Investing in Gold. Tainted With Impurities.

by Natalie Pace.

Includes a Gold Mining Stock Report Card

Goldfinger. James Bond and Jill Masterson.

You can’t turn on the TV without seeing an ad to invest in gold these days, and for good reason. Gold does fantastic when people lose confidence in their currency and economy. In an inflationary environment, which is what many economists fear is the next challenge (once we start recovering from the recession), gold is an emotional safe haven.

But investing in gold isn’t as easy as calling the 800 numbers listed on the TV screen. If you’re thinking of buying physical gold, the cost of storing it alone can greatly increase your cost to invest and your potential return. Additionally, gold (like jewelry) is pretty easy for a thief to walk off with. So, you’ve got to add insurance costs (very expensive) to the price of the investment, which can sink ANY opportunity to make a gain on your investment, since the cost of insurance is going to be high and an ongoing expense.

If you want to buy a gold stock, it’s hard to find a pure play in gold. Revenue is down 15.6% at BHP Billiton (at $50 billion from $59 billion), with profits off by 61.8% (at $6 billion, down from $15 billion) in 2009 versus 2008. Rio Tinto’s revenue dropped from $27 billion in the 2^nd quarter of 2008 to $9.65 billion in 2009. These large metal mining corporations are suffering from the cliff-like drop-off in demand for their other products, like iron, copper, and other materials, which are tied heavily to construction.

So, you might turn to a gold ETF, like the PowerShares Global Gold and Precious Metals portfolio, thinking that perhaps a diversified holding of gold companies will do well. And there again, there is more risk than you realize. Almost 20% of the Powershares Global Gold ETF (symbol: PSAU) is invested in platinum companies like Anglo Platinum and Impala Platinum that are not trading on the big boards. Companies that are traded off the boards or on the Pink Sheets don’t qualify (yet) for NASDAQ and the New York Stock Exchange, which means that you have to do 1000 times the research before investing.

Platinum sales are heavily tied to auto manufacturing, which is experiencing a morgue-like slump as well. On July 15, 2009, Anglo Platinum (the top holding in the Power Shares Global Gold ETF) reported "Headline earnings per share are expected to be between 90% and 99% lower than the earnings per share of 3,563 cents for the half-year ended 30 June 2008."

Now there are a few purer plays for gold, namely the gold index (that tracks the price of gold), and companies that focus almost exclusively on gold, like GoldCorp (NYSE: GG) and U.S. Gold (AMEX: UXG). Eldorado Gold Corp. (AMEX: EGO) is another interesting possibility in that their one iron ore project is based out of Brazil, which is predicted to have robust construction in the coming years. Eldorado’s gold mines are located in China, Turkey and Egypt, and the Middle East and Far East are two places where there is enough dough to invest in more gold bouillon, so growth prospects could be good.

Before you click the buy button on EGO, however, it’s important to consider that gold prices are at $955/ounce, an all-time high! Consumer confidence is near an all-time low, but can it go lower – pushing the gold price above $1000/ounce?

There is a seesaw of analyst sentiment for gold performance. The experts are trying to tell us that the economy is recovering, which would mean lower gold prices. But the Federal Reserve will have to start flooding the market with new money to cover the bailouts. A recovery would weaken the price of gold; lack of confidence would increase the price of gold. A rising dollar would weaken the price of gold; a flood of paper dollars on the marketplace should increase the demand for gold (and the price).

At $955.60/ounce (on 8.28.09), gold is over three times as expensive as it was in 2001 (when it traded in the $300-$350/ounce range). This is well above the $800/ounce highs set in 1980.

Gold Price History Chart

However, Rob McEwen has a different chart he wants you to consider. On the U.S. Gold website (homepage), Mr. McEwen writes:

Dow vs. Gold Ratio 1896-Present

So, will gold rise or fall or continue to seesaw between the two possibilities? Who knows? We’ve seen two boom cycles this decade – DOT COM and real estate -- that were fueled mostly on hot air, rather than fundamentals. If stocks rise and gold prices soften, you’ll be glad you waited for a lower buy-in price. If stock prices sink again, gold will most likely benefit and you’ll want to own it.

For my money, I’d rather buy gold and my favorite gold companies at a lower price. Eldorado Gold is a relatively safe play, which appears to have the most upside potential, given their presence in the Mid-East and Far East, and their smaller market capitalization (with room to grow). U.S. Gold, the gold exploration company, is the long shot that could see interplanetary returns, if the moon and the stars align.

Eldorado Gold was added to the Stocks to Watch list today. U.S. Gold continues to be on the Hot List, but not highlighted, meaning that we continue to believe in the upside potential of U.S. Gold, but like the earlier highlighted price (50 cents per share) better than the current price ($2.90).

Full Disclosure: I own shares of U.S. Gold. I do not own positions in any other companies mentioned in this article.

About Natalie Pace:
Natalie Pace, is the author of Put Your Money Where Your Heart Is and CEO of one of the most respected, independently owned financial news corporations in the U.S. She has been ranked as a #1 stock picker from TipsTraders.com and has partnered content with Forbes.com, Sohu.com, Kiplinger’s Personal Finance and more.  She has appeared on Fox News, Good Morning America, CNBC, Time Magazine, More Magazine, USA Today, NPR and national radio shows. Ask her your money questions on her weekly radio show on BlogTalkRadio.com/NataliePace! Follow her on Twitter.com/NataliePace, YouTube.com/NataliePaceDOTCOM and Facebook.com/NatalieWynnePace. For more information please visit, http://www.nataliepace.com.

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The World Recession is Ending: What Next?

by Nobel Prize winning economist, Dr. Gary Becker.

Nobel Prize winning economist, Dr. Gary Becker.

The latest output and unemployment figures for the United States indicate that the recession in this country is very probably finally over, given the usual definitions of the turning points of recessions. Aggregate output fell for the fourth quarter in a row during the second quarter of 2009, but the latest fall was small. All the indications are that American GDP will increase during the current quarter, although not sharply. The unemployment rate actually fell slightly in July. This may be a one-month statistical anomaly since unemployment usually lags the economy, but the rates of fall in jobs and unemployment have been declining for several months now.

The recessions in China, India, Brazil, and a few other countries have also ended, so it strongly looks like the world recession is also over. Some countries, like Spain, have still not turned the corner, but they will be helped by the end of the global recession. It was a severe recession, in many respects the most severe global recession since the 1930s, such as the cumulative fall in aggregate output. But even that only amounted to about four percent. Moreover, it was not the most severe in all the important dimensions. For example, the latest unemployment figure for the US is 9.4%, which is high, but well below the 10.8% reached at the end of 1982 after a severe couple of recessions in the early 1980s. Unemployment will probably continue to rise for a while since unemployment usually lags the turn in output. However, it now appears that unemployment will very likely peak below 10.8%, perhaps well below that previous high. In addition, productivity held up better in this recession than in many others.

While this has been a severe global recession, it is very far from resembling the Great Depression of the 1930s. That depression had a peak American unemployment of 25%, and over a 20% fall in its output compared to the few percentage point falls in output during this recession. The many comparisons made to the Great Depression by economists and others during the dark months at the end of 2008 and beginning of 2009 now look kind of silly- and I said so at the time- although admittedly there was then considerable uncertainty about how bad this recession would become.

Although the severity of the world wide financial crisis was unprecedented (aside from the 1930s depression), the real side of the economy followed traditional recession patterns. For example, as usual, durable outputs, such as of cars, tractors, and houses, fell far more sharply than services, especially than education and health.

Much ink was devoted to the many educated employees of the financial sector who lost their jobs, and they did usually have a tough time, but as in previous recessions the least educated were hit the hardest. As of the end of July, the unemployment rate among high school drop outs was 15.4% compared to 9.4% for high school graduates, and only 4.7% for persons with a bachelors degree or higher. In addition, the percentage point increases in unemployment rates during the past year were much higher for the less educated. Similarly, black unemployment clocked in at a 14.5% rate compared to 8.6% for whites, while during the past year black unemployment increased by 4.6 percentage points compared to 3.4 percentage points for whites. The fraction of those unemployed that have been unemployed for six months or longer, at 34%, is one significant employment statistic that is unusually bad during this recession. This is apparently the highest fraction of long-term unemployed Americans for 60 years.

How important were monetary and fiscal policies instituted during the past year in preventing a far more serious recession? Only time and further research will permit more confident answers to this question, but I will give my tentative opinion. Fed open market policies that bought financial assets from banks and others, and created huge amounts of excess bank reserves in the process gave banks a financial cushion that helped dampen their retreat from risk. Decisions of The Treasury under both Henry Paulson and Timothy Geithner have been a mixed bag, sometimes helping banks deal with toxic assets, while at other times adding to the uncertainty by being erratic and indecisive.

The decisions to let Lehman fail but to merge Bear Stearns and force the merger of Merrill on Bank of America will be debated for a long time. I continue to believe that the bail out of GM and Chrysler by the Bush, and especially by the Obama, administrations were serious mistakes that will eventually cost over $100 billion of taxpayers' monies. It would have been far better to let both companies file for bankruptcy in the Fall of 2008, for they would have emerged from bankruptcy court with lower labor costs and considerably slimmer than they are now. To be sure, Chrysler may have closed shop, not a bad development, and sold its Jeep and one or two other strong divisions to other companies.

Not surprisingly, the Obama administration is taking credit for ending the recession. According to the New York Times, President Obama said that his administration had "rescued our economy from catastrophe". The administration in particular is pointing to the stimulus package- the American Recovery and Reinvestment Act- for the relatively good employment report for July. Yet this stimulus package could not yet have had much direct effect on employment since only about $100 billion, or less than 1% of GDP, of the $787 billion in this package has so far entered the economy. And much of that $100 billion has been directed to service sectors that do not have excessive unemployment rates.

As I mentioned, some Fed and Treasury policies helped a lot, but the capitalist American economy continues to have strong momentum as well. Recessions always end and usually change into booms. While this has been an unusually long recession, the incentives of firms to find profitable opportunities, and the desires of consumers to spend, contributed in important ways to ending this prolonged recession.

Where will the world economy, and the American economy in particular, go from here? Most economists are predicting a flat recovery for the United States that will not take off toward robust growth until late in 2010 or even in 2011. It is notoriously difficult to predict turning points and how fast economies come out of recessions. The 1930s had a fast recovery for a couple of years during 1934-36 before it fell back into another severe depression.

One main reason for pessimism about the strength of the recovery is that banks are generally afraid of taking on additional risks since they still hold many assets of dubious value. In addition, companies are also wary of investing and adding to their employment because of the remaining considerable uncertainty about the economy, and because consumers are continuing to rebuild their wealth portfolios after the hits they took from the sharp declines in stock markets.

I am more optimistic about the world and US recovery than the consensus, although I do not expect a sharp expansion during the next few months. My reasons for greater optimism include the robust recoveries in China, Brazil, and some other countries that will boost world output, and raise demand for US exports. The large excess reserves created by the Fed- some $800 billion- will induce banks to look for more profitable investments than the meager interest they earn on these reserves. The working down of the housing and auto stocks during the past couple of years will result in demand for new residential construction and cars that will stimulate these depressed industries. Firms are still hiring in large numbers, although less than the number they are letting go. One indication of the growing strength of the US labor market is that- as my colleague Casey Mulligan pointed out to me- seasonally unadjusted employment has risen during this summer.

Still, I do have some concerns about the US recovery, beyond the overhang of many billions of dollars of rather worthless assets held by banks. Casey Mulligan has been stressing that the federal government is creating many programs, such as reducing student loan repayments and mortgage payments for persons with low incomes, which discourage the unemployed from finding jobs, and encourage the employed to become unemployed. The proposed caps of various kinds on executive pay, especially in the financial sector, the large government debt being created due to huge fiscal deficits that will put upward pressure on interest rates, the European style reorientation of anti-trust policies toward protecting competitors rather than consumers, the enormous excess reserves that have a considerable inflation potential, the federal government's likely incompetent management of two of the three American auto companies and a major insurance company, and the planned creation of a consumer czar that will interfere with the goods and services offered consumers are examples of policies that are likely to discourage business investment and risk taking.

