Kill The Bill. What’s Missing from the Health Care Reform Debate.

by Natalie Pace.

Q&A with Dr. Gary Becker, Nobel Prize winning economist.

The health care reform debate is scheduled to begin in the Senate on Monday, December 1, 2009. However, the most important considerations are missing from the discussion, according to the Nobel Prize winning economist, Dr. Gary Becker.

Below is a conversation I had in the University of Chicago office of Dr. Gary Becker, on November 13, 2009. It was a crisp, cool Friday the 13^th, but the bad luck that will weigh upon the U.S. with the current health care reform bill is far from superstition. According to Dr. Becker, the bill, if passed, will not do much to help the uninsured, and could slow the recovery of an already fragile economy. On the other hand, the four steps that Dr. Becker suggests could go a long way to promote healthier Americans, better coverage and a healthier American bottom line, to boot.

Natalie Pace: The health reform debate is scheduled to begin in the Senate on November 30, 2009. Are you for or against the bill?

The health care bill is 1200 pages. I can’t say I’ve read it! I don’t know if it’s going to get passed. There is a lot of uncertainty in the Senate.

It’s safe to say that nobody is going to read 1200 pages, including the people in charge of trying to implement the plan…

There are a lot of things I don’t like about it. For example, reforms that I would have pushed are: 1) I would have separated health coverage from employment. This is one of the defects of the American system. Other countries do not have that. The bill doesn’t contain any change along those lines.

So that Americans don’t have to worry about loss of coverage and/or pre-existing conditions when they switch jobs, right?

Yes. 2) I would make it so that older people pay a bigger share of Medicare. Maybe we’ll get some of that, but so far, not much in that direction.

Older people who can afford to pay more, right, not every senior?

Right. 3) I would cover the uninsured by requiring them to buy catastrophic coverage. Most of the uninsured are young people, many with jobs, who decide it’s too costly to buy insurance. These people should be required to buy catastrophic insurance so that if they get seriously ill, the rest of us don’t have to support them.

That’s an interesting approach. Having younger people purchase at least catastrophic coverage is a source of revenue that has traditionally been overlooked. I’m hearing more of this now in the debate now, but with so many college grads out of work and living at home, I’m not sure that’s a burden they can bear…

We would continue to support the poorer members in that group with government subsidy. 4) I would encourage Health Savings Accounts.

Most of this is not in the present bill. I don’t think it’s a very good bill.

If you have the extra revenue of young people and the average person saving money for medical costs in a Health Savings Plan, that could go a long way to bridging the funding gap, couldn’t it?

I think it would be very useful. The great advantage of Health Savings Accounts is that if you don’t use it, you can carry it forward for many years. You can invest it. You have the incentive to economize health spending because your money keeps growing, earning gains and interest and you can carry it forward to retirement.

So… it becomes part of your net worth…

It gives you the incentive to economize your health spending to that which is really necessary. Health savings accounts work best with catastrophic health insurance, with a pretty big deductible, like $2000. Then you pay for the smaller expenses yourself. The bigger expenses are covered and if you can economize your spending, you can carry forward the money you don’t spend.

How can we help the Small Business Owners of America? They seem to be suffering the most these days.

I’m always in favor of lower taxes. We have a very high corporate income tax in the United States, one of the highest in the world. That should be cut, not increased. Instead of raising taxes on people with big incomes, I would cut those taxes and cut taxes in general.

Under the theory that money trickles down into the small business through spending?

I would stimulate the economy with tax cuts, not with government spending. There are a lot of problems with government spending. There are time lags. We authorized the stimulus spending a while back, but have only spent $150-$170 billion so far.

When you look at all of the free/easy money we’ve created, the boom/bust cycles of the past decade. What’s the next challenge going forward?

The economy did very well, overall, from 1990 to 2007. The average world economy over that period of time did very well. One should not minimize the accomplishments of that period.

But inflation is bound to be a problem in the future, don’t you think?

Inflation will be a problem, but not yet. We’ve created a lot of excess reserve. Inflation will become a problem when banks start lending a lot more, and money supply is increasing. Then you’ll get inflationary pressures. And then the Fed is going to have a challenge.

China and the amount of Treasury Bills they own. Is that an asset or a threat?

I don’t think it’s a threat. It ties them in with us. It’s a result of having big trade imbalances. The question is, "Is it good for China to have so much assets?"

Is it a bigger problem for China than it is for the U.S.? You’ve indicated in your blog that it wasn’t very good for Japan.

I think China has more assets than is good for the country. For the U.S., it’s a threat if they start trying to unload them. That will affect interest rates here. But they don’t have much of an incentive to do that. It’s the opposite. They are now tying their currency to the dollar. There is a lot of pressure to let the Yuan increase in value relative to other currencies. The Chief Economist says that China shouldn’t do that. I don’t think they have very good alternatives.

So, is it good for the world that China is saving so much, while the rest of the world is borrowing?

Americans are beginning to save more because they realize that housing prices are not going to keep rising forever. The market is down compared to its peak, so they’re going to increase their savings. I think that’s healthy. But China is still going to have a surplus with the U.S. in trading for a number of years going forward. When Japan had a surplus with the U.S. it wasn’t bad for the U.S. and I don’t think it’s bad for the U.S. now.

What happens if China starts unloading Treasury Bills?

Well, you’ll have higher interest rates. The price of the Treasury Bills goes down and interest rates go up. The price of the national debt becomes greater and the cost of borrowing money in general increases. We won’t be the only ones affected by that. The world will be. I don’t see that they have the incentive to do it though. What else are they going to do?

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." President George W. Bush awarded him the Presidential Medal of Freedom in 2007.

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.

About Natalie Pace:
Natalie Pace, is the author of You Vs. Wall Street and host of the Modern Girl’s Guide to Sex, Love and Money 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.

Best Holidays Gifts – From $10 to $1000.

by Staff.

The Latest and Greatest For Guys, Girls and Even Toddlers.

From iPhone, iPod and Pandora accessories to the latest Wii mania, make sure that you’re in the know on the latest/greatest in holiday options before you lock in on your gift!

Below are some great ideas that we hope will help you save money and get creative as well.

Top Gifts $10 Range
1. You Vs. Wall Street. The must-read financial Bible, according to readers, over half of which give it five out of five stars. The number one thing everyone wants this year is to save more, spend less, reduce debt and win on Wall Street. This book reveals how to grow what you’ve got and win back what you lost. Works as a great stocking stuffer for your college grad (who needs to learn how to budget better), gifts for your friends (to beat the Street) and maybe even something you’ll slip in your own stocking as well (financial wisdom is an asset that never goes down in value).

2. Sugar Scrub. If you’re willing to get your hands a little oily, one of the most desired gifts under the tree will be home-made sugar scrubs (for the gals) and massage oil (for the guys). Check your local Co-op or Costco for low-priced, high quality oils. Buy the plastic containers at your local dollar store. Spend 30 minutes making up a batch of eight! FYI: Don’t scrimp on the sugar, however, thinking that rock salt is cheaper. It burns when applied to shaved skin! I’ve listed the recipe at the end of this article.

3. The Alchemist and Warrior of the Light. Two exceptional books by Paolo Coelho. Great for the enlightened man in your life.

4. Massage and Pampering. Each year, we poll the guys on their top gift of choice, and time and time again it comes back the same. Massage and pampering. So, spend a few cents on a great piece of paper and a calligraphy pen to write up a Certificate for One Massage (without the kids), make some massage oil (recipe below), and give your sacred beloved companion a night he’ll never forget.

Top Gifts $20 Range
1. Norma’s cookbook. The most popular breakfast spot on the planet now reveals their orgasmic recipes. From Chocolate Decadence French Toast to the Zillion Dollar Lobster Frittata, this is a must-have for any gourmand. For those of you living in or visiting New York City, Norma’s is located in the Parker Meridien, two blocks from Central Park. Have your breakfast experience (but be sure to call in advance for reservations) and then walk off the calories...

2. Celebrity Cotton Shirts. 100% of the net profits of all Make It Right merchandise (which are sexy enough for Brad Pitt and Angelina Jolie to wear) go to building homes in New Orleans. While you’re on the Make It Right NOLA website, check out the world’s first new Floating Home that was designed by Brad Pitt’s architect Thom Mayne.

3. Wii Fit Plus. A fun and exciting way to experience fitness, with over 60 activities and exercises.

Top Gifts $50-$200 Range
1. Livio Radio featuring Pandora. Access Internet radio and Pandora through this portable radio. More importantly for guys, it has a jack that you can plug into a great speaker system.

2. New Winter Coat. I was recently shopping for a new winter coat and found an excellent designer wool for less money than I’d spent a decade ago! Wow. In fact, the price was so low that my boyfriend thought I was overlooking a zero. So, check out the amazing discounts (up to 40%) at your local department store.

3. Ferrari Store. Whether you’re into Ferrari sunglasses or a wallet for your guy or a Ferrari trike for your toddler, the Ferrari store can pack extra into ordinary.

4. iPhone/iPod speaker cube or clock radio. Whether you dock by your bed or want the portability of taking the cube with you into the bathroom, having a portable iPhone/iPod speaker device is a great gift for the Apple-phile!

