Banking on Iraqi Dinars

...and Other Crazy Currency Trading Ideas.

by Natalie Pace.

I get some of my best ideas for upcoming trends from sitting around shooting the breeze with friends and family. I also get some of the worst. Recently, I was at my favorite Mexican breakfast dive, enjoying guacamole, juevos con chorizo and some nostril-clearing salsa diablo, when the guy next to me leaned in and claimed that the next big thing was going to be investing in Iraqi dinars.

"Picture it," he said. "The currency in Iraq can’t get any lower, and once they stop fighting, there are all those oil reserves."

As entertaining as this moment was, many important details are missing from this bar stool investment analysis (which unfortunately the guy was taking seriously). The Iraqis have been at war most of my adult life with very little let up. If you began waiting for war to end in Iraq in the 80s, you’d be closer to death by now then peace. Investments can always go lower. Iraq is a country with no property protection, 31% inflation and 35% unemployment – mostly of young men, another recipe for continued disaster. And the profit distribution of the oil reserves is one of the major holdups to peace, according to Justice Sandra Day O’Connor, one of the members of the Iraq Study Group. In my September 2007 interview with Justice O’Connor (vol. 4, issue 9), she said, "Laws to regulate the oil resources and permit fair distribution of oil revenues to all the citizens would be helpful."

So investing in dinars is the kind of sub-genius investment strategy that gets floated over two many cervezas and shots of tequila, and should be forgotten by morning. Still, the idea of investing in foreign currency, at a time when the U.S. looks poised for a recession, did stir up my own creative juices. Iraq was a hangover, but what about the burgeoning economies in Eastern Europe – such as Estonia? When an idea looks promising under the sobering light of day, that’s a good sign.

One of the biggest obstacles of investing in undervalued foreign currencies is liquidity. Brokerages don’t even trade the Iraqi dinar on the currency markets, so if you’re looking to buy obscure bills in upcoming economies, you’ll be buying suitcases of the bills off of shady characters in dark alleys. Who will buy them off of you? When? Where? And what’s going to prevent them from simply grabbing the loot and cracking you on the head with a stick?

Even undervalued currencies that have a great shot at increasing in value – like the Estonian kroon -- are typically illiquid. And popular currencies, like the euro, yen, pound and U.S. dollar, that are actively traded on the futures markets (by professionals) are also actively manipulated and argued over by the government leaders and policymakers worldwide, making movements to and fro highly dependent upon the political tides – something that is very difficult to read the crystal ball on.

When I called to get the opinion of a senior bank executive on currency trading, he screamed, "Individuals should NOT be trading currencies. Period! They can get international diversification in their portfolios by buying stock in banks in the regions they are interested in, which affords higher upside with far less risk." Walter Updegrave, a CNN/Money contributing columnist, agrees, saying, "Given the difficulty of predicting currency movements, I'm not even a big proponent of investing in established currencies like the euro or the yen."

So, let’s take a look at that idea – investing in the banks of foreign countries – starting by identifying the countries that appear to be best poised for an increase in currency valuation. In the following chart, I’ve listed ten countries, ranging from those with the highest GDP growth, to those with interesting potential economic growth going forward, and, for fun, Iraq. I’ve highlighted the countries with the most potential in my analysis. Note that the higher the freedom ranking, the more pro-business and economic growth policies that the country is evaluated to have (according to the Heritage Foundation). The lower the ranking, the more risk attached to the investment.

10 COUNTRIES RANKED BY GDP GROWTH

Source: 2008 Index of Economic Freedom

Additional Commentary on the countries…

So, I’ve come up with a basket of countries that I believe are the most interesting: Estonia, China, India and the Slovak Republic for growth, and Switzerland and Canada for stability and potential capital in-flows. I’ve chosen Canada, based upon that country playing a major role in clean water and other resources going forward, and Switzerland being the money safe haven in troubled times. However, a quick look at the stock performance of Credit Suisse (a Swiss bank) reveals just how closely tied the Swiss Bank performance is tied to the performance of the U.S. markets. (The Credit Suisse movement is the black line.)

Source: MoneyCentral.msn.com

The performance of the Swiss bank is exactly the opposite of what I expected to see, and doesn’t make a good case for diversifying there in the event of an U.S. recession.

Alternatively, the Canadian banks held up during the 2000-2002 recession, and have been far outperforming the U.S. banks and the marketplace over the past five years.

Source: MoneyCentral.msn.com

The top Canadian banks, listed in order of size from largest to smallest, are Royal Bank of Canada (RY), Toronto Dominion (TD), Bank of Montreal (BMO) and Canadian Imperial Bank (CM). CIBC (Canadian Imperial Bank) has the lowest price to earnings ratio by far, at 7.40, and the highest growth in 2007, at 15%, while Royal Bank of Canada, is the second best value with the 2^nd highest earnings, at 11.10 P/E and 14.5% earnings growth in 2007. So, I’ve added Canadian Imperial Bank to the Stocks to Watch list this month. (I’m not in a hurry to buy anything, even an undervalued bank stock in a country that I believe has tremendous growth potential, before the markets stabilize a bit.)

Finding individual stocks, even bank stocks, in each of the emerging markets is a real challenge to research and keep tabs on – each for a different reason. Chinese Banks were state-owned COMPLETELY up until last year, so the Mainland Chinese banks are even higher risk than the average Chinese company, especially since American policymakers believe that China is manipulating their currency to stave off inflation. India is notoriously difficult to get money in and out of, which has kept Indian stocks off of my hot list. Most Estonian companies are not publicly traded yet, although the Internet-based banking firms there might carve out a niche for themselves. (I’m researching further and will keep you posted in the months to come.)

So, oddly enough, my wild ride that started with a silly comment over breakfast took me around the world and back to a company that is already listed on my Hot News list – WisdomTree. WisdomTree is the world’s smartest new Exchange Traded Funds company. Their ETFs make it easy to get exposure to great international markets without all the fuss and worry. The funds were created by some of the most successful money managers in the U.S. and the strategies are based upon successful buy low; sell high formulas. AND the majority of the funds are concentrated internationally, giving you over two dozen options to choose from abroad.

Below are three existing Exchange Traded Funds in the international financial and emerging markets sectors that you should be able to buy through your broker (if your team determines that this is a match with your long term goals).

WisdomTree Emerging Markets High-Yielding Equity Index (DEM)
WisdomTree Emerging Markets SmallCap Dividend Fund (DGS)
WisdomTree International Financial Sector Fund (DRF)

Additionally, on January 4, 2008, WisdomTree filed papers with the SEC to begin offering the following currency ETFs. While these ETFs are not available publicly yet, they should be soon.

Proposed WisdomTree International Cash Funds
WisdomTree Australian Dollar Fund
WisdomTree Brazilian Real Fund
WisdomTree British Pound Sterling Fund
WisdomTree Canadian Dollar Fund
WisdomTree Chinese Yuan Fund
WisdomTree Euro Fund
WisdomTree Indian Rupee Fund
WisdomTree Japanese Yen Fund
WisdomTree New Zealand Dollar Fund
WisdomTree South African Rand Fund
WisdomTree South Korean Won Fund
WisdomTree Developing Markets Fund

Of these, the Canadian Dollar Fund, Chinese Yuan, Indian Rupee Fund and Developing Markets fund sound the most interesting, based upon our analysis of the growth trends and freedom index. Look for these ETFs to become available this year.

For more information on WisdomTree, refer to the article, "International Money Grows on WisdomTrees," in this ezine.

The Wisdom Tree ETFs with the symbols DEM, DGS and DRF have been added to the Stocks to Watch list this month, as has Canadian Imperial Bank (CM).

Full disclosure: Natalie Pace owns shares in WisdomTree (OTCBB: WSDT). This company was first listed in the NataliePace.com ezine in March of 2007, vol. 4, issue 3.

Please note: NataliePace.com does not act or operate like a broker. We are a publishing, 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, consider your long-term goals and strategies and consult an experienced, reputable certified financial professional before buying or selling any security.

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.

International Money Grows on WisdomTrees.

by Natalie Pace.

Last month, I focused all of my articles on defensive strategies, largely because taking profits, redistributing assets according to a carefully structured long-term plan, getting international exposure and leaning into liquidity (cash, money markets and certificates of deposits) are far more important than picking winners, when there is so much downward pressure on the general marketplace. (And I hope you read those articles and have already met with your certified financial planner to make sure that you are not over-exposed in the U.S. stock market this year.)

In short, it takes quite a rocket ship to shoot past the fear and unloading that is taking place in the American stock market, but I’ve rediscovered a company that I believe has the firepower to do just that. WisdomTree has been beaten up for the past few months on Wall Street for two reasons. It is in the financial services industry, and banks, hedge funds and even some money market providers have been hit with losses from the subprime mortgage securities. WisdomTree had to postpone relisting on NASDAQ due to the problems in the industry.

The lack of consumer confidence in American stocks might worry some about the viability of a company whose main business is Exchange Traded Funds, however, WisdomTree focuses 27 of its 39 ETFs on the international marketplace. So, anyone seeking to invest outside of the U.S. need only look to WisdomTree for that opportunity, with less risk and more potential upside than they’ll enjoy trying to trade in international securities, currency or futures on their own.

While WisdomTree’s stock price, and the share price of most of their ETFs, has fallen over the last year, the returns of WisdomTree ETFs in the international sector have been outstanding. Most WisdomTree International ETFs outperformed the related index in 2007, with an average annualized return of 17% since inception, compared to average annualized returns of 13% of the competition. That’s quite a win to perform four points above the marketplace, and one that could start attracting headlines.