So legitimate reasons exist for concern about the speed and strength of the recovery of the American economy. However, I worry much more about various regulations, spending, and controls being introduced by the present Congress and by President Obama than by intrinsic difficulties in the American economy.

Dr. Gary Becker is a University Professor, Department of Economics, and Sociology Professor, Graduate School of Business, The University of Chicago. He won the Nobel Prize in Economics in 1992 for his groundbreaking work in "human capital."

To keep track of Dr. Becker's continuing research and commentary, visit his web site and blog. To hear more of his research and recommendations for strengthening the U.S. economy, check out the 2009 Milken Global Economic Conference web page. Dr. Gary Becker has been a keynote speaker at the conference every year since it began and spoke at two of the luncheon keynotes in April 2009.

This blog has been reprinted with permission of the author. All rights are reserved by Dr. Gary Becker.

I Insist on the Term: Depression.

by Judge Richard A. Posner, professor, University of Chicago.

I see the economic situation somewhat differently from Becker. The least significant of our differences concerns nomenclature. Many economists describe any economic downturn less severe than the Great Depression of the 1930s as a mere "recession." The consequence is to lump together economic downturns of greatly varying severity. The current downturn is far more serious than any of the downturns the nation has experienced since the end of the Great Depression. It is true that unemployment was higher for a time in 1982 than it is now, but unemployment is not the only measure of economic distress. Duration is important as well, but even more important are the political consequences of the downturn. These are likely to be profound, as I believe Becker agrees.

Other economists use an arbitrary benchmark, like 10 percent unemployment or a 10 percent drop in output. Unemployment was 9.5 percent in June, 9.4 percent in July (a drop due solely to the fact that fewer people are looking for work--they have given up hope of finding a job in the near term). If it rises to 9.6 percent next month, will that convert a recession to a depression?

I also disagree with the view that a recession or depression ends when output stops falling. That would mean that the Great Depression ended (though it later restarted, as Becker mentions) in March 1933, when unemployment was 25 percent and output had fallen by a third since 1929. A recession or depression ends, in my view, when output rejoins the GDP trend line, that is, when it reaches the level it would have reached had the economy grown at its average rate of growth, rather than being depressed. At the moment, as I point out in my Atlantic blog entry of August 1, output is 7.2 percent below the trend line, which suggests that the economy will remain depressed for at least the next two years. Distance from trend line seems, by the way (to recur to the discussion in the previous paragraph), a better measure of the gravity of an economic downturn than drop in GDP. If GDP is flat, or rises only very slowly, for years, the gap between actual and trend-line output eventually becomes enormous.

The global economic crisis has exposed many weaknesses, mainly I think in government and in the economics profession, specifically that part of the profession that studies the business cycle. These weaknesses are among the most interesting aspects of the current depression. I attribute the depression mainly to unsound monetary policy by the Federal Reserve under Greenspan and (initially) Bernanke and lax regulation of financial services by the Fed, the SEC, and other government agencies, and to a general complacency concerning the self-regulating capacity of free markets. Government officials (many of them economists), business economists, economic journalists, and academic economists alike were, with rare exceptions, taken by surprise by the bursting of the housing bubble (they didn't realize it was a bubble), the ensuing banking collapse, the stock market crash, the sharp decline in output and employment, the global scope of the crisis, and the onset of deflation in the late fall of 2008 that created fears of a depression comparable to the Great Depression of the 1930s. By the beginning of this year Bernanke and other senior officials, along with many economists, businessmen, and consumers, were in a state of near panic.

A number of macroeconomists and financial economists, including leading figures in these important branches of economics, had believed until last September that there could never be another depression, that asset bubbles are a myth, that a recession can be more or less effortlessly averted by the Fed's reducing the federal funds rate, that the international banking industry was robust, and that our huge national debt was nothing to worry about, nor our very low personal savings rate. All these beliefs have turned out to be mistaken, along with influential versions of the rational expectations hypothesis, the efficient-markets theory, and real business cycle theory.

The rapid increases in housing prices during the early 2000s were a bubble phenomenon (contrary to Bernanke's statement in October 2005 that they were driven by "fundamentals"), and the bursting of the bubble brought down the banking industry because the industry was heavily invested in financing the bubble. The low personal savings rate reflected people's belief that ownership of houses and common stocks was a stable form of savings, so that when the prices of these assets plummeted the market value of people's savings fell steeply. People had to rebuild their savings, and so personal consumption expenditures fell, precipitating a steep decline in output and a sharp rise in layoffs. That in turn created a downward spiral accelerated by the distress of the banks, which reduced access to credit by both businesses and consumers. Our national debt, and the government's unwillingness or inability to prevent it from growing--the Bush Administration having established, contrary to traditional Republican principles, a pattern of coupling extravagant government expenditures with steep tax cuts--complicated the response to the economic crisis by limiting the amount of new debt that the government could prudently take on.

Because economists have yet to achieve an adequate understanding of the macro economy and business cycles, I do not think it is possible to fault the government for having acted aggressively--and expensively--to fight the crisis. By flooding the economy with money (in part by purchasing huge amounts of private and long-term public debt, rather than just short-term Treasury notes), and bailing out the major banks (particularly the "nonbank banks" that have become indispensable sources of credit) with government loans, the government placed a floor under the precipitous drop in lending that began last September. Lending has continued to decline, though slowly. The continued decline is due partly to the fact that banks have hoarded most of the money they've received from the government rather than lending or otherwise investing it (because default rates are high and bank capital is still impaired despite the government largesse), and partly to the fact that the demand for loans has dropped as over indebted consumers, and businesses facing reduced demand for their output, have retrenched.

Many mistakes were made in the government's response to the crisis, in part because the possible need for aggressive interventions to stave off economic disaster had not been foreseen (the problem of complacency)--notably the failure to save Lehman Brothers. But on the whole the government's response was--until recently, as I am about to explain--appropriate, given the risk of an even worse economic collapse.

The most controversial measures taken by the government have been the bailout of General Motors and Chrysler, which began last December, and the $787 billion stimulus (Keynesian deficit spending) program enacted in February. I believe both these measures were justified, though for reasons that do not receive sufficient emphasis. Contrary to what until recently most macroeconomists believed, a capitalist economy, though superior to any other economic system, is inherently unstable because of its potential for adverse feedback effects; hence the need for watchful monetary and fiscal regulation. A severe shock, such as the economy received last September, can, without prompt and effective government intervention, trigger a steep downward economic spiral, with sharply reduced consumer spending, resulting in falling output that precipitates layoffs that result in reduced personal income and so further reduces spending and hence output, which induces further layoffs, which further reduce incomes and spending. As spending falls, sellers reduce prices, which creates expectations of further price reductions (deflation), which induces hoarding, since in a deflation the purchasing power of money rises even if the money is kept under one's mattress rather than being invested; so investment drops. Deflation also increases the burden of debt, which precipitates defaults and bankruptcies and further reduces incomes and spending.

The fear of a deflationary spiral such as I have just described was acute at the end of 2008 and the beginning of this year, and could not be dismissed as unfounded. In that setting, bailing out GM and Chrysler was a prudent measure, since without it both companies would have had to declare bankruptcy and might have liquidated rather than reorganized, because the credit crunch had temporarily eliminated the availability of "debtor in possession" financing, essential to a reorganization in bankruptcy. The auto companies would have run out of cash by the end of December. To continue operating, therefore, they would have had to borrow money. But no bank or other private entity was lending "DIP" money then; it was near the peak of the credit crunch. If the auto companies had been unable to obtain DIP financing, their creditors would have had to force liquidation, which would have resulted in an increase in the unemployment rolls, possibly by millions, within a very short time. That would have been a severe further shock to an already deeply wounded economy.

Similarly, with regard to the stimulus, when Obama took office on January 20 the measures the government had taken to date--the easy money, the bailouts, and so on--had not arrested the economic decline. For the new Administration to have announced that it had run out of ideas for arresting the decline, and we'd just have to tough it out, could have produced a catastrophic drop in business and consumer confidence, which could in turn have increased hoarding, layoffs, deflation, and so forth.

The auto bailouts staved off the collapse and possible liquidation of GM and Chrysler; and the stimulus package, by showing that the President and Congress were determined to react with maximum vigor to the economic crisis, buoyed (I am guessing) business and consumer confidence. In addition, although estimates of jobs saved by the stimulus are bogus, the initial expenditures under the program, consisting of tax credits and increased unemployment-insurance and health benefits, are probably responsible for a slight increase in personal consumption expenditures, which in turn may have had a slight indirect benefit on output and employment.

The much-criticized "cash for clunkers" part of the stimulus, though it will do nothing for the environment, has, at the least, by inducing increased purchases of motor vehicles, increased confidence that the economic downturn is bottoming.

Unfortunately, the auto bailouts of last December have morphed into a huge and possibly quixotic project of revitalizing, rather than just postponing the demise of, two highly inefficient enterprises; and the stimulus package, being poorly designed, is likely to have its maximum impact late next year and in 2011 and 2012, when it may not be needed but will contribute to the danger of a serious inflation. Economic recovery is also being undermined by the Administration's efforts, in the midst of crisis and without adequate study of its causes, to revamp the regulatory structure of the finance industry.

The economy remains imperiled. If the Administration's trillion-dollar health care program is enacted in anything like its proposed form, the costs, on top of the rapidly rising public debt that is the consequence both of the impact of the depression on tax revenues and the costs of the anti-depression programs may create an aftershock to the current depression that will do almost as much harm to the nation as the--I insist on the term--depression itself.

Judge Richard A. Posner is Judge, United States Seventh Circuit Court of Appeals & Senior Lecturer, University of Chicago Law School. Read his ongoing blog with Dr. Gary Becker at http://www.becker-posner-blog.com/

This blog has been reprinted with permission of the author. All rights are reserved by Judge Richard A. Posner.

Fiscal Fitness: Choosing a Credit Counselor.

by the Federal Trade Commission.

Living paycheck to paycheck? Worried about debt collectors? Can’t seem to develop a workable budget, let alone save money for retirement? If this sounds familiar, you may want to consider the services of a credit counselor. Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But beware — just because an organization says it is "nonprofit" doesn’t guarantee that its services are free or affordable, or that its services are legitimate. In fact, some credit counseling organizations charge high fees, some of which may be hidden, or urge consumers to make "voluntary" contributions that cause them to fall deeper into debt.

Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.

Choosing a Credit Counseling Organization
Reputable credit counseling organizations advise you on managing your money and debts, help you develop a budget, and usually offer free educational materials and workshops. Their counselors are certified and trained in the areas of consumer credit, money and debt management, and budgeting. Counselors discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.

A reputable credit counseling agency should send you free information about itself and the services it provides without requiring you to provide any details about your situation. If a firm doesn’t do that, consider it a red flag and go elsewhere for help.

Once you’ve developed a list of potential counseling agencies, check them out with your state Attorney General, local consumer protection agency, and Better Business Bureau. They can tell you if consumers have filed complaints about them. (But even if there are no complaints about them, it’s not a guarantee that they’re legitimate.) The United States Trustee Program also keeps a list of credit counseling agencies that have been approved to provide pre-bankruptcy counseling. After you’ve done your background investigation, it’s time for the most important research — you should interview the final "candidates."

Questions to Ask
Here are some questions to ask to help you find the best counselor for you.