5. Pearls. Almost every career woman can use a strand of pearls and some pearl earrings. A pair of inexpensive, daily wear pearls can be just the thing. (Purchase an extra set of faux pearls for extracurricular activities.) 

6. Handbags. Best to stick with her designer of choice, but for great prices and no need to visit the store, try shopping around online. My favorite handbag designer these days is Lazaro. 

7. Shoes. Sex and the City was eye candy for the shoe lover. You’ll know if your special love qualifies by the shoes she already wears and whether or not she drools when you leave the Giuseppe Zanotti page open on Overstock.com.

Top Gifts $1000 Range
1. 3-day investing retreat in Santa Monica, California with Natalie Pace. Last year, stocks were the top choice for women. This year, it’s getting a plan that works. My Get Rich and Enrich Retreat is a great way to spend three days at the beach in Santa Monica, California getting the budgeting and investing blueprint you need to get rich in the Bailout era. Just a dozen people in a boardroom setting. Better yet, reserve a seat for you and your spouse. You’ll love playing the Billionaire Game on the sand at sunset. Only a handful of seats remain for the March 27-29, 2009 Get Rich Retreat, so call 866.476.7442 or email Info@NataliePace.com to get more information now. Register before December 15, 2009 and receive the early bird price of $999/person (when two people register) or $1299/person, if coming solo.

2. Parker Palm Springs is offering a girls getaway for just $99/per person, with a four-girl minimum. If your special woman is in need of a getaway, the package includes a private yoga lesson, picnic and muddled lemonade (spiked Parker PS style).

3. Christmas in the Big Apple! The Parker Meridien is offering the lowest rates of the year — just $199/night from December 20, 2009 through December 25, 2009. Upgrade to a room with one of the best views of Central Park in the City. And enjoy NYC’s finest burgers in the burger joint and orgasmic breakfast at Norma’s. The Starlight Ballroom offers one of the most stunning views to get married in, in the world!

Surveys on my website indicate that most of us are spending less this holiday season. The good news about this year, however, is that most stores are discounting their goods significantly to attract your dollars – meaning, you might be able to spend a lot less and get much more than you bargained for!

This holiday season, I plan to...

Total Votes = 23

Luxurious, Scented Sugar Scrub
Ingredients
8 oz. avocado oil
8 oz. sweet almond oil
4 oz. jojoba oil
4 oz. Vitamin E oil
½ tsp. grapefruit seed extract
5 drops concentrated rose oil (or your favorite scent)
4 – 24 oz. packages of turbinado sugar (for the scrub)

Directions:
Mix oils together. Add 5 drops of scent and grapefruit seed extract.
Alternate pouring sugar and oil, sugar and oil into the plastic gift container, until 85% full. (You want enough oil to cover the sugar, but not to have free-floating oil on top.)

Decorate the container, and include the recipe (if you desire) when you give the scrub away as a gift (so your friends know that the oils are most luxurious than the standard salon brand). higher quality than the standard cheap oils used in the salon and over-the-counter brands).

WHERE TO BUY THE OILS and CONTAINERS:
Trader Joe’s has great prices on Vitamin E and jojoba oils. If you purchase the other oils through a grocery store (like a Coop or a natural food store), you’ll likely pay less than if you go to a designer potions and lotions shop. Also, I raid the local dollar store for plastic containers, and use my color printer to print out the labels!

OTHER TIPS:
This recipe uses only the finest oils. The sugar exfoliates the skin, while the oils replenish and soften. Designer scrubs can cost more than $25 for a small container, and they often rely upon inexpensive oil bases, which aren’t as luxurious for the skin and leave an oily residue. I prefer sugar to salt, since so many of us wax or shave. This does leave a slippery residue in the shower, so take care to wipe down the tub after using!

MASSAGE OIL for Guys:
Use the same recipe above. Substitute a more manly scent instead of the rose essence. I’ve found that lavender, rosemary and even melon-cucumber can work, but you know your beloved boy best! Pick a scent that will be appealing to him, and make sure that you’ve got an evening set aside to show him how it works! (And if you picked up the faux pearls – just $5 on Amazon -- include them in the fun package.)

Real Estate: Welcome To The Underworld.

by Steve Dietrich.

Time to Fix Your Loan!

Millions of American families have entered the world of Jules Verne, living in homes that are deep underwater. Data from Zillow indicates that about 25% of homes were underwater earlier this summer and prices have continued to decline. For many homeowners the decline in home values, coupled with the economic conditions, has significantly reduced their net worth and seriously affected their cash flow.

It’s time to stop the whimpering and denial and go to work on a program for the New Year.

Step 1: A Look Ahead – One of the difficulties in assessing the future market for single family residential properties is accounting for the impact of the Federal first time homebuyer program as it has existed, and how it will perform after the recently approved extension and modifications. In addition, tens of thousands of homeowners have been plucked from foreclosure with loan restructuring. However, the data indicates that a high percentage of these homeowners will re-default in the near term.

First American Core Logic, one of the more respected information sources, predicts that home prices will continue to decline through the first quarter of 2010. We believe that their data and methodology will prove to be more accurate than some of the more popular indices mentioned in the press. The good news is that they believe there is light at the end of the tunnel, beginning mid-2010.

Contrary to press reports, research has shown that homeowners have not been dumping underwater homes for economic reasons. Rather, several studies conclude that most foreclosures result from an inability to make the payments rather than an economic decision to abandon a home where the mortgage exceeds the market value. In short, a majority of the homeowners who owe more than their homes are worth are not abandoning them, yet.

We believe that there are several important considerations, which follow from this analysis. The first is that a number of families may be using credit card debt to bridge the shortfall between income and mortgage payments. If this is correct, these families are likely to reach the point where they have exhausted their credit limits and the mortgage problem may have morphed into a bankruptcy problem.

The second issue is that those whose homes are underwater, but on which they are making current loan payments, are likely to be very conservative spenders and may take in boarders. The end result is to dampen the recovery in both consumer demand and residential real estate. As a recent article by the staff of the Federal Reserve Bank of San Francisco notes, inflation adjusted household debt grew much faster than disposable income for a number of years, accelerating in the early 2000’s. Much of the new debt was mortgage related. Deleveraging can come through increased savings or relief from debt, which has significant impacts on businesses or the Federal Debt. There’s no easy answer.

Another issue affecting an increasing number of Americans is a long simmering loss of confidence in the motives of those in Washington and their ability and willingness to referee a free market economy. The disdain and anger is spread across political identities and geography. It raises the question, "Could 5 million families simply go on strike and file bankruptcy as a way of sending a message that taxpayers and small business owners need a bailout more than the fool-hardy banks and billionaire bankers?"

Today you have to take the news and de-spin it into reality. Recently headlines bragged that foreclosures were down 3% from the prior month, totaling about 330,000. Three percent of 330,000 is about 10,000. In the background the Feds were pushing more loans through restructuring, promising to expand and extend the homebuyer tax credits and encouraging banks to allow more breathing room. It appears reasonable to believe that without these external forces the number of foreclosures would have increased, not decreased.

The recent Chinese demands that America raise interest rates escaped the intellectual grasp of most of the editors in the U.S. The Chinese continued, complaining that America’s low interest rates were encouraging an international bubble. Why is this of concern to China? For two reasons: First, the buying power of their vast holdings in dollars is falling with negative interest rates when adjusted for inflation and exchange rates.

The second and larger issue is that China is engaged in a worldwide campaign to buy sources of raw materials in order to provide an assured supply in the future. Low American interest rates are inflating prices, just as the excesses in both the government agencies and private sector inflated the housing bubble.

It is likely that the era of low interest rates will end in 2010. If history repeats itself, the shift will be sudden. We believe that in a year or two we will look back on 2009 as a time of incredibly cheap money.

One of the most under-reported stories of the current economic downturn is its impact on many single, professional mothers. Many have gone from six digit incomes to hiding from the nightly barrage of creditor calls. Their jobs have been downsized, outsourced or simply eliminated. Gone too are the company benefits. The 2009 job options are limited and many are finding two jobs are essential to survival. For too many, survival may mean bankruptcy.

Step 2: Damage Control – The net result of constrained consumer purchases and limited demand for residential real estate is likely to be a very sluggish recovery, especially in areas like Southern California.

During the downturn, homeowners have been subjected to extensive social pressure to "man up" to their obligations to pay their loans and threatened with draconian damage to their credit should they default on their loans or suffer a foreclosure. If you listen carefully, these are the same execs of the bailed out companies, who hand out tens of billions of bonuses to the wizards who created this mess, and of course the same VIPs who see corporate bankruptcy as a planning and restructuring tool. In other words, they are intimidating you not to employ a strategy that they would be using, if they were in your shoes.

A short sale may appear be a win-win situation. However, borrowers must have counsel from the inception of the process. The counsel should be very experienced in the areas of concern (foreclosure, bankruptcy, short sale etc). Clients can help their professionals by being organized, focused and prepared. Step 2 is to listen very carefully, and Step 3 is to follow-up on any requests for information or decisions.

A number of lenders are requiring the borrowers to execute debt instruments for any shortfall between the loan balance and the net proceeds from the short sale. The borrower is not relieved of the obligation and will thus have both the short sale and the remaining debt obligation on their credit.