Additionally, increased investor interest in foreign currencies could be just what WisdomTree needs to attract attention, since they will be offering risk-reduced, actively managed foreign currency ETF products in 2008. WisdomTree filed a prospectus with the Securities and Exchange Commission on January 4, 2008, outlining the terms and trading protocol of the following international cash funds:

WisdomTree International Cash Funds
WisdomTree Australian Dollar Fund
WisdomTree Brazilian Real Fund
WisdomTree British Pound Sterling Fund
WisdomTree Canadian Dollar Fund
WisdomTree Chinese Yuan Fund
WisdomTree Euro Fund
WisdomTree Indian Rupee Fund
WisdomTree Japanese Yen Fund
WisdomTree New Zealand Dollar Fund
WisdomTree South African Rand Fund
WisdomTree South Korean Won Fund
WisdomTree Developing Markets Fund

Rydex CurrencyShares currently offers currency ETFs, but investor options are limited to the Australian dollar, British pound, Canadian dollar, euro, Japanese yen, Mexican peso, Swedish krona and Swiss franc. Good luck trying to crack the code and trends of these well-developed economies that have low GDP growth and highly managed economies.

WisdomTree proposes to have ETFs focused on the Brazilian Real, Chinese Yuan, Indian Rupee and other developing markets, in addition to the more popular currencies. And with an average holding of 60 to 90 days or less, the WisdomTree ETFs will be actively managed, another advantage over the Rydex funds. According to the SEC filing, the WisdomTree cash fund ETFs will invest in "short-term securities issued by foreign governments, agencies or instrumentalities of foreign governments, bank debt obligations and term deposits, bankers' acceptances, commercial paper, short-term corporate debt obligations, mortgage-backed and asset-backed securities, and repurchase agreements."

WisdomTree International ETFs allow investors to buy active management of international fund opportunities with lower risk in a highly liquid environment. WisdomTree CEO, Jonathan Steinberg (Mr. Maria Bartiromo) commented in a press release dated November 12, 2007, "The last three years have been exciting for WisdomTree, and we expect continued growth as the ETF industry matures. Today, nearly $12 trillion are invested in traditional mutual funds and approximately $2 trillion in hedge funds. In view of the size of the market, the $500 million domestic ETF market has tremendous potential, and we believe WisdomTree will contribute significantly to the future growth of the industry. In 2008 we look forward to becoming the first fully reporting, publicly traded ETF sponsor." Barclay’s Bank has iShares. Goldman Sachs offers ETFs, as does PowerShares. However, WisdomTree is the only way (yet) to invest in a company whose sole business is ETFs.

How much of the $500 million domestic ETF marketplace does WisdomTree currently have? As of the third quarter earnings report issued on November 8, 2007, revenues for the first nine months of 2007 equaled $12,385,111 compared to $548,000 in 2006. Posting growth of 23 times earnings in one year is simply astronomical, especially for the company that continues to fly under the radar of Wall Street. The net loss for the same period was $19 million, compared to $12 million lost in the prior year. Cash and cash equivalents equal almost $6 million, down from almost $58 million in January of 2007 (mostly due to investment activity).

With international ETFs in the pipeline, an outstanding track record in fund performance and an emerging marketplace of ETFs, one of the few remaining questions is who is running the show and will they continue to be around next year? This company is headed up by some of the most respected financial minds in the United States – Chairman Michael Steinhardt is a former hedge fund manager with legendary performance records, Senior Investment Strategy Advisor Professor Jeremy J. Siegel is considered to be "the Wizard of Wharton" and President and COO Bruce Lavine is formerly of Barclay’s Global Investors, the ETF division of Barclay’s Bank. WisdomTree’s CEO is Jonathan Steinberg, whose financial services pedigree began at the knee of his father, Saul Steinberg, one of the most successful businessmen to ever live, and the man responsible for taking the Wharton School to its number one ranking. Jono won the Wall Street Journal's stockpicking contest six times prior to writing his book, Midas Investing and founding WisdomTree. Arthur Levitt, former SEC Chairman, is a senior advisor to Wisdom Tree.

WisdomTree continues to be the place where smart money should migrate, once Wall Street sees the performance of their funds. If you haven’t already asked your certified financial planner about diversifying your mutual funds into WisdomTree ETFs, now’s the time to visit the WisdomTree.com website to learn more. Bear in mind that ETFs typically pay lower commissions to brokers than mutual funds, so factor that in when your broker gives you their two cents on building ETFs into your current investment strategy.

If WisdomTree were in the clean energy sector, instead of the financial services industry, I would have named this stock 2008 Company of the Year. As it is, WisdomTree is one of the few stocks I feel confident featuring this early in what looks to be a very volatile, down-trending year.

WisdomTree (OTCBB: pink sheets: WSDT) was added (again) to my Hot News on Cool Stocks list this month.

Full Disclosure: Natalie Pace owns shares in Wisdom Tree. (This company was first featured in the NataliePace.com ezine vol. 4, issue 3, March 2007.)

Please note: NataliePace.com does not act or operate like a broker. We are a publishing, 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, consider your long-term goals and strategies and consult an experienced, reputable certified financial professional before buying or selling any security.

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.

Valentine’s Cheat Sheet:

The Greatest Love Quotes of All Time!

Photo: 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 Bergmen
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.

Elephants in the Room.

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

Paul Woods, President & CEO, Odyssey Advisors LLC.

For investors, 2007 was a lot of things, but boring wasn’t one of them. Conventional wisdom was a casualty as expensive stocks got more expensive, cheap stocks got cheaper, big got bigger, and small got smaller. To make it even more interesting, investors had to white knuckle their way through two 10% corrections in stock prices as the stock market grappled to deal with the meltdown in sub prime lending and its resulting impact on real estate prices and consumer spending.

Unfortunately, the national elections in 2008 reduce the likelihood these problems will get better anytime soon. In an election year, both parties are likely to try to outbid each other to throw as much money as possible at any group that looks as though they could use some help. Among other things, this will probably translate into bailout programs for irresponsible lenders and borrowers that will keep the problems related to sub prime lending festering longer than necessary. Of course, all this government compassion will have to be paid for, and the likelihood of higher taxes after the election is one the elephants in the room that investors will have to grapple with in 2008.

On a positive note, the financial markets picked up a seismic shift in 2007. The best performing industry group was alternative energy, and it wasn’t even close. Rising energy prices have finally done what numerous government programs were unable to. Alternative energy is becoming competitive, and 2008 will mark a milestone guaranteed to give oil and auto company executives the night sweats. Tesla Motors will begin delivering the first electric vehicle that’s fun to drive and visitors to the Beijing Olympics in 2008 will be transported in buses powered by electrons that can be produced from wind and sunshine.

In 2007, company size and investment style determined whether stock market investors made money or lost it. Growth was good, value was bad, and capital flowed out of small companies and into big ones. For reference, here’s the stock market segment scorecard for 2007:

Source: Thomson One Financial, Thomson Baseline

Within these market segments, it was all about energy, clean and otherwise, as oil prices celebrated the first trading day in 2008 by hitting $100 per barrel. This increase in oil prices boosted energy stocks and made alternative energy more competitive. On the other side of the coin, financial stocks and REITs were thrown overboard by investors because of the meltdown in sub prime lending and real estate. For reference, here’s the stock market index and industry group scorecard for 2007:

Source: Thomson One Financial, Thomson Baseline

In the second half of 2007, the Federal Reserve still gave lip service to fighting inflation. However, the Fed was lowering interest rates as the inflation rate was rising, which made it pretty obvious that trying to cushion the problems in lending and real estate had become the Fed’s the top priority. Keep in mind that the inflation rate for consumers as of November 2007 was 4.31% and rising, while inflation at the producer level is significantly worse. As a result, at present, no Treasury bond has a yield high enough to protect the purchasing power of consumers.

Source: Bloomberg LP

In an election year, our hunch is that political considerations will trump everything else. As a result, we wouldn’t be surprised to see further interest rate reductions from the Fed. Even though interest rates are low, the yield curve is still inverted on the short end and there appears to be room for another interest rate cut or two. The flight to quality in 2007 in the fixed income market had the effect of widening yield spreads between Treasuries and everything else. At present, we find the most attractive combination of quality and yield in Government Agency bonds. As yields have come down, we also think it’s time to begin shortening maturities, and currently consider 3 year Agency bonds to be the most attractive.

Given the uninspiring selection of Presidential candidates in both parties, it may be more than a coincidence that 2008 is the Chinese Year of the Rat. However, as we enter it, we find a room crowded with elephants that are becoming more and more difficult to ignore.

The first elephant is increasing inflation. As usual, some government fingerprints can be found. In addition to rising energy prices, poorly thought out incentives to turn food into fuel have produced a glut of unwanted ethanol. While this has had no impact on energy prices, it has produced higher grain prices and this is contributing significantly to the spike in food prices and inflation. As much of this problem is related to an insatiable demand for commodities from an increasingly wealthy third world, inflation doesn’t appear to be a problem that will go away anytime soon.

The second elephant is the pressure on consumer spending, which drives the majority of economic growth. Declining real estate prices make consumers feel less wealthy and less inclined to spend, and election year bailouts for lenders and borrowers will keep the problem festering longer than necessary. In addition, an increasing share of consumer income is being consumed by higher energy and food prices. Leading economic indicators are pointing to a further slowing in economic growth in 2008 as a result.

The third elephant is potentially the biggest and has to do with the sunset provisions on tax cuts. Unless these are extended, most will expire in 2010. For investors, this will mean higher taxes on capital gains and dividends, which will provide an incentive to sell stocks before these rates go up. For consumer spending that’s already under pressure, having to send a larger portion of the paycheck to Uncle Sam could be the third strike that produces a recession. Our guess is that taxes are currently as low as they’re ever going to be, and the increases could easily happen before 2010.

