing paths only rarely. It's a rare hotel indeed that has the space and design to spoil parents, business travelers and singles alike, without the one trudging on the serenity of the other.

Bubbling Bliss and Water Aerobics: The pool and Jacuzzi
Loews' outdoor lap pool overlooks the beach and the famous Santa Monica Pier, and offers poolside dining and drinks. Don't be surprised to find a rock star lounging in his robe, while his/her kids play Marco Polo.

Serenity and Great Abs: The gym and spa
Loews gym is so state-of-the-art and complete that a select few Santa Monica residents are members there. It is never crowded, and it is rare to have to wait for any piece of apparatus. Spoil yourself in the spa with the most gifted bodyworkers and aestheticians West of Sedona.

Decadently Delicious, Inviting and Luxurious: Ocean and Vine
Ocean and Vine, Loews' newly remodeled restaurant, features a circular fire-pit and fondue, which encourages more gregarious singles and couples to interact with strangers, while enjoying wonderful food, made with fresh produce from the local Farmer's Market. (There are plenty of tables overlooking the Pacific for lovers who want to drown in one another's eyes.) The wine list is unique and whimsical. If you're not a connoisseur, the sommelier has done a great job of pairing wine with each dish for you. Great for lazy breakfasts, intimate evenings, social networking and power lunches (with free validated lunch parking).

Be forewarned that the chefs were not kidding when they named the appetizer's menu "small plates." If you are going to be obsessed with counting how few pomegranate seeds you get with the Hudson Valley foie gras (delicious, though petite), feast your attention on the large plates, where quantity is abed with quality. Highlights from the menu were the Hawaiian Big-eyed Tuna (seared in a brown sugar soy reduction), the artichoke fondue and the dry aged rack of lamb (Large Plate).

Chocolate Lover's Orgy: Love at First Bite
Never have I found a pastry chef who understands chocolate better than Francisco Lozano of Ocean and Vine. More is better and nothing beats Valrhona. From chocolate crème brulee to chocolate ice cream and the best molten lava cake around, it's hard to decide which of the "chocolate trio" to focus on. Thankfully, you don't have to choose. You can have it all. And if chocolate is not your passion, the caramelized banana tart is in a class all of its own with delicate flavors (the banana doesn't overpower the dessert) and a distinctively crème brulee overtone.

Loews Loves Pets!!

Traveler's Tips
Bike Path: Rent a bike or blades from Loew's bike shop and enjoy 19 miles of seaside biking and blading, with plenty of wonderful watering holes along the way. Stop by the Figtree Café in Venice for a great spinach salad or flavorful and light cornmeal or oatmeal pancakes. Be serenaded by the Venice Boardwalk natives, who can be unexpectedly moving or just "colorful." 429 Ocean Front Walk, Venice, CA 90291. 310.392.4937.

Ivy at the Shore: Prepare to pull out your credit card beforehand, so that you can enjoy the Ivy's famous grill, the fabulously lethal Ivy Gimlet and star gazing without worrying about the cost (expensive). If the evening is not graced with at least one celebrity sighting, at least you'll see some of the best Botox and breast implants this side of Desperate Housewives and enjoy the famous Ivy dining experience. Go now and be one of the last to enjoy Ivy at the Shore before they move to their new location! After 20 years at 1541 Ocean Avenue, the Ivy has opted for a different Santa Monica locale. 310.393.3113. 1541 Ocean Avenue. Santa Monica, CA 90401.

Josie's: Three of the most imaginative chefs in the U.S., Josie, Jill and Jonna delight diners from appetizer, to entrée and dessert in a premiere establishment. Don't let the funky location fool you. Josie's is a world-class, unforgettable dining experience, and is included perennially on the Best of LA lists as one of the top 10 restaurants. Just do it. Tell Frank that Natalie sent you. 2424 Pico Boulevard. Santa Monica, CA 90405. 310.581.9888.

Third Street Promenade and the Santa Monica Pier: Both are a short walk from Loews. A lovely stroll on a sunny day. If you don't want to make the trek back, catch The Tide (free) or a taxi back to the hotel. Movies, shopping, gourmet coffee, restaurants, arcades, rides, fishing. Pick your pastime!

