The Greatest Love Quotes of All Time!

Photo Credit: www.mazell.com. Film and Video Production. Advertising Photography. 562-866-7662

If you're in a bind and need something to write on your Valentine's Day card, these quotes might help! If you're stuck in a rut or alone this Valentine's Day, and you are wondering what this love business is really all about, these wise observations might point you in the right direction.

Don't miss our online surveys, where men and women reveal what they really want most from their lover on Valentine's Day. And please take the survey yourself, so that your own lover stands a chance of getting you exactly what you most desire.

Great Love Quotes

1. A kiss is a lovely trick, designed by nature, to stop words when speech becomes superfluous. - Ingrid Bergman.
2. It is wrong to think that love comes from long companionship and persevering courtship. Love is the offspring of spiritual affinity and unless that affinity is created in a moment, it will not be created for years or even generations. - Kahlil Gibran.
3. Sometimes the heart sees what is invisible to the eye. - H. Jackson Brown, Jr.
4. The best portion of a good man's life: his little, nameless, unremembered acts of kindness and love. - William Wordsworth.
5. Neither a lofty degree of intelligence nor imagination nor both together go to the making of genius. Love, love, love, that is the soul of genius. - Wolfgang Amadeus Mozart.
6. Love is composed of a single soul inhabiting two bodies. - Aristotle.
7. Falling in love consists of uncorking the imagination and bottling the common sense. - Helen Rowland.
8. Love does not consist in gazing at each other, but in looking outward together in the same direction. - Antoine de Saint-Exupery.
9. If you would be loved, love and be lovable. - Benjamin Franklin.
10. We've got this gift of love, but love is like a precious plant. You can't just accept it and leave it in the cupboard or just think it's going to get on by itself. You've got to keep watering it. You've got to really look after it and nurture it. - John Lennon.
11. The perfect relationship begins with you. Became a "soul mate" yourself, so that you can be a soul mate magnet. - Natalie Pace.
12. In our willingness to give that which we seek, we keep the abundance of the universe circulating in our lives. - Deepak Chopra.
13. With all matters of the heart, you'll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don't settle. -- Steve Jobs, CEO of Apple Computer, Stanford Commencement address, delivered on June 12, 2005.

What Poker Champs and Champion Investors Have In Common: Neither Gamble.

by Natalie Pace, Top Stock Picker, per TipsTraders.com.

Annie Duke didn't win the 2004 World Series of Poker because she's a great gambler. She won because she knows her profession and doesn't gamble at all. In fact, her book, Annie Duke: How I Raised, Folded, Bluffed, Flirted, Cursed and Won Millions, isn't a sensational book about how cool gambling is if you're a girl. It's a course study - an educational prerequisite -- for ANYONE who cares to sit and win at a poker table.

This is America, however, and no one is going to deny you your right to dump yourself bold and naïve at a poker table any more than anyone is going to deny you your right to gamble on the stock market. Trouble is: professionals don't gamble, and if you are, guess who is more likely to win.

Unfortunately, what most Americans don't realize is that they probably have a seat at the stock table, whether they know it or not. Odds are your company retirement plan and/or your personal 401 (k) or IRA have holdings in mutual funds or publicly traded companies. So, it's not a game you can easily walk away from. In fact, there's almost no alternative to educating yourself, if you want to start winning gains.

Buy Annie Duke's book if you want to win at poker. Buy Peter Lynch's books if you want to learn investment tricks of a pro. Here's the interesting thing. They're both talking the same game.

1. Bet On What You Know. Annie Duke is a meticulous observer who counts eye blinks before the game begins, so that she can assess when someone is lying. She knows the probability of any set of cards winning, and that "you should only play 25% of the hands you're dealt." Peter Lynch says, "If you like the store, chances are you'll love the stock." It's better to invest in companies that you know and understand (and as a consumer, you know what products you like and don't like and why) than to blindly chase every "hot" company that gets reported on.
   
   
2. Play the Odds. "A-2 offers nineteen combinations for making the best low" in Omaha Hi-Lo, according to Annie Duke, who cautions to avoid trap hands, like A-5, which can be beaten by a number of low combos. How do you play the winners on Wall Street? Avoid companies that owe more to their pension plans than they are worth. Companies with severely underfunded pension plans are more likely to enter bankruptcy, as we've seen with Delphi, Delta Airlines, United Airlines, US Airways and more. Exxon Mobil, General Motors and Ford owe billions to their pension plans, according to Standard and Poor's. Any company that was founded before 1980 and has a benefits-based retirement plan (rather than a 401 k), is likely to have an unhealthy fiscal exposure to benefit costs, especially if there are unions at the company.

Check your mutual funds to be sure that you are not over-exposed to these and other Blue Chip companies that are suffering from "legacy" costs. (You'll see this term in a lot of news articles these days.) To review the Pensions Stock Report card, read the "Faded Blue Chips" article, from vol. 3, issue 8.

3. Don't Chase Bad Hands. "Cards that look good to you because you've been card dead aren't right for playing," according to Annie. The odds of winning in poker and in life are quantifiable, and increase if you are willing to play hands with a high probability of winning and pass over hands that have a high probability of losing. Real Estate Investors, especially novices, should take great heed today.

If you've been looking all year for a good real estate investment or even to buy your own home, and all you can afford is the run-down shack in the ghetto, don't bet on that shack getting sold higher in a few years to someone more foolish than you are. Houses with security bars on the window in Inglewood, California are going for half a million dollars today. Modest homes (hardly more than shacks) in Venice, California are selling for over a million. When the price of anything becomes higher than the customer base can afford, buyers dry up and excess stock begins accumulating. Stocks in 2000 weren't immune. Real Estate in 2007 may not fall sharp and fast, but rest assured that prices cannot rise at the same rate they did from 2000 to 2006.

4. Predict the Future by Doing Your Research. Annie recommends paying attention to how fast or slow people play their hands. "It can help you predict what they're holding in future hands," according to Annie. So, who do you watch on Wall Street? Turns out certain trends are extremely predictable. For instance, during the Santa Rally of 2002, NataliePace.com reported that 2003, the year before a presidential election, was a year that had statistically significant odds of posting positive gains. ((2000-2002 were all losing years, and, after a very dismal October 2002 on Wall Street, many investors were starting to think that the Apocalypse had arrived.) 2003 was a great year for gains in stocks, and 2007 is poised to do the same.

Average S&P 500 Returns in Pre-Election Years

Years	Open/Close Price	Gains/Loss
1991 1.2.91 - 12.31.91	326.45 417.09	+28%
1995 1.3.95 - 12.29.95	459.11 615.93	+34%
1999 1.4.99 - 12.31.99	1228.10 1469.25	+19.6
2003 1.2.2003 - 12.31.2003	909.03 1111.92	+22%
Average for pre-election year returns since 1991		25.9%

The Santa Rally is another fairly reliable trend. Over half of the gains in the stock market occur in the 4^th quarter. Does that mean that you will win every hand if you learn how to read the future based on historical trends? No. Does it increase your chance of success? Yes.

Additionally, if you get into a bind where you are invested, but feel blind (as the Virgin Investor, Jodi Seidler, did when she made her first trade), you can commit to obtaining the facts that you help you to make a more informed decision, rather than taking a shot in the dark (which has a big chance of missing the target).

5. Never play a bad hand. In Omaha Hi-Lo, a bad hand is 2-2-7-Q. "The hand literally has no potential," according to Annie. What "bad hands" are there in investing? Swamp land in Florida. Free money to help a diplomat/royal from Nigeria. Penny stocks that get pumped through spam email campaigns. Assume that any get rich quick scheme that comes from someone you don't know is swampland in Florida until proven otherwise. If anyone tells you that you've won something, but asks you for money before you receive the loot, hang up. If you get an email from your "bank" asking you for private information, DO NOT RESPOND by email or by entering sensitive information onto a web site. Call your bank's listed telephone number (NOT the number on the email) and speak to a representative. With regard to real estate, remember that past performance is no guarantee of future results.
   
