All We Are Saying is Give Peace (and Business) a Chance.

by Natalie Pace

Deepak Chopra, author of The Third Jesus: The Christ We Cannot Ignore

On March 11^th, 525 peacemakers flocked to the capital city of San Jose, Costa Rica to hobnob with spiritual leaders, attend Presidential ceremonies and brainstorm strategies for promoting, in the words of Deepak Chopra, "a new world where hope, social justice, peace and a sense of the sacredness of life prevail." For the next three days, Americans, Mexicans, Europeans, Asians, Australians, Africans and even a few Texans spent time in small groups envisioning what the world needs now, what actions need to be taken to bring about the new vision and how they could network to support one another in an Alliance for a New Humanity. Spiritual gurus like Deepak Chopra (the president of the Alliance), the eloquent Marianne Williamson (bestselling author and Chair of The Peace Alliance), President Oscar Arias Sanchez (the 1987 Nobel Peace Prize winning President of Costa Rica), Baltazar Garzon (the Spanish judge who was responsible for nailing Pinochet) and other respected academics, authors, policymakers and even business leaders lead provocative debates by day, and celebrated the lush Costa Rican heritage by night.

In fact, Costa Rica was the perfect place for such a global conference, as well the leaders of the Alliance knew. Costa Rica is a groundbreaker in many regards. The country has no military, having disarmed its army in 1949. The former military headquarters is now a Museum of Peace. Money that would have been diverted to defense is poured into education. As a result, Costa Ricans are very well educated and about one out of ten people speak English almost as well as Spanish. (Learning English is compulsory, as is education, in Costa Rica.) Electric service abounds – reaching 97% of the territory! And recently, Costa Rica became the first Central American country to establish diplomatic relations with China. On October 24, 2007, President Arias of Costa Rica and President Hu Jintao of China agreed to cooperate on technologies, investment, culture, public health and agriculture.

Costa Rica is known for protecting their rainforests, for electing a Nobel Peace Prize winning President, for their educated citizens, for their spectacular beaches and for pura vida – enjoying a grand life. The cultural mix of African, Spanish and Indian makes for some of the most beautiful people in God’s creation. (I overheard a woman comment that she’s surprised that everyone isn’t half-Costa Rican -- the men and women are so beautiful.) So does peace work flawlessly when given a chance?

Peace appears to work amazingly well, especially when you consider how literate the people of Costa Rica are – in the fine arts, in addition to basic math and language skills -- compared to their neighbors. However, there are some unique factors that play into Costa Rican peace, which are not the case in war-torn countries. Costa Rica doesn’t have any rare, expensive natural resources – like diamonds, oil or gold – and the citizens feel that the United States has their back if they were to be invaded. It’s much easier to walk the back alleys of the world in daylight without anything of value glistening on your neck, and a big security guard a few paces behind you.

Marianne Williamson suggests that countries like the U.S. don’t need to disband their armies (yet) to start actively promoting peace now. As the Chair of the Peace Alliance, an organization with the goal of putting a Department of Peace in the United States government, Marianne is not proposing either or. According to Williamson, the United States needs both -- a department of peace and a department of defense.

"What a Department of Peace will do is give a more sophisticated analysis of what constitutes peace, of what it would take to wage peace in as meaningful and sophisticated a way as we now know how to wage war," Marianne proclaimed to a crowd of peacemakers last February, who seconded her thoughts with a standing ovation. "We must do more than fight our enemies. We must create more friends," she said.

Deepak Chopra speaking at the National Peace Museum in San Jose.

Peace starts with personal interaction -- even at a peace rally. It wasn’t all good times and Hallelujah in the group dialogs at the Human Forum in Costa Rica. Two brothers complained that there was too much politicizing and flagrant promotion of Costa Rica real estate for sale. "I thought that this was going to be more spiritual," they said. One panelist, Sam Keen, called for an end to all business now, saying, "The best thing the business community can do is commit suicide." In a discussion on how to influence the "influencers," an American man called business leaders "monsters," who were in the business of "profiteering for greed."

Since half of the audience was made up of business leaders (who understand the responsibilities of running a business), there were more than a few uncomfortable moments before the presupposed myths of business and money as "bad," which were held by a very vocal minority, began to be deflated. One person received a standing ovation when she called for a capital markets solution to the inhumane conditions of raising cattle, which might be contributing to the greenhouse gas effect. "If you want to stop ranchers from raising cattle, simply stop eating meat!" she said. In solidarity, the conference leaders asked for vegetarian meals to be served the following day.

Those calling for an end to all business were probably not aware that I was sent to the conference to represent business by an enlightened investment banker, a senior executive at his company, who believes that capital solutions have been responsible for many of the social innovations that we most love. He believes something even more radical -- that creative banking, for example, Mike Milken’s high yield bonds, can contribute to the "democratization of capital." This particular executive protects the people he employs, feels personally responsible for their livelihoods, promotes the interests of his customers and works to ensure that the corporation is sound so that shareholders – regular folks, like you and I, with a pension plan -- continue to benefit from their investments.

Speaking under anonymity, the investment banker wrote to me by email:

Deepak Chopra with Costa Rican President Oscar Arias Sanchez and Culture Minister María Elena Carballo. Photo Credit: Erika Rand

When influencing the business leaders and policymakers, another attendee counseled that, "They are parents. They are people who care." She recommended that promoters of peace and sustainable living sit down and meet with business and governmental leaders as fellow souls, and that individuals should be quick to thank fast food companies that switch to paper packaging over Styrofoam. Deepak Chopra would agree. In an interview with me, the bestselling author said, "You start by giving recognition to organizations and communities that are nurturing the environment that are using wisdom-based economies for their affluence."

And thus, having 525 tourists infuse capital into Costa Rica, supporting a state of peace by spending their money on food, hotels and by shopping in the malls, is in perfect alliance with the mission of the Human Forum. Whether the attendees understood it or not, the money brought into Costa Rica from their conference plays a role in ensuring that a country dedicated at its core to natural existence, preservation of rain forests and promoting peace among its neighbors continues to flourish. As Deepak Chopra said, "Costa Rica could serve as a model, as a microcosm for what could happen in the rest of the world."

By the end of the three days, it felt as though business leaders had infused greater tolerance into the peacemakers and the peacemakers were learning to employ best business practices to achieve their ends. All in all – it was just another day at the office, full of give and take, push and pull, frustration and insight, and, ultimately, celebration and a spark of new ideas. They came thinking that peace began with an end to business as usual, and left singing, "All we are saying is give peace and good business practices a chance."