Cars vs. Cabs: A cab ride from LAX costs about $30, and the local drivers know the back route up Lincoln, which can save 30-60 minutes, depending upon traffic. (Without traffic, the back route between Santa Monica and LAX takes about 20 minutes.) Loews has a Hertz rent-a-car in the hotel. If you plan on seeing Hollywood, visiting theme parks, hitting downtown L.A., etc., rent a car for those excursions. However, in Santa Monica, it's convenient and cost-friendly to use cabs. By taking cabs you avoid those pesky run-ins with the police and meter maids. Parking tickets in Santa Monica cost more than lunch and a DUI will cost you your license.

Los Angeles Opera and the Disney Concert Hall: Placido Domingo, the Executive Director of Los Angeles Opera, has put the Los Angeles Opera on the world stage. Of the many performances that I've seen over the past few years under Mr. Domingo's executive direction, only one has disappointed me. The Dorothy Chandler Pavilion is not the hip new architectural wonder that the Disney Concert Hall is (located across the street and worth walking to), but it sets the perfect stage of elegance and opulence for the those seeking a divine cultural experience. Go on opening night and meet the stars in an after-opera social. Verdi's Falstaff opens on May 28, 2005 and plays through June 15^th. www.LosAngelesOpera.com. Bill Cosby hosts James Moody's 80^th Birthday Celebration at the Disney Concert Hall on April 30, 2005. Moody has been called the "grandmaster of the art of jazz." www.wdch.laphil.com

Calendar:

Online Chat with the #3 Stock Newsletter Editor. The Milken Global Economic Conference. Teleconference with NataliePace.com CEO and feature writer. Many opportunities! Don't miss out!

For a complete list of Hot Happenings, go online to the Calendar section of the NataliePace.com web site.

April 6, 2005 Teleconference with Meri Anne Beck-Woods and Natalie Pace
If you have questions on Hedge Funds or any other investment topic be sure to participate in the April 6, 2005 free teleclass put on by the Network for Empowering Women Entrepreneurs, www.newentreprenerus.com. It will start at 5PM PST. Natalie Pace and Meri Anne Beck-Woods will be on the line talking about investing and managing your money as part of the "Meet the Author's" series.

Hot News on 14 Stocks, Many That Are Showing No Signs of Cooling Off.

By Natalie Pace.
(Note: These are not buy/sell recommendations. Always consult a professional before buying or selling stock.)

Important Investor Education Tips:

1. Don't miss the NataliePace.com Chat with the Managing Publisher of the #3 Stock Newsletter in the US for 5-year risk adjusted returns. David Fried will be in the NataliePace.com chat room on Wednesday, 4.13.05, at 8:45 a.m. PST (Noon EST). Read the article in this month's NataliePace.com ezine first!
2. Be sure to read the "Summer Doldrums" article in the current issue, with plenty of great advice from Paul Woods, CEO of Odyssey Advisors.
3. Monitor stocks very closely between now and June. Volatility is expected to be high, on M&A activity. Summer doldrums could be horrible this year, and you might be glad that you took your profits (in your trading portfolio) before the summer holiday, freeing up cash for a stock buying spree in September and/or October. Long-term investors may want to avoid watching the news and will need to exercise patience as the markets whipsaw and (likely) decline on news of oil, inflation and interest rates this summer.
4. Consult your accountant and be sure that you understand the tax concerns of short-term trading vs. long-term.
5. There are a few sectors that should continue to outperform this year on strong demand, including commodities, energy and biotechnology, according to the Vice Chairman of Goldman Sachs. Read the "Stock-Picker's" article in Volume 2, issue 3 for more information.

Bottom Line: NataliePace.com is providing you with news and important information, but you need to consult your financial planner to determine your best strategy for using the information. That will depend upon your age, your retirement plan, your risk tolerance and portfolio diversification. The stock portion of your portfolio is a higher risk classification, where you ideally seek to gain higher returns. As the NASD said in a recent investor alert, don't bet the farm on the stock market.

Full disclosure: I have listed the companies that I own under the column "NP OWNS?"

Please note: NataliePace.com does not act or operate like a broker. We are a media and information center. This article is intended to educate and inform individual investors, and, thus, to give investors a competitive edge in their personal decision-making. The publicly traded companies mentioned in this article are not intended to be buy or sell recommendations. ALWAYS do your research and/or consult an experienced, reputable financial professional before buying or selling any stock

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