• What services do you offer? Look for an organization that offers a range of services, including budget counseling, and savings and debt management classes. Avoid organizations that push a debt management plan (DMP) as your only option before they spend a significant amount of time analyzing your financial situation.
• Do you offer information? Are educational materials available for free? Avoid organizations that charge for information.
• In addition to helping me solve my immediate problem, will you help me develop a plan for avoiding problems in the future?
• What are your fees? Are there set-up and/or monthly fees? Get a specific price quote in writing.
• What if I can’t afford to pay your fees or make contributions? If an organization won’t help you because you can’t afford to pay, look elsewhere for help.
• Will I have a formal written agreement or contract with you? Don’t sign anything without reading it first. Make sure all verbal promises are in writing.
• Are you licensed to offer your services in my state?
• What are the qualifications of your counselors? Are they accredited or certified by an outside organization? If so, by whom? If not, how are they trained? Try to use an organization whose counselors are trained by a non-affiliated party.
• What assurance do I have that information about me (including my address, phone number, and financial information) will be kept confidential and secure?
• How are your employees compensated? Are they paid more if I sign up for certain services, if I pay a fee, or if I make a contribution to your organization? If the answer is yes, consider it a red flag and go elsewhere for help.

Debt Management Plans
If your financial problems stem from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in a debt management plan. A DMP alone is not credit counseling, and DMPs are not for everyone. Consider signing on for one of these plans only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money. Even if a DMP is appropriate for you, a reputable credit counseling organization still will help you create a budget and teach you money management skills.

How a DMP Works
You deposit money each month with the credit counseling organization. The organization uses your deposits to pay your unsecured debts, like credit card bills, student loans, and medical bills, according to a payment schedule the counselor develops with you and your creditors. Your creditors may agree to lower your interest rates and waive certain fees, but check with all your creditors to be sure that they offer the concessions that a credit counseling organization describes to you. A successful DMP requires you to make regular, timely payments, and could take 48 months or longer to complete. Ask the credit counselor to estimate how long it will take for you to complete the plan. You also may have to agree not to apply for — or use — any additional credit while you’re participating in the plan.

Is a DMP Right For You?
In addition to the questions already listed, here are some other important ones to ask if you’re considering enrolling in a DMP.

• Is a DMP the only option you can give me? Will you provide me with on-going budgeting advice, regardless of whether I enroll in a DMP? If an organization offers only DMPs, find another credit counseling organization that also will help you create a budget and teach you money management skills.
• How does your DMP work? How will you make sure that all my creditors will be paid by the applicable due dates and in the correct billing cycle? If a DMP is appropriate, sign up for one that allows all your creditors to be paid before your payment due dates and within the correct billing cycle.
• How is the amount of my payment determined? What if the amount is more than I can afford? Don’t sign up for a DMP if you can’t afford the monthly payment.
• How often can I get status reports on my accounts? Can I get access to my accounts online or by phone? Make sure that the organization you sign up with is willing to provide regular, detailed statements about your account.
• Can you get my creditors to lower or eliminate interest and finance charges, or waive late fees? If yes, contact your creditors to verify this, and ask them how long you have to be on the plan before the benefits kick in.
• What debts aren’t included in the DMP? This is important because you’ll have to pay those bills on your own.
• Do I have to make any payments to my creditors before they will accept the proposed payment plan? Some creditors require a payment to the credit counselor before accepting you into a DMP. If a credit counselor tells you this is so, call your creditors to verify this information before you send money to the credit counseling agency.
• How will enrolling in a DMP affect my credit? Beware of any organization that tells you it can remove accurate negative information from your credit report. Legally, it can’t be done. Accurate negative information may stay on your credit report for up to seven years.
• Can you get my creditors to "re-age" my accounts — that is, to make my accounts current? If so, how many payments will I have to make before my creditors will do so? Even if your accounts are "re-aged," negative information from past delinquencies or late payments will remain on your credit report. 

How to Make a DMP Work for You
The following steps will help you benefit from a DMP, and avoid falling further into debt.

• Continue to pay your bills until the plan has been approved by your creditors. If you stop making payments before your creditors have accepted you into a plan, you’ll face late fees, penalties, and negative entries on your credit report.
• Contact your creditors and confirm that they have accepted the proposed plan before you send any payments to the credit counseling organization for your DMP.
• Make sure the organization’s payment schedule allows your debts to be paid before they are due each month. Paying on time will help you avoid late fees and penalties. Call each of your creditors on the first of every month to make sure the agency has paid them on time.
• Review monthly statements from your creditors to make sure they have received your payments.
• If your debt management plan depends on your creditors agreeing to lower or eliminate interest and finance charges, or waive late fees, make sure these concessions are reflected on your statements.

Debt Negotiation Programs
Debt negotiation is not the same thing as credit counseling or a DMP. It can be very risky and have a long-term negative impact on your credit report and, in turn, your ability to get credit. That’s why many states have laws regulating debt negotiation companies and the services they offer.

The Claims
Debt negotiation firms may claim they’re nonprofit. They also may claim that they can arrange for your unsecured debt — typically, credit card debt — to be paid off for anywhere from 10 to 50 percent of the balance owed. For example, if you owe $10,000 on a credit card, a debt negotiation firm may claim it can arrange for you to pay off the debt with a lesser amount, say $4,000.

The firms often pitch their services as an alternative to bankruptcy. They may claim that using their services will have little or no negative impact on your ability to get credit in the future, or that any negative information can be removed from your credit report when you complete the debt negotiation program. The firms usually tell you to stop making payments to your creditors and instead, send your payments to the debt negotiation company. The firms may promise to hold your funds in a special account and pay the creditors on your behalf.

The Truth
Just because a debt negotiation company describes itself as a "nonprofit" organization, there’s no guarantee that the services they offer are legitimate. There also is no guarantee that a creditor will accept partial payment of a legitimate debt. In fact, if you stop making payments on a credit card, late fees and interest usually are added to the debt each month. If you exceed your credit limit, additional fees and charges also can be added. All this can quickly cause a consumer’s original debt to double or triple. What’s more, most debt negotiation companies charge consumers substantial fees for their services, including a fee to establish the account with the debt negotiator, a monthly service fee, and a final fee of a percentage of the money you’ve supposedly saved.

While creditors have no obligation to agree to negotiate the amount a consumer owes, they have a legal obligation to provide accurate information to the credit reporting agencies, including your failure to make monthly payments. That can result in a negative entry on your credit report. And in certain situations, creditors may have the right to sue you to recover the money you owe. In some instances, when creditors win a lawsuit, they have the right to garnish your wages or put a lien on your home. Finally, the Internal Revenue Service may consider any amount of forgiven debt to be taxable income.

Tip-offs to Rip-offs
Steer clear of debt negotiation companies that:

• guarantee they can remove your unsecured debt
• promise that unsecured debts can be paid off with pennies on the dollar
• require substantial monthly service fees
• demand payment of a percentage of savings
• tell you to stop making payments to or communicating with your creditors
• require you to make monthly payments to them, rather than with your creditor
• claim that creditors never sue consumers for non-payment of unsecured debt
• promise that using their system will have no negative impact on your credit report
• claim that they can remove accurate negative information from your credit report.

If you decide to work with a debt negotiation company, be sure to check it out with your state Attorney General, local consumer protection agency, and the Better Business Bureau. They can tell you if any consumer complaints are on file about the firm you’re considering doing business with. Also, ask your state Attorney General if the company is required to be licensed to work in your state and, if so, whether it is.

For More Information
The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Want more help to stop DROWNING IN DEBT?
Want to get out of your debt, but unsure where to turn? Join me on this Wednesday morning at 9:00 a.m. PT on BlogTalkRadio.com/NataliePace. Learn real solutions for your money problems and who to trust to help you out. The ads and commercials can be a scam! So be sure that you call in and get the best info, resources and real answers to your money questions.

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Real Estate.

by Steve Dietrich, President, Financial Research Group.

Rolling loans, banks too big to fail, legislators gone wild and opportunities for the brave, amidst fear and loathing in the land.

Lenders seem to have a limited appetite for recognizing losses, preferring to roll the loan forward another year.  "A rolling loan collects no defaults." Steve Dietrich, President, Financial Research Group

Commercial Real Estate
We are starting to see an increase in the number of commercial real estate deals coming to market. We have seen institutional owners looking to unload large packages of stores leased to single tenants in an effort to reduce their portfolio risks.
 
There are a large number of deals that were financed between 2005 and 2008 that are underwater; the "owner" has no equity so there's no reason to try to sell unless the lender is willing to do a short sale. Lenders seem to have a limited appetite for recognizing losses, preferring to roll the loan forward another year.  "A rolling loan collects no defaults."
 
The fly in the ointment is that for many commercial property owners, office and retail properties vacancies are increasing, while rates are declining. The ability to meet current debt service is being challenged. In a shrinking economy, office, retail and warehouse users frequently have more space than they need and will continue to shed space past the bottom of the economic cycle.
 
Residential Real Estate
One very possible explanation for the slowness of lenders to embrace the Obama borrower bailouts is that they feel a better deal for the lender may be coming down the road. With so many uncoordinated bailouts around or promised it's hard to know which parachute to grab.
 
Much of the press is missing the fact that foreclosures are not driven by value until a person needs to move. Foreclosures occur when borrowers cannot make the monthly payments. For the first wave it was people who never could make the payments. They were flying on teaser rates and making money on the flips. That's changed somewhat as more people are unable to make their monthly payments and are maxed out on their credit cards. It is a dangerous situation for both the credit card debt holders and the mortgage investors.
 
Banks
A number of analysts and writers have noted that despite the rosy bank earnings, there are still a lot of unrecognized losses inside the portfolios. The FDIC is walking the tightrope of wanting to instill more discipline in the banks, but must also avoid forcing the banks to recognize all of their losses too quickly.

The bankers are in no hurry to recognize losses. As one noted, I do not get up in the morning looking for a way to look bad today. In addition to the obvious forces, banks and other lenders may be reluctant to sell loans or even foreclose if there is another bailout around the corner.
 
Legislators/Presidents Gone Wild
At some point the actual or impending inflation will overcome the foreign investor's desire to own US debt obligations. When that happens, we will have a choice of 1) Raising U.S. rates to offset inflation and exchange losses; 2) offering securities whose principal and interest are paid in commodities, or other currencies; or 3) offering the inverse of the old interest equalization tax. Instead of putting a special tax on U.S. investors who invest abroad, we'll offer a bonus to offshore investors who invest in US debt obligations -- a bonus that will not be available to domestic investors.

The new Congress brought with it a new standard of measuring spending; amounts are simply rounded to the nearest $ Billion so as not to scare anyone. Lest we become too complacent, in the boom economy of 2007, the total federal tax collections (including all corporate and personal income taxes) were only $2.57 Trillion. Instead of a $3bil stimulus package we could have had a complete federal tax holiday for a year.

The idea of anointed banks that are too big to fail is a scary concept. It implies that the big banks will have the benefits of capitalism and the backstop of the national treasure.
 
In California, recent anti-sprawl legislation is likely to result in a rapid run-up in the prices of entitled land once a recovery starts. Although they are still working in Sacramento on the implementing regulations it is not likely to be good for land developers. Thus, approved projects (which have not lost their entitlements) are likely to be very much in demand when housing demand increases.

Bad Information
The press focuses on the unemployment figures to measure the depth of the problem. However, a far better measure is the number of people employed as employment generated income and savings drive demand. While the latest numbers showed a decline in the rate of unemployment, total employment declined and perhaps more worrisome was a very significant increase in the number of workers who had been unemployed for more than 27 weeks. Long-term unemployment is often the precursor to loan defaults and foreclosures.

Housing statistics are another danger area. The reported changes in average or median home prices are usually not adjusted for the mix of homes sold. Thus, if more expensive homes are sold at depressed prices the reports may indicate that home prices are improving. Also the press frequently looks at year-to-year prices, which are of little use in a dynamic market.

The demand for housing is affected by economic conditions. As economic conditions worsen kids stay at home longer or move home, homeowners rent out rooms or take in friends, second homes are rented or sold and apartment renters add one more to reduce the rent. An upturn in homebuilding is seen as a good for the market while it is really bad in an environment where supply exceeds a contracting demand. Farmers are smart enough to leave fields unplanted or even plow crops under to keep prices up. Real estate owners have yet to reach that level of sophistication.