Deepak Chopra is the President of The Alliance for a New Humanity, the founder of the Chopra Wellness Center and the author of more than 40 books. You can access more information on Deepak Chopra, on The Third Jesus, on the Chopra Center and on the Alliance for a New Humanity, at Deepak Chopra’s website, DeepakChopra.com.

For more information on Marianne Williamson and Marianne’s new book, The Age of Miracles, go to Marianne.com. For more information on the Peace Alliance and the Department of Peace bill that is currently before the House of Representatives, go to ThePeaceAlliance.org.

To find out more about vacationing in beautiful Costa Rica, with their white-sand beaches and rain forests, go to VisitCostaRica.com.

Other articles of interest in our ongoing Peace = Prosperity series:
Justice Sandra Day O'Connor on Peace and Fairness in Iraq. Exclusive Interview with Natalie Pace. Vol. 4, issue 9.

Peace = Prosperity. Q&A with Dr. Gary Becker, esteemed University of Chicago economist and Nobel Laureate, on how freedom, democracy, war, terrorism, riots and gangs affect a nation's prosperity. By Natalie Pace. Vol. 4, issue 6.

The Economics of Disaster Management. By Dr. Gary S. Becker. Vol. 4, issue 6.

Stars Shine on Marianne Williamson’s Peace Plan. by Natalie Pace. NataliePace.com archived ezine, vol. 4, issue 3.
Steven Tyler, Joaquin Phoenix, Amy Smart, Deepak Chopra, Reverend Michael Bernard Beck, Frances Fisher, Denise Brown and Marianne Williamson entertain, inspire and educate Marianne’s Peace Alliance conference attendees to become citizen lobbyists on behalf of House Bill number 808, calling for a U.S. Department of Peace!

Spiritual Gurus Weigh in on The Department of Peace Bill. By Natalie Pace. NataliePace.com archived ezine, vol. 4, issue 3.

China's Evolution Toward Freedom. A candid interview with one of the most respected CEOs in mainland China, Dr. Charles Zhang, Chairman and CEO, Sohu.com. By Natalie Pace. NataliePace.com archived ezine, Vol. 4, issue 1.

Gap's Inc(RED)ible Campaign to Empower Africa. By Natalie Pace. Featuring (PRODUCT) RED. Vol. 3, issue 12.

The New Gender Gap in Education.

Dr. Gary S. Becker, Nobel Laureate, Economics, and author of A Treatise on the Family.

The average hourly earnings of college-educated persons grew from about 40 % higher than that of high school graduates in 1980 to about 80% higher in recent years. -- Dr. Gary S. Becker

Dr. Gary S. Becker, University Professor, Dept. of Economics Sociology Professor, Graduate School of Business, the University of Chicago Nobel Laureate, 1992

Until the mid 1960's, female high school graduates were less likely than male graduates to go to college, and female college students were far more likely to drop out than were male students. The direct reason for this difference was that many younger women married and then dropped out of school - mainly to start having families. Perhaps a more basic reason for this gender difference in education was that women did not participate in the labor force so much in those days, and hence many women did not believe a college education was useful.

All this has changed radically since 1970. Female high school graduates are now no less likely to enter college than are male graduates, and a much larger fraction of girls than boys finish high school. These two facts imply that considerably more women enter college than men. The fraction of college students who are female is further increased by the greater propensity of women who enter college to finish and graduate. About 57% of American college students are women, and they constitute about 60% of those who graduates. Similar trends toward making women a majority of college students apply to many European countries, and some Asian countries as well.

What explains this reversal from under representation of women in college to over representation (see the related discussion in my blog entry for July 17, 2006)? One important cause is that marriage and child-rearing exert a much weaker pull out of school for women than in the past, since women marry and start families at much later ages than 40 years ago. This increase in age at marriage is related to the decline in birth rates, and to the increased time that women want to spend working rather than caring for children and running households.

A college education is more attractive to women who spend greater time in the labor force since going to college significantly raises earnings of women as well as men. The financial attractiveness of a college education has grown sharply for both sexes since the 1970's because of the large rise in the earnings premium from a college education. The average hourly earnings of college-educated persons grew from about 40 % higher than that of high school graduates in 1980 to about 80% higher in recent years. This trend toward a much higher college education premium is also found in many other countries as well as the United States.

Although quantitative evidence on non-earnings benefits are more limited, the advantages of a college education in improving health, raising children, managing financial assets, responding to adversity, and in other areas of life have also grown along with the growth in the college earnings premium. This implies a widening advantage of a college education even to women who spend a significant portion of their time raising children and managing a household. In addition, the propensity of college-educated women to be married has increased a lot relative to the marital rates of women with less education, so that graduating college no longer significantly reduces a woman's chances of marriage.

Since these forces pushing women toward a college education have been strong during the past several decades, it is no surprise that a much larger fraction of young women now enter and complete college than a half century ago. This does not, however, fully explain why women are more likely than men to be in college since most of these forces have been just as powerful for men, and college-educated men still spend a larger fraction of their time working in the labor force than do college-educated women.

An important reason why women not only closed the education gap with men, but also changed the direction of that gap, relates, I believe, to the better performance of women in school. The average grades of women at every education level exceed the average grades of men, while the variation around the average is larger for men. Persons with low grades find school unpleasant since their teachers criticize them, and they come to believe that they are failures. Since many more boys than girls in high school have low grades because both average grades are lower and the variance in grades is greater for boys, more boys than girls find high school unpleasant and drop out before graduating. Dropouts truncate the grade distributions of graduates at the lower end, so that average grades of boys who graduate high school are closer to the average grades of girls who graduate than are the averages for all boys and girls in high school.

The same process operates at the college level. Men have much lower grades in college and find the experience less pleasant, so they drop out of college in much larger numbers than women, and are much less likely to graduate. That many more men than in the past continue on to college after high school indicates that they are aware of the rise in financial and other benefits from college. That they drop out of college in large numbers presumably indicates that they are either discouraged by their low grades, or they just do not like being students.