With all these elephants stomping around, the question is how to avoid getting stepped on in 2008. Because of foreclosures and the inability to make loan payments, there’s too much real estate for sale and it’s hard to see prices going up. In 2008, we’d classify this as an area to avoid.

Even though it’s a challenge to find a quality bond with a yield that matches the inflation rate, the safety of bonds should have appeal for risk-averse investors. If the Federal Reserve follows its usual pattern of waiting until an election is over to fight inflation with higher interest rates, bond investors should find 2008 a safe, but unexciting place.

For stock investors, there are the usual cross currents. The aftermath of the election could be taxes on domestic oil companies rising faster than their profits, drug companies having to reduce prices, and consumer spending under more pressure from rising taxes. At the same time, there are more than a few opportunities. Alternative energy appears poised to become the next big thing, companies that provide what China needs to become the next economic superpower should continue to do well, and there is no shortage of foreign stocks if the U.S. becomes less attractive for investors. Stocks continue to look undervalued, but stock selection will probably be the key to success in the year of the rat.

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.

Copyright © 2008 by Odyssey Advisors LLC.

Recession Proof Your Portfolio.

by Natalie Pace.

The following picture tells the story. Halloween was our bewitching high for the Santa Rally and things deteriorated from there and aren’t predicted to delight us again for awhile. Even Fed Chairman Ben Bernanke’s bag of tricks – rate cuts upon rate cuts – haven’t produced any lasting treats.

Source: MoneyCentral.msn.com

While speaking at the Women in Housing and Finance and Exchequer Club Joint Luncheon, Washington, D.C. on January 10, 2008, Federal Open Market Committee Chairman Ben S. Bernanke said, "Incoming information has suggested that the baseline outlook for real activity in 2008 has worsened and the downside risks to growth have become more pronounced… The financial situation remains fragile." That’s the bad news. The worse news was that investors became hysterical the week after Bernanke’s announcement, proving that Bernanke’s "transparency" policy might benefit from a good Alan Greenspan double-speak bath. Of course, economists have long posited that Bernanke’s job could be much more challenging than Greenspan ever faced, with the Baby Boomers entering retirement, beginning in 2008.

The only real good news is that in the short term, and most likely at the January 29-30, 2008 Federal Open Market Committee meeting, the Feds should be lowering the Fed Fund rate again, something that typically delights investors, at least for a few days. Additionally, Google and Apple, and other companies that are rich in earnings, report their spectacular results at the end of January, which also might enliven investors who are running scared from the doomsday headlines.

What to do? Now is the perfect time to take a New Year: New You: New World approach to your annuity, IRA, 401 (k) and make sure that you have the fundamentals of a good plan in place and that you have taken additional measures to recession-proof your portfolio. When the stock markets are beating up your bank account, it’s time to take defensive action to prevent further losses FIRST before you even think about trying to pick the next big stock winner. When everything is heading south, it takes a real rocket ship to run upstream against the flood.

Below are 7 tips to help you make sure that you are not over-exposed to equities in the event of a recession. DON’T WAIT. ACT NOW.

1. Re-interview your financial planner. In recessions, there is an exceedingly high turnover in the field. Make sure that you have a keeper. For tips on questions you should be asking to determine that you’ve made a great selection for the second most important partner in your life, read the "How to Find a Broker" article in the Investor Edu section of NataliePace.com.
   
   
2. Rebalance your nest egg. Modern portfolio theory suggests that the best strategy for long term results in the stock market is to always keep a percentage equal to your age SAFE, i.e. not invested in stocks. Bonds (not bond funds), money markets, Certificates of Deposits, etc. are considered safer investments than stocks. Diversify the "at-risk" portion of your portfolio between small, mid and large caps, value and growth and international Exchange Traded Funds. Underweight large caps. Weight toward value, small cap, mid cap and international. Go light on financials and underweight (or eliminate) REITs (Real Estate Investment Trusts, the two worst performing industries in 2007, with negative returns of -21% on the year.
   
   
3. NASDAQ over Dow Jones Industrial Average. There is a new train coming where long distance is free over the Internet, shopping is done online, television broadcasts on the Internet, Apple is the world’s largest music store and clean energy is the top performing industry on Wall Street. Be a part of the world’s "greening" with paperless offices and sustainable energy solutions. Your wallet will thank you. Clean energy topped Wall Street in 2007 with returns of 58.35%, over energy (even with oil at all time highs). Energy stocks gained 32.38% in 2007.

Prices are a concern, so don’t be in a rush to buy into more NASDAQ stocks without seriously considering the current price to earnings ratio, the growth trend and whether you are buying the stock at a value. Liquidity – having more cash on the sidelines than normal -- allows you to wait for a better price for the stocks and ETFs you’re interested in – perhaps toward the end of 2008. See the next point!

4. Cash is king. Weight toward liquidity. During the 2000-2002 recession, cash was the top performing asset class in 2000 and 2001. (Bonds were in 2002.) Additionally, having cash on hand allows you to buy low – in real estate, stocks and bonds. The reason most people can’t buy low is that when the markets head south, they lose too much money! If you don’t have cash at hand and your equity and nest egg shrink, your ability to access credit diminishes. Consider adding an additional 10-20% in the "safe" part of your portfolio that will remain dormant until the September Back to School Stock Sales.
   
   
5. Take profits early and often. During recessions, gains are taken in smaller windows, as the general marketplace weakens and it becomes more difficult for individual companies to swim against the tide. Plan on meeting with your certified financial planner more often this year, to make adjustments to your portfolio as necessary.
   
   
6. Seek out independent news sources. Do not place too much credence in the counsel of brokers who make their living by selling you things, or television pundits who make their living by stirring up "entertaining" discussion on-air or companies that claim outlandish returns, in order to sell you expensive software for online trading in stocks, options, currency, etc. (If you have a trusted certified financial planner who has worked hard for you for years, that is a different story. S/he has proven herself to be your ally, not just a salesperson.) Read the blog of Dr. Gary Becker (Nobel Laureate winning economist), the speeches and minutes of Federal Open Market Committee members, FINRA.org investor alerts and information, SEC.gov investor alerts and information, and the NataliePace.com ezine, which has become the most trusted name in financial news. Anyone working on commission is going to become desperate to win your attention as they try to make money for themselves in tougher times.
   
   
7. Educate and empower yourself. Sign up now for the May 2008 NataliePace.com Retreat, where you’ll learn how to recession-proof your portfolio, exit industries in decline, maximize your gains in emerging markets, and experience green investing, green living and green building. Clean energy was the top performing asset class. Become a profit-earning owner and investor of a new world. There are less than two dozen seats available at this retreat, so register NOW ONLINE to come. (Or email Heather@NataliePace.com or call 866.476.7442.)
   
   
8. Diversify into international. Weight toward China (over India) and Eastern Europe over Western Europe. One of the most important things to consider is that currency trading is for professionals ONLY, no matter what the foreign exchange salesperson tells you! Read this month’s Currency article for more tips on international investing and ETFs that are focused on emerging markets and international currency funds.
   
   
9. Keep tithing. Remember that when you keep adding to your tax-protected retirement account, you are actually buying low as the markets fall. Just be sure that your plan is allocated properly and that you are overweight in safe, liquid investments, like money markets, bonds and CDs.

Recessions are no fun, but they are not the Apocalypse either – especially for those investors who have the foresight to use the two-year downturn to build liquidity so that they are in a position to pick up bargain stocks and real estate in the coming years.

I’m very happy to report that 59% of the NataliePace.com readers feel that they have a percent equal to their age safe in bonds and cash, with only 25% who are all in on stocks (make sure that isn’t you!) and less than 3% who don’t have a clue what’s in their retirement plan!

Patient investors can make money in any marketplace.

Peace = prosperity.

Join us.

Disclaimer: NataliePace.com is a financial news company. We are not a brokerage and are not in the financial services industry. Always consult your certified financial partner and consider your long-term goals before making changes to your portfolio.

Bear Hunting Season

By Kelley Wright, managing editor of Investment Quality Trends.

Kelley Wright, Managing Editor, IQTrends.com stock newsletter.

An interesting start to the year indeed. As you have no doubt read, viewed or heard, this is the worse start in the markets since the Great Depression era. As you will read in my comments below, the odds are that the markets have entered into a bear phase. With mid-July as the starting point, we are approximately six months into this cycle.

The depth and breadth of this downturn remains to be seen, and while it isn't pleasant, there is a positive to be found in a market retrenchment. Value is being created. For the first time in many years, dividend yields on some of the best stocks are reaching areas that represent real value. It is during these events that investors get the opportunity to acquire the very best names with outstanding yields that they will hold for many years to come. In fact, I would suggest that this specific downturn will be a once in a decade, maybe a once in a generation opportunity to create the type of core portfolio that value investors dream of.

Investment Outlook
Reprint from the 1.15.08 Investment Quality Trends stock newsletter

The dividend yield on the Dow Jones Industrial Average is climbing and the number of Select Blue Chips in the Undervalued category is increasing. What does it mean? It’s hunting season for the long-term value investor; your license better be current.

If the Dow Theory folks are right we are probably in a bear market and it started back in July of ’07. Now nobody likes a bear market because stock prices drop and account values decline but it’s not the end of the world. In fact, bear markets can be exciting for the value investor; let me tell you why.