Any short sale agreement should include language specifying that as part of the transaction, the lender(s) will relieve the homeowner of any further obligation on the debt. Otherwise, you can look forward to the bank selling your shortfall to a collection agency, which will hound you to pay it off. Not really a short sale at all, when you think about it. Could even be MORE money when you factor in the interest and penalties the collector will charge you.

Unfortunately for California borrowers, a new state law to protect borrowers from unscrupulous loan modification schemes was hijacked by the lending industry and modified to make it very difficult for borrowers to obtain advice and assistance on issues relating to their financial problems without hiring an attorney or counselor approved by the State.

Foreclosure laws vary by state, but bankruptcies are governed by Federal law. For those with problems, the Nolo Press website and books on foreclosure and bankruptcy are highly recommended. However, as government programs change, some of the blog comments may be out of date.

Our advice for those experiencing severe financial stress is to explore all of the alternatives, including putting the unthinkable on the table for consideration. Before seriously considering this you need to have both a good book and competent counsel. Doing some homework first will save attorney fees and take the mystery out of the process.

For the vast majority of Americans the times are difficult, but not terminal. The first rule is do no further harm. Avoid the false promises of an easy cure. Get creative. And know that with wise counsel and smart moves in the right direction, this too shall pass.

Join Steve Dietrich on the Modern Girls’ Guide to Sex, Love and Money Show December 16, 2009. Before you throw in the towel on your mortgage, chat through some alternatives with Steve Dietrich and Natalie Pace. Go to BlogTalkRadio.com/NataliePace for call-in information. Log-on to chat your Questions during the show.

About Steve Dietrich
Steve Dietrich is the President of Financial Research Group. Since its formation in 1970, Financial Research Group (FRG) has provided sophisticated real estate development and consulting services to its institutional, corporate and real estate clients. Steve is a former guest lecturer at the Anderson Graduate School of Business at UCLA. He graduated from UCLA, and received his MBA from Harvard University.

Gold Will Hit $5,000 an Ounce, According to 20-year Veteran Gold CEO Rob McEwen.

by Natalie Pace.

Learn 10 Ways to Build Your Personal Fort Knox.

On November 11, 2009, U.S. Gold Chairman and CEO Rob McEWen joined me on BlogTalkRadio to discuss his predictions that gold will hit $5000/ounce before the current run-up is over. After I picked myself off of the floor, I managed to squeeze in a few important questions on when that run-up will occur, what signs we will see beforehand and how McEwen’s company, U.S. Gold, plans to capitalize upon that prediction. With promising discoveries in Mexico (silver) and Nevada (gold), is U.S. Gold ready to start mining? To be bought out? To close down for the winter?

Listen to my complete 45-minute, exclusive Q&A with U.S. Gold Chairman and CEO Rob McEwen on BlogTalkRadio/NataliePace. And read McEWen’s Tips below for striking your own personal gold mine by investing in this precious metal.

11 Ways to Build Your Own Fort Knox
1. Know your buy-ins and pullbacks, Gold is trading in the $1100/ounce range, up over 40% this year and over four times as high as the $250/ounce price of 2002. So, is it too late to invest in gold or gold mining companies? Not according to Rob McEwen. Mr. McEwen believes that gold will hit $2000 before the end of 2010 and $5000 before the current run-up in price is over. Stagger your price points to ensure that you capture the lowest price of this year and next. And, of course, if Mr. McEwen is wrong, it won’t be the first time that a Wall Street prediction went awry. Never bet the farm on any one asset.

2. Watch what the central banks do. Large purchases or sales establish the price of gold. The Bank of England sold the last of its gold at $250/ounce in 2002, anchoring this as the price point for most of that year. India purchased 200 tons of gold in November of this year, pushing gold to its current record high. Will China, Asia, Russia, Saudi Arabia and Middle Eastern Sovereign funds follow India’s lead into gold, reinforcing the view that the economies of Europe and the U.S. have "collapsed" and gold is money?

3. Gold is money. In the past, gold prices were seasonal – linked to jewelry trends, i.e. strong in the first of the year (Valentine’s Day) and the last quarter (Christmas), with a lull over the summer. In this decade, however, prices have been more directly linked with Central Bank buying and selling than seasonal consumer trends.

According to Rob McEwen, "Gold is money! Governments are trying to solve issues by printing money, but our dollars will buy less at the end of the day. We have to protect our own currency because governments around the world are not prepared to do that."

4. Stability Counts. Rob McEwen notes that when purchasing U.S. Gold, he wanted to explore in a country where his company wouldn’t be taken away with a "machine gun stuck in his chest." Which countries are most vulnerable to corruption and violence? McEwen avoids Africa and parts of the former Soviet Union. You can see which countries your gold mining company mines in online. You can also check out property rights, business friendliness and more in the 2009 Index of Economic Freedom (a publication of the Heritage Foundation).

5. Know the cycle of the mining company. When a company makes a discovery, the share price explodes. As a company goes through the lengthy process of putting the discovery into production – raising additional capital, filing permits, etc., according to McEwen, there tends to be a three-year delay of game for shareholders in the U.S. and about two years in Mexico. If everything turns up on time and on budget, share price can start appreciating again. If not, the price can lag even further.

6. U.S. Gold’s life cycle? With recent discoveries of silver in Mexico and gold in Nevada, McEwen predicts that viability studies will start becoming news for U.S. Gold in the first quarter of 2010. He also warns that it took 17 years to build up Goldcorp, the corporation he took from $50 million market cap to $8 billion. Although U.S. Gold is currently not for sale, McEwen did affirm that he would consider any viable offer that crosses his desk.

7. U.S. gold is an exploration company, i.e. not mining or selling gold to the Central Banks (yet). So why should investors have interest in the company? According to Rob McEwen, "U.S. Gold is well located and has a large land package in Nevada next to a large discovery. We have found gold similar to that discovery. We have a big silver discovery in Mexico that has been growing in size and looks to have considerable room to grow from here. We have plenty of cash, $50 million, and no debt. I own 21% of the company. I don’t take a salary. The way I make money is the same way my shareholders make money – though a higher share price."

8. CEO Rob McEwen tapped new reserves with Goldcorp, and even founded the "Goldcorp Principle," an open source method of locating new reserves. So, if anyone can take an exploration company through to a nice payday for shareholders, he’s the man… Rob McEwen: "I happen to like the exploration area because when you do make a discovery, you can have very big runs in your share price. But it comes with a risk. Goldcorp was based on a fabulous discovery."

9. What are the signs of a bubble in gold? Some of the markers for a "bubble" are 1) If you see a rush of new issues coming in any industry; 2) There are all sorts of people excited about the sector, and; 3) investment bankers are all over the deal. "Within a short period of that, they will have satisfied the market and that is when we are getting close to an interim top," according to McEwen. Hmmm. Anyone remember the New Economy of 2000 and real estate 2005?

So, are investment bankers knocking on McEwen’s door these days? McEwen: "They haven’t. You’re just starting to see some issues. Back in 2007, any company with gold in their name could raise money."

10. Bubbles can move higher very quickly. Gold went from $40 an ounce to $850 ounce between 1970 and 1980. Half of that move occurred in four months time, between Sept. 1979 and January of 1980. So, don’t be in a rush to jump out before the fever really starts.

Listen to my complete, exclusive Q&A with U.S. Gold Chairman and CEO Rob McEwen on BlogTalkRadio/NataliePace for additional information.

About Rob McEwen:
Rob McEwen is Chairman and CEO of US Gold. Previously, McEwen was the founder and former Chairman and CEO of Goldcorp Inc. Goldcorp’s Red Lake Mine in northwestern Ontario, Canada is still considered to be the richest gold mine in the world. During his tenure at Goldcorp, McEwen transformed the company from a collection of small companies into a mining powerhouse, growing its market capitalization from US $50 million to approximately $8 billion. More importantly, the shares of the company produced a compounded annual growth rate of 32%.

Full Disclosure: Natalie Pace owns positions in U.S. Gold and Rob McEwen owns 21% of the company.

About Natalie Pace:
Natalie Pace, is the author of You Vs. Wall Street and host of the Modern Girl’s Guide to Sex, Love and Money 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.

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 all in on any asset class, including gold. 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.

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AOL. From Bomb of the New Economy to Deal of the Decade.

by Natalie Pace.

Includes a New Media Stock Report Card.

On December 9, 2009, AOL will spin off from Time-Warner. This is quite a third act for the company, after the colossal mess that Gerald Levine and Stephen Case created when AOL decided to swallow up Time-Warner in an over-valued deal, worth $164 billion (at the time, on paper). By 2002, the combined company was forced to write off $99 billion of its value, and today, AOL would be lucky to get anyone to bid $3 billion for it. Needless to say, though original AOL investors won’t be laughing anytime in the near future, historians and prosperity will forever view the original deal as the LOL of the New Economy.

So, why do I think that the newly independent AOL is the deal of the decade? The AOL Media Network is now attracting more unique viewers than YouTube.com, ranked at #6 in the most trafficked web site in the United States above YouTube (at #7). With both video-rich media companies in the top 10 most popular U.S. sites, it’s easy to see that Case and Levine were right on the money that television and movies would migrate online. They were just too early – and pie-eyed with their pricing.

The real question going forward is, "Can #7 most-trafficked site AOL beef up advertising revenue before they lose all of their subscribers (leftovers from their dial-up service)?" Below are a few reasons why I think AOL is poised to do just that.