Why women at all ages do better in school than men is not so easily understood. It is unlikely that women do better mainly because they expect to remain in school longer- this is causation from remaining in school longer to better grades- since women had better average grades than men even when they were more likely to drop out of school. One line of explanation argues that women are more diligent students, less rebellious, and more docile students. Whatever the explanation for the remarkable shift in college attendance rates of men and women during the past 40 years, this shift is likely to have major implications for future changes in the gender gap in average earnings, the fraction of heads of business that are women, and other measures of gender differences in achievement.

Dr. Becker is the University Professor, Department of Economics, and Sociology Professor, Graduate School of Business, The University of Chicago. To keep track of Dr. Becker’s continuing research and commentary, visit his web site and blog. To hear more of his recommendations for strengthening the U.S. economy, plan on attending the 2008 Milken Global Economic Conference.

Solar Springs Up Again.

by Natalie Pace.

Solar energy stocks went dormant this winter, but are prepared for another scorching hot summer. Includes a Solar Energy Stock Report Card.

What’s doubling at the speed of light? Solar energy sales.

Suntech Power Holdings annual sales in 2007 was $1.35 billion, more than double 2006’s total of $599 million, which in turn was more than double the prior year’s sales of $226 million (in 2005). LDK Solar has already tripled last year’s sales (at $331 million over $106 million), and they have yet to release the 4^th quarter results (due in June 2008). Trina Solar’s annual sales jumped to $302 million, from $115 million a year ago.

You’ll notice that I mention all of the Chinese companies, while overlooking First Solar (based out of Phoenix, Arizona) and Sunpower Solar (based out of San Jose, California). Why? Mostly due to the source material, which has killed profit margins in Sunpower and inflated the profit potential of First Solar. Yes, First Solar and Sunpower saw their sales double in 2007. The question is: "What will be the case in 2008 and 2009?"

Sunpower had a big problem with supply in the last quarter of 2007, which is why we chose Suntech Power Holdings for our Company of the Month in October 2006, over Sunpower. Suntech had secured long-term silicon supply at a more reasonable price with MEMC Electronics, whereas Sunpower was experiencing more difficulty obtaining a clear, uninterrupted channel for silicon at a reasonable price, especially during the second half part of 2007. This problem was foreseeable in October 2006, and is largely responsible for the death of Sunpower’s profits in 2007.

That reality was reflected in the profit margin disparity between Suntech Power Holdings and Sunpower last year. Suntech’s net profit margin was at 12.55% compared to just 1.19% for Sunpower. "In the latter part of 2008 and beyond, we expect our industry's silicon feedstock to become more abundant, leading to lower solar panel prices which will redistribute the power and profit pools in the value chain," according to Sunpower CEO Tom Werner, in his annual report. Even though Sunpower’s profitability was just a hair’s breath above the red, Sunpower remained popular with investors, probably because their solar panels are aesthetically appealing and their energy efficiency is at the top of the marketplace. However, in our view, the better bet, at least for 2008, remains Suntech Power Holdings, which has long-term supply contracts with MEMC Electronics and is partially funding a new silicon manufacturing plant for Hoku Scientific.

In 2007 and the beginning of 2008, First Solar was the most popular solar energy company on Wall Street. First Solar is trading at a lofty price to earnings ratio of 91.60, and is one of the few solar companies that is still trading near its 52-week high. Most solar energy companies experienced an extreme pullback earlier this month (which is when we put Suntech Power Holdings and World Water and Solar back on the Hot News list -- at prices not seen for a year!). However, there are a few factors in First Solar’s powerful past dominance that investors should take note of.

Thin film solar versus silicon panels
First Solar uses cadmium telluride instead of silicon to transfer sunlight into useable energy. This was a huge competitive advantage when silicon was hard to get at a reasonable price. Thus First Solar’s operating margins were the highest in the industry – at 31.42%. That is shifting, however.

As Dr. Harry Atwater advised a crowd at the Green Xchange Conference last December 2007, silicon is an abundant source material, whereas cadmium telluride is rather rare. Once silicon manufacturing heats up, which is expected to happen this year, the desirability of cadmium telluride could diminish rapidly, as the advantage right now is cost, rather than efficiency. Once the costs of using silicon as a source material line up with cadmium telluride, silicon has the edge. Silicon based solar panels produce more energy more efficiently, and with the source material of sand, there is no foreseeable end in supply.

Thus as the market forces that supported First Solar’s lofty share prices shift back down to Earth, don’t be caught clinging to a rare trace element, when you could be walking in miles and miles of sand for years to come! This isn’t to say that there won’t be room for First Solar solar products in the years to come, but rather to say that the scientists believe that silicon is a better bet as the source material to power renewable energy as the fuel of choice, as we attempt to scale back our reliance on coal and fossil fuels.

So, this year, the solar energy companies that top our hot list include Suntech Power Holdings, Trina Solar, LDK Solar and our perennial favorite – World Water and Solar. Trina Solar is a Chinese company, in direct competition with Suntech Power Holdings. Trina has strong management and board, which is necessary in a highly competitive, rapidly growing industry, that is still very reliant on government subsidies and incentives to achieve market dominance. LDK Solar is a silicon wafer manufacturer that supplies wafers to companies, like Suntech and Trina, which has been tripling it’s sales over the last year.

Suntech Power was added to the Hot News list last week, when it was trading at $30/share. World Water was added at $1.01. Both companies have enjoyed a rally since that time, with Suntech trading at $42 and World Water and Solar trading at $1.23, as of March 31, 2008. In today’s market place of share price mood swings, it’s better to be patient for the lower buy-in price.

I’m adding Trina Solar and LDK Solar to the Hot News list today.

Click to access the Solar Energy Stock Report Card.

Full Disclosure: Natalie Pace owns shares of World Water and Solar.
Please note: NataliePace.com does not act or operate like a broker. We are a new media website. 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.

The Business of Books.

by Chellie Campbell, author of Zero to Zillionaire.

"Chellie, you’re a successful published author – can I take you to lunch and pick your brain about the book business and how to get my book published?"

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

I can’t tell you how many requests like that I have had since The Wealthy Spirit and Zero to Zillionaire were released in 2002 and 2006, respectively. After awhile, I was getting too fat from all that lunching out, and wrote it all up in a book publishing report (available free to all Dolphin Club members). Here are some interesting book industry statistics from that report:

1. 2% of the 200,000 books published each year become bestsellers.

2. 84% of the bestsellers are published by the 5 largest New York publishers.

3. 2 out of 10 books published make a profit for the publisher.