When stock prices drop dividend yields increase because you are paying less to buy the same income stream. Take Lucky 13 component Bank of America (BAC) for example. This time last year BAC was yielding a little more than 4%. With the company’s recent dividend increase and lower stock price the shares currently yield over 6%. The end result is a bigger bang for the buck on the same capital outlay. That is reason enough to be excited about stocks going on sale. Take a look at some of these other Undervalued Select Blue Chips compared to their five-year average dividend yield.

As the enlightened investor knows, however, a high dividend yield is not the whole story; the long-term trend of dividend increases and payouts tells the real story about a company’s stability and growth prospects. So a company has to strike a balance between maintaining their fiscal discipline to pay increasing dividends while leaving enough cash on hand to keep the company growing.

In our experience a company that can grow their dividend 10% per year on average while keeping the payout ratio between 30% and 60% of earnings seems to strike the right balance. Take these three Lucky 13 components as an example.

Pfizer, I may point out, has paid a dividend since 1938 and has increased its dividend in each of the past 40 years. Since 1990 Pfizer has crushed the S&P 500.

The point is that if you limit your investment selections to financially strong, well-managed, Undervalued companies that pay consistently increasing dividends, over time you will grow your capital and dividend income base sufficiently to meet all of your cash needs. Cash is, after all, the reason why we go through this exercise of putting our hard earned capital at risk in the stock market; taking a little cash today and turning it into more cash tomorrow, or next year or the next decade. You know what I mean.

While everyone has a different time frame we all have the same two investing goals; growing our capital and income base. We also have the same two return paths: Capital appreciation; and dividends. The challenge is to combine the opportunity for capital appreciation with dividends, which over time yields outstanding results.

For the enlightened investor a period of depressed share prices and higher than average dividend yields sets the table for meeting your investment goals and objectives. At the end of the day owning a portfolio of stocks that returns double your investment in dividends while still owning the companies that paid those dividends is what value investing is all about.

The Timely Ten
Investment Quality Trends primary purpose is to assist subscribers in growing their capital and income base from which to derive cash for their current and future needs. To that end we believe that high-quality stocks purchased at historically low-price-to-high-yield offers the best potential for downside protection and upside appreciation.

For subscribers to effectively mirror our Model Portfolio for performance tracking purposes (every stock in the Undervalued and Rising Trend categories), would require holding one hundred twenty one stocks as of the Mid-December issue; clearly too many positions to be practical. The Timely Ten, therefore, is not just another "best of, right now" list. It is our reasoned expectation based on our methodology and experience for what we believe will perform best over the next five years. Do we believe that all 10 will go up simultaneously or immediately? Of course not. Our four decades of research and experience, however, leads us to believe that these stocks, purchased at current Undervalued levels, are well positioned for appreciation.

Whether you are looking to build a portfolio from scratch, are partially invested and looking to add new positions, or full invested and in need of some affirmation and hand holding, The Timely Ten represents our top ten recommendations as of each issue. Short of utilizing the personal investment management services of our sister company, this is as close to hands on advice you can get.

The Timely Ten consists of Undervalued stocks that generally have a S&P Dividend & Earnings Quality rating of A- or better, a "G" designation for exemplary long-term dividend growth, a P/E ratio of 15 or less, a payout ratio of 50% or less (75% for Utilities), debt of 50% or less (75% for Utilities), and technical characteristics on the daily and weekly charts that suggests the potential for imminent capital appreciation. This issue’s selections are:

Kelley Wright is currently performing at the top all of his peers on Wall Street for the past 20 years, in the top 10 of all-star performance, and #4 in risk-adjusted performance. Kelley’s stock newsletter, IQTrends.com, is earning 12.5% in annualized gains, according to Hulbert’s Financial Digest, compared to market performance of 11.8%. IQTrends.com also has lower risk and volatility than the market average. To subscribe, go to IQTrends.com.

DON’T MISS: Online Chat with Kelley Wright, #1 Blue Chip Stock Picker
Wednesday, February 20th, 2008
8:45AM through 9:30AM PT
NataliePace hosts an online chat for subscribers with the #1 blue chip stock picker Kelley Wright, managing editor, Investment Quality Trends stock newsletter. Learn tricks to recession-proof your portfolio and add superior Blue Chip value stocks to your holdings now!

THE WORLD MONEY SHOW ORLANDO
Kelley would like to extend an invitation to you and a guest to join him at:
The World Money Show Orlando, February 6-9, 2008, at The Gaylord Palms Resort.
Register FREE by calling 800-970-4355 and mention priority code #009894.

Swim with the Dolphins.

by Chellie Campbell, author of Zero to Zillionaire.

Chellie Campbell, Author of Zero to Zillionaire Photo credit: Mary Ann Halpin

I divide the world into two groups: My People and Not My People. My People are Dolphins—happy, friendly, and rich. Not My People come in two species: Sharks who want to eat you—or Tuna who want to complain to you. You can tell who’s who by the way you feel after you’ve been with them, and the state of your bank account. Dolphins put money in your pocket and a song in your heart. Sharks rob you and leave you bleeding. Tuna cry for you but can’t help you. If you want to be wealthy, you have to learn to be a Dolphin and choose your friends and co-workers wisely. Don’t borrow from a loan shark. Don’t ask unsuccessful people for career advice. Get Zillionaire advice from Dolphins, and you’ll become one yourself.

This is how to tell which sea creatures you’ve been swimming with:

Dolphins: You feel good and you are rich.
Sharks: You feel bad and you are broke.
Tunas: You feel tired but you broke even.

Sharks sneer at books like this one. Why would anyone need a book to tell him or her how to be successful? Kill or be killed is all you need to know—it’s survival of the fittest, dummy. Tuna don’t read books except as a vehicle to beat themselves up with and cry, "Oh, no, this doesn’t work for me, either. Nothing ever works for me." Dolphins value learning and growing; they read books, take workshops, attend classes, listen to CDs, and are always improving themselves and the world around them.

When you learn to surround yourself with Dolphins and avoid Shark and Tuna, you will be richer and happier, and so will your friends. You’ll be a Zillionaire among Zillionaires.

Dolphins
Dolphins are friendly creatures; they swim in groups called pods. They are intelligent and communicate with each other. They are playful, jumping for the joy of it in graceful arcs above the waves. They have been known to ward off Shark attacks and protect other fish in the sea. 

People who are Dolphins are generous. They love to share the wealth and always make sure there is enough money left on the bargaining table so that everyone feels they’ve made a good deal. They’d like nothing better than for everyone in the world to be rich, but they understand that you have to work for it. Because of this, they are wonderful mentors and teachers and are delighted to share their secrets of success with you. They give you honest feedback, but only when requested. When you swim in the company of Dolphins, you feel empowered, energized, and uplifted. You feel better about yourself and the world around you, and you have more money, too. You will always find Dolphins swimming alongside your golden treasure ships.

Dolphins praise you and pay you.

Dolphins play Win-Win.

Sharks
Sharks are eating machines. That is their sole purpose in life—eating. It’s not their fault—they were born like that. They are big and have big teeth—the-better-to-eat-you-with-my-dear. They are on the hunt. The music plays "Do-do, do-do" and then they pounce. The world is their oyster—literally. They see everyone else in the world as dinner. That includes you.

Sharks are sometimes rich, but don’t enjoy their wealth because the word "enough" doesn’t exist in their vocabulary. Sharks don’t share with anybody, because their constant thought is "Me, me, me, I, I, I" so there is no room at the dinner table for anyone else except on a plate. You will see Sharks swimming alongside pirate ships and black plague ships.

There are two kinds of Sharks: Angry Sharks and Con-Artist Sharks.

1. Angry Sharks. They are completely self-obsessed. They have no empathy for other people—they just can’t tell that you have thoughts and feelings just like they do. You are food. They are angry with life and the world and are going to take it out on you. These sharks tend to scream and yell and throw tantrums in order to get their way. They will tell you everything that’s wrong with you if you give them an opportunity—like if you say, "Hello." Powered by rage, they are fearsome to behold. They rip you apart right away.
2. Con-Artist Sharks. They are Sharks in Dolphin’s Clothing. They pretend to be your friend and imitate Dolphin behavior in order to get close to you. They have charisma, a hail-fellow-well-met bonhomie, and a ready smile—there’s no such thing as an obnoxious con artist. But look in their eyes—you’ll see nothing but calculation. They are running numbers, figuring what you are worth and how they can take advantage of you. Their offers sound so fabulous! You suspect maybe they’re too good to be true, but what if it really is your lucky day at last and this is a fabulous opportunity for you to get rich?? So you throw your skepticism into Davy Jones’ Locker and board their Pirate Ship to search for the treasure. But you’re the treasure and now they’ve got you walking the plank into their jaws. They are your best buddy—until they slowly rip you apart.

After you’ve been swimming in Shark-infested waters, you feel hurt, wounded, and betrayed. And usually, you are broke, too.

Sharks could pay you—but they don’t want to. They want all the money for themselves.

Sharks play Win-Lose.

Tunas
Tunas are food for the Sharks. They are the Victims of the Universe, and they wear their martyr crowns and title sashes proudly. They talk endlessly about how awful life is and how badly they’ve been treated and how it isn’t their fault. It’s a one-way conversation—all they want from you is a sympathetic "oh, you poor thing!" now and then.

Tunas complain a lot and don’t accomplish much. They would love to share but they can’t because they’re broke and could you please invest in their business or loan them some money so they can save the world through their non-profit organization? You will find Tunas swimming alongside fishing boats, looking for a handout. They get hauled in instead, and handed out to someone else. They don’t get dinner—they are dinner.

Tunas come in two species: Angry Tunas and Timid Tunas.