Opportunities
My thought is that there are going to be some exceptional opportunities over the next year:
    
* Although homes may not be at the bottom of the market, the current prices plus the ability to obtain long term financing at attractive rates may make this a good time to buy.
 
* Contractors are generally looking for work and it is a good time to do home improvements if you plan to stay in the house.
 
* A great time to refinance if you have something other than an attractive fixed rate loan for more than the maximum length of time you feel you might be in the house. I believe that in two or three years we will look back on this as a period of very low interest rates and a great opportunity to "buy money".

* It’s a buyers market most everywhere. Do not be afraid to ask for the discount price and this includes rentals. For apartment renters the landlord may want to keep the face rent up but be willing to offer a month or more of free rent. It’s also a good time to be renewing a business lease. The vacant retail buildings are easy to notice. However, behind the lobbies of many office buildings there are growing vacancy and tenant credit problems. Before talking with your landlord be sure you understand your market.
 
* As owners of commercial properties need to meet their maturing debt obligations, there are likely to be good properties available at reduced prices, provided the buyer can move quickly and offer the high probability of a closing. The question is if the discount is enough to offset further expected declines in the commercial market.

Steve Dietrich runs a commercial real estate consulting and development firm in Southern California and taught Entrepreneurial Real Estate Development at the Anderson Graduate School of Business at UCLA for a number of years. He is the President of Financial Research Group, based out of Santa Monica, California.

Gary Kobat with his client Will Farrell, and the winner is...

Are You "Lukewarm" or "On Fire?"

by Gary Kobat, life and performance coach.

Within us exists a sacred flame that is the keeper of our vitality, guardian of our soul's life force.

This flame has the power that can lift us out of the most difficult times, digest what is no longer needed, ward off incoming toxins, and align us once again to our highest best self: whether in mind, body, or spirit.

A flame that is well nourished creates a thriving – an energy of living that lifts us above the seductive temptations of the past and secures us in the wisdom and guidance of the present.  But, like any fire, our internal flame must be looked after and protected. To keep it burning brightly, we must honor and care for it, listen to it, tend to it, and nourish it.

We are the keeper of our soul's flame, and it is our job to do whatever is necessary to protect it from weakening. Without this level of attention and awareness, we will more than likely continue to repeat the patterns of the past, recycle the same life-draining thoughts and behaviors, and ultimately accumulate more toxicity in our mind.

To clear our consciousness so that the light of a new day can arise, we must become keenly aware to the condition of our internal world, the strength of the fire within our soul at any time, and embrace steps to course correct it.

Questions:  

(1) Are you living life "Lukewarm" or "On-Fire"?
(2) What are you willing to give up this weekend to ensure that you are stronger by the end of this week?
(3) What ritual could you implement for yourself today and tomorrow to reconnect with this fire in your soul?
(4) What single choice can you make this weekend to reveal or strengthen your internal flame?

We constantly create: mostly unconsciously. Purpose = consciously create.

See you in the Cool Studio.
Gary Kobat.

Gary Kobat is  a personal life and performance coach, based in Beverly Hills, California.  His clients include the who’s who in film, business and sport, including Jim Carrey, Will Ferrell, Mariska Hargitay and  more. You can catch up with Gary at Facebook.com/GaryKobat and Twitter.com/GaryKobat.  Take a spin class with Gary at Kinetic Brentwood in Brentwood, California!

Anger Becomes Dis-Ease; Love Creates Beauty.

by Natalie Pace.

Thought of the day: Anger becomes dis-ease becomes disease; whereas love becomes beauty becomes endorphins becomes health.

Blame becomes you owe me becomes people abuse me becomes bitterness becomes dis-ease; whereas gratitude becomes thank you becomes together we can create the Golden Gate Bridge and Machu Picchu and the Taj Mahal and Trevi Fountain. Today: I’m counting my blessings. Even the blessing of anger.

Anger is a fantastic fuel. It is the dis-ease and fire you need to create lasting, positive changes in your life. You think, "This SUCKS!! I HATE THIS!!!" and that sparks your thrust out of what is wrong for you, into that which is more right for you. As Nobel Peace Prize winner Betty Williams writes, "The thing that started the peace movement in Ireland was anger – my anger. It wasn’t anger, it was fury. And I’ve never been able to lose that. But to transform all that. It’s a lot of hard work."

Nobel Prize winner Betty Williams transformed her rage into a crucially important peace movement that has been active for the last three decades and continuing. When anger is ignored, however, this hatred and malice becomes internalized and all of that fire and dis-ease burn up your body temple, instead of fueling your progress up the path of enlightenment.

Now more than ever, lean into love and self-love, which means, ultimately: respect the wisdom of your anger. When you hate the problem; create the solution. Find what you can love and walk faithfully toward a better tomorrow.

The Golden Gate Bridge exists because Joseph Strauss created a beautiful solution instead of wallowing in the mud of the problem on the shores of the San Francisco Bay.

Need Help Loving, When You Loathe Wall Street
NASDAQ is up 24% on the year, so now is the perfect time to stop loathing the bandits of Wall Street and start getting a plan that works. Your anger can fuel you moving out of blind faith and a system that doesn’t work and into one that does.

Face it: this isn’t the first time this decade that you’ve been burned by Wall Street. Have you already forgotten the DOT COM recession of 2000-2002?

If you could have captured your gains in 1999 from your Internet stocks, or in 2007 when the Dow Jones Industrial Average cracked through 14,000, you would be so much richer! And that is what Modern Portfolio theory, annual rebalancing and ETFs can do for you that buying and holding mutual funds cannot.

Don’t worry; a better investing strategy is easy as a pie chart. And you can design your dream come true life and investing strategy in just three days at my October 8-10, 2009 retreat. This is the last retreat scheduled this year, so don’t miss this incredible opportunity to sit in a boardroom with just a dozen people, learning directly from the creator of this strategy (me).

Now that the Dow is back to where it began the year and NASDAQ is up a whopping 24%, it is the perfect time to get smart, get savvy and start capturing those gains (before they disappear again). So, call 866.476.7442 to register now and become one of the happy people who love their investments. I’ve listed a few below.

If you call and register before September 8, 2009, you will receive the Early Bird Price and two bonus gifts, worth over $1000. October retreat attendees will have access to the September 9, 2009 Teleconference with Natalie Pace and the 21-day coaching call series. On the September call, you will learn whether or not there will be a Santa Rally and if you should buy now, during the Back to School Stock Sales.

Buying and holding doesn’t work in a slow growth economy that is fueled by booms and busts, as the U.S. economy has been for the last decade (and will continue to be going forward).

Testimonials
"With the valuable guidance of our mentor Natalie Pace, we out performed the bear market with the extraordinary result of 48% GAINS!!!!!!"  Cindy Ciscowski, President, Green Goddess Investment Club

"Nobody cares more about your money than you do. Natalie does a terrific job of explaining how and why you should be taking more responsibility for your own financial well being." Joe Moglia, Chairman, TD AMERITRADE

"I made back the cost of the retreat in under two weeks.  Thanks!"  Randall

"I started with $100K from the 401K rollover I executed in my Santa Monica hotel room during Natalie's investor retreat in 2008, and with profits from stock trades, dividends, and money market interest, I've got it up to around $124K." -- Christina, artist

"Natalie takes the mystery and confusion out of personal finance and liberates you from the myth that Wall Street smarts are the monopoly of professional brokers. Whether your current financial means are modest or substantial, her time-tested, hands-on, interactive and intuitive methods of successful investing will assist you in dissolving your money obstacles." -- Michael Bernard Beckwith, author of Spiritual Liberation and Spiritual Director of Agape International Spiritual Center

"Since attending the Nov and Feb retreat, I've been applying the concepts and with the Stocks on Steroids I’ve earned back $27,000 in under six months.  My broker managed to lose $100K in a year."   Rita, semi-retired school teacher, age 66

"When I first met Natalie Pace I was desperately trying to stay afloat with my financial situation.  My nest egg was half of what I had previously invested, I was in a negative cash-flow real estate investment, clueless about how to truly purchase stocks correctly, and my budget was as whimsical as a musical.  She truly has been a blessing in my life to not only help teach me how to shift my financial situation but to also inspire me to create an investment club in order to help my friends and family.  I'm still astonished that what I once viewed as hieroglyphics is now something others ask me to mentor them on.  Natalie is truly a financial angel."  Brianna Brown, actress

"The first stock report card seemed oddly easy to do, as if I must have been doing it wrong. Our family is facing in the right direction as we learn to make financial decisions for our future. Oh and last, but not least... I am having a lot of fun!" Kavi, actress

"Natalie Pace's sound strategies, helped me avert a huge loss on my 401k plan. Moving my money to a safe place saved me thousands when the market plummeted."  Nilo Bolden, Law Firm Administrator

FREE COACHING CALL SERIES (Value $595)
I’ve recorded a new 21-day coaching call series for people who are ready to create the life of their dreams. This series is specifically designed to create a natural state of wealth consciousness in you by starting your day each morning with 15 minutes of centering, intention setting and energy activation. Once you develop the daily habit of enriching your life and creating wealth easily and effortlessly, using the wisdom and guidance we will provide daily, extraordinary miracles begin to happen in your life. Call 866.476.7442 or email to register for the October 8-10, 2009 retreat in Santa Monica, CA now!

What are your thoughts on this? Please share on my new Twitter.com/NataliePace page and FaceBook.com/NatalieWynnePace.

Click Here To Register Now Santa Monica, CA Why Get Smart About Your Money Now? While you were asleep at the wheel your money was out carousing with chronies, funding the Bailout Index, tobacco companies, big oil, insurance and Fannie Mae. And you wonder why you lost so much money. Get rich and green. Not only can you get rich, but you can use your investment dollars to fuel clean energy, fuel-efficient cars, natural health cures and all sorts of products, goods and services that make up a more beautiful world. Instead of the Bailout Index. Instead of AIG. And If That Weren't Enough, Come Because: Natalie saved Bill and Nilo’s nest egg in February 2008 — all of it — using a pie chart that she drew on a napkin. Yes, it is that easy, but you must know the formula. Natalie mentored the Green Goddess Investment Club, a group of money newbie actresses, to earn almost 40% gains in their first trade in 2008 and to cash in 150% gains in 2009 — during a time that the markets lost almost 50% of its value. Why learn from Natalie? -- Up to 85% of the positions featured in her monthly Hot News on Cool Stocks list in 2008 and 2009 were winning investments. -- She’s been ranked #1 stock picker, above 850 A-list pundits by TipsTraders.com -- She’s the only financial pundit with an enthusiastic recommendation from a Nobel Prize winning economist -- November retreat attendees report making back the price of their retreat within one week! -- TD AMERITRADE Chairman Joe Moglia endorses her new book   Testimonials “Nobody cares more about your money than you do. Natalie does a terrific job of explaining how and why you should be taking more responsibility for your own financial well being.” - Joe Moglia, Chairman, TD AMERITRADE "Natalie takes the mystery and confusion out of personal finance and liberates you from the myth that Wall Street smarts are the monopoly of professional brokers. Whether your current financial means are modest or substantial, her time-tested, hands-on, interactive and intuitive methods of successful investing will assist you in dissolving your money obstacles." - Michael Bernard Beckwith, founder of Agape International Spiritual Center “Natalie Pace's sound strategies, helped me avert a huge loss on my 401k plan. Moving my money to a safe place saved me thousands when the market plummeted.” - Nilo Bolden, Law Firm Administrator "I have made enough money my fist week to pay for my trip, Thanks!" Randall, November 2008 Natalie Pace Retreat Attendee   WHERE AND HOW MUCH: Early Bird Pricing (now through August 15, 2009) $1,595 per person $2,795 per couple Last Minute Pricing (after September 15, 2009) $1,995 per person $3,300 per couple PLEASE NOTE: Lodging, food, transportation, parking, etc. are not included in the retreat price. THIS RETREAT IS AN INTIMATE, EXCLUSIVE EVENT. All 3 days are taught hands-on by Natalie Pace. Early birds receive FREE gifts valued at over $1,600 - a premium subscription upgrade (valid through the end of the year) AND a 21-day wealth consciousness coaching call series. 10 minutes each day add up to a new habit of attracting prosperity and abundance in all you do. Every cent you own and every moment you spend is always an investment. Ambrose Hotel 1255 20th Street (at Arizona Ave.) Santa Monica, CA 90404 877-AMBROSE (toll-free phone number) Call 866.476.7442 or email info@NataliePace.com to reserve your seat now. You will come away with: a nest egg blueprint that works for the rest of your life a get rich plan that will shift you out of basic needs and survival and New habits to start living your dream come true right here and now Click Here To Register Now

Perfect Practice makes Perfect Performance.

by Dr. Dennis Maness, HealthWalk™ MindSoul Division.