4. In 2004, 950,000 titles out of the 1.2 million tracked by Nielsen Bookscan sold fewer than 99 copies. Another 200,000 sold fewer than 1,000 copies.

5. Only 25,000 books sold more than 5,000 copies.

6. The average book in America sells about 500 copies.

7. Only 10 books sold more than a million copies in 2004.

8. Fewer than 500 books sold more than 100,000 copies in 2004.

9. The magic number for a book to be considered successful is 10,000. When The Wealthy Spirit reached 12,000 books sold, my editor called me and said, "We’re ready for your next book!" And so I got the contract to write Zero to Zillionaire. The Wealthy Spirit has now sold nearly 20,000 copies and Zero to Zillionaire is approaching the magic number of 10,000 copies sold.

The good news is you don’t have to have a blockbuster like The Da Vinci Code in order to be successful with your books. You only have to sell 5,000 to be in the top 2% of bestselling books. That looks a lot more doable than selling a million, doesn’t it?

Royalties on books usually start at 10% - and unless you have a major publisher, they are now based on wholesale price and not retail, and the reserve against returns is 15-25%. So the odds on making your fortune from a book alone are slim.  

Non-fiction books are like business cards. They are my best marketing pieces, help me spread the word about my seminars and professional speaking, and give me oodles of credibility so I can charge good fees for my work. Many times people have signed up for my workshops just because they were fans of my books.  They are one of my "multiple streams of income" and I have ideas for more books to come!  

Non-fiction book sales are all about PLATFORM. That means, how many people know who you are and will buy your book? That's why you see so many celebrity books - they have huge platforms and so will sell many more books than an unknown author. That is why Jessica Seinfeld got a book deal for her cookbook when the unknown author who pitched basically the same book six months prior to her didn't get a deal.

Books are widgets and publishers are manufacturers and their number one goal is to sell a lot of widgets. Never forget that!  Here's some insider info: I was a speaker at a conference in Mexico in October, along with Marci Shimoff, author of 6 Chicken Soup for the Soul books. She is a part of a mastermind group of best-selling speaker-authors that do mailings for each other – you’ve seen the "Be a Bestseller on Amazon" promotions with all the free goodies from other self-help authors, yes? Marci’s announcement about her new book Happy for No Reason, which is a fabulous book, went out to 5 million people! That's what I mean by platform, and why she got a big deal with a major publisher.

But look, she started small, too. She pitched Chicken Soup for the Woman's Soul to Jack Canfield when there wasn't any idea for a series of "Chicken Soup" books – there was only the one book. But she saw a sequel in meditation and called Jack and pitched her idea. Then she built her reputation by speaking and writing more of those titles and I'm guessing not much money in the beginning. Now she commands big speaking fees and gets big advances for her books.  

The book business is like every business. People who have made it usually built their brand and their business slowly over time and came into the big money later, after years of hard work. Read the biographies of any famous person and you'll find that same story over and over. Faith Hill became famous with her fourth album. Bon Jovi sold his 50th song demo, and the band didn't make any money until their 3rd album.

That's why you have to love your work – your goals have to be so juicy that it’s fun just to work towards them! Because that's all that will sustain you through the failures along the road to success. Look at everything as fun and an adventure along the way and you'll be happy and successful every day of your life.

And that’s my secret of happiness.

Chellie Campbell:
Professional Speaker and Author of The Wealthy Spirit and Zero to Zillionaire has been teaching Financial Stress Reduction® Workshops since 1990. The Wealthy Spirit was a book-of-the-week on the Doctor Laura Schlessinger radio show and a GlobalNet book-of-the-month selection. She has been quoted in Good Housekeeping, Lifetime, Woman's World, and Essence, and more than 30 popular books.

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

Thoughts Become Things.

by Gary Kobat.

What are you creating: Depression and Despair or Joy and Freedom? Includes your very own Emotional Guidance System (EGS) chart.

Gary at-work pacing World Champion Sara Chojnacki to a podium finish in Austin, Texas.

Seriously, if you haven't gotten it by now: we are the creator of our own experiences. Our emotions are our indicators of our alignment, our direction, and/or connection to our future and our source.  Like a sculptor, painter, potter, or writer molding and crafting through the focus of our minds, we broadcast our signals at every moment, with these signals easily understood and received by many. What we are feeling and thinking creates our world. The stronger the feelings; the stronger the alignment with those thoughts. You are inviting your highest good, or sentencing yourself to a term of "in your own way-ness."

Our emotions are our compass.  With this knowledge, we can now guide our direction or even what we attract, using our emotions to feel our way to joy or happiness.  And once we are in control of our emotional direction, we feel a sense of relief, with less doubt.  We see and enjoy our life, as a prisoner of nothing.

To help you navigate the path of infinite possibilities, we've created an EGS, an emotional guidance system, a tool, a chart, a visual for you to cut out, paste up on the wall, the desk, fold in the planner or purse to be utilized to help you "move up" on the scale of joy and happiness.  Some of you may be feeling bad, and not really know how bad till you grade yourself on the scale.  Fret not.  As your goal would be to just allow yourself to do the best you can, to feel the best feeling you can at that very moment, allowing yourself to find relief by reaching for the best feeling that you can resonate with on the scale.  And with practice, you'll find yourself moving up the scale quicker, easier, and with less resistance, feeling better, more frequently, enjoying your day, your week, your month, your life with more flow.

Recently I read about the USA’s own Mary Lou Retton, Olympic Gold medalist, world-class gymnast, 39-year young Mom of 4 beautiful kids, needing to go through a hip replacement after being so fit and energetic all of these years for us to witness. I was thinking about the challenge it must have been for her to go from an assertive, smiling inspiration every day to limping and painful each day as the hip deteriorated. From +10s in life, just as she had in the Olympics, to questions about her future.

Ironically, that was the day that my own hip began to deteriorate: I went from the high of running my 51st marathon with a client, along with being presented Team USA’s All-American award days later, which was a +10 for me - this new 50-year-old -- to barely walking from the pain just six months later. I sat in church, tears flowing down my cheek, feeling depressed, a negative 10 out of 10 on the scale of ultimate emotions, worrying about not being able to serve my clients, compete for my country, make a living in what I loved or even energetically move as I have the other 49 years of my life.