1. Angry Tunas. They are the "Ain't It Awful" or "Doesn’t It Suck" people who complain endlessly about everything. They never do anything about anything, mind you, they just whine and complain. "Life is Unfair" and "What’s the Use" are their mottos. Angry Tunas will hurt you almost as badly as a Shark will, but they will do it through passive-aggressive behavior. Their inaction will cost you a contract, cost you a friendship, cost you a fortune. And they will get huffy if you say anything to them about it, because They Are Blameless. Nothing is ever their fault.
2. Timid Tunas. They never do anything either because they are afraid. They mask their ineffectual behavior under the guise of being Self-Sacrificing and Good-Hearted, but really they are just Victims. They justify playing with Sharks saying, "Oh, there's really a Dolphin in there somewhere—I'm going to help them find their inner Dolphin," meanwhile completely oblivious to the fact that they're missing a fin and the blood in the water is their own. Timid Tunas won’t cause you direct harm, but they will make you really, really frustrated.

Both kinds of Tunas end up as dinner. And you’ll be in the frying pan with them, salted and breaded, if you swim with them very often. After you’ve spent some time with Tunas, you feel tired, depressed, and need to take a nap. It’s hard to get anything done after that.

Tunas can’t pay you. Tunas have no money.

Angry Tunas play Lose-Lose. Timid Tunas play Lose-Win.

Life is great and you can have what you want! But you won’t get a great life by crying over not having one. That’s a plea for negative attention and I risk my own health and wealth if I swim with you too long.

Dolphins are Your People. Listen. Underneath the noise and squawk of a billion people, Dolphins are singing. Find them and swim with them.

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.

If you are stuck in a rut in your business or life and/or having too much "month at the end of your money," Chellie’s workshop might be just what you need to get things on the right track. You can sign up for Chellie's Ezine and workshop at www.chellie.com.

Get Rich and Healthy.™

by Natalie Pace.

Create the body, life and world you desire.

Photo by: Stacie Isabella Turk, Ribbonhead.com ©2008 Stylist: Arlene Hylton-Campbel, 818-710-0079

If 2008 is as difficult a year as economists predict it will be, there will be a lot of people phoning me in anguish between now and the end of the year.  That is why I’m encouraging you now to come to my retreat in May 2008.  It is the last retreat that I have scheduled for this year, and it is limited to just two dozen smart, proactive individuals.  

Maximizing returns in a crazy marketplace is not about investing more or spending a lot of time trying to get a Ph.D. In math.  It’s simply about applying information you already have (as a shopper and consumer) and the money you already invest (as a person with a retirement plan) toward the goods and services that are going to make our future world shine, while increasing your nest egg. Taking a proactive approach now, getting the basics of your nest egg in order, cushioning your nest egg against a potential stock market downturn and providing the liquidity to take advantage of a marketplace where values can be abundant in the future (but not available to people who have lost too much money and have no cash at hand to invest) is KEY NOW.  And FYI: alternative energy, the area I was most focused on in during 2007, was the TOP performing industry on Wall Street – above energy and oil -- earning almost 60 cents on the dollar on average.

These are all things that your broker may not be aware of, and, even if they are, few brokers are paid to share with you. (There are many fabulous brokers out there. But it is also a high-turnover profession where the fly-by-nights give the pros a bad name.) So, whether you are a broker looking to maximize returns and learn more about the top performing industry on Wall Street or an investor interested in recession-proofing your portfolio and creating the liquidity to buy low in September, I encourage you to immerse yourself NOW in the wisdom, training and games of an executive whose mission and job is to add a splash of green to Wall Street and transform lives on Main Street.

I got into this business because a number of my friends came to me in 2001, begging me to "teach them what I know" after they had lost up to 70% of their nest egg.  2001 was a year that I earned over 200% gains in the stock market – without shorting, so my friends knew that I had wisdom to share with them.  The question was, "Could I find a way to share my wisdom in a way that made buying stocks as much fun as shopping?"

None of us wanted to go back to school or read boring charts.  Just like many of us exercise to look good naked, my friends noticed a sagging bottom line and wanted to start exercising fiscal wisdom in order to have beautiful returns. And it worked did. Between 2002, when we founded the club, and April 2004, when I cashed out, we more than doubled our investment AND launched the Women’s Investment Network, LLC.
 
I’d much rather teach what I know before people have lost half or more of their portfolio than after.  Pain is a powerful motivator.  It’s more difficult to motivate yourself to take action before the pain begins, but being a fitness buff, I know that daily, powerful, healthy habits not only create the body and health I most desire, they actually make me crave natural food over candy.  And that same rationale applies to fiscal fitness.  When you learn a few healthy habits, you are less likely to be tempted by the candy of get-rich quick schemes – those scams that come across the Internet or half-baked investment strategies dreamed up over a golf game.
 
As you may or may not already know, as a journalist, I reveal stock market secrets that stockbrokers rarely disclose.  Financial planners and I have very different jobs.  Your certified financial planner should be aware of your personal goals, your income, how many children you have, whether or not you pay for private school and/or college, how to maximize your gains while considering your risk tolerance, reducing your taxes, and much more.
 
I don’t know the first thing about your personal situation.  My sole concern is reporting the news, information and education you need to succeed, to add a splash of green to Wall Street and to transform lives on Main Street. In short, I’m here to do sophisticated, investigative financial reporting on the best companies on Wall Street and worldwide, who are creating the products and services of the future.  Smart brokers read my ezine religiously, and I, in turn, have a few very smart, ethical money managers to whom I am able to refer potential clients.
 
As we enter a time when policymakers and economists are warning of a recession, now is the time to be proactive about educating yourself and any group you are part of on how to maximize returns and protect existing portfolios — even if your group is a group of stock brokers.  (Check out the testimonial below from a smart stock broker who began investing in the companies featured in my stock newsletter last year.)

"I've had a staggering year (any given day to this point 80%-90% gains) based almost solely on her picks." Anonymous, Investment Consultant. (We protect his name at his request.)

Last year, during a very crappy year in the stock market, the companies featured in NataliePace.com, once again, had a wonderful year.  Check out the performance of our featured companies between Oct. 2006 and June 2007! 4 out of 9 companies – almost half – doubled or more.

  Suntech Power Holdings   Oct 2006   +160%   
  MEMC Electronics   Nov 2006   +103%   
  Gap Stores   December 2006   -14%   
  Suntech Power Holdings   2007 Company of the Year   +96%   
  Apple Computer   February 2007   +103%   
  Wisdom Tree (ETFs)    March 2007   -67%   
  World Water & Solar   April 2007   +163%   
  Trina Solar   May 2007   -4%   
  Novastar Financial (short)   June 2007   -93% (we expected it to lose $)   
  TOTAL Avg. GAINS       +70.3%*

*as of 1.14.08.  

Put your money where your heart is and watch it earn top gains for you, even as it enriches our world. As investors, we should be entering the stock market with our skills, talents, gifts, know how and morals and shaping the world as we know it into a place where peace, profits, sustainable energy, pro-business and pro-staff policies co-create products that are made faster, better, cheaper and with an eye toward distributing these profits to the betterment of the people around the world (who are linked to the business some way, anyhow).  Yes, we live in a world where doing good is great for your wallet and will be in the years to come.

"Be the change you wish to see" (Gandhi) by changing your fiscal discipline now, and watch how that simple process enriches your own life, your estate, your nest egg and the world around you.  

The Get Rich and Healthy Retreat will be May 7-9, 2008 in Santa Monica, California. If you would like to ensure your spot in this very limited retreat, call 866.476.7442 or email Heather@NataliePace.com before February 15, 2008, to receive the lowest price possible. $1495 for one person. $2250 for two people. (Signup online is also available.)

You will begin each day with life and fitness coach Gary Kobat, learning how to move and eat to create more energy and health, which sets the stage for your fiscal fitness! Then, you will learn, practice and transform your life in the following ways:
* How to earn 30% more in your stock portfolio instantly
* Recession-Proof your Golden Nest Egg in 5 minutes
* Picking quality fruit at the stock market, like Opsware (+690%)
* 3-ingredient recipe for cooking up profits
* Green investing
* Green living
* Green building
* Creating sacred partnerships in business, investing and life

Thanks in advance for your time and consideration.

Peace = Prosperity.

I hope you’ll join us.

Natalie

 

How to Have Your Best Year Yet!

by Gary Kobat

21 Days that will Change Your Life!™

Jim Carrey, Will Ferrell and Gary Kobat

A new year. A clean slate. You’re starting fresh, but….

The beauty of the beginning of the year is that we all start with a clean slate… well, maybe. That’s if we didn’t eat too much, drink too much, spend too much, work too much, or holiday too much finishing out the year.

Many people TALK about changes they want to make in their lives, even have the motivation to make changes in their lives now, but very few actually take the steps to ENSURE that these changes do take place.

Are you motivated but don’t know how to start?

Are you ready for action but are looking for a different approach ?

Are you willing to invest the energy it takes to make those changes but seem overwhelmed because a few weeks have already gone by?

Would you like to have a simple, no-nonsense, results-oriented template for achieving those big, unreasonable and outrageous dreams you have always had?

Looking outside yourself for the answers? Don’t. They’re right inside, next to the power you were given when you were born.

Getting Healthy AND Wealthy… IS POSSIBLE…if you choose; if you start to learn about it, if you WANT it, are available to let it; and do not just talk about it.

Join us for this impactful, three-part, 21-day morning-call series:

21 Days That Will Change Your Life!
… a 21 day morning-call teleconference series on how world-class achievers shift their thinking, shift their eating, shift their moving, and shift their financial decisions to create the most amazing energy, health, and wealth results anyone can ever imagine in a year.