1. Ad Revenue: AOL just hired away Tim Armstrong from Google as Chairman and CEO of the new AOL. According to Time-Warner Chairman and CEO Jeff Bewkes, "Tim is the right executive to move AOL into the next phase of its evolution. At Google, Armstrong helped build one of the most successful media teams in the history of the Internet -- helping to make Google the most popular online search advertising platform in the world for direct and brand marketers. He's an advertising pioneer with a stellar reputation and proven track record." Tim knows how to monetize online.
   
   
2. Ad Revenue: Online advertising has proven very resilient in the deflationary depression we are currently experiencing. While U.S. ad revenue was down 15.4% in the first half of 2009, online advertising revenue was only down 1% (source: The Nielsen Company). And third quarter revenue reports show Internet advertising revenue inched up 1.7%, to $5.5 billion for the 3^rd quarter.

Year-to-Year Change in Ad Spend, by Media

Media Category	First Half 2009 vs. First Half 2008 Change
Cable TV	1.5%
Spanish Language Cable TV	0.6%
Internet	-1.0%
FSI Coupon	-5.5%
Network TV	-7.0%
Network Radio	-9.0%
Spot Radio	-9.1%
Spanish Language TV	-10.1%
Syndication TV	-11.6%
Local Newspaper	-13.2%
Outdoor	-14.9%
Spot TV 101-210 DMAs	-17.4%
National Magazine	-21.2%
National Sunday Supplement	-22.4%
National Newspaper	-22.8%
Local Magazine	-25.4%
B-to-B Magazines	-31.8%
Spot TV Top 100 DMAs	-32.1%
Local Sunday Supplements	-45.7%
Grand Total	-15.4%
Source: The Nielsen Company ** Internet advertising expenditures account for CPM-based, image-based advertising. These reported estimated expenditures do not account for paid search advertising, text only, paid fee services, performance-based campaigns, sponsorships, barters, in-stream ("pre-rolls") players, messenger applications, partnership advertising, promotions and email campaigns, compound image/text ad or house advertising activity.

 

3. Ad Revenue: Preliminary estimates put the market value of AOL (post spin-off) at $2.5 billion market cap (approximately), based upon Time-Warner shareholders receiving one share of AOL for every 11 shares of Time-Warner owned (as of December 9, 2009). 110 million shares at $23/share (the current price of AOL) = $2.53 billion. Considering that AOL generated $2.448 billion in revenue in the first three quarters of 2009, this makes AOL desirable as a takeover target for any mega=corporation looking for cash flow.
   
   
4. Ad Revenue: Internet advertising revenues totaled $23.4 billion in 2008 (Source: IAB). AOL’s new position online, in the top 10 most trafficked sites, means they can eat a little more of that pie, especially with the help of their partner, Google.
   
   
5. The Google Glow: AOL is in an excellent position, partly due to its partnership with Google, to ring up more search and advertising revenue. The Google partnership dropped $422 million into AOL’s top line in the first three quarters of 2009. Under Armstrong’s leadership, this has a potential to be maximized even further, since Armstrong ran Google’s American Operations, during a period (from 2000-2009) when Google ad revenue grew from zero to $22.7 billion. Additionally, since Google’s exclusive search contract with AOL ends on December 19, 2010, high profile wooing from other top search engines could commence almost immediately.
   
   
6. Holdings: In addition to AOL, the company holdings include Mapquest and Moviefone, making AOL an attractive takeover target.The combined AOL Media Companies attract more eyes than YouTube, Fox Interactive Media (which includes Hulu and MySpace), Wikipedia and Apple.
   
   
7. Board: Tim Armstrong is not exaggerating when he brags that the newly formed AOL board will be "on a mission to help create the future of media and content." Board members include: James A. Wiatt, former chairman and CEO of the William Morris Agency (1999-2009); Michael K. Powell, former Chairman of the FCC (and son of Colin Powell); Richard L. Dalzell, the former SVP and Chief Information Officer of Amazon; Patricia E. Mitchell, the former President and Chief Executive Officer of The Paley Center for Media and President and CEO of the Public Broadcasting Service from 2000 to 2006.

Time-Warner is hurting as a corporation -- on many fronts, from losses in its pension portfolio, to losses in advertising revenue. However, despite the colossal challenges of losing almost 80% of its girth (and all of the shareholder lawsuits and Carl Icahn temper tantrums that accompany that), one thing that remains strong and desirable is Time-Warner content. From People, Time, Sports Illustrated and Fortune magazines to HBO in television, and film hits like the Harry Potter series and The Hangover, Time-Warner seems to have a corner on what people most want to see, experience, read and watch. As a separate entity that is close to Time-Warner (with lots of mutual shareholders and ownership), AOL is in a fantastic position to become a content leader on the web, much like Hulu has maximized its relationship with Fox and NBC. AOL is in a fantastic position to continue to rule the web.

Trading for AOL is going on now on a "when issued" basis, in advance of the December 9, 2009 official day of AOL Independence. The price has already dropped 15%, from $27 to $23. This came in the wake of an announcement that AOL will take a $200 million restructuring hit and lay off approximately 1/3 of its staff in the near future. Additional concerns include analyst warnings that earnings at AOL will continue to shrink in 2010, and potentially as far into the future as 2014. However, by my calculations, the two things that many analysts are undervaluing are the monetization capabilities of the board and CEO, and the resilience of the Internet advertising space, compared to traditional media. It doesn’t take a genius to see how attractive Moviefone and AOL have become, or how utilitarian Mapquest (the #2 map site, behind Google maps) is.

While distress in the markets could adversely impact the share price in the short term, headlines going forward might well be the just how beautiful AOL looks – inside and out -- after its makeover under the magical touch of Tim Armstrong. AOL is starting to embrace all of the trademarks of Google: easy to use, best in its class, ads you want to click on and even a little heart. (AOL even has GNN – the Good News Network.)

Check out the New Media Stock Report Card for a line-up of the numbers of AOL, Google, Yahoo, Microsoft and Time-Warner. I added AOL to the Hot News list today. At the same time, I added Microsoft and Yahoo to the Cooling Off list. Read the comments for additional information.

Full Disclosure: I don’t own any positions in the companies mentioned in this article.

About Natalie Pace:
Natalie Pace, is the author of You Vs. Wall Street 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.

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.

Enthusiasm...

by Gary Kobat.

"...nothing great has ever been achieved without enthusiasm."
-Ralph Waldo Emerson

Actor Will Ferrell and Gary Kobat.

...suddenly one day we realize what our purpose is: we have vision, a goal, and from then on work toward implementing that goal...body composition, career, home, relationship:

something we enjoy being involved in already but on a smaller scale....this is where another layer of "awakened doing" arises: enthusiasm.

...enthusiasm means there is deep enjoyment in what we do, plus the added element of a goal, or vision that we work toward. When we add a goal to the enjoyment of what we do, the energy-field or frequency changes...a certain degree of structural tension is now added to enjoyment, and so it turns into enthusiasm. At the height of this creative activity, there will be enormous intensity, energy, and results behind what we do, laser-like, like an arrow that is moving toward a target.

...to an onlooker, it may appear that we are under stress but the intensity of enthusiasm has nothing to do with stress...unlike stress: enthusiasm has a high frequency and so resonates with the creative power of the universe

....the word enthusiasm comes from ancient Greek - en and theos, meaning god-like or "possessed by a god"

....with enthusiasm we will find we don’t have to do it all ourselves, in fact there is nothing of significance that we can do "all" by ourselves...

...enthusiasm always knows where it is going, but at the same time it is deeply at one with the present moment, the now, which is the source of its aliveness....

...remember: we cannot manifest what we want, we can only manifest what we already have .

…what target are you aimed at? do you have a big enough reason why you will achieve it?

train smart. live, race. recover smarter.

About Gary Kobat:
Gary is the tough-love Coach, no-nonsense Trainer, and World-Class Athlete whose energy for life has inspired, educated, and empowered lasting personal and professional change for thousands. He believes that we can re-invent ourselves by living life without-limits; understanding that the universe is full of infinite possibilities; that everything we need is inside: right here & right now; and by never, ever, ever giving-up.

Gary's client list includes the who's who in film, business, and sport. For the past decade he has quietly mentored the spirituality, health, and longevity of Jim Carrey, Will Ferrell, Mariska Hargitay, and countless others.

You can sign up for a free copy of Gary’s e-book at GaryKobat.com. Follow him on Facebook and Twitter for daily tweets of inspiration.

Don’t Invest in Things You Hate.

by Natalie Pace.

3 Ways to Avoid the Next Wall Street Disaster.

Photo Credit: Doug Mazell. Mazell.com. © 2008.

Tis the season to be jolly, and honestly that should be the attitude you take toward investing all year long. Why? Peter Lynch would say, "If you like the store, chances are you’ll love the stock." When you like something – a product, store, service, etc. -- a thousand things have gone right from the executive suite to the manufacturing plant to get the product on the shelf at a price you want to pay. Conversely, when you start loathing a product, a company or a service, those policies and deficiencies that you are despising are not just random. They are red flags of deep-rooted problems – a real corporate dis-ease/disease.