But then it hit me, "What about that new hip resurfacing procedure just approved by the FDA like Tour de France winner Floyd Landis just received?" This started to move my emotions from the lowest of lows, from devastation, up a few notches to worried ("Can I do this?"). As I allowed this possible solution to take center stage, my emotions climbed to contentment ("Okay, I need to get researching"). From there my mood edged up to hopeful (after I found out more) to optimistic (after phoning a recent athletic patient and hearing his results) to positive (being a life coach after all, we know that what we focus on we attract!) to passionate (about having the surgery) to freedom when I did it!

Dr. Vijay Bose with Gary Kobat after hip resurfacing surgery in Chennai, India.

Yes, I am almost a year post-op from flying to see the best surgeon in the world (located in India) for this new hip resurfacing procedure and I’m feeling, seeing, and moving like I never have in my life. I’ve been given a new opportunity in life to do all the things I’ve always wanted to do by not allowing myself to live in that depressed state. Rather, I had faith, and a knowing if I just moved up on the scale of better emotions, that I would manifest better solutions to help manifest a better outlook. I did not know, however, the how, where, why, or when it would all get done, but, rather just trusted that my own state of optimism and faith would connect me with the universe’s best results for me. Just as Mary Lou did for herself in her moment of "movement despair".

So with that energy I have created a scale for you to use: an emotional guidance scale structured for you to go from the negative or bad: a –10, to the positive or good: a +10.... with the positive being in alignment with source energy and with the negative being disconnected from that same love and source energy, that of which we were made.  Or putting it another way: "The negative is as far from the answer as universally possibly."   

So the next time you're in an emotional bind: go ahead: plot yourself on the scale.... and start moving on up.

The EGS: Show your kids, your spouse. Share it with a friend.

Until next time: Train smart. Live, race, recover smarter. Gary. 

Chat online with Gary on April 9^th, and learn why it’s hip to get a new hip resurfacing procedure done in India. Gary Kobat is a life and fitness coach to many celebrities and the recent recipient of a new hip resurfacing procedure, which he had done in India by Dr. Vijay Bose, after doing extensive research into hip replacement and resurfacing options. While Gary is not a doctor and cannot recommend what is best for you personally, he can share the names of well-respected doctors and research, which might help to inform your decision-making. Gary’s recovery is unbelievable proof – so far -- that getting hip surgery does not mean that your athleticism will suffer greatly or that you will become a cripple!

How did a world-class athlete go from needing a hip replacement back to world-class competition in under a year? Learn this and more in Gary and Natalie's 21 day coaching-call series designed to create a healthier, wealthier, more beautiful you here and now, setting the stage for the rest of your life! It's all about energy, tapping into, nourishing and monetizing the magical essence that you were born to embody.

Get more information on this chat at the Calendar Section of NataliePace.com. (Practice going into the chat room now, so that you can be sure you have your passwords, and do not have any firewall issues that prevent you from participating.)

21 Days to a Healthier, Wealthier, More Beautiful You:
Don’t miss Gary Kobat and Natalie Pace’s ground-breaking new coaching call series of 21-day lessons in grounding, anchoring and course correcting your thinking, eating, moving, and finances.
To learn more about the 21-day program, join us in the online chat with Natalie Pace and Gary Kobat on Wednesday, April 9th, 2008, at 8:45 a.m. PT. (Information above and on the calendar section.)
To sign up NOW, simply go to Natalie Pace.com and click on the JOIN NOW link, or call 866.476.7442 or email Heather@NataliePace.com.

Testimonial:
Dear Gary and Natalie,
 
Thank you so much for the incredible coaching series. The daily calls were just what I needed to start and become comfortable in some new habits.  I would listen when I first woke up each morning, and it was a phenomenal way to start my day.
 
Some of what you taught was new to me.  And some concepts that I had heard before I now accept and have internalized at a new level.  It was presented in such an energizing and non-judgmental manner, and the way new tasks were added each day was prefect.  I implemented some of the concepts, and plan to start again for another 21 days and implement even more.  
 
Equally important as the new action habits I started is a new way of thinking and feeling and being.  I am uncomfortable with a meal that does not include tons of vegetables.  Cravings for sweet things have subsided greatly, and I can pass by gooey chocolate treats without even a twinge of deprivation.  I look forward to pushing my body a little more. My fear of making mistakes in investing has diminished.  I am looking forward to the challenge of working toward 50 percent of my income to survive, when I used to rebel at the idea.
 
Thank you again.  This has been a life-changing event.
 
In peace and gratitude,
Sandi

Building Immunity Through Whole Foods.

by Janelle Deeds CNC, NE, Nutritional Consultant, Functional Endocrinology Specialist.

Why is it that with all of improved technology, in depth research and modern knowledge that we continue to reach epidemic proportions of disease instead of optimal health? Why are our bodies not responding to conventional treatments, but instead we find that we have multiple diagnosis and a cupboard full of medication?

I believe that these answers lie in our choice of lifestyle. From eating habits to our environment all of these factors have an impact on our health.

In a 1999 study of the American Cancer Society it is suggested that over one-third of the 563,100 cancer deaths were caused by lack of proper nutrition. But more importantly, it concluded that MOST of these could have been prevented. Let’s just hear that word again, prevented. That means there is something that we can do about it.

Many Americans have taken notice and are committed to regaining their health by going on a diet or taking the best advertised supplements, not to mention that new gym membership or fitness equipment. These are all positive steps toward improving health; however, it is HOW we use the tools that are available to us as to whether or not it makes a difference.

A balanced whole foods diet is key.

Bestselling books, trends, fads, that excess weight, it all comes and goes. But basic whole food nutrition has been a staple of health for many years. These powerful principles help in:

• maintaining healthy cellular function and metabolic balance,
• supporting our appropriate level of fitness, and
• developing a stress-free mind.

Foods and their vital ingredients can be enjoyed as well as be nourishing when they are not over processed, isolated individual nutrients but remain in their closest to natural state. Such a diet ensures that the 3 functions of digestion – absorption, assimilation and elimination – work in perfect harmony. Often "synthetic" or "processed" foods create conditions that disrupt the harmony between these 3 functions. Over years, this leads to severe physical and psychological problems.

The golden rule of whole foods cooking is to keep it simple. Enjoy herbs and spices to give it gourmet flair but don’t over complicate.

A balanced diet of immune-boosting foods and bacteria balancers just might help you ride out the final days of winter's chill.