• Create laser-like direction, build personal momentum, and manufacture energy you never knew you had – fiscally and physically.
• Develop forward-moving goals and objectives in minutes for less stress, more wealth, a recession-proof portfolio and more balance in 2008.
• How to look and feel younger… while getting older. How to invest in companies that are creating the products of tomorrow, while trimming back on the industries that are rapidly declining.
• How to triple your energy while losing, maintaining, or gaining weight in alignment with your goals. How to triple the performance of your portfolio, with less risk, while recession-proofing your nest egg.
• The statistical truths about foods, fuels, the keys to human performance, why diets fail, and why our weight may not be the real problem. The statistical data about annual returns, making gains during recessions, how to take a long term view for your nest egg and a short-term view for your trading portfolio in order to be in balance, flow and to maximize profits.
• Design decision making tools for staying focused and committed to your top priorities and bigger picture activities, while eliminating interference that doesn’t serve you….
• Daily calls for fine-tuning your attitude, intentions and outcomes.

And much more.

It’s time to find your own answers, uncover your own internal motivations, create a whole new vision for yourself this year: not by hope, not by chance…but by design.

The Program:
The core of the program will be energy, wisdom and working smarter – not harder.

When you have energy, you can do anything.

When you understand how to make energy, how to access your energy, how to unblock your energy, how to implement your energy, then your decisions start to be crisper, clearer, more impactful, and that energy will be transferred into better decisions, manifesting more actions that create bigger results – in your health and in your wealth.

We’ll warn you: It won’t be about about dieting, counting calories or counting crunches; but it will be about creating energy for the rest of your life: course correcting when you get off the path, getting in alignment with your highest, best self and letting this be the first year of the rest of your life.

And how are we going to do that: a series of 21-day lessons in grounding, anchoring and course correcting your thinking, eating, moving, and finances.

To learn more about the 21-day program, which begins on March 7, 2008, join us in the online chat with Natalie Pace and Gary Kobat on Wednesday, February 6^th, 2008. (Information below and on the calendar section.)

To sign up NOW, simply call 866.476.7442 or email Heather@NataliePace.com.

If you need to update your payment information, please leave your credit card number and expiration date on the voice mail system (as it is secure). Email is not a secure format for your credit card number.

Chat with Life and Fitness Coach Gary Kobat
Wednesday, February 6th, 2008
8:45AM through 9:30AM PT
21 days to a healthier, wealthier, more beautiful you. It's all about energy, tapping into, nourishing and maximizing what you already have to make extraordinarily easy life changes to embody your highest potential.

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

Citizen Participation and the Opportunity Economy.

by Peter Levine, director of CIRCLE and blogger at www.peterlevine.ws/mt.

I am a proud member of the Hope Street Group. I am drawn to HSG's ideal of creative participation in our economy--the notion that everyone can contribute and benefit by working and investing, but that we must reform policies to allow fair economic participation. The HSG rejects the ideas that resources are finite and scarce, that poor people are merely victims who need to be protected by government, and that institutions are inherently untrustworthy if they are led by privileged people. That kind of pessimistic populism promotes destructive conflict, weakens useful institutions, and undermines the agency of the poor. It is also a losing political strategy, because most Americans realize that they can have economic opportunities. The Hope Street Group offers an optimistic version of populism that respects everyone's talents and energies while acknowledging that many of us are blocked from fully participating in markets.

Although I am drawn to the philosophy of the Hope Street Group, I have no real expertise in economics or contemporary business. My background is in civic participation. I study (and sometimes assist) efforts to engage Americans in addressing problems through voluntary action, whether volunteering, voting, protesting, or creating associations.

To "participate" in the economy is not the same thing as to "participate" in civil society or the public sector--but there are common themes. In both cases, the idea is to improve people's individual and common circumstances by tapping their creativity and ambition. Depending on the situation, citizens can address their individual needs and serve the common good best through markets, governments, or voluntary associations. I'm for giving everyone opportunities in all sectors.

There is a potential tension between my field of civic engagement and the Hope Street Group. That tension involves the role of managerial expertise. Many HSG members are entrepreneurs and business executives who believe that poor management of the public sector frustrates economic opportunity. For example, some of our public school systems are adequately funded but have been managed very wastefully; and the victims are our poorest children. Importing managerial reforms from the private sector could help. Sometimes, it is very "civically engaged" Americans who stand in the way of these reforms: union leaders; school board members and their most active constituents; single-issue pressure groups; and communities that organize (for example) to preserve their own neighborhood's schools even when enrollments have shrunk.

I am a parent in the District of Columbia Public Schools, where more than $13,000 is spent per child, yet the results at the school level are often terrible--and highly inequitable. As I watch our new Chancellor, Michelle Rhee, struggle to close some schools and to increase accountability, I see a gifted and committed managerial expert fighting for a worthy cause against civic and political institutions that have failed our kids.

Thus I understand the argument for managerial expertise. But here is the lesson from my field that I most want HSG to understand. Civic participation, like economic participation, has become much more sophisticated and effective since the 1960s. Civil society, like the market, is an innovative sector. The old models of participation--local elections with low turnout, defensive public sector unions, partisan competition, and "NIMBY" ("Not in My Back Yard") citizens' organizations--are clearly flawed. I would not try to revive civic participation by opening more positions to direct popular election or by betting on unions or parties (although they have roles to play in the overall civic ecosystem).

Instead, I would invite you to consider some of the newer alternatives. ...

• In Bridgeport, CT, according to a recent study by the Public Agenda Foundation, deliberative forums of citizens launched a renaissance in the public school system, marked by better policies, more efficient management, ongoing public engagement, and improved outcomes for kids
• In Chicago, according to Archon Fung's analysis, citizens and police collaborate on crime prevention at the "beat" level, achieving substantial improvements in public safety.
• In Seattle, according to Carmen Sirianni's research, a highly decentralized planning process has allowed citizens to work with professionals to create a technically impressive and coherent city plan.
• Nearly 4,000 New Orleanians (including displaced citizens) participated in deliberative forums organized by AmericaSpeaks, generating the Unified New Orleans Plan.
• The Project for Public Spaces has worked in 2,000 communities "to improve parks, markets, streets, transit stations, libraries and countless other places, using a citizen-centered approach called Placemaking to design lively, sociable, beautiful public spaces and to revitalize communities."
• The Industrial Areas Foundation represents a new form of community organizing, well analyzed by Mark R. Warren. Instead of defining a community's problems in ideological terms and advocating predefined solutions, IAF encourages open-ended discussions and the development of constructive relationships across lines of race, institution, class, and ideology. IAF often achieves strikingly tangible results, such as the construction of 2,900 townhouses in Brooklyn, NY and the founding of charter schools in several cities.
• According to the World Bank, communities in several countries have cut corruption and waste dramatically by giving citizens power to influence public budgets and track state expenditures.

These examples indicate that it is not just the raw amount of citizen participation that matters, but also the quality of citizens' work and the diversity of civic networks. Those factors can be measured (albeit somewhat crudely), with survey questions about people's political participation, membership in groups, and trust for fellow citizens and local institutions. The combination of these factors has been called "social capital."

Social capital correlates powerfully with economic opportunity and growth:

• The world's most effective national governments and competitive economies also boast the highest levels of social capital as measured by questions in the World Values Survey.
• At the state level in the United States, Harvard's Robert Putnam has shown that social capital correlates powerfully with high school graduation rates, SAT scores, and other indicators of educational success. "States where citizens meet, join, vote, and trust in unusual measure boast consistently higher educational performance than states where citizens are less engaged with civic and community life." Putnam finds that such engagement is "by far" a bigger correlate of educational outcomes than is spending on education, teachers' salaries, class size, or demographics.
• And at the local level, our healthiest, most prosperous municipalities are also the cities with the highest rates of associational membership and trust.

Thus, as I reflect on Chancellor Rhee's efforts to reform the school system that educates my own daughter (and employs my wife), I wish her luck and I endorse her strategy, as far as it goes. But I do not believe that Washington, DC will ever provide excellent schools for all our youth--public, charter, or private--until the quality and quantity of public involvement improves. More generally, I do not believe that we can see a "high opportunity society" until we learn to tap citizens' energies and talents in the nonprofit and public sectors as well as the market.

For those who have a practical interest in innovative forms of civic participation, useful portals include the Civic Practices Network, the Democracy Helpline, and the November Fifth Coalition.

Peter Levine is director of CIRCLE and blogs at www.peterlevine.ws/mt

Hope Street Group represents a new generation of professionals, executives, entrepreneurs, and leaders that believes economic opportunity is the key to achieving the American Dream.  For more info: www.hopestreetgroup.org.

Trading Tips for Turbulent Times.

by Natalie Pace.

Includes my Hot News on Cool Stocks list.

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

The Hot News lists below feature 39 companies earning great gains, versus just sixteen that are headed in the opposite direction. 48% of the companies featured in my stock newsletter between 2002 and 2005 – 25 out of 52 companies -- DOUBLED from the time we listed them in our feature article to the time when I took the company off of the Hot News on Cool Stocks list, and the majority of the remaining 52% well outperformed the marketplace. (See the chart in the article, "25 of Our Companies Have Doubled," from volume 4, issue 4, the April 2007 ezine, for a listing of companies.)

3 out of 5 Company of the Year selections more than doubled.  My 2003, 2004 and 2007 Companies of the Year have posted up to 9000% gains (Taser), up to 690% gains (Opsware) and up to 215% gains (Suntech Power Holdings), respectively.  MySpace, my 2006 Company of the Year, has been a large part of News Corp’s success with shareholders.  Only OSI Pharmaceuticals, my 2005 Company of the Year, has lost money.  So three out of five are superperformers, one is performing well above the market and one is down. That’s the kind of record that puts you on top on Wall Street.  (I launched my first publication on 11.15.02, and featured the first Company of the Year on 1.1.03.)