As a shopper, you have the "proof in the pudding." If it tastes rotten, it probably is. General Motors missed leading the charge for fuel efficiency because the management’s focus was trying to meet a $100 billion dollar debt obligation – instead of dreaming up the next Motor Trend Car of the Year (which the Prius won in 2004). Enron was gouging energy prices -- that resulted in some actual deaths in California, on purpose -- while Enron energy traders actually joked about the results of their nefarious deeds. On the other hand, the vast majority of Wall Street corporations make great products, file honest earnings reports, care about their employees and their customers and even try to give back to their communities.

Below are three easy ways you can stop being a sucker and start winning on Wall Street.

1. The Store Experience Sucks. When the earnings reports show increased earnings but the store is empty all of the time, you don’t have to read the full report to know it’s a lie. There is wisdom in the shopper, and as a shopper, you are getting the news months before it lands on the analyst’s desk in the form of an earnings report. If you align the shopping list with the investing list, you’ll get rich and enrich the world at the same time. You’ll always be invested in the leading companies on Wall Street, instead of having blind faith in (and being buried by) the Bailout Index. (Over 10% of the 30 companies in the leading Blue Chip Index were bailed out in 2008 and 2009.)
   
   
2. Hate Being the Sucker? If you can’t get to the shopping cart without the dial-up connection crashing (as happened for most Americans in 2000) and the Internet companies have been losing money for five years, NASDAQ is going to crash. When no one can afford to buy a home without fancy loan tricks, you’ve got prices that are unsustainable. When college students can borrow money to buy and flip homes in Florida, Arizona, Nevada and California with a few lies on the application, housing is at the brink of the cliff. When a hedge fund manager promises 12% gains each year, but refusing to provide details on where the returns are coming from and is late issuing the check, you’ve got a Madoff shyster on your hands. When the Sales Pitch Sounds Too Good To Be True, it probably is.

What unstable asset are you being suckered into buying today? Even bonds must be examined with a forensic eye, in a world where Chrysler and GM are bankrupt and municipalities are teetering on the cliff. And while "the stock market" has gained on the year, there is a significant difference between the returns of the younger companies that are concentrated in the NASDAQ 100 and the 30 components of the Dow Jones Industrial Average (many of which were bailed out and still vulnerable). NASDAQ rocketed to 35% gains in 2009 (as of November 16, 2009), while the Dow muscled back to earn 15% this year (while still down 20% from the beginning of 2008).

3. Hate Losing Half of Your Nest Egg? Buy and Hold Doesn’t Work in a slow growth economy. You are poorer today than you were ten years ago, if you were employing the investment strategy so touted by the "gurus" (but not by the Nobel Prize winning economists). Buy and hold is not an investing strategy that the top money managers and top gainers on Wall Street are using. And if you haven’t heard the term "Modern Portfolio Theory" come out of your broker’s mouth, you’re staring right into the face of the problem of your investment strategy. It’s time to start resurrecting your nest egg, utilizing Modern Portfolio Theory, fund diversification (including four hot industries), annual rebalancing and common sense.
   
   This may sound complicated, but it’s easy as a pie chart. Using this three-part pie chart strategy, you would have captured 80 percent gains in NASDAQ at the beginning of 2000, and had limited exposure (less than 10% of your nest egg) to the 70 percent NASDAQ losses that occurred between 2000 and 2002. Real estate doubled between 2002 and 2007, and clean energy earned 60 cents on the dollar in 2007. That means every $100,000 becomes $180,000 during a NASDAQ boom period (such as between 1999 and 2000), or becomes $200,000 during a real estate rocket ship, or becomes $160,000 while invested in clean energy -- and most of these gains occurred in a single year! There are big gains to be made in this brave, new world.

Just as you can’t heal high blood pressure with the same old doughnuts, coffee and couch-potato plan, you are not going to get a better bottom line by sitting around, doing nothing and praying that things get better. You are the architect of your life, and it’s time to get smart.

Start with reading You Vs. Wall Street: Grow What You’ve Got and Win Back What You’ve Lost. If you want to create a plan immediately that will work for the rest of your life, register for my March 27, 2010 Get Rich and Enrich Retreats. Call 866.476.7442 or email info@NataliePace.com for details.

When Wall Street acts like the town drunk, they are driving your car with your gas. Main Street owns Wall Street. You own these companies in your investment plan (in those "funds and equities" in your 401K) and you own them now as a taxpayer (at least the ones that have been bailed out). So, if you want to send Wall Street to rehab, it's time to lay down a new set of rules of how the Street behaves with your hard-earned dollars. Curfew your investments in the status quo. Don’t invest in things you hate. Blind faith in Wall Street was as silly as giving the car keys to your teenager on prom night.

So have a little faith (not blind faith) that you can do this, if you just get the right tools and education.

You Vs. Wall Street teaches you how to win on Wall Street in any market -- bull or bear. Now is the time to choose wisdom over blind faith, to invest in winning companies and to whistle all the way to your local bailed out bank.

About You Vs. Wall Street
You Vs. Wall Street is a "must-read financial bible," and "just what some readers need to find themselves exponentially richer in the coming years," according to readers. Success Magazine writes: "Provides almost fool proof methods for growing wealth over the long haul." Dr. Gary Becker believes that "Many people, including educated men and women get into trouble when they neglect to follow simple and fundamental rules of the type provided in this book. This is why I recommend it with enthusiasm." Dr. Becker won the 1992 Nobel prize in economics, the Presidential Medal of Freedom in 2007 and is on staff at the University of Chicago.

About Natalie Pace:
Natalie Pace, is the author of You Vs. Wall Street and host of the Modern Girl’s Guide to Sex, Love and Money 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.

Ban Your Bra (at least part of the time).

by Dr. Anna Walden, ND, DNM, MH, CNHP, HealthWalk Vital Hematology.

Is Your Underwear Making You Sick?

A woman’s face and form is cherished not only by herself, but by society in general. Humans have followed fashion though the ages to enhance or downright alter physical appearance in order to achieve a particular type of beauty. We have crammed square toes into pointed shoes with high heels, and cinched waists and torsos into impossibly small sizes and shapes. And this particular invention, the corset has caused many women misery over centuries by exerting unnatural pressure on the soft organs, the circulatory system, and the ability to breathe. It is no wonder that women fainted so often "back in the day."

Although the corset was eventually rebelled against and forsaken; its near relative, the brassiere, has not loosened its grip in more ways than one. Any time there are constrictors of any kind on our bodies, the circulatory and lymphatic system are affected. The nutrients are brought to the tissue by vessels, which range in size from obvious to microscopic. Our blood is carrying nutrients to our cells and also carrying back waste products. Bathing the cells is the lymph fluid, which also contains cellular waste as well as nutrients, proteins, hormones, fats and sugars.

It is imperative that the lymph fluid is free flowing and not be allowed to stagnate. Otherwise the cells would be living in their own waste products unable to receive the necessary oxygen and nutrients. This fluid has been delivered through the capillary walls and can also return the same way. But not all of it. There is a significant portion, which wends its way back into the bloodstream by another path. And that path is the lymphatics. There are a series of valves that keep the lymph moving away from the point of origin; the blood in the veins have the heart to propel it on its way.

Lymph fluid has only passive help in its journey. The main mechanism to circulate the lymph fluid is from movement of the muscles. Lymph circulation also gets assistance from inhalation and from any kind of physical motion. This delicate system is what keeps us from swelling up. So any time there is pressure on the surface of the body, these systems are compromised. The research of David Moth demonstrated that even the lightest bras placed pressure on the lymphatic system.

So might this have a connection to more serious conditions such as cancer? We know that the incidence and mortality of breast cancer is highest in North America and northern Europe. The next highest is southern Europe and Latin America, and the lowest in Asia and Africa. Researchers Singer and Grismaijer observed the Maoris of New Zealand who have integrated with modern mainstream life of their country had the same incidence of breast cancer as the other women in the population. However the aboriginals of Australia have practically no breast cancer. These women are not integrated into westernized society and do not regularly wear bras. They learned that women from Japan and Fiji and many other cultures significantly increased their chances of developing breast cancer when they started wearing bras.

The European Journal of Cancer published a study that discovered that premenopausal women who do not wear bras are less than half as likely to get cancer as those who regularly wear a bra. A study done by Singer and Grismaier involving 4,500 women of our own culture and their bra wearing habits showed some amazing findings. Three out of four women who wore their bras 24 hours a day developed breast cancer. For women who wore their bra more than 12 hours a day, the chance of getting breast cancer was 1 in 7. For those who wore their bras less than 12 hours a day, the number plummeted to 1 in 152. For those who rarely or never wore a bra the incidence of breast cancer was 1 in 168.

Until further research is done, one thing is clear. There is significant evidence that many hours of wearing a bra can have a long term affect on the health of the breast and health in general. Why not play it safe and reduce the risk by reducing the hours of constriction?

To establish a breast health baseline and to get an understanding of your current overall health condition, come to HealthWalk for a Digital Infrared Thermal Imaging (DITI) of your breast and body. The procedure is FDA approved, non-invasive, has zero radiation and your scans are analyzed by specially trained MD’s certified by ACCT so that you have the most accurate assessment possible. At HealthWalk we have the technology, experience, supplements and products to support the wellbeing of your mind, body and spirit so that you and your body can be functioning at your highest potential. Please contact us through our website www.healthwalk.com, by email info@healthwalk.com, phone 760-929-1520 and come visit us in our integrated health center in Carlsbad, CA soon.