How to Use your whole brain to achieve optimal results in every aspects of life.

Your performance on the field is predicated by your performance in practice. There is an old saying that "Practice Makes Perfect." Unfortunately, that is wrong. As a neurobiologist, I have been working with students, executives and athletes for over twenty years and I have seen and know that "Perfect Practice makes Perfect Performance."

There are many factors that go into a perfect performance. They include Vision, Listening, focus, attention, rapid neuro-muscular reaction to thought, and the understanding and control of your emotions. Life is a brain thing. Performance is not limited to the field of athletic performance. Performance is behind every desk in each school, office, home and boardroom throughout the world.

For just a moment, take off your boardroom and everyday life mentality and step onto the field of athletic performance. I am going to show you how you can use every molecule in your being to become a better person, friend, spouse, business professional, student, teacher and/or athlete. Are you ready?

The Play:
You are an offensive linesman for your favorite football team. The next play will be for your running back to run between you and your team mate who is to your right on the line.

You step up to the line and survey the landscape, your first observation is the Opposing Linesman - He is trash-talking you, insulting you, your family and trying to demoralize you in every way possible in order to distract you. If he can distract you, your chances of making a mistake have increased ten-fold. If he can upset you, your chances of being taken out of the play are increased by 200%.

Rule Number One: Learn How To Listen
Anyone can hear: Few can Listen.

There are only two voices on the field you need to listen to - the Center who is calling the snap (the snap is the signal to hike the ball) and the Quarterback who is calling the play.

All other voices are only background noise; the sounds of life. Let all others hear – let you and yours listen only to the signals that matter.

Listening requires focusing. Whether you are in your living room or the boardroom, there are sounds that you should listen to and sounds that should be only white noise to you. Some of the important sounds that should require your attention are the cry of your infant in the crib, the complaint of a key customer or your supervisor or teacher as they explain an assignment.

Rule Number Two: Learn How To Observe;
Anyone can see: Few can Observe

When you step up to the ball, I want you to see the eyes of your opponent and without moving your eyes, I want you to see the feet and calves of the opponent on both sides of the opposing linesman in front of you. When you are able to see their feet and legs, you will know if they are going to rush or drop back or some other play. This information allows you to develop an appropriate plan of action.

This is important because you can’t tackle or plan your business, your education or your life when you are being controlled by the elements or outside influences. Just as the opposing linesmen are outside influences, by watching their behaviors you are able to adjust your play. This keeps you in control. Through observation, you know your opponents path of attack and therefore you are in control. When you are in control, you will learn and accomplish more in less time, less effort and less stress; a side benefit is your ability to recall on demand the information you have obtained.

Perfect practice makes perfect performance
When in practice, you learn how to expand your visual range, how to not only see but comprehend what is going on around you. You learn what your strengths are and which ones you can apply to strengthen each weakness.

Now, it is coming together. You are in a position to start applying your learned skills such as expanding your visual range to not only see but also comprehend what is going on around you. You work on the timing of your neuro muscular reaction to thought. When you visually see the whole picture and are quick to process thought, your access to information is better.

In life, you are learning by observing and comprehending. Anyone can see. Each additional piece of information you are able to collect when you are observing helps you manage your play. This helps you become more alert, more attentive and more focused. You are able to make sense out of an adversarial situation. Then recall how you mastered that situation in your perfect practice.

In my eighteen years in working with athletes, I have found the same principles apply. Perfect practice makes perfect in prime time.

At HealthWalk, with MindSoul Brain Technologies I help tune your brain so you are able to process at the speed of the Hippocampus and Limbic System. I teach you how to communicate and organize information and energy in your brain to help you access recall faster. I teach lobe specific communications so you can think in a whole brain behavior. I help you bring your brain frequencies back into optimal balance and function.

Your brain is also affected by the foods you eat, how well you manage your stress and your lifestyle. At HealthWalk our skilled practitioners working with Vital Hematology live blood analysis, Functional Nutritional analysis and other HealthWalk modalities can help you develop a more nutritious and appropriate diet and exercise regimen for you, clean up your blood of toxins and neuro-chemicals that hinder and generate undesirable reactions and behavior so you are able to truly achieve optimal performance in every aspect of your life.

HealthWalk™, the leading edge, non-invasive integrated healthcare center and products company, has specially priced Health and Wellness Products and Services for NataliePace.com subscribers. HealthWalk is offering 10% discount for NataliePace.com subscribers on all individual HealthWalk products and services. Please mention the discount code, HWNP upon ordering.

Call HealthWalk at 877-255-4703 or email info@healthwalk.com
www.healthwalk.com

HealthWalk, 5825Avenida Encinas suite 111, Carlsbad CA 92008
You can lose everything in life and make it all back - With one exception… Your Health

HealthWalk™ offers customized, non-invasive and effective support to enable your body’s own innate powers to regain and enhance health, performance and healing. HealthWalk is dedicated to supporting and empowering you to achieve and maintain vibrant wellness. HealthWalk is a non-invasive, integrative healthcare facility with a global umbrella of leading edge technologies, services, natural supplements and products backed by over 20 years of research. HealthWalk is based in Carlsbad, CA.

www.healthwalk.com Phone 877.255.4703 info@healthwalk.com

Please note: This article has not been evaluated by the Food and Drug Administration. The information herein is not intended to diagnose, treat, cure or prevent any disease.

HealthWalk is a separate entity from NataliePace.com and NataliePace.com offers no guarantees of, nor do we endorse, their products and/or services.

Budget Like a Rock Star (to Become One).

by Natalie Pace.

10 Rules of Becoming Rich.

Photo Credit: (c) Brian McLernon Photography http://BrianMclernon.com

How do rock stars have it all – the hottest dates, coolest awards and a globetrotting, jet set lifestyle? It’s not because they are the wealthiest people on the planet. The great ones with the most staying power inherently understand that living in the band house is more affordable when you’re starting out. Many have one or two clothing pieces – leather pants or signature sneakers – with little else hanging in their closet. They are investing in their dreams, not their basic needs and doing a lot of other things that you can model to have more fun in your own life.

So, if you’re stuck in the rut of just trying to survive, you, more than anyone, should read this! Young rock stars might win Artist of the Year at the Grammys and return to the band house for rehearsal in the garage the next day. Where are you investing your time and money? Spending, spending, spending has a low pay-off for the long term, whereas education has a high return. So when/where/how/what you spend determines how much you enjoy your life and how rich you can become.

When it gets right down to it, there are two fundamental rules of the flow of prosperity – give and receive. However, most of us are either too stingy or too giving, and thus the below "rules" simply help us to achieve more balance.

Another truth of prosperity and abundance is that every cent you own and every moment you spend is always an investment. Invest more time in the bar stool than on the kids’ soccer field and your family might leave you. Invest more money in looking rich rather than being valuable and your credit card companies might repossess you.

People Who Give Too Much
The givers give because they believe it is the right thing to do. And it is – in balance. But in the meantime, they often feel take advantage of. And to top it off, even if they are really, really rich, they tend to feel poor if their giving is out of control. Many givers worry that they’ll run out of money -- and they will if they are giving excessively and impulsively. Thus, for a lot of givers, it’s impossible to enjoy the lap of luxury while they are sitting in it.

The truth is that chronic givers will indeed run out of money because they never remember to fill back up before they attempt to give again. Also, when you are focused on something that you fear, you create it! "I don’t want to be broke!" givers think, largely because they are stuck in a habitual downward spiral that they know is going to bankrupt them! The fear is justified! The right action would be to stop over-giving, not to pray for a miracle to save you from yourself (while you continue to deplete your own life force).

Givers don’t know how to receive, so they will eventually tap themselves out! You’ve got to afford guitar picks if you want to give it all on stage for your fans.

Photo Credit: (c) Brian McLernon Photography http://BrianMclernon.com

Graft, Greed and Grifters
The takers of the world are stingy #$%^&*! types that rape, pillage and end up screaming, "A horse, a horse. My kingdom for a horse!" The stingier and more greedy you are, the quicker your demise, and usually unpleasantly. This has been true throughout history. (Think Hitler, Idi Amin, Richard III, etc.) The more you love money and will do anything for it, the less you are beloved and the quicker people want to get rid of you, or topple you to take your throne.

People must thrive under your leadership in order for them to wish you continued success! Something must be going very right in their eyes in order for you to remain at the top of the pedestal …

Getting the Balance Right
What stingy people don’t understand is that it is not all about the money. Money won’t buy you life if you have to drive through a war zone to get to your guarded palace.

What givers don’t understand is that prosperity is not all about generosity. Over-giving won’t replenish your supply. True sustained prosperity and abundance is a flow between giving and receiving, between nurturing and being nourished.

Here is the general idea. When you add value, you prosper. When you add beauty, you enjoy the bounty. When you sing a great song, your fans buy your CDs, which gives you the gas money to drive to the next town, with more t-shirts and music for your fans to buy. This is true in all areas of life and living. It is the law of flow and abundance. So make sure that you are employing the 10 Rules of the Rich below, in order to become the rock star of your own stage.

10 Rules of the Rich

1. Give yourself a raise.
   10% of your net income should go on auto-deposit into your 401(k), IRA, health savings account, etc. Period. Stop whining, complaining or procrastinating. It’s tax deductible. Pay yourself now, or pay the IRS later. And if you don’t know how to invest, put it in a FDIC-insured savings or money market account while you educate yourself.
   
   
2. Be charitable.
   Tithe 10% to charity. Fuel your favorite cause with your cash and reap the benefits of helping your community, of networking with others who have like-minded goals and of the tax write-off! Pay your favorite charity now, or pay the IRS later. Every rock star, including Bono, Sting and Mary J. Blige, know the value of this!
   
   
3. Educate yourself, your family and others.
   Education is the single highest correlating factor with income. So invest in your education. Surgeons make more money than gardeners, and surgeons who have educated themselves about investing make greater gains than those who invest blindly (or not at all). According to the Bureau of Labor Statistics, full-time workers without a high school diploma earned $465/week on average in June of 2009, compared to $1,140 for a Bachelor’s Degree, and $2,130/week (women) to $3,434/week (men) for professionals with a master’s or higher. Find a way to put money aside for your education. Typically that means cutting your costs in the basic needs department. College students might consider sleeping on a couch for a few years, in order to earn double the income for life!
   
   
4. Have fun.
   Here are the goods. Health is wealth. You can’t earn a great living if you can’t get out of bed. And if you want to really have great results, you need to be a great team player. So, your time on the golf course, on the tennis court or on the racetrack means that you’re going to be more fun to be around – someone whom others want to interact with and do business with! Exercise is one of the best things you can do for your health and beauty, and pleasure is a free endorphin that releases anti-oxidants that keep you youthful and sexy. Beautiful reasons to have some fun today!
   