Additionally, the market performance of the companies that are featured in my Hot News on Cool Stocks list has kept me at the top of over 830 A-list pundits on TipsTraders.com. I’ve repeatedly occupied the #1 position. TipsTraders.com listed me as a Highly Recommended Stock Picker, in 2006 and 2007.

Check out the performance of our featured companies between Oct. 2006 and June 2007! 4 out of 9 companies – almost half – doubled or more.

Current Economic Conditions Commentary: Trading Tips for Turbulent Time
Back in 2002, when I launched NataliePace.com, a group of my friends came to me begging for me to teach them what I knew. They had taken a beating in the DOT COM BUST, losing up to 70 percent of their portfolios in just two short years. These are the kinds of losses that prevent people from retiring and the fact is that you don’t need a crystal ball to avoid being that over-exposed. So, please read the article, "Recession-Proof Your Portfolio," in this ezine, contact your certified financial planner and, together, enact those bullet points that seem most appropriate for you, considering your long term goals.

Though the average annual gains in the U.S. stock market for the last 25 years have been over 12 percent, there can be NEGATIVE RETURNS (or losses) in any one year. (Yes, the annual U.S. stock market gains for the last 25 years, including the 2000-2002 recession, the volatile 2007-2008 trading years and even the 1987-1992 period of high national debt, averages out to 12.4 percent every year, source: Hulbert’s Financial Digest.) Recessions tend to be the years that those losses occur, so, yes, you are right to be concerned right now, and now, more than ever, it pays to get up to date information from a trusted and respected financial news source. I am proud and happy to have become the most trusted name in financial news and one of the most successful stock pickers since the inception of my business, and I’m here to tell you that AVOIDING LOSSES and over-exposure to stocks is the most important strategy in 2008.

You can’t lose with having a percent equal to your age safe – i.e. out of the marketplace. And, if you do that, you can still have a small percent of your at-risk, equity holdings for your Stocks On Steroids account, aka your trading portfolio. Read the "Recession-Proof Your Portfolio" article in this ezine for tips on how to protect your nest egg in turbulent times.

The tips below are designed to help you with your trading portfolio – that small percentage of your nest egg where you take on greater risk for potentially higher returns. These strategies are not at all appropriate for the bulk of your nest egg, where the majority of your retirement plan holdings should be allocated across various assets, where you take a long term view, tithe regularly and employ a strategy for achieving your life goals and a road map to get there, which has been carefully designed with the assistance of a reputable certified financial planner. You should not trade your nest egg. That is like juggling eggs, with the most likely outcome that you crack too many.

And now, with no further adieu or disclaimers, my trading tips for turbulent markets…

1. Take your profits early and often. You know how you can enjoy a mediocre movie, simply because you had very low expectations that it would be any good at all? Have low expectations for the returns of your investments, and then, when you do experience unexpected gains, sell them for a profit. Don’t be in a hurry to reinvest right away, and don’t be over-concerned about tax implications. A gain is a gain, even if you have to pay taxes on it.
   
   
2. Sit on the sidelines until September. 50% of the gains in the stock market are made, typically, in the last three months of the year (although that wasn’t the case in 2007). Keep a shopping list of your favorite stocks on hand, and don’t be in a hurry to buy in before we get through the summer doldrums of July and August 2008.
   
   
3. Trade tax-free. You can achieve an additional gain simply by doing your short-term trading in a tax-free account. There are many options for these accounts, including IRAs, Roth IRAs, SEP IRAs, health savings accounts, college savings accounts and more. Later on, you may be able to take a loan against your account without incurring penalty, if you need access to the funds before retirement, college or a health need. So, if you haven’t already set up your IRA or Roth IRA or SEP IRA or Health Savings Account or any other tax-free account that you might qualify for, now’s the time to talk to your broker about what options are available to you.
   
   
4. Turn off the television and ignore 98% of the buy recommendations that come from friends, families and even brokers. The pundits’ and brokers’ livelihoods depends upon their ability to try and come up with some winners in tough times. The problem is that most are not good at picking winners, even when the market is working in their favor, and no one is keeping track of the average returns of the ideas they have. Your friends will try to tell you how cheap certain stocks are simply because the price has been going down for a few months. This could be the beginning of a tough period that is not predicted to get better for a few years. Don’t be in a hurry to buy anything this early in the game.

I watched the markets drop from March 2000 until August 2001 before investing again, and made over 200% gains between August 2001 and the end of December 2001. My "broker" had recommended Enron, Global Crossing, AOL, Japan and more losers as early as August of 2000, which would have KILLED my entire investment account. Who cares if the money markets were only returning 4% for the eighteen months prior to my mother lode in late 2001? Fact was: cash was the top-performing asset during that period.

5. Find companies that offer innovative solutions for big problems. (But do 100 times the research before investing.) Taser International, Google and Myspace, three of the best performing companies in my stock ezine, each came up with a breakthrough solution for a major challenge, during a challenging time for the larger stock markets. Taser International stun guns armed police officers with a "less-lethal" weapon with which to subdue aggressive criminals, at a time when police homicides were being scrutinized under a national debate. Taser’s massive acceleration of orders began in 2002 (during the recession). Wall Street caught on in 2004 and made Taser one of the most talked-about stocks on the cable shows and financial bulletin boards, with gains upwards of 9000% at its peak. Google went on to become one of the largest publicly traded companies in the world, while Myspace boasts over 100 million registered users -- just behind Skype in growth on the Internet.
   
   
6. Stay liquid. Remember the rule of thumb that says you should always have six months of living expenses in liquid assets. Suze Orman makes a good point that you shouldn’t put all of your cash in one long-term CD. Instead, she recommends that you stagger the maturity dates of multiple CDs so that you’re never in a penalty position if you need to withdraw some funds. The money market allocation in your brokerage account is another interest-bearing way of keeping cash on hand (with bond-like returns in a rising interest rate environment). Consider these strategies as building up on cash reserves so that you can go on a buying spree later, when everyone else is wounded on the sidelines from the beating they’ve taken in the real estate and stock markets. If you have a strong cash position and a great credit rating, then you’ll be in great shape to pick up bargains in real estate and stocks going forward, and that is where real returns are made – when the markets are poised to grow in your favor.
   
   
7. Window shop and track pricing. I watched (on the sidelines) as Akamai dropped from over $300 per share in 2000 to under $5.00 per share in 2002. This was a stock that my smartest friends were completely in love with. I also watched as LoudCloud plummeted from a $12 Initial Public Offering price in late 1999 to $6.00 in 2000, and then down to the $1.00/per share price range in 2001. When great companies trade for a value that’s a great time to buy.
   
   
8. Don’t chase returns. Don’t assume that things will get better next month. Lock in gains and take losses early, positioning yourself to reinvest at a more opportune price and buy-in point down the road. Take up a hobby other than watching the stock prices drop.
   
   
9. Buy low; sell high. Easy to say; hard to do. Patience is the key. Buying low is about as appetizing as eating rocks, and it sits hard in your stomach for as long as the share price lingers near the bottom. Don’t be in a hurry. Once you experience the euphoria of buying low and selling high for great gains, you’ll never feel as though you’re eating rocks again when you’re picking up bargains.
   
   
10. Stick to the "knitting." Your best protection against recessions, terrorism and other natural and man-made disasters is to not be over-concentrated in any one asset class – not real estate, stocks, bonds, gold or backpack rockets. Remember that cash can be the best performing asset in many market corrections and affords an easy way to stabilize a portion of your portfolio while reducing risk. Cash is better than gold because it also affords you the immediate possibility of buying low. (In mid-2007—cash in the money markets was achieving bond-like returns with very little risk.) With gold, on the other hand, you may be tempted to wait for a higher sell price or some other market related event. You never want to be all in or all out of the stock market, so this isn’t a call to sell everything. Merely to weight toward safer investments, while continuing to adhere to your long-term strategy, which should take your age, your risk tolerance, your goals and more into consideration.
    
    
11. Learn options. If you don’t already know how to trade options, now’s the time to get smart – in a fictitious scenario first. The top performers on this stock newsletter are on the Cooling Off list, and every company mentioned there has gone down in share price, meaning if you’d placed a put, you’re likely "in the money." The Chicago Board Options Exchange has an excellent Investor Learning Center for your education. Go to cboe.com for more information.

I’m not ever happy when my Cooling Off List (the list that features companies that are expected to decline in share price) is the top performer of the stock newsletter, but every company listed there is declining in share price. Even if you aren’t interested in trading options, and learning how to place puts, you should at least be reading the Cooling Off list to determine if you have those stocks in your mutual funds (and to choose some Exchange Traded Funds that are not invested in those stocks instead).If you don’t know how to check to see what stocks you hold in your mutual funds, then you are in dire need of education now.

Getting wise about investing allows you to become a part of the solution of the challenges in your own life and the world at large. If you take a few smart steps now, you’ll avoid a lot of heartache, pain and regret later.

Peace = Prosperity.

I hope you’ll join us at the very limited enrollment for my Get Rich and Healthy Retreat in May 2008. Get more information on the home page at NataliePace.com.