7 Powerful Immune-Boosting Foods

	1. Whole Fresh Juices – Vegetable and fruit juiced fresh and whole contains vital nutrients and many anti-oxidants. Think of these anti-oxidants, including Vitamin C as your best pre-cold and flu friend. While loading up on the stuff will help once you've been bitten by the bug, there is definitely power in keeping your immune system in top shape.
	2. Green Tea – If disease fighting had a prize fighter, it would be green tea. Besides providing much-needed antioxidants (also found in whole grains, legumes, and nuts), green tea is said to have disease-fighting powers to prevent cavities and protect your gums.
	3. Garlic – First it was fed to the Egyptian slaves to give them strength to build the pyramids, then it was hailed as the refuter of vampires–it seems there is nothing garlic can't do. There is contention that one of its real strengths comes in its pungent flavor, a key to clearing up congestion.
	4. Almonds – Hailed as a "nutritional powerhouse," almonds are packed with fiber, folic acid, magnesium, calcium, potassium, riboflavin, and vitamin E. Raw almonds and other raw nuts contain many more active nutrients than roasted nuts.
	5. Ginger – Packed with virus-fighting agents, ginger is a warrior in the battle against colds and flu viruses. It's touted for opening nasal passages, clearing congestion, and even soothing nausea.
	6. Horseradish – Fight stuffy noses and chest congestion with a fiery helping of horseradish, hot sauce, or hot peppers. Consuming these zesty items not only allows you to taste something you're eating, but also encourages the congestion lingering in your sinuses, head, and chest to loosen up.
	7. Arugula – When the worst of winter colds hits, steer your grocery cart toward the produce section and fill up on bitter greens, such as arugula and watercress. These fresh leafy veggies are packed with iron and vitamins A and C, and are believed to help relieve many flu-like symptoms, ranging from chest congestion to the sniffles.

An annual wellness visit will offer you the opportunity to determine your current health status. This is important because it is really up to you. Your health or lack of is in your hands. Some simple annual markers assist in determining if your body is functioning well or there is room for improvement. A comprehensive Functional Endocrinology Blood Serum Analysis (blood based biomarker profile) http://healthwalk.com/health-walk-clinic-services/blood-and-saliva.aspx is one of the lab tests we evaluate and work with in our clinic. Everyone will benefit greatly from a once a year to look at their body’s baseline indicators especially as we get older. Aging doesn’t have to mean not feeling as good or sharp as you did a few years ago. Energy, stamina, memory, mood and quality of life are your health right when it comes to vibrant and healthy living.

Janelle Deeds CNC, NE, is a Nutritional Consultant, and Functional Endocrinology Specialist at HealthWalk clinic in Carlsbad, CA. HealthWalk is a healthcare company which offers leading edge, scientifically proven and effective products and services that provide an integrated healthcare system for a vibrant life. HealthWalk offers non-invasive and effective long-term support to enable the body’s own innate powers to do the healing. One of their services is to provide guidance on healthy nutrition based on your individual needs and life style, juicing, whole food blending, nutritious meal plans and supplements, including HealthWalk’s Rupronol™ http://healthwalk.com/health-walk-product.aspx?ID=5 (to fend off viruses and bacteria). HealthWalk’s mission: Vibrant health, you can attain it and we are here to support you on your path to regaining and maintaining it. You can read and subscribe to their monthly newsletter at http://healthwalk.com/health-walk-newsletter-list.aspx For more information, go to HealthWalk.com.

Abundance.

by Marilyn Tam, co-founder, Us Foundation, and author of How to Use What You’ve Got to Get What You Want.

In this first of two articles, Marilyn Tam chronicles her trek to India to provide anti-parasitic medicine and Vitamin A to impoverished children in India.

"Whatever you are doing, give thanks for your life because it is so abundant compared to so many people who will think that they are in heaven with 10% of your cast offs and garbage." Marilyn Tam

Marilyn Tam, co-founder, Us Foundation, and author of How to Use What You’ve Got to Get What You Want.

Hi Dear Friends,

A short write up on what’s going on in my world for the moment….

This morning we were on our way to Happy Model School in the rural areas of Varanasi, India. in fact our car was just negotiating around another cow when I thought about you. Not that cows are exclusive to the countryside; the city has many more cows than the countryside it seems…. They lie down in the middle of the road, eat people’s produce from their stalls and generally act like they own the place, which in ways they do. It is so weird to see the bony starving people and fat cows. The dogs are mangy and the goats are well fed, maybe because they eat everything and there is certainly lots of garbage for them to eat.

Ah, I’m on an animal theme right now. So many domesticated animals, but I haven’t seen a cat or any rats. I wonder if it is because people ate them all? Hah, I’m only half joking.

Child of burden

This place is the widest dichotomy of spiritual and almost incomprehensibly, intensively physical place. One has to stay fully present because the environment is so immediate and in your face. The noise level is deafening, with horns blaring, screeching of tires, chants and music coming from shops and temples, bicycle bells ringing, people hawking products all happening at once. Then there is the sheer crush of people, cars, pedicabs, bicycles, pedestrians, people sitting on the sides and middle of the streets, beggars, hawkers with push carts, men with piles of various items to sell as they walk along, touts trying to get people to go into their commissioned stores, policemen that stand around and do nothing, security guards with guns with bayonets on the end, and of course all the animals who seem to be oblivious to the cacophony of sound, traffic and general assault on the senses and very often one’s life, since no one drives, rides, or walks in lanes or in any remotely organized fashion. And of course no one stops or gives much of a right of way, yet it all seems to work relatively smoothly. No one seems to get hurt badly although our driver did pin a man on a bike between us and a pedicab and also glanced a school boy that was a bit too close to the car…. No one stops, says anything and they all keep going.

Then there are the smells. It is amazing that the place doesn’t smell worse. There is cow dung, goat dung, dog doo and human urine everywhere since the men just stop when they feel the call and just turn towards the wall of the building and start urinating. All that is before the huge amount of garbage which seems to be generated by the minute; people just throw trash including one time used ceramic cups, banana leaves (aka plates) and all other manners of refuse into the side walk which is periodically swept up by the untouchable caste of people. All this is before the sheer emotional, philosophical and sociological aspects of seeing people live in abject poverty and in decrepit conditions that are hard to imagine. To see maimed beggars, hollow cheeked, desperate looking mothers with tiny babies come up to beg and people lying by the filthy sidewalks, which are their homes…. It’s surreal.