   For more information on money scams, read ÒWhat You Don't Know About Money Scams Could Kill You,Ó from vol. 3, issue 9 (September 2006).
   
   
6. Don't Play With Cheaters. As Annie notes, "Generally the people who play dishonestly are the ones who have leaksÉ If you're trying to take edges like that, you likely have the kind of personality that is going to have other problems - a drug addiction, for example." There are signs that a company and CEO are bending (if not breaking) the rules. If the company is "based" out of the Bahamas, but has no real offices there. If the CEO is seen more often in the society pages than in the Board Room. If the product prices are dropping faster than the Titanic, but the balance sheet reflects a steady climb in sales. Click here for the Top 10 Signs the CEO is rolling in your dough. Investing in companies with products you don't like (think Altria, which is the Philip Morris tobacco company) or CEOs whom you don't trust is no different than doing business with someone with questionable morals. The same rationale that has them cheating on others will have them cheating on you. It's just a matter of time.

As in poker, there are many more things to learn about investing that will help you up your chances of winning. Before you sit at the poker table, you might start by reading Annie Duke's excellent book. She very generously reveals the strategies she used to become the 2004 Tournament of Champions winner. Before you start putting your money in the stock market, and remember chances are you that already have some money invested there, you would be smart to continue learning from professionals who have a record of posting consistent gains over time. This is very different from blind faith in the broker behind the counter, or the fever of hearing something on CNBC or the sure shot claims of the Spam or direct mail that you receive from "experts" who are touting HUGE GAINS.

It's a thrill to win money at either seat - poker or Wall Street - and it is assured that you will get that joy more often if you know what you are doing. No one can play your cards better than you can, provided you learn the rules and fundamentals of the game. .

A Surprising Fourth Quarter. Can the stock market do it again in 2007?

by Paul Woods, President & CEO of Odyssey Advisors, LLC.

The biggest news in the fourth quarter of 2006 was the change in power in Congress. Democrats won virtually every close race and established majorities in both the Senate and House. The gist of their message was they weren't Republicans, but they were vague on how they would change things. With the stock market's usual distaste for uncertainty, it went into a funk for a few days after the election. However, it didn't take long for investors to remember what political gridlock did for the economy and the financial markets in the 1990s. A week later, the stock market was higher than before the election.

Like a glider gently coming in for a landing, economic growth is moderating. The fourth quarter was the first time in three years that real GDP growth dropped below 3%, and leading indicators of the economy imply further slowing. However, corporate profits remain stubbornly strong, with earnings for the S&P 500 Index still up over 15% from year ago levels. The inflation rate dropped dramatically during the fourth quarter and is now around 1%. Even so, the Federal Reserve is still using the threat of inflation as an excuse not to lower short-term interest rates.

Before the election, there was speculation that more Democrats would negatively impact health care and oil stocks. On that, the pundits batted 50%. Excluding biotech, older health care companies did poorly after the election, but this wasn't new as they've been lousy investments all year. Oil stocks reacted to higher prices and ignored the change in Congress. During the fourth quarter, biotech, energy, and consumer spending stocks were the top performers while transportation and health care stocks brought up the rear. Smaller companies outperformed bigger ones, REITs kept going, and investors generally preferred value over growth. For reference, here's the stock market segment scorecard for the fourth quarter.

Source: Thomson One Financial

In addition, here's the stock market index and industry group scorecard for the same period:

Source: Thomson One Financial

In the fixed income market, bond investors ignored our last quarterly letter and yields rose slightly during the fourth quarter. In spite of a slowdown in economic growth and inflation, bond investors waited in vain for some signal that the Federal Reserve would bring short-term interest rates in line with the rest of the yield curve.

Source: Bloomberg LP

The yield curve remains inverted at the short end, and we still expect the next move in interest rates by the Federal Reserve to be down. Weakness in housing should allow economic growth to continue to moderate, and the inflation rate is also expected to be lower in 2007. We expect lower bond yields in 2007 and remain invested in the under 10-year segment of the market as the incremental risk of investing in longer maturities outweighs the incremental return. At present, yield spreads versus Government Agency bonds are highest at 4-6 years.

Source: Bloomberg LP

Overall, 2006 was a good year for investors. Interest rates ended the year with yields a bit higher than they were at the end of 2005, but bonds still produced a positive return. Although stocks produced an above-average return, this return about matched the underlying increase in earnings.

While some pundits expect returns to moderate in 2007, we're in the opposite camp. Valuations in the stock market have been rising since the summer. According to our model, stocks are still more than 16% undervalued relative to interest rates. As a result, we expect valuations to rise further in 2007. Although earnings growth will probably moderate, earnings are likely to remain strong enough to produce another double-digit return in stocks in 2007.

We're also excited about 2007 for another reason. There's now a light at the end of the tunnel when it comes to the constantly increasing demand for foreign oil. Electric cars with enough range, performance, and comfort to satisfy American drivers will begin hitting the market this year. Whether you worry about global warming or about the consequences of our dependence on foreign oil, this is good news. If you'd like more information, please see our article at NataliePace.com in the January 2007 online magazine.

Paul Woods is President and CEO of Odyssey Advisors LLC, an independent investment advisory firm specializing in equity and fixed income management for individuals, entrepreneurs, families, endowments, and non-profit institutions. He can be contacted at pwoods@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.

Newbies Treat Wall Street Like a Casino.

A reprint of our January 10, 2007 online chat with money manager, Paul Woods, President and CEO of Odyssey Advisors LLC, an independent investment advisory firm specializing in equity and fixed income management for individuals, entrepreneurs, families, endowments, and non-profit institutions.

Natalie Pace: Paul, this is the pre-election year, which you say adds a "bounce" to your step. 2003 turned out to be a great year for returns, largely because it was preceded by the October 2002 low point, but this year, I'm sensing something that I didn't in 2003, which has me even more optimistic for 2007. I'm starting to hear lots of people talking stocks, now that the real estate market is rolling overÉ Your thoughts on this? Do you think that the current declining market of real estate and the mediocre market of bonds will drive people over to stocks in droves?

Paul Woods: In the last few years, money that might have gone into stocks has gone into real estate instead. With real estate rolling over and bond yields low, I think stocks now look better in comparison. Money will probably go into stocks by default.

And then you have newbies rushing over to the stock market and the market going higher, which adds a level of exuberance to the equation, right? (As a pro, we love that!). I'm starting to see the CNBC factor. Your thoughts?

Newbies tend to treat the stock market like a casino, which adds a lot of volatilityÉ

Very astute. So, for all of the people in the chat room who want to act more like you (gaining from volatility), how do you play that? Do you like the charts that track movements and momentum?

Investing isn't all that complicated. For stocks, you only have to remember two things. Smaller companies outperform larger ones, and stocks that are cheap outperform stocks that are expensive. A small cap value ETF is a great place for investors to start, as a result.

Will you give our chatters a couple of symbols for small cap ETFs they might check out? Also, do you have any sector ETFs that you like (biotech, green energy, etc...)

The best small cap value ETF (lowest fees) is VBR. If you want to invest in alternative energy, PBW is a good one.

Also, how many of you in the chat room are interested in options? I've been getting a lot of questions from people who are completely new to investing in the stock market who say they are investing in options. Paul, will you comment on options trading for the beginning investor?

Don't do it. The brokers selling them make money. The folks buying them lose money.

I'm pretty much a newbie. I can attest to being affected by CNBC. For instance, I bought lots of penny STEMCELL stocks on my own, yet was hyped by talk of the House of Reps and stem cell research on Election Day. They are all worth a lot less now, but I think I have to stay in since they promise relief to afflicted people.

The problem is that it can take over 10 years to get these products to market, and it costs a lot of money. The human testing process is a roll of the dice. Lots of companies don't make it. The best way to do this is with a package of companies. Assume that most will blow up, but if one makes it, it will be worth it.