   
5. Double your pleasure.
   Double your fun budget! Make sure that you are taking 10%-20% of your income for FUN! I take 10% out in cash and spend it until it’s gone. The other 10% I save up for a year to do something really adventurous. It makes working so much more pleasurable when I am anticipating exactly how I’m going to enrich my own life as a result. (In 2009, I spent a month in Italy!)
   
   
6. Stop complaining.
   Some people say, "I spend my fun money on my home." That’s cool, but then stop complaining that you don’t take vacations and start enjoying your home more. Can you have artist salons, or a front porch bayou Bluegrass party where someone blows on a jug and another plays spoons? A barbecue and three-legged race? A monthly yoga potluck dinner? Make sure that you are enjoying what you own, otherwise your retail therapy isn’t working!
   
   
7. Basic needs must be under 50%, including taxes.
   Ha! Think this is impossible? Guess which ethnic group is the highest income earner in the U.S. in 2009. Before I reveal the answer, I want to point out that this group was one of the lowest wage earners in the U.S. at the turn of the last century. How did one ethnic group rise from the gutter to the palace so quickly? By focusing on education and dramatically reducing basic needs expenditures. If two families had to live in a two-bedroom apartment so that the kids could go to medical school, they did that. And now, Asian men make a weekly income that is 21% higher than whites and almost double the weekly income of blacks and Hispanics. (source: Bureau of Labor Statistics, July 16, 2009)
   
   
8. Think partner, not competitor.
   In 2006, Universal Music Group was posturing to sue MySpace and YouTube for posting their videos free of charge. In June of 2009, UMG and YouTube announced a new channel, utilizing the YouTube technical platform and portal. YouTube is the 4^th most trafficked site in the U.S., but UMG has the great artists and videos. Smart move! Remember back in the 70s when mega-department stores decided to create the malls! By teaming up to put everything you need in one place, all of the retail stores benefit. What can you do to partner up with your competitors and create a win-win for everyone?
   
   
9. Dream bigger.
   When John D. Rockefeller went into the oil business, in 1863, no one dreamed of freeways and that Exxon Mobil would be worth almost half a trillion dollars. When Google founders Sergey Brin and Larry Page began perfecting online search, most people were still on dial-up. When President John F. Kennedy promised to walk on the moon, it still took a week to mail a letter from New York to San Francisco. What great dream do you have? What can you do now to start on the path of creating it?
   
   
10. 21 days off the grid.
    Stuck in a rut? Got a bad habit that is taking you out at the knees? 21 days is all you need to create new possibilities. Seven days is only a vacation from the status quo. Two weeks is a tease/tiptoe toward the edge of new ideas. 21 days is where new habits and thought patterns become ingrained. If you have never been on a 21-day sabbatical, there is no greater or more fun way to expand your possibilities and your thinking. In fact, I’ve created a 21-day Walk to Wealth Consciousness coaching call series, which is FREE for retreat attendees. Call 866.476.7442 to enact a new way of living for yourself!

So, sing your song… loudly. Dance as if everyone is watching. They are… (on Facebook. And Twitter. And YouTube. And BlogTalkRadio…) And become the rock star of your own dream life.

About Natalie Pace:
Natalie Pace, is the author of Put Your Money Where Your Heart Is and CEO of one of the most respected, independently owned financial news corporations in the U.S. She has been ranked as a #1 stock picker from TipsTraders.com and has partnered content with Forbes.com, Sohu.com, Kiplinger’s Personal Finance and more.  She has appeared on Fox News, Good Morning America, CNBC, Time Magazine, More Magazine, USA Today, NPR and national radio shows. Ask her your money questions on her weekly radio show on BlogTalkRadio.com/NataliePace! Follow her on Twitter.com/NataliePace, YouTube.com/NataliePaceDOTCOM and Facebook.com/NatalieWynnePace. For more information please visit, http://www.nataliepace.com.

Ask Natalie: Everyone is Green These Days.

Which stock newsletter is legitimate?

Dear Natalie: In doing research on bio-fuels, I found this stock newsletter and subscribed. In reading it, I find it very similar to your point of view on "going green"...even the stocks they talk about. I would like to present it to our investment club as another source of information on the green investment market. Have you ever heard of these guys?

Thanks so much.
Is Green Ripe for Picking?

Dear Green: Good for you for checking up on your newfound source of information. As Alexander Pope says, "A little learning is a dangerous thing; Drink deep, or taste not the Pierian Spring." In my own plain language, the water you drink is only as good as the well it comes from. Make sure that you are drinking in wisdom from someone who is a master in the field, and just having a few green buzzwords doesn’t mean the water is safe.

Green is in
When you have the "next great thing," as green is, you will always have Johnny Come Lately touting that they have been there all along and know the story. And because green is the Obama stimulus buzz word, every smart money manager or stock newsletter editor on the planet is going to claim that they have the goods. Your best FIRST CALL is to FINRA.org to see if they have ever received a complaint about the person who is heading up the newsletter. Click on FINRA to go to their Avoid Investment Fraud page, where there are many tools to protect you from shysters and scam artists, who are going to be flocking into this space to fool you out of your money.

Results, Experience and Longevity Count
It’s all about the return ratio – OVER TIME. Anyone can list green companies today, but how long have these guys been around? What is the average return annually for their clean energy portfolio for a minimum of seven years? If they boast a return that looks really high, make sure that it is an annualized, not cumulative return. Doing great in only one year – say 2007, when everyone did great in green – doesn’t count either.

Cumulative returns must be divided by the number of years to get the actual annual return, 50% cumulative over a ten-year period is going to be 5% annualized. An ad for 500% returns could be on only one company, or over a brief period of time, when in fact the overall portfolio of every stock they own or report on could be even negative! You have to listen and ask questions with a critical ear, always wondering how they are trying to play the numbers to seem more impressive than they are. In truth, there are millions of people who claim to be great at stock newsletters, and really only a handful who really are!

Never Pay Retail!
2009 has been a wild, volatile year for all stocks, but green stocks have jumped off the cliff and then soared the skies even more than most! As you know, in your trading portfolio (which stock newsletters are supposed to be helping you with), buying low and selling high is just as important as picking the best company in a hot industry. In a market like today, even a great company like Suntech can lose money if you buy at the wrong time. Knowing good price points is as important as naming a list of the leading green companies.

Throwing Darts or Reading Charts?
Also, check to see what the methodology the stock newsletter editors use for picking the leader. For instance, in a field that is innovating very rapidly, you cannot simply rely upon press releases and articles for your data and information. People, even brokers, who buy on headlines, are late. It’s important to really understand who the market leaders are and why. And a strategy, like some use, that simply surveys investors on what they think, is like asking a Lemming for his plan, before he runs, with his friends, off the cliff.

Refer to my articles, "The Sunny Side" and "Solar Springs Up Again," from volume six, issue three and volume five, issue four, for an example of very important cutting edge research that has not hit the mainstream yet, but has worked for more than a decade now. Do these guys have access to this information? And if so, where did they get it (from my stock newsletter)?

Verifiable Data
Check to see which, if any, independent ranking organization (like Hulbert’s Financial Digest or Tipstraders) ranks the performance of this newsletter. Make sure they have been around for a minimum of seven years, so that they will have endured at least one downturn in the markets. Do a BrokerCheck on Finra.org to make sure these guys don’t change their strategy every time some new industry attracts headlines. If they’ve been hitting homerun returns for at least seven years, that alone usually weeds out the newbies from the experienced pros. If they weren’t around in 2000-2002 or if they launched in 2009, then the newsletter has not been tested yet! The markets performed pretty well between 2003 and October 2007, and have come back from the abyss in 2009.

I guess I should say, brokers, lovers and stock newsletter editors: it pays to pick a good one! Get more information on how to select excellent financial partners in my book, Put Your Money Where Your Heart Is! Put Your Money Where Your Heart Is is available wherever books are sold.

About Natalie Pace:
Natalie Pace, is the author of Put Your Money Where Your Heart Is and CEO of one of the most respected, independently owned financial news corporations in the U.S. She has been ranked as a #1 stock picker from TipsTraders.com and has partnered content with Forbes.com, Sohu.com, Kiplinger’s Personal Finance and more.  She has appeared on Fox News, Good Morning America, CNBC, Time Magazine, More Magazine, USA Today, NPR and national radio shows. Ask her your money questions on her weekly radio show on BlogTalkRadio.com/NataliePace! Follow her on Twitter.com/NataliePace, YouTube.com/NataliePaceDOTCOM and Facebook.com/NatalieWynnePace. For more information please visit, http://www.nataliepace.com.

Back to School Stock Sales: Time to Buy?.

by Natalie Pace.

Includes my Hot News on Cool Stocks List.

August 28, 2009

General Stock Market Performance

Photo by: Kevin H. Williams. STARchitects.biz. © 2009.

Hot News on Cool Stocks Highlights!
NASDAQ Tops Gold Returns, With 24% Gains -- compared to +9% rise in gold prices and only +6% for the Dow Jones Industrial Average.
WARNING! The recent market gains are on extremely low summer trading volume – novice investors, not institutional investors.
82% of the positions listed in 2008 & 2009 are in the money. Woo hoo!

598% gains on U.S. Gold

TipsTraders ranked me #11, above over 830 A-list pundits, in 2008.

Wall Street Lows on March 9, 2009:
Dow Jones Industrial Average: 6547
NASDAQ Composite Index: 1269
S&P 500 Index: 677

Market Update:
NASDAQ is up 24% on the year. Woo hoo! However, are you able to see and capture these gains? Or are you still in the old, failed, bailed out system of buying and holding mutual funds and praying for a miracle? (There is a better way. Keep reading!)

Wonder if the Santa Rally will bring Wall Street lots of presents this year? With NASDAQ up 24% already, should you buy into the Back to School Stock Sales, or would you be buying high, if you did?

During the 2007 and 2008 holiday season, Santa put coal in Wall Street’s stocking. Will 2009 be different?

Performance of Dow Jones Industrial Average, NASDAQ and S&P500
October 1, 2007-January 1, 2008

Performance of Dow Jones Industrial Average, NASDAQ and S&P500
October 1, 2008-January 1, 2009

Coal or Candy for 2009 Investors?
Santa Rallies are largely fueled by consumer spending. So, when polishing up the crystal ball, it pays to see how consumers are feeling about their wallets. Richard Curtin, the Director of the Reuters/University of Michigan Surveys of Consumers, wrote that the August survey revealed the "grimmest assessment by consumers of their personal finances since the Great Depression." According to Curtin, "Rather than pursuing discounts, the rebound in spending will be constrained by uncertainty about future jobs and incomes as well as the reduced availability and higher cost of credit."

On MSNBC August 12, 2009, Elizabeth Warren, the Chairman of the Congressional TARP Oversight Committee, revealed that banks are still toxic (though not admitting it in their accounting – something I’ve been telling you for over a year). "By and large, the toxic assets that brought us to this point are still on the books of the bank… The banks say, why would I want to sell them? That means I have to recognize the loss," according to Professor Warren, who teaches at Harvard.

Recently, Solanio (the pen name of one of my banking executive sources) had a couple of important comments on the economy. When his broker (yes, even bankers have brokers) called to get him more invested in bonds and stocks, he said, "I work in the kitchen here, making what you’re selling. Do you think I want to eat that sh**?!" Solanio called the economy a "depressed alcoholic, happy with one bottle down, one bottle left, but a big hangover coming tomorrow."

It might seem like the New Investing Rules are simple. Bankrupt yourself and let the Feds bail you out. It worked for most of our banks, some of our insurance companies, our auto manufacturers, etc., etc. And now, after making trillions in losses magically disappear (with a swift change in the accounting rules), we’re being told that our economy is starting to recover, even while unemployment continues to rise, prices continue to fall and more and more companies are on the ropes.

So who should you believe, where should you turn, what should you do? Instinctively, you have the answers. You just don’t trust what you see and feel because you’re being told something different.

Most Americans understand that the health of the nation is a sum total of the health and productivity of the individuals. We are great because of our legacy of strength, fortitude, problem-solving, inventiveness, revolutionary thinking, freedom and gumption, not because we’ve excelled in red-tape and bureaucracy.