Join Dr. Anna Walden on the Modern Girl’s Guide to Sex, Love and Money show, hosted by Natalie Pace on Wednesday, December 9, 2009 at 9:00 a.m. PT. Go to BlogTalkRadio.com/NataliePace for call-in instructions.

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.

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

Municipal Bonds—Staying on the Safe Side of the Street in Rough Times.

A FINRA Investor Alert.

Municipal securities—often called "muni bonds"—are bonds issued by states, cities, counties and other governmental entities to raise money to build roads, schools and a host of other projects for the public good. FINRA and the Municipal Securities Rulemaking Board (MSRB) are issuing this Alert to remind investors that while munis have historically been considered relatively conservative investments, they do, like all bond investments, carry risk. As some state and local jurisdictions struggle with the fall-out from current economic conditions, investors should be aware that:

• Defaults, while quite rare, do occur.
• Information about financial problems that affect the bond’s issuer has not always been readily available to investors.
• The current market value of a municipal bond may be hard to determine because many municipal bonds trade infrequently.
• A bond’s market value may change for reasons having nothing to do with the financial condition of the issuer, such as a change in interest rates.
• In cases where an issuer has purchased bond insurance or some other protection feature, the higher overall credit rating of a bond may be more reflective of that protection than of the financial condition of the issuer.

Investors considering an investment in municipal bonds should bear in mind that no two municipal bonds are created equal—and they should carefully evaluate each investment, being sure to obtain up-to-date information about both the bond and its issuer. This Alert describes the basics of municipal bonds, lists smart tips for considering a muni investment and provides links to helpful resources—including a new Investor Checklist, FINRA’s Smart Investing in Bonds and the MSRB’s EMMA website —to help investors avoid some of the most common pitfalls of municipal bond investing.

Muni Bond Basics
Municipal bonds generally pay a specified amount of interest (usually semiannually) and return the principal to you on a specific maturity date. One key reason many individual investors buy municipal bonds is the tax benefits: interest on the vast majority of municipal bonds is free of federal income tax, and if you live in the state or city issuing the bond, you may also be exempt from state or city taxes on your interest income.

There are two common types of municipal bonds:

• General Obligation Bonds, referred to as GO bonds, are issued by states, cities or counties. They are backed by the "full faith and credit" of the government entity issuing the bonds. The creditworthiness of GO bonds is based primarily on the economic strength of the issuer's tax base.

• Revenue Bonds are backed solely by fees or other revenue generated or collected by a facility, such as tolls from a bridge or road, or leasing fees. Bonds that are backed by a specific tax or assessment of a government entity, such as a tourist tax or other special tax or assessment, also are often considered to be revenue bonds. Unlike GO bonds, revenue bonds are not backed by the full faith and credit of the government entity issuing the bonds. Instead, the creditworthiness of revenue bonds depends on the financial success of the specific project they are issued to fund, on the revenues of a specific operational component of the government entity, or on the amounts raised by a specific tax or special assessment.

Historically, very few muni bonds have gone into default. But defaults can occur. Defaults tend to be higher for revenue bonds than for GO bonds—especially those that back private-use projects such as nursing homes, hospitals or toll roads.

Investors can buy and sell municipal bonds when they are initially issued or in the secondary market through the approximately 2,200 FINRA-registered firms and banks registered with the Securities and Exchange Commission as brokers or dealers in municipal securities. It is important to work with a broker and firm you trust. The firm and broker should have muni bond experience, and the broker should have the skills to conduct an analysis of the credit quality of the municipal investment.

Risk Factors
When it comes to evaluating a municipal bond, a major focus should be on the issuer’s ability to meet its financial obligations. A key question to ask is: How likely is the bond’s issuer to default? This is referred to as "default risk."

One way to evaluate an issuer’s default risk is to assess its financial condition. When a muni bond issuer offers a new bond for sale, it usually discloses the details of the offering and information about its financial condition in the bond’s "official statement" (analogous to the prospectus used for corporate securities offerings). This information is typically updated each year—and also from time-to-time through "material events notices" concerning, for example, delinquency in principal and interest payments, other types of defaults, rating changes, events affecting the tax-exempt status of the bond, bond calls and other events.

These disclosures have historically been difficult and expensive for muni bond investors to obtain. Unlike publicly traded companies that issue stocks and bonds, muni bond issuers are generally exempt from registering their securities with the Securities and Exchange Commission and do not file ongoing disclosures, including audited financial statements, with any securities regulator. You may be able to get this information, for a fee, through one of the Nationally Recognized Municipal Securities Information Repositories (NRMSIRs).

The MSRB currently makes official statements and other muni bond disclosures available to the public for free through its Electronic Municipal Market Access (EMMA). Beginning on July 1, 2009, all ongoing disclosures submitted by issuers will become available to the public for free through EMMA, along with real-time trade pricing and up-to-date interest rate information on variable rate and auction rate securities.

Credit ratings can also help you evaluate a bond’s default risk. However, it is important to realize that these ratings are estimates only and should be only one of many factors in evaluating a municipal bond investment. Because ratings can change at any time, do not assume the rating shown on the official statement when the bond was first issued remains in effect if you buy the bond at a later date. Be sure to ask your broker for the current published ratings on any bond you are considering (and any bonds in your portfolio).

A high credit rating is not a seal of approval and neither reflects nor guarantees stability of market value or liquidity. In other words, a high rating does not mean that you will be able to sell an investment when you want or need to—particularly if you sell before the bond matures—or that you’ll get the price you expected.

That said, a low credit rating may very well be a sign of a bond’s increased risk of default or an indicator of greater liquidity risk and price level risk. As such, a low credit rating should not be taken lightly. So-called "high yield" munis often have low credit ratings—the higher return is meant to compensate investors for the higher level of risk they incur.

Not all bonds have credit ratings. While an absence of a credit rating is not, by itself, a determinant of low credit quality, investors in non-rated bonds should be prepared to make their own independent credit analysis of the bonds. If you are unable to do so, ask yourself if the assumption of greater risk is worth the higher yield these bonds may carry.

Smart Tips
Your overall investment strategy should be based on a number of factors, including how much risk you are willing to take, the purpose of your investment (income, growth or some of both), your investment horizon (when do think you will need the money) and whether it’s a good fit with other investments in your portfolio. These smart tips can help muni investors protect themselves:

• Check out the broker and firm. A securities salesperson must be properly licensed, and his or her firm must be registered with the MSRB and with FINRA, the SEC or a state securities regulator—depending on the type of business the firm conducts. For a broker, use FINRA BrokerCheck or call toll-free (800) 289-9999. For an investment adviser, use the SEC's Investment Adviser Public Disclosure Web site. To confirm MSRB registration, contact MSRB.
  
  
• Don’t reach for yield. Never make your investment decision based solely on a bond’s yield unless you are willing to assume more risk. The higher return you are "reaching for" is an indicator of increased risk.
  
  
• Read the Official Statement. Ask your broker for information about the municipal security before you purchase it. The bond’s Official Statement is where you will find a bond’s important characteristics, from yield to the bond’s call schedule. Be aware that an Official Statement may not be prepared for offerings under $1 million and certain offerings sold primarily to institutional investors.
  
  
• Keep up with material news, including updated financial information and material event notices. An issuer’s circumstances may change over time. Stay abreast of changes to underlying economic factors, a bond’s credit worthiness, and the issuer’s financial capacity. Ask your broker how current the issuer is with its disclosure—and be aware that an issuer’s failure to furnish current information about its financial situation is a potential red flag. You can access on-going disclosure filings for free using EMMA.
  
  
• Evaluate a bond’s price. Bonds are generally issued in multiples of $5,000, referred to as a bond’s face or par value. But they can trade above or below par in the secondary market for many reasons, including changes in current interest rates or the real or perceived credit quality of the issuer. Use FINRA’s Market Data Center or MSRB’s EMMA to check a bond’s trading history, including how actively the bond trades (many trade infrequently) and recent pricing. If the issuer has filed a distress notice but has bonds trading at or above par, ask why.
  
  
• Do your homework. Before buying any municipal bond, carefully consider the financial condition of the state, city or county that is issuing the bond and any other party that is responsible for payment on the bond. For revenue bonds, ask whether the issuer’s revenue has been enough to cover the payments it must make on the bond (also known as the "debt service ratio"). With all munis, ask your broker about the bond’s call schedule and see if the bond’s credit rating has gone up, down or remained stable.

• Do the tax math. Run the numbers (or ask your broker or tax advisor) to determine whether buying a tax-free muni bond, particularly in your home state, makes sense for you. For more information and a formula to help you compare yields, see Muni Math in FINRA’s Smart Bond Investing.

• Diversify. Market risks can be mitigated to a certain extent by diversification among different asset classes and within the same asset class. When diversifying within the muni bond asset class, consider diversification by issuer, location and maturity date. One way to diversify your muni bond holdings is to invest in a muni bond mutual fund or muni ETF. Be sure to research the securities contained in a given fund or ETF, as well as maturity lengths (longer maturities usually mean greater risk). Be aware that bond funds and ETFs may invest in a narrow group of holdings (only tax-deferred bonds, for instance) and so your diversification may be limited. Bond funds and ETFs can decline in value, and prices fluctuate, making it impossible to know the value of your holdings prior to sale.