Natalie: There are also snake charmers who capitalize on the good sentiments of people's emotions. So be very careful when you invest in penny stocks, no matter what business the company is allegedly in. Paul, I'm sure you have a lot to say on penny stocks. One thing I'll say is that these are companies that can't make the grade to be traded on one of the big boards. You have to do 100 times the research before investing.

You are right. But occasionally you find companies with real products and a big backlog of orders. I have to confess to playing with these once in a while.

I am interested in investing in Canada and in "ethical" stocks. Particularly in alternative energy stocks. Any suggestions?

The Wilderhill Clean energy Portfolio includes a lot of alternative energy stocks in an exchange traded fund. Symbol is PBW. In general, I think ethanol and hydrogen make no sense. I'm partial to solar, wind and hybrid and electric car technology.

How about in Europe, India or China?

We have small investments in Europe and own some solar companies in China. Have yet to find anything compelling in India.

I'm just wondering what else is out there, and being a Canadian, I'm particularly interested in investing here.

I own several Canadian oil and gas trusts, which pay nice dividends.

I also own several Canadian trusts - BTE, ENT, PDS, for the monthly dividends. I'm glad to hear that you trust the trusts, Paul.

The biggest problem is that Canadian oil and gas trusts will lose preferential tax treatment in a few years unless the current government changes its mind.

SoÉ you have a time limit on these trusts? Are you putting them on your sell list for 2009, pending further information on tax status?

Right now, the trusts are priced as though the preferential treatment for dividends will disappear. If that happens, we may shift to some American oil and gas trusts that have a longer reserve life.

Do you think that they will lose their value precipitously? How long can one stay in them? The dividends are great!

They lost their value in about a week, once plans to change the tax status were announced. Some of them look pretty cheap at present.

Paul. What do you think of those Canadian oil sands that I've been hearing so much about?

We haven't invested in oil sands companies, but they have a lot of potential if you assume the price of oil stays high.

Would you assume the price of oil stays high? Or do you think hybrid and electrical technology will impact the consumption (demand) anytime soon?

I think there's another big spike in oil prices in our future as China keeps growing. Too many reserves are off limits in this country, so there's going to be an imbalance between supply and demand. However, the companies making hybrids are laying the foundation for electric cars. More than anything else, that will take the pressure off oil prices at some point in the not too distant future.

I'm not interested in investing in oil, but gas is a bit closer. I'm considering in investing in a company that refurbishes gas extraction equipment.

NPACE: What do you know about gas extraction and/or this company that makes it an investment you are considering?

Actually, I know very little, but I am studying investing with an investment mentoring company, and my advisor has drawn my attention to a company called Alliance Leasing that may become an IPO this year. It is a U.S. company. I gather that there is a shortage of drilling rigs, so they refurbish ones that were in use in the 70s.

NPace: My strategy for investing is: 1) invest in what you know and love. 2) pick the leader in the sector. 3) buy low; sell high. If you are relying on the advice of a mentor, be sure that you know his/her returns on EVERY STOCK they have ever recommended. If you are investing in the wisdom of a guru, the first thing you should know is the total value of their returns, ie. how good they are at the game. If s/he is legitimate, then s/he should be tracked by an independent organization like TipsTraders or Hulbert's Financial Digest. You wouldn't want to place your faith and future in just anyone's handsÉ

What's the relationship of oil and gold prices. If I'm interested in a position in gold still, are there any specific ETFs etc., or is a basket of gold stocks a better strategy? I consider myself a newbie, but I have taken a number of seminars on basic technical analysis and value investing and do my reading and researchÉ

The only connection I can find between oil and gold is that they're both commodities, and we're running out of oil. Some of the foilks buying gold also have bomb shelters and a six-month supply of food. They worry me a bit.

SoÉ about goldÉ Forget it? Or stock up and move into a cave?

NPACE: Gold returns 7% on average annualized, compared to over 12% for stocks and 7% for real estate. Move into a house. Buy stocks. Wear gold jewelry and/or play in gold...

Paul Woods: Buy a house first, then invest in stocks. If you're going to invest in gold, don't make it a big part of your portfolio and use an ETF.

Are you familiar with hy-drive, a Canadian company doing hydrogen fuel and Tide, and American company working on gas lines to Mexico?

I'm not. Hydrogen will never be an economical fuel and a hydrogen tank on a car can explode and turn an entire car into shrapnel in a crash. For zero emission vehicles, battery technology has advanced to the point that electric cars are the only viable option.

I have been paying attention to an alternative treatment for anxiety, depression and learning disorders - CES, cranial electrical stimulation, since the early 1990s. it is a way of slowing down the ratio of super fast beta waves that some people exhibit, which causes them to self medicate with alcohol and marijuana, which both lower the activity of beta waves in favor of alpha waves. Clinically, many children of alcoholics were able to go through a six-week CES training session, and then their brain waves normalized, and they weren't attracted to drugs or alcohol. I am mentioning this because I think the technology needs investment, and then can take market share from pharmaceuticals. Eric Braverman, MD, PATH, is associated with CES, and the technology comes from Washington state.

I'm not familiar with the technology, but there's a glut of venture capital out there so it should get funded if it works.

Natalie: If you wish to contact Paul directly, you can call Odyssey Advisors at 310.568.4700. Their firm manages the assets of high net worth individuals and institutions. When you switch from brokers up to money managers, you are ensuring that you have wisdom and experience on your side... You do have to have a higher net value to qualify, but it might be more within reach than you might have known. Paul what is the minimum amount needed to shop for a money manager?

$100,000.

Paul is one of the smartest guys on Wall Street, so contact him if you qualify for his services and think he might be better able to manage your assets!

Paul Woods is President and CEO of Odyssey Advisors LLC, an independent investment advisory firm specializing in equity and fixed income management for individuals, entrepreneurs, families, endowments, and non-profit institutions. He can be contacted at pwoods@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.

Identity Theft: Don't Leave Your Computer Unlocked With the Keys Inside.

by Jay Pestrichelli, Senior Vice President of Client Experience, TD AMERITRADE.

Jay Pestrichelli, Senior Vice President of Client Experience, TD AMERITRADE

Stop me if you've heard this before. A young, single professional is going through the motions to buy her first home. She's sitting with her mortgage provider, poring over her credit report, when she realizes that unauthorized credit cards have been issued under her name. The cards are carrying substantial balances that have never been paid off, each accounting for a sizable drop in her credit rating.

Or, how about this one: a man logs into his online brokerage account to rebalance his portfolio before the end of the year. He notices several unauthorized transactions and thousands of dollars withdrawn from his account.

And, still worse, a single mother has just finished paying her monthly bills. She has a well-paying job in marketing and earns more than enough to pay for her monthly expenses - as well as a little extra for savings and investing. She is surprised a week later when her bank notifies her that she has significantly overdrawn her account. After reviewing her latest statement, she finds three checks addressed to her nanny that she didn't issue, totaling more than $5,000.

What's the common thread? Unfortunately, in each of these cases we're talking about victims of identity theft, or the targeting of your personal or financial information by criminals to commit fraud. It's a problem that impacts millions of people each year. According to a January 2006 survey from the Better Business Bureau and Javelin Strategy and Research, 8.9 million adults were victims of identity crime in 2005.¹

Criminal activity is not new, but identity theft is a new twist on conventional criminal methods. Identity theft takes many forms, but the most common are the following:

• Outright theft - stealing your purse or wallet;
• Mail fraud - stealing your mail and responding to credit card offers or using other information, such as bank statements, to steal personal information;
• Dumpster diving - going through your garbage in search of account numbers, credit card information or, worse yet, your Social Security number;
• Skimming - copying your credit card when it's out of your hands;
• Spyware - accessing your personal computer to collect User IDs, passwords and other sensitive information; and
• Phishing - tricking you into disclosing personal information on a Web site that looks real but is really a counterfeit.