As Mike Milken counsels, "If everyone in America lost weight and returned to the same weight levels of 1991, we would save one trillion dollars. We would cover all the uninsured, and we would be able to quadruple the money for medical research." There is more power in our hands than most people even realize. Our health care crisis could go a long way to being solved if health were more prevalent than obesity! Since no freedom-loving individual wants the government putting its fingers into our pies and telling us when and how we get to eat, this becomes a personal commitment. If this were the focus – health -- then the sky is the limit on what we can achieve.

And just as physical fitness and a commitment to health is the solution not discussed in the health care debate, fiscal fitness is the key that is not talked about in the financial crisis. If you lost more than 10% of your nest egg, it was cracked to begin with. And if you haven’t educated yourself enough to understand what is healthy for your investments, you are vulnerable to further losses and not poised to resurrect your portfolio.

WARNING! The recent market gains are on extremely low summer trading volume – novice investors, not institutional investors. Novice investors are people who have a tendency to trade on headlines, not fundamentals. So, when the heavy volume of the institutional investors kicks in, the markets can swing dramatically in the opposite direction. We’ve seen this kind of volatility all year long, where the pros capitalize and profit on the whims of the headline-fever-fed newbies.

Your best protection is a solid wealth blueprint that can surf the tides of this volatility. Can your nest egg withstand the financial hurricane? If it collapsed in the DOT COM bust and again last year, you need a better plan! For instance, are you able to easily see and capture the 24% gains of NASDAQ? Or is your financial statement still something beyond your comprehension? Are your investments lumped into a handful of gigantic mutual funds? If you can’t see your gains, you can’t capture them. It’s that simple. If you can see them, you can rebalance annually, and your nest egg grows!

It is this level of frankness that would be a breath of fresh air in the national health care debate, and it is this level of frankness that must be part of the national investment debate. We could lose weight and solve – 100% free and clear -- our health care crisis. It’s that easy. Americans could apply Modern Portfolio Theory and protect their nest eggs during recessions, while getting rich during the bull markets. That’s why easy as pie chart strategies, annual rebalancing, ETFs and commission-free CFPs are the future of fiscal fitness.

The New Investing Rules are all in my book, Put Your Money Where Your Heart Is. If this were the focus of health care and financial literacy, America could continue to kick assets on the planet. If you implement them now, you’ll be very happy you did, as are so many people who have read the book and attended my Get Rich and Green Retreats over the past two years.

Take a look at the returns of U.S. stocks, real estate, bonds, Treasury Bills and gold over the last 40 years. Stocks offer the highest returns, but all of these assets performed steadily over time.

Now look at the same assets over a ten-year period. You see that the large cap stocks – America’s former Blue Chip companies, like General Motors, Fannie Mae, etc. – lost money, while small cap stocks (younger, smaller companies, like solar energy, Internet technology, Taser International, etc.) performed quite well.

This year, the stock market has taken investors on a nail-biting rollercoaster ride. Thankfully, the Dow Jones Industrial Average is slightly above where it started the year, at +6%. Meanwhile, NASDAQ is up a whopping 24%, making it the top performer, above gold (+9%), T-Bills and real estate (which is still losing money)! What that means to you is that RIGHT NOW is the best time of the year to employ these NEW INVESTING RULES… If you don’t and the markets fall again, you’ll be sorry you didn’t take advantage of this rally while you could.

Put Your Money Where Your Heart Is
If you were employing Modern Portfolio Theory, ETFs and annual rebalancing in my easy-as-a-pie chart format (see page 92 of Put Your Money Where Your Heart Is), then you would have MADE MONEY for the past decade -- a lot of money. You’d have enjoyed 80% gains in NASDAQ in 2000, instead of watching all of your profits wash away in the 2000-2002 recession. You would have made 50% gains in NASDAQ in 2003, almost 60% in clean energy in 2007 and loads in real estate between 2002 and 2005.

The beauty of the strategy is that you ALWAYS keep the proper amount safe and the rest diversified so that you can easily see and capture your gains. No babysitting. Just know what you should have (in your personalized pie chart) and make sure your investments look like that once a year. Each year, your nest egg gets bigger with the realized gains, while the exposure is reduced (because you are one year older and always keep a percent equal to your age safe).

Join me for three days in October, where you’ll learn this system AND have your own personalized plan that will work great for the rest of your life! Register NOW for the October 8-10, 2009 Get Rich and Green Retreat and you’ll receive the Early Bird Price AND over $1000 in FREE GIFTS. This offer is valid now through September 8, 2009 ONLY. The first free gift is a special teleconference on September 9, 2009 with me, discussing the prognosis of the economy and how to profit in a tough environment.

Buy and hold doesn’t work in a slow growth economy that is fueled by boom and bust cycles, which is the simple story of the U.S. since 1999. So, even if you’ve seen some recovery of your losses in the past few months, you are still VERY VULNERABLE to another downturn.

Register now for my new Get Rich and Green Investing Retreat in Santa Monica, California October 8-10, 2009 and be just one of a dozen people learning directly from me, in a board room setting. Call 866.476.7442 or email Info@NataliePace.com NOW to register! NOTE: there are no retreats scheduled after October 2009. Don’t wait. This could be your last chance. Get more information on the retreat at the home page of NataliePace.com under the Get Rich and Green banner ad.

Track Record of our Reporting
While the markets have fallen in 2008, the Hot News and Cooling Off lists below have a winning track record – in bear and bull market years. 83 positions listed below – 82% -- have delivered impressive gains over the past two years, even while the Dow Jones Industrial Average is trading lower than it was ten years ago! Only eighteen of our listings went in the opposite direction of the reporting, which is quite impressive given the horrible market drop of 2008-2009. Additionally, in 2008, nineteen out of 27 companies that were featured in our monthly articles and stock report cards posted strong gains. That is also a 77% winning track record! (We are really coming up with the winning 7s this year.)

Yes, many, but not all, of our top performers in 2008 and 2009 are shorts, which is why we added options training to the retreat. Remember that the trading portfolio should be equal to your experience, and should not be part of your nest egg. (The nest egg is money you earn while you sleep, not while you day-trade.) If you’re new, you should be using education or fun money, not your nest egg, to learn on. Take your profits early and often in this volatile, down-trending year.

3 out of 6 Company of the Year selections more than doubled.  My 2003, 2004 and 2007 Companies of the Year posted up to 9000% gains (Taser), up to 690% gains (Opsware) and up to 215% gains (Suntech Power Holdings), respectively, before we took them off of the list.  MySpace, my 2006 Company of the Year, was a large part of News Corp’s success with shareholders that year.   So three out of six are superperformers, and one (Myspace) performed well above the market. 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.)

TipsTraders.com continues to list me as a Highly Recommended Stock Picker, with their independent ranking system, where I’ve repeatedly occupied the #1 position and have consistently scored at the top of their 830 A-list pundits. I scored a #11 ranking for 2008. Some of my best picks include: Google (GOOG) +545%, Opsware (OPSW) +690%, Rio Tinto (RTP) +145%, Sohu (SOHU) +150%, Suntech Power Holdings (STP) +107%, Taser (TASR) up to 9000% gains. Some of the best picks in 2008 were put options – on the Cooling Off list. Look there for details on the incredible gains options investors enjoyed on Wells Fargo, Fortress Investment Group, Sears Holding, Fannie Mae, Toll Brothers, KB Home, Novastar Financial and more there.

Market Movers:
The Federal Open Market Committee and Monetary Policy
The Fed funds rate continues to be "0 to ¼ percent." In the 8.12.09 meeting minutes, the Federal Reserve Board further elaborated on the reasoning behind the rock bottom rates, writing: "Although economic activity is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability... Economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period."

That is Fed-speak for "We are doing everything to stimulate the economy, which should work eventually, but the situation is still rough, folks." Deflation is no longer much of a concern, but inflation continues to be a big question mark going forward, once the economy starts to recover.

The Milken Institute estimates that the bailout to date has already cost the taxpayer $9.8 trillion.

The next FOMC meeting takes place on September 22-23, 2009.

Preliminary GDP growth rates for 2Q 2009 were a decline of -1%, according to the Bureau of Economic Analysis. Final GDP growth rates for 1Q 2009 were a decline of -5.5%. The economy contracted at -6.3% in the 4^th quarter of 2008.

Final GDP growth for 2Q 2009 will be released on September 30, 2009 at 8:30 a.m. ET. These release days tend to be very active on Wall Street. Negative GDP tends to cause sell-offs in the stock markets. Robust GDP growth reports spark rallies. Since the preliminary estimates were so much better than the 1Q 2009, it’s hard to imagine a big upward surprise, but still possible. Additionally, even though we know some of the numbers -- especially bank profits -- are fudged, it’s hard to imagine anyone coming clean with the real information. Thus a big downward adjustment would be surprising for investors. For more BEA release dates, go to the BEA.gov website and be sure to visit the NataliePace.com calendar section often.

EDUCATIONAL OPPORTUNITES AND INFORMATION:
1. FOMC Information: Interested in reading the press release of the August 11-12, 2009 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 2009 calendar is: September 22-23, 2009 (Tuesday-Wednesday), November 3-4, 2009 (Tuesday-Wednesday), December 15-16, 2009 (Tuesday-Wednesday), January 26-27, 2010 (Tuesday-Wednesday), March 16 (Tuesday), April 27-28 (Tuesday-Wednesday), June 22-23 (Tuesday-Wednesday), August 10 (Tuesday), September 21 (Tuesday), November 2-3 (Tuesday-Wednesday), December 14 (Tuesday), January 25-26, 2011 (Tuesday-Wednesday).

2. 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, life coaches, 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 publication date of our next ezine. 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.

Don’t miss the Pace and Prosperity Show with Natalie Pace on BlogTalkRadio.com on Wednesday mornings at 9:00 a.m. PT. Get call-in and log-in instructions at BlogTalkRadio.com/NataliePace. This is a Q&A format, where you can call in or Twitter in your questions. Be sure to write down your most pressing questions now, and become a friend to Natalie Pace on Twitter at Twitter.com/NataliePace, so that you can Tweet on the show.

3. Survey Results: Each month we have three new surveys so that we can stay in touch with your needs and desires. Cast your vote on our survey page! What are your thoughts on the current health care debate? We want to know! So far, only 10% of our readers think the Obama Health Insurance Reform Plan should be passed right away. 40% think we need reform, but the Obama plan isn’t it. Weigh in! Also, as part of our own analysis on whether or not there will be a Santa Rally this year, please tell us about your holiday plans.

4. Euro interest rates: ECB rates are at 1.00% (main refinancing), 1.75% (marginal lending) and 0.25% (deposit facility). The next meeting and interest rate announcement is scheduled for September 3, 2009 at 2:30 p.m. CET. (September 17, 2009 after that.)

Hot Stocks List
Investors who "never pay retail," note that the BOLD 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. (If the stocks are not highlighted, then in our estimation, this is not a good time to buy. Reasons are explained in the news commentary.) 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. And remember that these "Stocks on Steroids" are not intended to be part of your nest egg strategy at all – not even for "pros." If you’ve never traded individual stocks before, this is your "fun" or "education" money. You should not stake your future on anything that you don’t have mastery over.