ADDITIONAL RESOURCES

• Muni Bond Checklist
• FINRA Smart Bond Investing
• MSRB Education Center
• FINRA Market Data Center
• MSRB Electronic Municipal Market Access (EMMA) web site
• Securities and Exchange Commission’s Municipal Securities Information Sources
• FINRA Investor Alert, Auction Rate Securities: What Happens When Auctions Fail

To receive the latest Investor Alerts and other important investor information sign up for Investor News.

Medical Bills: The Biggest Risk to Your Retirement.

by Rande Spiegelman, CPA, CFP®, Vice President of Financial Planning, Schwab Center for Financial Research

Updated October 28, 2009 

After years of planning and saving for retirement, the last thing you want is for unexpected medical bills to undo your hard work. But there's no bigger threat to your retirement than a serious illness. Without adequate health insurance, even a relatively minor hospital stay could derail your finances. A major illness could be financially devastating.

The good news is that there are steps you can take now to mitigate the risk that health care problems in retirement could decimate your plans, or those of your loved ones. If you're working, you likely have insurance through your employer or under the umbrella of a small business. But the rules of the road change in retirement, when you may need to obtain individual health care coverage until you become eligible for Medicare at age 65, or to supplement it afterwards.

Here are some insurance options to consider now:

Private health insurance
Not all policies are created equal—try to choose one that matches your needs and ability to cover certain costs on your own. Costs may vary by the state you reside in, family status, health and lifestyle (are you a smoker or in a high-risk occupation?), as well as coverage levels, coinsurance, deductibles, copayments and other factors.

If you're under 65, compare the cost of continuing your medical and dental coverage with your former employer (for up to 18 months through the federal COBRA program) with the cost of insurance you might be able to obtain on your own.

In addition, most states have programs that will allow you to extend COBRA coverage. For example, eligible California residents have the option to extend COBRA coverage an additional 18 months. Those 60 or older who have been with their employer for at least five years can extend COBRA coverage until they turn 65.

Also, remember that you were probably already paying a significant portion of your health insurance premiums at work through payroll deductions. For example, if your employer was deducting $135 every two weeks, you were already paying $3,500 a year. If that's the case, you would only need to budget an extra $4,000 if you bought a new policy costing $7,500 a year. Of course, you could pay your insurance costs out of your retirement cash flow. Or, you could begin saving now to ensure that you have enough set aside. But, keep in mind, because increases in health care costs tend to significantly exceed the normal rate of inflation, you can't simply rely on retirement savings rules of thumb (see "Calculating the Costs"). 

Health savings accounts (HSAs)
HSAs combine high-deductible health insurance with a tax-free savings account that can be invested as you see fit, similar to an IRA. You choose a sum you're willing to pay out of pocket for medical expenses. The insurer pays most of the bills over that amount. You meet your own costs by making tax-deductible contributions to the HSA and using that money, tax-free, for qualified medical bills. For 2009, the annual maximum contribution is $5,950 for families and $3,000 for individuals (individuals age 55 and older can contribute an additional $1,000 "catch-up" amount). For 2010, the limits are $6,150 and $3,050, respectively. Any unspent money stays in the HSA for future use. And there is no annual "use it or lose it" provision, as there is with flexible spending accounts (FSAs).

HSAs work best if you're rarely sick and can build up big reserves, or you can afford to pay medical bills from your current income and will treat the HSA as if it were a tax-favored retirement account. In addition, certain states still do not conform to federal tax rules on HSAs (e.g., California, New Jersey, Wisconsin). So, you'll want to check with your tax advisor about specific state rules regarding these accounts.

Regardless of age, withdrawals from HSAs are tax-free and penalty-free if used for qualified medical expenses. Otherwise, withdrawals are taxable and subject to a 10% penalty. After age 65, however, withdrawals are penalty-free (but subject to income tax if used for nonmedical expenses). To qualify for an HSA, you must:

• Have a high-deductible health plan on the first day of the month. For 2009, the minimum deductible for such plans is $1,150 for self-only coverage and $2,300 for family coverage (out-of-pocket maximums are $5,800 and $11,600, respectively). For 2010, the minimum deductibles are $1,200 and $2,400 ($5,950 and $11,900 out-of-pocket maximums).
• Have no other health coverage except what is permitted under IRS rules (see page 4 of IRS Publication 969 for details).
• Not be enrolled in Medicare.
• Not be claimed as a dependent on another person's tax return.

HSAs aren't for everyone. While they may work well for young, healthy employees, HSAs may not be as beneficial for people who'll likely face higher annual out-of-pocket health costs, such as older workers, less-fit employees of any age, or families with kids needing frequent medical attention. Also, high-deductible plans may not make sense for lower-wage earners who can't afford the out-of-pocket expense.

In retirement
If you're 65 or older and in retirement, other options exist: 

• Medicare: If you're already receiving Social Security benefits prior to age 65, you will be automatically enrolled in Medicare Part A. If not, you should apply for Medicare three months before your 65th birthday. For everything you ever wanted to know about what plans are available, plus details about coverage, costs and how to enroll, see Medicare and You on www.medicare.gov.

• Medigap: Coverage options are set by law. While prices vary by program and state, your total premiums (Medicare and Medigap) will likely be less than what you were paying prior to age 65. For information on selecting an appropriate policy, see Choosing a Medigap Policy: A Guide to Health Insurance for People With Medicare on www.medicare.gov.

Long-term care insurance
The cost of this care can be staggering. The average daily rate for a private room in a nursing home is $206 ($75,190 a year), and a semiprivate room is only slightly less expensive—$183 a day ($66,795 a year). Home care is even pricier. The average hourly rate for home health assistants is $19, making 24-hour care more than $400 a day, or over $150,000 a year.

What many don't realize until it's too late is that Medicare doesn't cover a lot of these and other expenses (see table below). And costs keep rising. The American Council of Life Insurers projects a 2.6-year stay in a nursing home will cost about $496,000 in 30 years (roughly $191,000 per year).

Source: "Your Medicare Benefits," www.medicare.gov.

On the other hand, according to the National Association of Insurance Commissioners, most people over 65 (about 59%) don't spend any time in a nursing home. Furthermore, the average stay for those who do enter a nursing home is only about 2½ years. Though you may never need it, if you're near or in retirement you might consider long-term care insurance, which covers medical and nonmedical care for those with a chronic illness or disability. This insurance may be particularly attractive if you have insufficient assets to self-insure but a net worth too high to receive Medicaid.

If you do opt for this additional coverage, note that premiums can vary widely, depending on age and coverage, and tend to be most cost-effective for those between 50 and 65 who are in good health. Read the fine print to determine what's covered—skilled nursing, custodial care, assisted living? Also ask yourself: What medical conditions qualify for benefits? How long before they kick in? How long will they last? What's the maximum daily benefit? Is there inflation coverage? How solid is the insurer? And what's its history with regard to long-term health care policies? Look for a policy that is guaranteed renewable with locked-in premium rates.

Finally, we recommend you seek out objective sources of information, such as your state insurance commission. For example, California provides consumer information and a handy premium calculator. Or check out A Shopper's Guide to Long-Term Care Insurance, produced by the National Association of Insurance Commissioners. As with all your health care choices, it's also wise to check with your insurance broker, professional associations or affinity groups like the American Association of Retired Persons to compare costs and benefits.

1. Corporate Insight, 2007.

Important Disclosures

The example provided is for illustrative purposes only and is not intended to represent results you should expect to achieve.

This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner or investment manager.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

You Vs. Wall Street.

by Natalie Pace.

Buy and Hold Hasn’t Worked for a Decade. Find Out What Does.

Includes my Hot News on Cool Stocks List.

November 30, 2009

General Stock Market Performance

Wall Street Highs/Lows in the New Millennium:

Hot News on Cool Stocks Highlights!

Photo Caption: Stacie Isabella Turk. Ribbonhead.com. © 2008.

578% gains on U.S. Gold!
NASDAQ Leads Market Returns, With 30% Gains -- compared to +44% rise in gold prices and only +14% for the Dow Jones Industrial Average.
85% of the positions listed in 2008 & 2009 are in the money. Woo hoo!
TipsTraders ranked me #11, above over 830 A-list pundits, in 2008.

And further, the earnings numbers frankly can’t be trusted. So many of the accounting rules have been suspended or amended. And the earnings that are in existence, are being "stimulated" with short-term government incentives, like the Cash for Clunkers Program, which accounted for more than half of the Gross Domestic Product growth in the 3^rd quarter of 2009.

1. There were no pension or Other Post Employment Benefits accounted for in many of the 2009 earnings reports.
2. Banks are rolling over bad loans, or hanging on, or farming them out to special portfolios, instead of writing off the losses. Mark to market accounting has been suspended.
3. Commercial real estate loans are now receiving policy accommodation encouragements from the Federal Open Market Committee, which has adopted a policy statement supporting prudent commercial real estate (CRE) loan workouts" because they are "often in the best interest of both financial institutions and borrowers, particularly during difficult economic conditions." Meaning here’s yet another way banks and commercial real estate owners can massage their earnings reports.
4. Many corporations are slow to pay bills and slow to credit customers – a hallmark in the years leading up to the 2001-2002 high-profile corporate bankruptcies of Enron, Global Crossing, Worldcom, et al.