So, what can we do about it? Companies with a heavy online presence, like the one I represent, TD AMERITRADE, spend considerable time and effort developing security systems that help prevent infiltration. However, while we do everything in our power to make sure that our systems are secure, we're limited in what we can do to help individual clients keep their own systems secure from intrusions. We can't configure every computer or wireless device that our clients use to access their accounts - just as a bank can't control who has access to its credit card holders' wallets.

Let's face it, identity theft is scary, but we're not helpless in the fight to prevent it. You would never knowingly leave your car unlocked, with the keys in the ignition, in a public place - would you? Use the same mentality when it comes to protecting yourself against identity theft. Understand the threats and know what you can do about them.

TD AMERITRADE, like other online brokerages and banks, is committed to developing tools, educational information and services to help consumers protect themselves from identity theft. The home base for much of our information is located in the online Security Center, which anyone can access at http://www.tdameritrade.com/security/index.html. At the Security Center, we explain the various threats that exist and offer tips you can take to help protect yourself, including:

• Use passwords and protect them. This is a big one. One of the easiest and most effective ways to protect your information is to use strong, unique passwords for each of your accounts. Don't write them down and don't share them with anyone.
• Don't use public computers, like those in Internet Cafes, hotels or restaurants for sensitive transactions.
• Never share personal information over e-mail.
• Watch for and check your statements regularly. Pick up the phone if they do not show up, or if you see any activity you do not recognize.
• Keep your personal information in a safe place in your home, especially if you employ domestic help or have roommates.
• Unless you know the caller, don't provide personal or financial information over the phone. If a caller sounds suspicious, get his/her name and phone number and call the company back at its listed phone number to verify the caller's identity.
• Consider using a lockable mailbox at your residence to reduce the chance of mail theft. Leave outgoing mail in post office collection boxes or at the post office.
• Pick up new checks at the bank, rather than having them mailed to you. If they are mailed to you, make sure that they are all accounted for.
• Shred your personal papers.

And finally, ask your bank or brokerage about added assistance they may offer. At TD AMERITRADE, we give our clients access to free software that can help protect their personal computers from threats, like Trojans, keystroke loggers and eavesdroppers and discounts to internet security software that help guard against viruses, spyware, and phishing attacks. In addition, we help clients monitor for fraudulent activity through convenient means, such as displaying the last time the account was logged into, right on their secure home page.

We also offer an Asset Protection Guarantee. If you lose cash or securities from your account due to unauthorized activity, we'll reimburse you for the cash or share of securities you lost - period. We're promising you this protection, which adds to the provisions that already govern your account, in case unauthorized activity ever occurs and we determine it was through no fault of your own. We can guarantee this if you work with us in three ways:

1) Keep your account information secure and confidential - don't share it, because sharing your UserID, password, PIN, or account number with other people means you authorize them to take action in your account.
2) Frequently check your account and report any suspicious or unauthorized activity to us immediately.
3) Take the steps we request if your account is ever compromised and cooperate with our investigation. If you help us protect you in these basic ways, we'll promise no fine print and no footnotes...just our commitment to protect the assets you entrust to us.

How's that for peace of mind?

Jay Pestrichelli is Senior Vice President of Client Experience for TD AMERITRADE. TD AMERITRADE, Inc., member NASD/SIPC.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. Past performance of a security does not guarantee future results. All investments are subject to investment risk, including possible loss of the principal invested.

Editor's Note: Many brokerages and banks offer Asset Protection Guarantees and information on how to safeguard your assets from fraud. Check with your broker or banker for details.

The Changing of the Guard Ñ the New Congressional Agenda.

Michael Townsend, vice president, Legislative and Regulatory Affairs, Schwab.

Speaker of the House Nancy Pelosi at the U.S. Coast Guard Cutter PIKE Commissioning Ceremony http://www.house.gov/pelosi/photos/PIKE.html

After working into the wee hours Saturday morning, current lawmakers finished a final sprint to complete the 109th session of Congress. The lawmakers will return after the New Year to begin the 110th session when Democrats will control both chambers for the first time in 12 years. In an unusual move, Democratic Party leaders have said that work on issues will begin immediately after the swearing-in of new members on Jan. 4, 2007. Typically, substantive work does not begin until after the State of the Union address, which is towards the end of January. In their first acts of power, Democrats are expected to address the federal minimum wage, lobbying and ethics reform, and Medicare prescription drug costs.

Overall, we expect to see an increased focus on consumer protection issues, an effort to improve tax collection, an attempt to mitigate the impact of the Alternative Minimum Tax (AMT) on middle-class taxpayers, and a new emphasis on how regulation impacts the strength of the U.S. financial markets. Here are some of the issues likely to be on the agenda in 2007:

Consumer Protection

• Credit Card Practices Ñ Incoming Senate Banking Committee Chairman Christopher Dodd (D-CT) has long fought for clearer credit-card disclosures and an end to what he believes are abusive practices. He and Sen. Carl Levin (D-MI) have already said that credit-card practices will be the focus of hearings in at least two committees in 2007.
• Executive Pay Ñ Incoming House Financial Services Committee Chairman Barney Frank (D-MA) has pushed legislation to require more disclosure about executive pay and empower shareholders to be involved in some executive pay decisions.
• Hedge Funds Ñ Both Chairmen Dodd and Frank have said in recent weeks that they are not inclined to push legislation with regard to hedge funds. But hedge funds are a likely target for hearings, with Frank in particular having expressed concern about whether pension funds ought to be investing in hedge funds.
• 401(k) Fees Ñ Rep. George Miller (D-CA), the incoming chair of the House Committee on Education & the Workforce, has said that he will hold hearings looking into whether the fees that 401(k) plan providers charge are appropriate and whether plan participants understand the impact fees can have on their retirement savings.

Taxes

• President Bush's Tax Cuts Ñ It is unlikely that Democrats will seek any large-scale rollback of the tax cuts of recent years, particularly in a Presidential election cycle. Most of the tax cuts (e.g. income tax rates, 15 percent rate on capital gains and dividends, the phase-out of the estate tax) expire in 2010, so decisions about what to do about them will likely be left to the next Congress, which begins in January 2009.
• Alternative Minimum Tax Ñ There is considerable bipartisan interest in fixing the AMT, which was created in the late 1960s to ensure that a handful of the wealthiest Americans paid some tax. Today, millions of increasingly middle-class Americans are impacted by the AMT, and that number will rise to an estimated 30 million by 2010. The incoming chair of the Senate Finance Committee (Sen. Max Baucus, D-MT) and of the House Ways & Means Committee (Rep. Charles Rangel, D-NY) have labeled this a top priority Ñ but the price tag for fixing the AMT is enormously high, so there are no easy solutions.
• Closing the "Tax Gap" Ñ Another top priority in 2007 will be finding ways to recoup some of the estimated $300 billion in taxes that are owed but go uncollected each year. Finance Committee Chairman Baucus is particularly passionate about this issue and is likely to look at requiring brokers to report the cost basis of stock sales to both customers and the IRS, which would improve collection of capital gains taxes.

Financial Markets

• Sarbanes-Oxley Ñ There is considerable interest in Congress in looking at whether some parts of the Sarbanes-Oxley corporate governance law cost more to public companies than the benefits they provide to shareholders, investors and consumers. Hearings are likely.
• Overall Competitiveness of U.S, Markets Ñ The recent report of the Committee on Capital Markets Regulation, which raised some concerns about whether legal and regulatory barriers are resulting in the U.S. markets losing ground to foreign markets, is likely to be the focus of attention in both the Senate Banking and House Financial Services Committees.

Get a Better Job, Get a Better Life.

by Chellie Campbell, author of Zero to Zillionaire.

Chellie Campbell, author of Zero to Zillionaire.

Not only are we working too hard, but a lot of us are working at jobs we don't even like! One day, I was asked to give a speech, and especially to say something about retirement.

"So here's my tip," I said, "Don't retire."

The audience looked at me quizzically.