Hot News List (highlighted).  Be sure that you are buying low.
None

Profit-Taking (Take your profits early and often):
KCI Concepts (KCI) +61%
LDK (LDK) +85%
New Zealand Dollar Currency ETF (BNZ) +27%
U.S. Gold (UXG) +598%

DELETIONS (Take your profits early and often):
Smith and Nephew (SNN) 8.15.09

HOT NEWS on COOL STOCKS LIST

Recently Deleted Companies 2008/2009:
Echelon +20%, GE, +13% and +18%, Google, +15% and +31%, Johnson & Johnson +10%, LDK Solar +18%, Microsoft +12%, Satcon +13%, Suntech +35%, Trina Solar +22%, World Water & Solar +22%. Genentech (8.1.08) +40%. Altair (deleted on 8.7.08) posted gains of +3% and +57%. Zoltek (deleted on 8.18.08) lost 30% before being removed. LDK Solar was deleted on 9.2.08 with 46% and 29% profits. U.S. Gold profit taking on 11.6.08 amounted to 72% gains. Conergy gains of 51% were taken on 11.7.08. American Superconductor posted 50% gains between 12.1 and 1.14.09. MEMC Electronics (WFR) had 21% gains between 12.1 and 12.15.08. STP had gains of 69% between 12.1.08 and 1.2.09. SQM profits 20% on 1.14.09. WWAT was deleted on 2.1.09 with -62% losses. On 2.15.09, AMSC had gains of 65%, MEMC Electronics 26%, Sociedad de Quimica y Minera 48% and U.S. Gold 432%. Citigroup gains of 42% on 3.15.09. Genentech was deleted on 3.15.09 with gains of 29%. OSI Pharmaceuticals was deleted on 3.15.09 with 7% gains. Rio Tinto was deleted on 3.27.09 with gains of 67%. On 3.27.09, the following companies were in the money: ALTI (+48%), AMSC (+51%), eBay (+24%), GE (+40%), HOKU (+38%), LDK (+46%), MEMC (+44%), PBW (+35%), SATC (+42%), SQM (+76%), STP (+211%), TSL (+207%), U.S. Gold (+456%) and WBK (+25%). Profit-taking 4.13.09: ALTI +209%, AMSC +70%, HOKU +32%, LDK +64%, PBW +42%, SQM +42%, UXG+418%. Deleted 4.13.09: eBay, +45%, Eurox -11%, GE +47% & -56%, Google +9%, Maxwell +25%, MEMC Electronics -33% & +49%, Microsoft +24%, SATC +67%. STP +262% & -64%, TSL +216% & -67%, Westpac +42% & -22%. Deleted 5.4.09: FMC Corp. with 19% gains. PZD with losses of -39%. SPWRA with 19% gains. TREMX with 50% losses. WSDT with losses of -59%. Deteled 5.15.09: SQM with gains of 38% and 62%. Deleted 5.31.09: EMKR with losses of 13% and 88% and Melco with losses of 8%. Ener1 with gains of 11% and 17%. Deleted 7.20.09: Conergy with losses of -52-98%. Deleted Smith and Nephew on 8.15.09 with gains of 17% and losses of 28%.

Recently Deleted from the Hot News list:
Smith and Nephew (SNN) 8.15.09

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!  

Note that right now most of our favorite companies are on the Watch List, anticipating continued weakening of the stock market, and share prices.

Recent Additions:
Eldorado Gold
First Solar

Recent Deletions:
Netgear (NTGR)

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):
American Express (AXP)
Apple (APPL)
Applied Materials (AMAT)
Capital One (COF)
Intel (INTC)
Medtronic (MDT)
Taubman Centers REIT (TCO)
Time Warner (TWX)

DELETIONS:
First Solar (FSLR)

Recently Deleted in 2008/2009:

Fannie Mae was deleted on 2.11.08 after losing -50% and -56% of its share price value, and then again on 7.1.08, after losing another -40%. (Both puts more than doubled.) Novastar Financial (NFI) was deleted on 6.2.08 with -95% share price implosion. Sears Holding Corp. was deleted on 7.1.08 with 64% gains on the put option. Wells Fargo was deleted on 7.1.08 with 83% gains on the put. Apple was deleted on 8.1.08 with 35% gains on the put. The Google put, deleted on 8.1.08, was another great performer, with over 50% gains. First Solar had gains of over 32-34%. Mentor was deleted on 9.30.08 with 75% gains on the put option (-17% on the share price); Medicis was deleted with gains of over 37% on the share price (down direction). Boston Properties, Las Vegas Sands and Macerich were deleted on 10.9.08 with gains of 16-30%, 66% and 28-42% respectively. Wells Fargo was deleted on 11.6.08 with 35-50% gains on the put and again on 12.1.08 for 50-70% gains. American Express posted 35% gains in just 30 days, between 2.1.09 and 3.2.09. First Solar was deleted on 8.13.09 with 33% gains.

IMPORTANT DISCLAIMER (PLEASE READ):

Please note: NataliePace.com does not act or operate like a broker. We report on financial news, and are one of the most trusted independently owned and operated financial news corporations in the U.S. This article is intended to educate and inform individual investors, and, thus, to give investors a competitive edge in their personal decision-making. The publicly traded companies mentioned in this article are not intended to be buy or sell recommendations. ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies.

Investors should NOT be using the Hot News on Cool Stocks list or the Cooling Off list to trade their nest eggs. Your retirement plan should reflect a long, safe strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience.

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 the Weekly Pace and Prosperity Show on BlogTalkRadio.com. Need help negotiating down your debt? Get the solutions you need! Also, tons of green conferences, including the Solar Decathlon in D.C.!

The NataliePace.com Calendar section features conferences, teleconferences, retreats, educational opportunities, cultural events, galas, market events and online chats with executives and VIPs. Stay plugged in! We add online chats, article updates, teleconferences, etc. as they are booked, so be sure to visit the calendar section early and often.  Below is only a partial listing of what’s happening this month.

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.

Pace and Prosperity Show: Drowning in Debt?
Wednesday, September 2nd, 2009
9:00AM through 9:30AM PT
Out of work? Out of money? Behind on your payments? Need creative solutions? Let's talk about possibilities and how to get your dream come true life back on track. Join financial guru Natalie Pace at BlogTalkRadio.com/ NataliePace to get real solutions!

Labor Day
Monday, September 7th, 2009
Have a great celebration on the official end of summer fun!

Teleconference with Natalie Pace
Wednesday, September 9th, 2009
5:00PM through 5:30PM PT
Retreat attendees will be treated to a FREE teleconference. Our gift to you for supporting us! Will there be a Santa Rally this year or will October be the downer it was in 2007 and 2008? What about loan mod scams? Learn this and more!

Pace and Prosperity. Activate Your Dream Come True Life.
Wednesday, September 9th, 2009
9:00AM through 9:30AM PT
Out of work? Out of money? Behind on your payments? Need creative solutions? Let's talk about possibilities and how to get your dream come true life back on track.

The Elixir of Love, Los Angeles Opera
Saturday, September 12th, 2009
7:30PM through 11:00PM PT
The Elixir of Love is a beloved opera of Gaetano Donizetti. Giuseppe Filianoti stars as the lovesick Nemorino in search of a magic potion to capture the heart of Adina, performed by Nino Machaidze in her U.S. debut. Executive director is the Maestro Placido Domingo!

19th Annual California Public Finance Conference, Carlsbad, CA
Monday, September 14th, 2009
7:00AM through 9:00PM PT
The Bond Buyer's 19th Annual California Public Finance Conference (September 14-16, 2009 in Carlsbad, CA) presents the best opportunity to learn from, and network with, senior issuers and municipal finance professionals who are committed to the revitalization of California.

Mid-Month Update: Hot News on Cool Stocks
Monday, September 14th, 2009
12:00PM through 11:00PM PT
The Hot News on Cool Stocks news report will be published online after the markets close.

International Day of Peace
Monday, September 21st, 2009
The UN's International Day of Peace is a global holiday when individuals, communities, nations and governments highlight efforts to end conflict and promote peace.

FOMC Meeting
Tuesday, September 22nd, 2009
8:00AM through 5:00PM ET
The Federal Reserve Board governors meet to determine how best to stimulate the economy.

Women's Leadership Exchange Conference in Orlando, FL
Tuesday, September 22nd, 2009
7:30AM through 6:30PM ET
Network with business leaders and celebrities, sharing best business and life strategies! Call 888-937-5800 for more info.

Clinton Global Imitative Conference, NYC
Tuesday, September 22nd, 2009
7:00AM through 9:00PM ET
The Clinton Global Initiative (CGI) Annual Meeting is the only venue where business, government, and civil-sector leaders work together to plan and launch specific projects – Commitments to Action.

Guerilla Gourmet Dining, LA, CA
Friday, September 25th, 2009
6:00PM through 10:00PM PT
The ultimate foodie evening...five course meal, wine pairings by Palmer Emmitt , music, art all taking place in a gorgeous backyard in Hancock Park (you will find out the secret location when you get your tickets). Proceeds benefit Street Poets.

Wagner's Siegfried at LA Opera
Saturday, September 26th, 2009
7:00PM through 11:00PM PT
The most magical installment of Wagner's Ring cycle, in Achim Freyer's visionary production, features the young hero Siegfried (John Treleaven) slaying a dragon with a supernatural sword, claiming the ring and discovering love.

Final GDP 2Q 2009 Report
Wednesday, September 30th, 2009
8:30AM through 8:45AM ET
The U.S. Dept. of Commerce, Bureau of Economic Analysis (BEA.gov) releases its final report on GDP growth in the 2nd quarter of 2009. Final numbers for 1Q GDP growth came in at -5.5%.

Thomas Hampson at LA Opera
Saturday, October 3rd, 2009
7:30PM through 11:00PM PT
Exult in the rich, magisterial quality of opera singer Thomas Hampson's baritone.

The Women's Conference, Long Beach, CA
Tuesday, October 6th, 2009
7:30AM through 6:30PM PT
California First Lady Maria Shriver hosts a 2-day celebration for transformation, where women are encouraged to be architects of change. Speakers include Katie Couric, Ashton Kutcher, Sir Richard Branson, Caroline Kennedy and more!

Photo: Solar 2007 Decathlon Winning Home by Technische Universität Darmstadt

Solar Decathlon, Washington, D.C.
Friday, October 9th, 2009
Tour 20 solar homes in a special solar village during Oct 9 through Oct. 18, 2009. Homes are part of a competition between universities to design, build, and operate the most attractive and energy-efficient solar-powered home.

Sacred Valley Yoga Retreat (Peru)
Monday, October 12th, 2009
Discover the magical healing powers of the Andes in this 10-day transformative Yoga, Meditation and Shamanic Healing retreat in Peru's Sacred Valley. Put on by Bliss Yoga Center, Woodstock, NY.

Direct Marketing Association 2009 Convention, San Diego
Saturday, October 17th, 2009
Jay Leno and Martha Stewart keynote this Direct Marketing Conference and Exhibition. Digital this and interactive that. Search engines and social networks. New channels and next-generation strategies.

Solar Energy Conference, San Jose, CA
Monday, October 19th, 2009
Solar Power 2009 features over 210 exhibitors, 125 speakers, networking opportunities galore, and an anticipated 10,000 visitors! Every major solar company in the world, from STP, SPWR to GE Solar will be there on display!

Solar Power International 2009
Tuesday, October 27th, 2009
Robert F. Kennedy Jr. is confirmed to present "Green Gold Rush: A Vision for Energy Independence, Jobs, and National Wealth" on October 28 at Solar Power International 2009.

Opportunity Green Conference, LA, CA
Saturday, November 7th, 2009
Opportunity Green 2009 is a 2-day event focused on greening biz in a profitable way. Explore Product Innovation & Design for Sustainability, How Fortune 500's are Implementing Sustainability for Growth, Raising Investment Capital, Branding...

Greenbuild Conference, Phoenix, AZ
Wednesday, November 11th, 2009
Revolutionary Green: Innovations for Global Sustainability, hosted by the Green Building Council. This year, the keynote speaker is Archbishop Desmond Tutu. Experts on the green building movement and green collar jobs.

Professional BusinessWomen of California 2009 Sacramento Conference
Tuesday, November 17th, 2009
Join the largest gathering of professional women in the Sacramento Area for a day of learning, networking and inspiration. Local and national experts will share the latest strategies for career advancement, leadership, communication, work/life balance and more. Network with state senators & CEOs!

Put Your Money Where Your Heart Is by Natalie Pace

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