So, what do you do? Get smart. Buy and hold doesn’t work in a slow growth economy that is fueled by free, easy money and lax accounting standards. That is a recipe for boom and bust cycles, which are easily capitalized upon with annual rebalancing, provided you are properly diversified. Modern Portfolio Theory, diversified funds (size/style and hot industries) and annual rebalancing are made easy-as-a-pie chart in my book, You Vs. Wall Street: Grow What You’ve Got and Win Back What You Lost.

So have a little faith (not blind faith) that you can do this, if you just get the right tools and education. You’ll find out how to make the magic of Stock Report Cards and pie charts work to provide you with money while you sleep in the pages of You Vs. Wall Street.

"You Vs. Wall Street "provides almost fool proof methods for growing wealth for the long haul," according to Success Magazine. Readers call You Vs. Wall Street a "must-read financial bible," and "just what some readers need to find themselves exponentially richer in the coming years." You vs. Wall Street teaches you how to win on Wall Street in any market—bull or bear. Now is the time to choose wisdom over blind faith, to invest in winning companies and to whistle all the way to your local bailed out bank.

• MASTER THE UNIQUE THREE-PART INVESTMENT PLAN

• LEARN THE EARNINGS MAGIC OF STOCK REPORT CARDS

• DISCOVER THE FOOLPPROOF GET RICH AND STAY RICH PROGRAM

• FIND OUT HOW TO AVOID THE TOP ELEVEN INVESTING MISTAKES

I also teach these strategies in a 3-day investing retreat. Investors who attend the retreat walk out with a blueprint that works for the rest of their life. They have selected the exact ten funds they are most interested in, and know how to select new funds as different industries become the next hot thing. They know which months are best for profit-taking and which for buying back in, historically, to maximize the potential for capturing gains annually.

If you are interested in attending my March 27-29, 2009 Get Rich and Green investing retreat in Santa Monica, California (the best place to be in March), please call 866.476.7442 or email info@NataliePace.com right away. The retreat only seats a dozen people, and only a handful of seats remain. As my gift to you, I’ve extended the early bird rates of $999/person (based upon two people registering together) or $1299/person.

Groups like the Green Goddess Investment Club are reporting 47% gains over the last 12 months, using my strategies. "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. Options traders and Certified Financial Planners brag that their portfolio returns are "staggering," in the wake of learning my methods, after just three days of training. Other retreat attendees earn back the price of he retreat in the first week.

Track Record of our Reporting
While the markets are still down significantly since their high in October of 2007, the Hot News and Cooling Off lists below have a winning track record – in bear and bull market years. 83 positions listed below – 85% -- 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 fifteen of our listings went in the opposite direction of the reporting, which is quite impressive given the horrible market drop of 2008-2009.

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 these volatile, whip-sawing years.

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) +585%, 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 and 2009 were put options – on the Cooling Off list -- which is why I added options training to my 3-day Get Rich and Green Investing Retreat. Look on the Cooling Off list for details on the incredible gains options investors enjoyed on Wells Fargo, Fannie Mae, Toll Brothers, KB Home, Novastar Financial and more there.

This stock newsletter was the first to list the following 911 alerts:

1. To get Fannie Mae and Freddie Mac out of your 401(k) in 2003
2. Avoid General Motors and other American auto-manufacturers in 2004
3. Get out of Dodge (real estate) in 2005
4. Trim back on Faded Blue Chips in 2006
5. Lehman Bros’ colossal insider selling in 2006

Market Movers:
The Federal Open Market Committee and Monetary Policy
The Fed funds rate continues to be "0 to ¼ percent." In the 11.04.09 meeting press release, the Federal Reserve Board further elaborated on the reasoning behind the rock bottom rates, writing: "Household spending appears to be expanding but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit. Businesses are still cutting back on fixed investment and staffing, though at a slower pace... Economic activity is likely to remain weak for a time."

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, and the Feds think that inflation is far enough away that Fed Fund rates will remain exceptionally low for an "extended period."

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

The next FOMC meeting takes place on December 15-16, 2009.

Second Estimate GDP growth rates for 2Q 2009 were revised downward to 2.8% (from 3.5%) according to the Bureau of Economic Analysis. This was the first positive GDP growth rate since the 4^th quarter of 2007. Final GDP growth rates for 2Q 2009 and 1Q 2009 were a decline of -0.7% & -5.5%, respectively. The economy contracted at -6.3% in the 4^th quarter of 2008. What happened between 2008 and 3Q 2009? Massive government spending is the main driver of the economy at this point. The Cash for Clunkers Program is responsible for over half of the GDP growth, both in government incentives and stimulated, incentive-related consumer spending.

Final GDP growth rates for 3Q 2009 will be released on December 22, 2009 at 8:30 a.m. ET. These release days tend to be very active on Wall Street. No surprise that the 3^rd quarter of 2009 was the first positive GDP report since the 4^th quarter of 2007, however, if the second estimates come in lower than 2.8%, investors could lose confidence (and vice versa if the numbers are revised upward). 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 minutes of the November 3-4, 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: 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. Be the first to know the dates of the mid-month Hot News on Cool Stocks Update and the publication date of our next ezine. Join me on BlogTalkRadio.com. 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 Modern Girls’ Guide to Sex, Love and Money Show with Natalie Pace on BlogTalkRadio.com Wednesday, December 9, 2009, at 9:00 a.m. PT. if you’re considering throwing in the towel and giving back a home or declaring personal bankruptcy, don’t do it before joining this show and asking questions of real estate specialist Steve Dietrich. (Your Qs are anonymous. Just pick a chat name that is different from your own.) Steve has a MBA from Harvard and decades of VIP real estate consulting experience in Los Angeles, CA.

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 do you really want this holiday season?

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 December 3, 2009 at 2:30 p.m. CET. (December 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.
AOL (AOL)
MEMC Electronics (WFR)
Sunpower (SPWRA)

Profit-Taking (Take your profits early and often):
KCI Concepts (KCI) +60%|
LDK Solar (LDK) +60%
New Zealand Dollar Currency ETF (BNZ) +34%
U.S. Gold (UXG) +566%

DELETIONS (Take your profits early and often):
None

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%. Deleted 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:
None

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:
None

Recent Deletions:
ENER1 (Symbol: HEV). Moved to Hot News List on 11.1.09.
MEMC Electronics (WFR). Moved to Hot News list on 12.1.09.
Microsoft (MSFT). Moved to Cooling Off list on 12.1.09.
Satcon (Symbol: SATC). Moved to Hot News List on 11.1.09.
Sunpower Solar (Symbol: SPWRA). Moved to Hot News List on 11.1.09.

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):
Microsoft (MSFT)
Yahoo (YHOO)

DELETIONS:
KB Home (KBH)
Toll Brothers (TOL)

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. KB Home with 74% gains and Toll Brothers with 51% gains on 10.01.09.

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:

The #1 Gift of the Holiday Season Is Just $10 and Can Be Delivered Right to Their Door!

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.

Partnering for Cures Meeting, NYC
Tuesday, December 1st, 2009
Expediting cures for prostate cancer requires collaboration. Partnering for Cures, a first-of-its-kind meeting will be held December 1-3, 2009 in New York City. This meeting will facilitate collaborations by bringing together philanthropy, medical research foundations, and the biotechnology community.


Easy Green Tips
Wednesday, December 2nd, 2009
9:00AM through 9:30AM PT
Want to go green, but need a few more tips? Green T Tamara joins Natalie Pace on BlogTalkRadio.com. Share your wisdom on simple ways to a greener, cleaner life. On BlogTalkRadio.com/NataliePace.

Wednesday, December 9th, 2009
9:00AM through 9:30AM (PT. Health is Wealth for Women.)
Tips for preventing breast cancer with HealthWalk specialist Dr. Anna Walden. On BlogTalkRadio.com/NataliePace.

Renee Fleming at LA Opera
Saturday, December 12th, 2009
Thrill to the sheer beauty of opera diva Renée Fleming's voluptuous soprano voice.

FOMC Meeting
Tuesday, December 15th, 2009
The Federal Reserve Board meets to set policy intended to stimulate the American economy without stimulating inflation.

GDP 3Q 2009 (Final)
Tuesday, December 22nd, 2009
8:30AM ET.
The U.S. Dept. of Commerce, Bureau of Economic Analysis (BEA.gov) releases its final report on GDP growth in the 3rd quarter of 2009. Final numbers for 2Q were -0.7%. 1Q GDP came in at -5.5%.

Agape New Year’s Meditation Retreat, Joshua Tree, CA
Tuesday, December 29th, 2009
With Michael Bernard Beckwith and musical artist Rickie Byars Beckwith. Letting go of the past and greeting the New Year in silence is a tradition at Agape. Imagine this magical retreat in the beautiful setting of Joshua Tree!

Clinton Global Initiative University Conference, Miami, FL
Friday, April 16-18, 2010
This 3-day event is one where students work hand-in-hand on global issues, and even get their hands dirty on a community service project. Of course, doing this alongside Prez. Clinton and a few celebrity friends, like Brad Pitt, doesn't hurt! You must apply with a proposal to be accepted. Act fast!

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