"If you are working at a job you hate just to put in enough time to get your pension and retire, you are wasting your life. Did you ever hear of a movie star saying, ÔI can't wait until I have my pension funded so I can retire and stop making all these movies'? No. Because actors love their work. At ninety years old, they're trying to convince insurance companies how healthy they are so that they can make a movie. They die onstage. They want to die working because they love their jobs. Find work you love and you won't want to retire from it. Then you can live life richly, fully, enjoying every day, instead of waiting for the day when you can retire. Retire to do what? Lie on the beach? For how many days would that be interesting?"

"Besides, a lot of people don't make it to age 65. Many people die before they reach retirement age. So I suggest you don't wait to enjoy life until you retire. Besides, if you live unhappily all your working life, you'll be locked in the habit pattern of living unhappily. Start enjoying life now, or you won't know how to later."

I could see that some of these people weren't that happy about what I was saying. I could tell from looking at them that many of them didn't love their jobs. It showed on their faces. What they really wanted was The Magic Answer of how they could retire quicklyÑlike how they could get a million dollars saved by next weekÑso they could be free to do what they wanted.

It doesn't work like that. It takes timeÑunless you win the Lotto. But planning to win the Lotto isn't a good retirement plan because it only works for one out of twenty million people. Oh, you could be the one! I just suggest you have a back-up plan in place in case it happens a little further down the road than you expect, if someone else is doing more affirmations every day than you areÉ

Make the Days of Your Life Count
There's an ancient Sufi story of a wealthy man who worked hard all his life amassing a fortune. Growing older, he took a break from work to decide what to do next, and just at that moment, Death came for him. He tried to bargain with Death, offering him one hundred thousand dinars for an extra year of life. Death said no. Two hundred thousand dinars then, the man begged. Death said no. The man scrambled and pleaded, offering half his fortune for one extra hour of life, but Death was implacable. Finally, the man offered his entire fortune for just one extra moment. Death agreed and the man wrote, with his last breath, a message to humanity: "Be careful with your time. I could not buy one additional hour of life for five hundred thousand dinars."

Do you value the hours of your life? Are you working at something you love and believe in and are committed to? Or are you at least working at something that is preparing you for the work you were born to do? Do you hate to wake up in the morning because you hate your job? I had those days once. Days when I woke up in the dark just before the alarm rang, and thought, "Oh please don't be time to get up yet. I don't want to have to go to that job." Those were the worst days of my life.

Don't wait another day to be happy and fulfilled in your work. Get out. Get another job. I don't care how tight the job market is, have you ever seen a newspaper without want ads in it? Read them from the first "A" all the way to the last "Z", even engineering or sales or anything you think isn't your style or your experience or your education. You'll get creative ideas just by looking at them. Call executive search companies, search the internet, send the word out to your network. Go back to school if you need a degree to do the thing that really interests you, that makes your soul sing.

A psychologist I worked with once told me that she enrolled in graduate school to get her doctorate when she was 40 years old. "Why are you doing that?" her friends asked. "You'll be 50 before you get your Ph.D.!" She answered, "I'm going to be 50 anyway. I'll either be 50 without a Ph.D. or 50 with a Ph.D. I'd rather be 50 with one." And ten years later, she had her doctorate in psychology. But she was happy every year while she was working on her goal, not just the years since achieving it. The happiness of life is in the pursuit of happiness. The artist doesn't paint one picture, hang it on the wall, and stare at it for sixty years. The joy of the artist is in the act of creating. And creating. And creating...

If you want to join the hordes of Tunas working their lives away in "quiet desperation", waiting for their Social Security check to give them respite from soul-deadening work, be my guest. But if you want to join the Dolphins who are working towards Zillionaire status, you have different requirements to satisfy. No Zillionaire hates their job.

Social Security was set up in the 1930s with the retirement age set at 65 because most people died by age 63. Social Security was never intended to be something that supported everyone for the last 25-30 years of their lives. It was a stop-gap measure to take care of the few people who outlived the norm and were too frail or sick to work. But like most things in our lives, our political habits also outlive the circumstances they were designed to fit. Politicians who serve at the will of the people have a difficult time asking those same people to give up their benefits. It's an unpopular political stand to tinker with Social SecurityÑespecially if you want to raise the retirement ageÑbut that is what needs to happen.

You can be angry about that; you can complain that you paid taxes lo these many years and you shouldn't have those benefits you counted on taken away from you, but guess what? Play "Show me the money!" and count it up: No government can keep High Budget spending on Low Budget income forever. Some ingrained political habits need to be broken.

But you are a Zillionaire-in-training, so don't wait for the government to catch up. You aren't interested in living your senior years on Social Security Low Budget anyway. You need to take your own actions to make sure you are living life to the fullest and saving pots of money for later, tooÑbut much later. Consider me your habit-breaker, the counter-intuitive financial advisor who says retirement is not the goal. Saving money is not the end-all and be-all of your life. It's just a line item on your budget. It deserves attention and contributions, but not everything. As the Citibank advertisement said, "If you gave up your morning coffee for a year, you could make an extra mortgage payment. But man, you'd be grumpy."

Chellie Campbell is the author of Zero to Zillionaire and The Wealthy Spirit. She created and teaches the Financial Stress Reduction® Workshops on which her book is based in the Los Angeles area and gives programs throughout the country. You can sign up for Chellie's Ezine at www.chellie.com.

 

Winging It.

by Margaret Heffernan.

An excerpt from the new book from How She Does It: How Women Entrepreneurs are Changing the Rules of Business Success.  

How She Does It: How Women Entrepreneurs are Changing the Rules of Business Success (Viking; On-sale date: January 22, 2007; ISBN: 978-0-670-03823-7; $25.95; 288 pages). Part biography and part blueprint for starting and running a successful business, HOW SHE DOES IT redefines power and the nature of success for the 21st century.

Reprinted by arrangement with Viking, a member of Penguin Group (USA) Inc. Copyright © 2007 by Margaret Heffernan. 

When I finally get through on the phone, much to my amazement, June Coldren is laughing. "Oh my god, it's ridiculous. It's been insanity. It's pretty wild. We evacuated New Orleans and moved west to Lafayette -- and now it looks like the storm is heading back up to us! They're basically evacuating everyone from Galveston right along the coast to Louisiana. All my staff who were evacuated here left yesterday to help evacuate their families. Another tidal surge and everything will get wet all over again. I'm ready to move to Canada!"
 
June's family and her companies, Cenergy Corp. and Cenergy Logistics, were based in New Orleans when Hurricane Katrina hit on August 29, 2005. Everyone scattered, to friends, to family. But when it was all over, June had two companies to run, companies that catered to the oil and gas companies in the Gulf of Mexico, themselves in turmoil. Three weeks after the storm hit, the website proudly announced that Cenergy was up and running.

"I love just winging it. That's just how I am. The logistics group - some of them live in Lafayette so they came here and set up. So then we all got in touch and realized Lafayette was going to be best place to be. We identified an office, set up, signed a lease and moved in. Everyone who could get here did. The hard thing was to find places to live. There were no hotel rooms, no houses to rent. One of the guys I work with had an extra house so I feel like a queen because I have a house to live in! But a lot of people didn't luck out like that. You have to keep going."
 
Not every business gets hit by a hurricane. But every business will suffer shocks and setback - and successes - it had in no way foreseen.  You can plan, do your research, and plan again. But the one thing you have to be able to do is improvise. What makes women so good at this is that they have, as psychologist Simon Baron-Cohen wrote, "no expectation of lawfulness."  Women do not approach business expecting it to obey rules. We don't think of business as a machine which, if we could just understand the physics well enough, we could control. So many descriptions of business and management carry this assumption: that if you could just study companies deeply enough, crunch the numbers long enough, you can glean the scientific laws of business that govern business behavior. But business isn't a science; you can't design or conduct replicable experiments. No two companies are the same, no two days are the same. The variables are infinite. And so starting from the premise that there are rules is doomed to frustration. Where women start - with no expection of lawfulness - turns out to be a lot more realistic.  That doesn't mean women don't believe in plans or decisions. It just means that we aren't especially thrown when events render them meaningless.
 