Natalie

Market Report:
The Federal Open Market Committee decided on September 18, 2007 to lower its target for the federal funds rate 50 basis points to 4-3/4 percent. The big, fat rate cut thrilled investors. The stock market immediately rallied on the news. For Halloween, the Feds decided to give investors some candy, with another 25 basis point reduction in the Fed Fund Rate. Investors fell in love with stocks and the markets soared on the news. Continued histrionic headlines and inflated statistics on the severity and pervasiveness of the subprime problems spooked investors in November, for the worst sell-off of the year. The Feds responded by cutting rates again in December. The rate currently stands at 4-1/4 percent. (FYI: We went to press before the January 29-30, 2008 Fed meeting. For up to date information, go directly to the FederalReserve.gov website.)

General Stock Market Performance

EDUCATIONAL OPPORTUNITES AND INFORMATION:

1. Interest Rates: The Big, Fat Rate Cut Continues! The Feds knocked the rates down on the past 3 consecutive meetings, in September, October and December. The federal funds rate is currently at 4-1/4%. According to Federal Open Market Committee Chairman Ben Bernanke, speaking on January 10, 2008, "The financial situation remains fragile." (If you haven’t read my message above and taken it seriously, you should reread it and consider coming to my retreat in May 2008 where you will learn to protect your assets in case of a recession. Remember the pain of 2000-2002, and consider that you need more than a Bandaid this time around.)
   
   
2. FOMC Information: Interested in reading the minutes of the December 11, 2007 FOMC meeting for yourself? You can. The official Federal Reserve document is available online. Click on FOMC, or go to FederalReserve.gov, to read!

The tentative FOMC meeting schedule for the 2007-2008 calendar is: January 29-30, 2008 (Tuesday-Wednesday), March 18, 2008 (Tuesday), April 29-30, 2008 (Tuesday-Wednesday), June 24-25, 2008 (Tuesday-Wednesday), August 5, 2008 (Tuesday), September 16, 2008 (Tuesday), October 28-29, 2008 (Tuesday-Wednesday), December 16, 2008 (Tuesday). The fact that the Federal Open Market Committee decided to increase the number of 2-day sessions from two to four in 2007 is an indicator of the concern in the economy at this juncture.

3. Calendar Section: Conferences, Online Chats and more: 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, real estate veterans and CEOs! Be sure to check out the dates of the mid-month Hot News on Cool Stocks Update and the information on the February 28^th Premium Subscriber Telecom with Natalie Pace. Get more information on how to best use our articles in the FAQs article, located under the Investor Edu link on the home page of NataliePace.com.
   
   
4. Survey Results: What’s the best gift for Valentine’s Day? Express yourself with our online surveys.

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. Your investments and portfolio should take into account your age, your retirement goals, 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.

The Hot News on Cool Stocks List
Full disclosure: I have listed the companies that I currently own under the column "NP OWNS?"

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). 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.

Highlighted Companies (Hot List):
U.S. Gold (UXG)
WisdomTree (WSDT)

Recent Additions:
American Superconductor, Energy Conversion Devices and Zoltec were added on December 3, 2007. None of these companies are highlighted as being in "buying range" this month – largely due to the uncertainty in the stock marketplace, more than within the company.

Recent Deletions:
Gap was deleted on January 14, 2007 with negative performance. Jet Blue was deleted on December 3, 2007 with negative performance. Disney (+31%), National Health Investors (flat), News Corp. (+33%), Opsware (+690%), Sirius (mixed) and Time Warner (flat performance) were all deleted on December 26, 2007. See below for details. (The details on each deleted company are listed below the Hot News list.)

HOT NEWS on COOL STOCKS LIST

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 on 2.1.07 with flat performance, and RELM Wireless was taken off with 3% gains on 2.1.07. Blockbuster ran up 82.5% in gains, which we cashed in on February 12, 2007. Intuit, deleted in June 2007, was a wash for us – up and down. Macerich posted 150% gains between May 2003 (when it was first featured) and September 2007 (when it was removed from the list). Jet Blue was removed on December 5, 2007 with losses of 24-45%. Still love the airline as a consumer, but oil prices are killing the industry. Disney (+31%), National Health Investors (flat), News Corp. (+33%), Opsware (+690%), Sirius (mixed) and Time Warner (flat performance) were all deleted on December 26, 2007. Gap Stores was deleted on 1.14.08 with negative performance (-14%).

Stocks to Watch
Some of these are great companies that we’re thinking of adding to the Hot List and some are stinkers we’re thinking of adding to the Cooling Off List.  Read carefully to identify which is which!

Recent Additions:
Canadian Imperial Bank
WisdomTree Emerging Markets High-Yielding Equity Index
WisdomTree Emerging Markets SmallCap Dividend Fund
WisdomTree International Financial Sector Fund  

Recent Deletions:
Boston Properties was moved to the Cooling Off List on January 14, 2008.

Macerich was moved to the Cooling Off List on January 14, 2008.

Cooling Off Stocks List (may be Poised for a Decline in Share Price).
Note: The companies listed in bold have recently been added to this cooling off list and/or may be currently poised for a 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.)

Highlighted Companies (Cooling Off List):
Boston Properties (BXP)
Macerich (MAC)

The following companies were taken off of the Cooling Off list effective 10.16.06: Verisign (+15%). IMClone (-11%). Yahoo (-28%). LifeCell was removed on 7.2.07 with -4.5% overall performance. (The cooling off list anticipates that a company will lose share price value.) Google was added on 7.16.07 and then removed on 8.1.07 with losses of -6.7%. General Motors was removed on 10.01.07 with mixed performance.

Please note: NataliePace.com does not act or operate like a broker. We are a publishing, 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, consider your long-term goals and strategies and consult an experienced, reputable certified financial professional before buying or selling any security.

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:

Don’t Miss Chats with Life and Fitness Coach Gary Kobat and Kelley Wright, the #1 Blue Chip Stock Picker, on how to beautify your fiscal and physical fab self! Also, Premium Subscribers enjoy a private Q&A/teleconference with Natalie Pace

The NataliePace.com Calendar section features conferences, retreats, educational opportunities, cultural events, galas, market events and online chats with executives and VIPs. 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. To access links to the event website and registration, go to the Calendar section at NataliePace.com.

Chat with Life and Fitness Coach Gary Kobat
Wednesday, February 6th, 2008
8:45AM through 9:30AM PT.
21 days to a healthier, wealthier, more beautiful you. It's all about energy, tapping into, nourishing and maximizing what you already have to make extraordinarily easy life changes to embody your highest potential. Start now to look hot BEFORE Valentine’s Day.

NYC Women’s Leadership & Innovation Conference 2008
Saturday, February 9th, 2008
7:00AM through 9:00PM ET
This event influential women leaders, entrepreneurs, executives, professionals, and graduate school students across business, finance, law, media, technology, education and non-profits for a day of inspiring keynotes and cross-industry networking. Use the Special Discount Code INNCSDP081 to receive $200 discount to the regular price.

Amazing Woman's Day Awards Luncheon, LA
Saturday, February 9th, 2008
9:00AM through 2:30PM
Symposium, Luncheon, Awards Ceremony, Networking. The Secret, Marie Diamond; Women in Broadcast Media founder, Marsh Engle; Jeannie Fitzsimmons of Awakened Heart, Ardice Farrow of Smart Talking Smart Thinking Women; Subhadra Bowman of Yoga Angels.

Verdi's Otello at the LA Opera
Saturday, February 16th, 2008
7:00PM through 11:00PM
When the evil Iago cleverly exploits Otello's obsessive jealousy, the Moor's innocent wife Desdemona is blindsided in the explosive dramatic friction.

Recovered Voices at the LA Opera
Sunday, February 17th, 2008
7:00PM through 11:00PM
A lost generation's masterpieces are found and stages by Musical Director James Conlon. Two 1-act operas.

Online Chat with Kelley Wright, #1 Blue Chip Stock Picker
Wednesday, February 20th, 2008
8:45AM through 9:30AM PT
NataliePace hosts an online chat for subscribers with the #1 blue chip stock picker Kelley Wright, managing editor, Investment Quality Trends stock newsletter. Learn tricks to recession-proof your portfolio now!

Karl Rove lecture. LA, CA
Monday, February 25th, 2008
7:30PM through 9:30PM
2008 Public Lecture Series, brought to you by American Jewish University and Whizin Center for Continuing Education. Call 310.440.1246.

Invent Your Future Conference, Silicon Valley, CA
Tuesday, February 26th, 2008
top speakers Sam Horn, Peggy Klaus, Maggie Neale and Liz Fetter address key topics like risk-taking, advanced negotiations and strategy...plus, hone your decision-making skills in the Business Challenge and enjoy non-stop networking.

Premium Subscriber Teleconference with Natalie Pace
Thursday, February 28th, 2008
5:00PM through 6:00PM PT
Recession proof your portfolio. Invest in the top performing industry -- clean energy. Learn more about ETFs, the newest rage on Wall Street! Go to the Sharing Wisdom bulletin board for updates on how to access this teleconference. Premium subs only.

FOMC Meeting
Tuesday, March 18th, 2008
8:00AM through 5:00PM
The Federal Reserve Board governors meet to determine whether inflation is more of a factor than the housing pullback and subprime defaults. Will the Feds keep the rate where it is, raise it or lower it?

Arianna Huffington, Paul Begala and Tucker Carlson, LA, CA
Monday, March 24th, 2008
7:30PM through 9:30PM
2008 Public Lecture Series, brought to you by American Jewish University and Whizin Center for Continuing Education. Call 310.440.1246.

Mexican Riviera Cruise for Moms
Saturday, April 5th, 2008
Pursue your passion without sacrifice on this Mexican Riviera Cruise with MomsTown Moms Mary Goulet and Heather Reider from April 5-12, 2008. Being a mother is amazing, but it isn't always easy. Let go and rejuvenate!

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