For a Westerner who is used to having personal space it can be overwhelming, and in fact it can be frightening and very upsetting. Fortunately for me I’ve experienced this before so I’m managing, although I’m certainly going to be thrilled to leave this environment. But I wonder how you would do in such conditions. The intensity of the assault on all the senses is so high. I wonder if people just break down under the strain, if they have not been exposed before.

I elected not to go to explore the other side of the Ganga with the whole group to have the time in my room to write to you. There are only two computers for the whole hotel and only one of the two cables works with my computer. I’ll explain later. Anyway you can imagine that it is literally almost impossible to get on line, so I’m writing this in my room and then I’ll go down and see if I can get online.

Village Women and Children

Today we distributed the anti-parasitic medicine and vitamin A to two schools, about 2,000 kids. We were so late because of traffic that we missed one other school. We will make that up on Monday. We now have a good system and it is heartwarming to see how needed what we are doing is for the children.

The doctors who came with us told me that every one of the children is anemic and obviously malnourished. Their big eyes fill up most of their little faces and I can see evidence of ringworms in at least 5% of the children. Since they are all in uniforms, their poverty is camouflaged, but the skinny little arms and small statures attest to their true economic status. Some have visible signs of worms, open sores, extended stomachs and that listless stare, but they are all wonderful little personalities in their own right.

Since I have to give a speech in every place (a very Indian thing to do, give/listen to speeches for every occasion; maybe that is why they can be so patient.) I had them repeat, "Namaste" and "Om jai, jai Maa" back to me. They loved it; we clapped hands and they sang us their national anthem.

I’m meeting with the head of the IMA (Indian Medical Association, like our AMA) on Monday to work out the fine logistics for the balance of the 100,000 distribution after I leave and to put in place the foundation for larger distributions after we get this program established. I also want to get a new program for newborns established because then with one dose we can cut infant mortality a minimum of 27%. It is a very effective program and we have already started this program successfully in four countries. India has the worst performance in improving infant mortality and in fact has slightly declined in this measure in the last few years. I remind myself to be in acceptance and acknowledge the good people who are volunteering to help, instead of any judgment on the social/cultural system that allows for so much suffering when there is a growing middle class and cases of extreme wealth here.

The children are great and they make it all worthwhile. We will distribute to about 12,000 children before I leave and I will have a signed off distribution schedule for the rest by then also. The head of the IMA is a great guy. He is motivated and I believe that this program really opened his eyes on the people living in the underbelly of society here. He has committed to me that he will work with me to get the program to all of the state and eventually to the whole of India. Ambika is now signed on to help make sure things happen properly for the balance of the distribution and for future distributions. My goal is to be able to train her so that she can do this without my physical involvement in every distribution. These trips are hard on my body. The food is so unlike what we usually eat, and it is especially difficult since we’ve been served the same meal items three times a day everyday. Gee, I know I’m making this trip sound so appealing.

There are many great things, the kids, the internal quiet moments, the sacred sites, the inspiring people…..and what an adventure in so many ways! Definitely something to be experienced …. Some people thrive on this; Howard my colleague from Vitamin Angels loves this, which is why he does what he does. I think India self selects who chooses to come. Funny that I am not attached to being here or not at all. After all that I said about people really having a visceral reaction to either being in India or not, I’m neutral. I love the work but the place does not really call to me. I know that things are incredibly inexpensive and you can get almost anything for cheap and at once, but I cannot imagine wanting to shop even if we had time.

There is a sense of unreality to the place that makes me wish to stay away from other interactions other than with the anti-parasitic medicine and vitamin A and health and nutrition program I am on. Maybe it’s the constant need to be aware that everyone seems to have a personal agenda and that it is to take some advantage of the situation for some personal gain, very exhausting to deal with that. You can’t even ask for direction without knowing that the person (always a man because most "good" women aren’t allowed to be out alone) is going to try to figure out how to get some advantage out of the deal… Can he have you stop by a shop of someone he knows so that he can get some commission? Or what about a tour of some kind so that again he gets some cut? Or what if he can sell you something, hashish, change money or to direct you to another hotel so that he can make some $ there too? It’s exhausting.

I know many people love India and come for the incredible sights, the history, the spirituality and the inexpensive luxury of being pampered. You may be one of them and enjoy the place. I come for the work. There is so much that can easily be done to drastically improve the health and wellbeing of the children. I’ll be here for a few more days and then I get to go to Hong Kong for a day and a half to see my brothers and then home. I will be so happy to enjoy quiet open spaces, to sleep in my own bed, shower in my own shower and yes, eat fresh leafy green vegetables that I feel safe eating raw!

Whatever you are doing, give thanks for your life because it is so abundant compared to so many people who will think that they are in heaven with 10% of your cast offs and garbage.

I am grateful for you in my life because you are part of my abundance.

Marilyn Tam went to India as the facilitator of a collaboration of three organizations, Us Foundation www.usfoundation.org , Humanity in Unity www.humanityinunity.org and Vitamin Angels Alliance www.vitaminangels.org to provide anti-parasitic medicine and vitamin A for 100,000 children. As the representative of Us Foundation, Marilyn took the lead in organizing this project and is responsible for implementing the program. Marilyn’s group works with the local teams affiliated with Humanity in Unity, distributing the anti-parasitic medicine and vitamin A to prevent blindness, improve their immune systems and brain development and to educate and hand out hygiene and nutrition picture flyers translated into the local language so that the children, parents and teachers could take the information to their villages.

If you are interested in participating in a future mission, please log onto www.humanityinunity.org and www.usfoundation.org For tax-deductible donations to this program, please send your donation to the India Children’s Project at:

Us Foundation
P.O. Box 5780
Santa Barbara, CA 93150
www.Usfoundation.org

Marilyn Tam is the founder and executive director of Us Foundation, the author of "How to Use What You’ve Got to Get What You Want," and former President of Reebok Apparel Products & Retail Group. Marilyn’s vision is to expand the current 100,000 children’s health & education program in Varanasi, India to a program which will serve all the millions of children whose families subsist on under $1US a day in India… Us Foundation will be collaborating with the same organizations above, adding Save the Children, and eventually will be doing this program in 41 countries!

Reverse Mortgages: Avoiding a Reversal of Fortune.

Investor Alert from FINRA.org.