Margaret Heffernan has been the CEO of five different businesses in the United States and the UK. A former producer for the BBC and author of The Naked Truth: A Working Woman's Manifesto on Business and What Really Matters, she is a regular contributor to both Real Business and Fast Company magazine as well as a Visiting Professor of Entrepreneurship at the Simmons College School of Management.

As the CEO of five different businesses in the United States and the UK, Margaret Heffernan knows a thing or two about the evolving role of women in business - and in How She Does It: How Women Entrepreneurs are Changing the Rules of Business Success (Viking; On-sale date: January 22, 2007; ISBN: 978-0-670-03823-7; $25.95; 288 pages), she profiles 27 of the most dynamic and visionary female entrepreneurs working in business today.

New Year, New Job Ñ What To Do With Your 401(k).

by Rande Spiegelman, vice president of financial planning, Schwab Center for Investment Research.

Leaving a job to take a new position (or look for one) can be pretty stressful. There's a lot to think about, including what to do with the 401(k) you had at your old job. Making a smart decision could save you some money, not to mention keep you on track for a comfortable retirement.

Four Choices for Your 401(k)
When you leave a job where you contributed to a 401(k), you have four basic choices:

1. Take the cash
2. Leave the money where it is
3. Roll it over into your new employer's
4. Roll it over into an individual retirement account (IRA)

The most tempting choice may be to take the money, especially if you're unemployed and could use the cash. "I'm still young," you think. "There's plenty of time to make up the money I'm skimming from my 401(k)." But unless you have absolutely no choice, don't do it.

If you take money out of your 401(k) before the age of 59-and-a-half (or before age 55 in the case of "separation from service") you have to pay a 10 percent federal penalty (state penalties may also apply). Even if penalties don't apply, you'll still be subject to federal, state and, in some cases, local income taxes. What's more, the government will help itself to 20 percent of your withdrawal as an advance on your tax bill.

For example, if you cash out of a 401(k) worth $56,000, you could end up paying a federal penalty of $5,600 plus, say, 28 percent in federal income tax

(20 percent of which is withheld from the distribution). Your $56,000 has turned into $34,720. And that doesn't even include any state and local taxes and penalties you may owe.

Taking Cash From Your 401(k)
Pros:
- Immediate use of your money

Cons:
- Money loses tax-deferred status
- 20 percent mandatory withholding
- May be subject to a federal 10 percent early withdrawal penalty, state penalties where applicable, and additional federal, state and local taxes
- Lose flexibility to move into qualified plan or IRA after 60 days

What's more, the opportunity cost will likely be huge. That $56,000, left to grow at, say, a hypothetical 8 percent annual rate (1) of return would amount to roughly $563,500 some 30 years from now. That kind of money would come in handy during retirement. And that's the point, after all.

"But what if I only take out $5,000?" you say. You might still end up paying a $500 penalty plus $1,400 in federal tax (assuming a 28 percent bracket), leaving you with just $3,100 left over Ñ with possible state and local taxes still to pay. That $5,000 growing tax deferred at our hypothetical 8 percent for 30 years could become $50,300 in retirement money.

A car, travel, credit card debt, even a home or a college education usually aren't good enough reasons to dip into your 401(k), much less rent and groceries. Don't raid your retirement assets unless you have no other choice.

Here are some wiser choices; in each case, your money continues to grow tax deferred for retirement:
- Leave your money in your old 401(k) even though you don't work at company anymore (but make sure you're comfortable dealing with former employer)
- Roll over the money directly into your new employer's 401(k) when take a new job
- Roll it over directly into your own IRA

Most employers pre-select the mutual funds available in their 401(k) plans, which can be a plus or a drawback. The ability to choose from 15 or 20 funds, for example, provides a nice range of choices without the hassle of screening hundreds of funds yourself. But if your 401(k) offers only three or four fund selections, you may want to think about an IRA rollover (more below).

Keep in mind that a 401(k) is a "one size fits all" retirement plan. Your company has to manage the plan with all of its employees in mind, not just you. Expect less flexibility than you would generally get with your own IRA. On the plus side, your employer will likely pay any administrative fees Ñ not necessarily so with an IRA.

Stay in Your Old 401(k)
Pros:
- Avoid current income taxes, penalties and 20 percent withholding
- Money continues to grow tax deferred
- Retain ability to roll over at a later date

Cons:
- Investment choices limited to employer's plan
- Plan may limit withdrawals and exchange between investments

Roll Over to New Employer's 401(k)
Pros:
- Avoid current income taxes, penalties and 20 percent withholding
- Money continues to grow tax deferred
- Easier to track retirement assets
- May be able to borrow against your 401(k)

Cons:
- Investment choices limited to employer's plan
- Plan may limit withdrawals and exchange between investments

The other possibility is to roll over your 401(k) money into an IRA. Like a 401(k), an IRA keeps your retirement money growing tax deferred, but with two major advantages: flexibility and control.

- Flexibility. An IRA generally allows you to invest your money however you like Ñ mutual funds, stocks, bonds and so on. You'll likely have advice from the financial institution that holds the IRA, and you can reallocate your investments whenever and however you please (minus any trading fees, of course).
- Control. With an IRA, you can invest and access your money without having to go through a 401(k) provider.

However, there are some caveats:
- A qualified employer plan, such as a 401(k), may have more legal protection from creditors than an IRA. Although the level of IRA protection differs under various state laws, a 2005 U.S. Supreme Court ruling (Rousey v. Jacoway, 03-1407) shields traditional IRA assets in bankruptcy when the funds are found reasonably necessary for the account holder's or his/her dependents' support. Furthermore, federal bankruptcy reform signed into law in 2005 protects from creditors Ñ for any reason up to $1 million held in traditional and Roth IRAs.
- You can usually borrow from your current 401(k) plan, but not from your IRA (not that borrowing from your future retirement is a good idea, except in cases of extreme need).
- If you have company stock in your 401(k) you should think twice before rolling it over into an IRA. Company stock held in a 401(k) could receive favorable tax treatment if it's gone up in value and you have distributed directly. Such favorable treatment doesn't apply if company stock is rolled over into an IRA, though there can be benefits to this choice as well.

Rolling Over to Your Own IRA
Pros:
- Avoid current income taxes, penalties and 20 percent withholding
- Money continues to grow tax deferred
- Choose your own investments
- Maximum flexibility Ñ Roll IRA assets back into a 401(k) or convert Roth IRA at a later date
- Easy access to your investments

Cons:
- Can't borrow against assets
- No special distribution alternatives such as net unrealized appreciation (NUA) treatment for distributions of company stock, or forward averaging
- May have to pay annual fee
- Beyond state law, traditional IRA assets are generally protected from creditors to the extent the funds are found reasonably necessary for support (U.S. Supreme Court).
- Traditional and Roth IRA assets are protected for any reason only up to $1 million under federal bankruptcy law

There you have it: four basic choices for what to do with your 401(k). You may want to do some more research to figure out the best choice in your particular case, or even get advice from a financial or tax advisor. Lastly, don't forget about the power of tax-deferred compounding: Be sure to contribute to the 401(k) plan at your new job and, if you can, continue making contributions to your IRA.

For more articles related to retirement strategies, please click the following link:
http://www.schwab.com/public/schwab/research_strategies/market_insight/retirement_strategies/index.html

(1) The 8 percent return is for illustrative purposes only, and is not necessarily indicative of anything available now or in the future.

Blue Chip Returns: #1 for 20 Years.

by Kelley Wright, Managing Editor, Investment Quality Trends stock newsletter.

Kelley Wright, Managing Editor, Investment Quality Trends Newsletter

Editor's Note: Kelley Wright is currently outperforming all of his peers, by bringing in the top risk-adjusted returns on Wall Street with his stock newsletter, IQTrends.com, for the past 20 years, at 12.9% according to Hulbert's Financial Digest.

I had the pleasure last week to participate in the annual Business and Financial Roundtable that is sponsored by The Daily Transcript, San Diego's only daily business newspaper. The moderator was Executive Editor George Chamberlin, a long-time San Diego advocate for investor education.

The Roundtable is a free-flowing discussion on a wide-range of topics which include: the macro-economy; publicly-traded San Diego based companies; the broader markets, interest rates, oil, gold and real estate.

The expertise of the seven participants ranged from investment advisors, hedge fund managers, private equity syndications, real estate speculators, investment bankers and of course, yours truly.

As you might expect, the range of opinions were quite varied. As you might also expect, nobody strayed too far from their world view or the belief that their sector or area of focus was in good shape and they were looking for a good year. Even the real estate proponents were upbeat and opined that the worst was over.

At the end of the ninety minute session I came away with renewed affirmation that while these discussions are interesting, they can become distractions from the primary purpose of investing; growing a capital and income base to meet the long-term cash needs of the investor.

It is our opinion that one invests to generate cash now or cash later. In either event all investment portfolios are eventually relied upon to produce the cash needed to meet ones needs. A need is anything one feels is necessary or desirable to make them feel safe and secure. Examples might include a secure retirement income, education funding, elder care or other special needs, or merely to maintain a specific lifestyle.

When needs are unmet the investor feels anxiety and often takes on unnecessary risk to correct the situation. Too often these risks are beyond the investors' emotional threshold of pain and they end up selling at major market turning points.

It is our opinion that investors can avoid these situations by deploying their investment capital into shares of high-quality stocks that are trading at historic levels of good value as measured by their dividend yields. While our approach is long-term in nature, we remind subscribers that building capital and income is a process, not an event.

We would point to stocks such as Mc Donald's, which we own at $16 and $20 and enjoy an average yield on purchase of approximately 5% and have realized over 300% capital appreciation in slightly less than four years. We could list many additional examples but MCD is sufficient to make the point.

In today's 24/7 world of instantaneous dissemination of political and economic news, market participants process and react to this news by placing trades that reflect their analysis of how this news impacts their investment portfolios. This is the source of market fluctuations and it applies over all the markets: stocks; bonds; commodities; interest rates; etc. This is a necessary function of investing and acts as a form of self-regulation.

Our job as enlightened investors is to avoid the distractions of the marketplace and to focus on those decisions that we can control. This is to say that the macro-economy, interest rates, stock market fluctuations and the prices of commodities will behave and perform as they will. Individually we have no control of these matters. What we can control is where and when we invest our capital. To that end, as long as we limit our investment considerations to shares of Select Blue Chips that represent historic good value, over time, our cash needs will be met and all will be well.

The Investment Quality Trends newsletter does extensive analysis to determine when a stock is overvalued and ripe to sell, as well as undervalued and primed to buy. Check out IQTrends.Com, where you can go for a free tour of their newsletter and check out their criteria for evaluating stocks. I've been featuring Kelley Wright in my ezine for the past few years, and for Blue Chips, you really cannot get any better than the criteria/formula/screening of IQTrends.com. Blue Chips generate, for the most part, easy, stable money returns, and the IQTrends.com stock newsletter is well worth the small investment that you pay to receive Kelley's newsletter and research twice a month.

Buy High; Sell Higher? Why 2007 is Poised to be a Banner Year.

by Natalie Pace. Includes our Hot News on Cool Stocks List.

FYI: NataliePace.com is still at the top of over 830 A-list pundits on TipsTraders.com in annualized gains! All of the companies featured in NataliePace.com are pulling down 42% gains on average every year (that's almost 50 cents on the dollar). The list below features 32 companies earning great gains, versus just five that are headed in the opposite direction.

There are two trends that I await feverishly. I look forward to the Santa Rally every year, and the pre-election year rally once every four years. The Santa Rally - or the last quarter of each year -- typically sees 50% of the year's stock market gains. The historical performance of the pre-election year is reliably more rewarding than the other three years in the Presidential cycle. A strong economy is a better platform for any candidate to run on, and typically the years between elections are spent fixing whatever imbalances have occurred as a result of ramping up for the main event.

Pre-Election Year Performance Since 1991

Source: MoneyCentral.msn.com

The average yearly gain for the stock market (the Wilshire 5000) over the past 15 years is just 10.7%, so you can clearly see what a thrill pre-election years can be!

It's not just history supporting this trend, however. This year, there continues to be impressive earnings growth, concentrated in emerging markets, like Internet Technology, renewable energy and gambling. Google, eBay, Suntech Power Holdings, Las Vegas Sands and Apple each have doubled revenue over the last two years.

There is also no debt and a lot of cash in many of those same sectors (excluding Las Vegas Sands, which has a lot of debt). Microsoft has $28.8 billion in cash and short-term investments, Apple sits on $11.8 billion and Google's war chest boasts $10.4 billion in cash.

Real estate is rolling over, and investors are migrating from Main Street (real estate investments) to Wall Street (stocks and mutual funds). Gridlock in Congress means that nothing changes fast, without bi-partisan cooperation. In an environment where the status quo seems to be working for the economy, stalled-out government reform can be beneficial.

So, whereas three out of four years, January is the top-performing month, and it's a good time to consider selling out and taking some of your profits, this January may be the beginning of a great pre-election year rally, just as we saw in 2003, 1999, 1995 and 1991!

Note that what we are reporting this in direct opposition to Jim Cramer's counsel on Mad Money. On January 17, 2007, Jim Cramer told his viewers to "Bail on technology during the January to August doldrums, but not on Cisco, Apple, Microsoft, Hewlett Packard and Google." (Those five select technology stocks are "too powerful to be cowed by seasonality," according to Jim.) Note again, that in every pre-election year since 1991, there has been NO sustained or significant downtrend from January through August, just a rocket ship to gains from January to December, with NASDAQ (which is heavy on technology) rewarding investors with twice the gains of the Dow Jones Industrial Average and the S&P 500.

Source: MoneyCentral.msn.com

With so many investors hanging on Cramer's comments, we decided to log in his lightning round picks on that day as well. We'll return to this again in June, to see how the year is playing out, and how Cramer's picks are performing. Incidentally, Cramer's #1 value stock of the year is Altria, more commonly known as Phillip Morris, the cigarette company. He's calling it a buy at $88.57.

Think we're picking on Cramer? Nah, we're just keeping tabs on performance, which is something that you should do before you bank on any pundit. If you're interested in tried and true stock picking, it's best to consult the independent trackers, like Hulbert's Financial Digest and TipsTraders.com. These two organizations hold journalists and money managers' feet to the fire, tracking each and every pick they mention. TipsTraders.com has me at the top of over 830 A-list pundits with 41% annualized gains, going into my 8^th year. Hulbert's (which doesn't track my picks yet) places our favorite Blue Chip stock picker, Kelley Wright of Investment Quality Trends, at #1 in 20-year risk-adjusted returns, with 12.9% every year, compared to the stock market performance of 11.6% over the same period. Below are the top performers for the past 5 years, according to Hulbert's:

Top Performing Stock Newsletters for the last 5 Years
Outstanding Investments 34.3%
Closed-end Country Fund Report 30.6%
The Dines Letter 29.2%
The Ruff Times 26.3%
International Harry Schultz Letter 25.3%

Source: Hulbert's Financial Digest

We're still concerned about terrorism and pension fund obligations. War may be good for Halliburton, but most industries, economies, nations and people suffer greatly under the influence of violence, destruction, contention, warmongering and death. An attack on the U.S., as we experienced in 2001, takes the economy down overnight, so make sure that you are not over-concentrated in any one asset class - not real estate, stocks, bonds or Beanie Babies. And remember that past performance is no guarantee that the future repeats itself. Be balanced, and always be prepared for surprises. Investing should not be gambling. (So, be sure to read the article that talks more about that in this month's ezine.)

With regard to pension plans, since there are only 3 workers supporting every retiree these days, corporations that promised money and health care to their workers are finding it hard to be competitive with companies that rely on their employees to direct their own retirement plans (401ks) and health care. Benefits-based pension plans are largely extinct in corporate America, except for those industries with a heavy union presence, like defense, airlines, auto manufacturing and telecommunications. The airlines, telecommunications and auto sectors have seen many bankruptcies, including Delta, US Airways, United Airlines, WorldCom, Global Crossing and Delphi. You don't want to be on the wrong side of this trend.

General Motors and Ford have kept afloat, but at a heavy price. Ford reported on January 25, 2007, that they lost $12.7 billion last year. According to the Associated Press, that loss amounted to "an average of $1,925 for every car and truck it sold and the worst loss in the company's 103-year-history." General Motors reported in November 2006 that they owe over $50 billion to pensions and other post employment benefits. The market value of GM is only $18.74 billion, and GM's operating income in 2005 was a loss of $16.9 billion. On January 26, 2007, GM reported that it will delay filing its 4Q earnings, while it looks into an accounting error from 2002.

Yours in peace and prosperity,

Natalie

EDUCATIONAL OPPORTUNITES AND INFORMATION:

1. Interest Rates: In a Pause Pattern. The Federal Open Market Committee paused in August, September, October and December, after raising interest rates 17 consecutive times prior. The federal funds rate remains at 5-Å%. The next meeting is scheduled over the course of two days at the end of this month, on January 30-31. Few are expecting any action this time, and many believe the next move will be down.
   
   
2. Interested in reading the minutes of the December FOMC meeting for yourself? You can. They are available online. Click on FOMC, or go to FederalReserve.gov, to read! "Economic growth has slowed over the course of the year, partly reflecting a substantial cooling of the housing market," according to the Feds. While readings on core inflation have been "high," the Committee determined that "inflation pressures seem likely to moderate over time." There was only one governor who voted for a rate hike of 25 basis points. The other 10 were in favor of the pause.

   The tentative meeting schedule for the 2007 calendar is: January 30-31, 2007, March 20-21 (Tuesday-Wednesday), May 9 (Wednesday), June 27-28 (Wednesday-Thursday), August 7 (Tuesday), September 18 (Tuesday), October 30-31 (Tuesday-Wednesday), December 11 (Tuesday), January 29-30, 2008 (Tuesday-Wednesday). The fact that the Federal Open Market Committee has decided to increase the number of 2-day sessions from two to four is an indicator that there is double the concern over managing the economy in the coming months.

3. Online Chats: Check out the Calendar section of NataliePace.com regularly. There are many wonderful opportunities to chat one-on-one with millionaire money managers, economists, respected money gurus and CEOs! Don't miss out. Enter the chat room now to make sure that you know how to do it and that you don't have any firewall issues preventing you from accessing the room. (You'll need your passwords.)

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 goals, and 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. NataliePace.com is NOT a brokerage and doesn't operate or act like one. We are an online media service with a mission of providing the news and information you need to make better choices in business, investing and personal prosperity. Always consult a trusted financial professional before buying or selling any security.

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

Hot News on Cool Stocks List

Highlighted Companies (Hot List):
Apple (AAPL)
eBay (EBAY)
GAP (GPS)
Intuit (INTU)
OSI Pharmaceuticals (OSIP)
Siruis Satellite Radio (SIRI)
U.S. Gold (UXG), just added to the AMEX & TSX.

Note: Gap was deleted in the January 2007 issue because the holiday sales were 8% lower in 2006 from the year prior, and it was clear there was to be a reshuffling of executives. We've put the Gap back on our Hot list, now that CEO Paul Pressler has his walking papers. Read on for more news on Gap, and why the company may be poised for "cool" again.

RECENT DELETIONS:
Agilent: Removed on 2.1.07 with flat performance.

Las Vegas Sands: Removed on 1.1.07. 139% gains are good enough for us. $223 million in insider selling, just at the time that the company is under pressure to finalize the terms of their building of "Asia's Las Vegas" in Macao smells fishier than the Hong Kong harbor to us.

RELM Wireless (RELM): This small company has an impressive CEO who has done great things. The sales are increasing. Normally this would keep a company like RELM on our list. My concern is simply that while the marketplace should be huge, the Federal budget line items may not be ramping up for this type of spending. Additionally, with all of the focus on cutting back on defense, this communications company may suffer, even though great communications are key to firemen, police officers, etc. as well.

Hot Stocks List
Investors who "never pay retail," note that highlighted stocks are trading at their 52-week lows or near the price featured in NataliePace.com's article. This may be a good buying opportunity. The companies that are listed below which are not highlighted may not be in a good buying range, but they appear to be poised to continue performing well (if you have already purchased them or if you are willing to come in at a higher price). There are never any guarantees in life, and all stocks are risk-based investments. Consult your certified financial planner before making any changes to your investment strategy.

Sony (NYSE: SNE) and Sunoco (NYSE: SUN) both had great runs for the list! LifeCell (NASDAQ: LIFC) posted over 180% gains before being moved to the Cooling Off list. Bioteq Environmental (TSE: BQE) had 144% gains. Rio Tinto was removed on 11.15.2006 with 145% gains. Las Vegas Sands was removed on January 5, 2007 with 139% gains. Agilent was removed on 2.1.07 with flat performance. RELM Wireless was taken off with 3% gains on 2.1.07.

Recently removed from the Hot Stocks List:

Stocks to Watch
Great Companies. The companies that are listed are worthy of watching and might be worth buying in on opportunity (i.e. at a better price), if you believe the news on future potential. There are never any guarantees in life, and all stocks are risk-based investments. Consult your certified financial planner before making any changes to your investment strategy.

Cooling Off Stocks List:

Highlighted Companies (Cooling Off List):
Toll Brothers

Cooling Off Stocks (that may be Poised for a Decline in Share Price). Note: We may look to add some of these companies to our Hot News list again, if the price point should become attractive and if the outlook for the company improves. The companies listed in bold have recently been added to this cooling off list and/or may be currently poised for a continued decline in value. Investors who have them in their portfolio should read the recent news and consider whether it is time to sell and take profits, dump losses, short the position and/or simply weather the storms, while keeping the company in their long-term portfolio. At any rate, always consult your certified financial partner before making adjustments to your portfolio. (Again, note, that the stocks on this chart are expected to go DOWN in price.)

The following companies were taken off of the Cooling Off list effective 10.16.06. Verisign (+15%). IMClone (-11%). Yahoo (-28%). (The cooling off list anticipates that a company will lose share price value.)

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 security, and consider your long-term goals and strategies. IMPORTANT DISCLAIMER: Information has been obtained from sources believed to be reliable however NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication 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.

NataliePace.com Calendar:

Conferences (featuring billionaires, royalty and statesmen), award shows (Babel or The Departed?) and online chats. Stay plugged in! Visit our calendar section often.

See below for just a few of the amazing educational and networking opportunities that world-class organizations are offering for you.

Wednesday, January 31st, 2007
4:30PM ET (Google announces Earnings!)
Google will hold its quarterly conference call to discuss fourth quarter 2006 financial results on Wednesday, January 31, 2007 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). Click to access the web cast.

Thursday, February 1st, 2007
Millionaire Mind Intensive: Los Angeles, CA
Peak Potentials Training is one of the fastest growing business & personal success training companies in N. America.Their mission is to educate and inspire people to live in their Higher Self based in Courage, Purpose and Joy, vs Fear, Need and Obligation.

Saturday, February 3rd, 2007
The Dept. of Peace Conference, Washington, D.C.
Join Marianne Williamson, Deepak Chopra, Congressman Dennis Kucinich, Reverend Michael Bernard Beckwith and more as they rally the peace corps to establish a new department of peace in DC!

Monday, April 23rd, 2007
Global Economic Conference, Beverly Hills, CA
The Milken Institute brings together VIPs, Nobel Laureates and executives for an intensive 3-day learning and networking experience. Policy issues and solutions in business, government, philanthropy, journalism and academics are debated.

NOTICE: NataliePace.com is NOT a stock brokerage service, and does not operate or act as one.