If you are in your sixties, and own your home, chances are you have heard about reverse mortgages—or will soon. Reverse mortgages can be helpful to homeowners who want to stay in their homes but are having trouble keeping up with their mortgage payments, or who have no other source of funds to pay bills or meet unexpected expenses. But as more Americans near retirement age, some financial institutions are aggressively marketing reverse mortgages as an easy, cost-free way for retirees to finance lifestyles—or to pay for risky investments—that can jeopardize their financial futures.

FINRA is issuing this Alert to urge homeowners thinking about reverse mortgages to make informed decisions and carefully weigh all of their options before proceeding. And, if you do decide a reverse mortgage is right for you, be sure to make prudent use of your loan.

What is a Reverse Mortgage?
Older homeowners who want to tap the equity in their homes typically have three options. They can sell their house and downsize, take out a home equity loan, or consider a reverse mortgage. A reverse mortgage is an interest-bearing loan secured by the equity in your home. To be eligible, you and any other co-borrowers, such as your spouse, must own your home and be 62 or older—although some lenders offer reverse mortgages to individuals as young as age 60.

Like a home equity loan, a reverse mortgage allows you to convert your home equity to cash that you can use for any purpose. Unlike other home loans, however, homeowners make no interest or principal payments during the life of loan. The interest is added to the principal, which is why reverse mortgages are often called "rising debt" loans. Unless you opt for a fixed-term loan, the loan only becomes due when you die, sell your home to move, or otherwise leave your home for more than 12 months—for instance, if a health issue requires you to enter a nursing home.

If any of those events occur, you or your heirs must repay the loan, including compounded interest, in full. Normally, that means the house must be sold, and the loan will be paid back from the proceeds of the sale. Because interest will have been accruing during the life of the loan, you will likely owe more than you borrowed—and if home values have fallen or you live longer than expected, you may even owe more than your house is worth. But since reverse mortgages are non-recourse loans, the worst that will happen is that you or your heirs will receive nothing from the sale of your house. The lenders cannot go after any other assets that you or your heirs own.

So What's The Catch?
First of all, reverse mortgages may seem like "free money" but in fact, they are quite expensive. Like traditional mortgages and home equity loans, you will be charged interest, but interest rates for reverse mortgages are generally higher than these other types of loans. In addition, the fees and costs associated with reverse mortgages are often significantly higher, too—sometimes as high as 4-8% of the total loan amount. You can usually have these costs deducted from the loan amount, instead of paying for them out of pocket, but either way, you may end up with less cash than you expected.

Also, be aware that reverse mortgages must be the primary mortgage on your home, so if you have another mortgage already, you will have to borrow enough to pay that off, too. That may also reduce the amount of cash left for you to use.

Second, you are still the owner of your home and therefore responsible for property taxes, insurance and home maintenance costs. If you are not able to meet these obligations, the lender may have the right to foreclose on your home, leaving you in the worst possible situation - no place to live, and no more home equity to draw on.

Even if you can keep up these payments, you may get to the point that you want or need to move into a smaller home, or into an assisted living facility, for reasons other than cost. At that point, your loan will come due. With compounded interest due, you may be surprised to find out how much you owe, which may restrict your future housing choices.

Using Your Loan Wisely
Tapping into your home equity in your retirement years through a reverse mortgage is a very serious decision. For many borrowers, choosing a reverse mortgage is a last resort way to secure additional monthly income in retirement. Whether it is the right decision for you may ultimately depend on a number of factors—your health, your spouse's health, other sources of income, the reason you're tapping your home equity, when you do it, and how wisely you use your loan proceeds. Unfortunately, some financial professionals who profit from selling reverse mortgages aggressively urge homeowners to obtain them even when they are not necessary—and to use the money to take dream vacations, buy a second home, or invest in risky or illiquid investments. In some cases, those who sell the mortgages may also profit from the sale of the touted investment, giving them twice the incentive to talk you into a loan you may not need.

When you obtain a reverse mortgage, you normally have several options for receiving the funds. You can take a lump sum payment, set up a line of credit that you can draw on as needed, or set up regular periodic payments. Depending on your lender, you may also be able to set up a combination of these options. For example, you may decide to receive a portion of the loan amount in monthly payments, and leave the remainder as a line of credit that you can use for unexpected expenses.

Whichever you choose, make sure you use your loan wisely. Just because you don't have to pay back it back as long as you live in your home doesn't mean you should treat it as "mad money." Reverse mortgages were originally designed as a tool for allowing aging, low-income homeowners to keep their homes by providing a source of additional monthly income to meet expenses. Now, as lenders are realizing that more and more Americans are retiring and sitting on large pools of home equity, they are beginning to aggressively market reverse mortgages to younger retirees as a way to finance a more extravagant retirement lifestyle than they could otherwise afford. The trouble is, those same homeowners may need their home equity some day for something far more pressing than a vacation, only to find that it has already been spent.

If you are approached by a financial professional to do a reverse mortgage in order to fund a particular investment, keep in mind that all investments carry risk and costs—and the higher the promised return, the higher the risk. It's best to steer clear of investments that are risky or underdiversifed—as well as those that make it expensive, if not impossible, for you to access your money if unexpected expenses arise.

Tips When Considering Reverse Mortgages
* Weigh All Your Options: Whether you need money to pay bills, or just want some extra cash, a reverse mortgage should ideally be a last, not a first, resort. Does it make more sense to sell your house—and either downsize or rent while carefully investing the sale proceeds? Take out a home equity loan or line of credit? Can you consolidate credit card debts? Even if you are having trouble paying for your taxes or for home maintenance, there may be local government assistance programs that can help. Whatever your situation, ask your state agency on aging about less risky, or lower cost, ways to address your needs.

* Understand the Risks, Costs and Fees: Just because you won't be making any interest payments as long as you live in your home doesn't mean the interest rate doesn't matter. If you do decide to move, for whatever reason, you will have to pay back the loan plus compounded interest. The same is true if you have to leave your home, for whatever reason, for more than 12 months. Be sure to ask about all costs and fees, including any prepayment penalties.

* Recognize the Full Impact of Your Decision: While you typically do not have to pay taxes on the proceeds of a reverse mortgage, the income or lump sum you receive could impact your eligibility—or your spouse's eligibility—for various state and federal benefits, including Medicaid. In addition, depending on the laws of your state, a reverse mortgage may not enjoy the same home-equity protection that would otherwise apply if you have a health emergency and need to enter a nursing home—and your spouse must liquidate assets to pay for that care. Finally, a reverse mortgage is generally not the right choice for those who want to leave their homes to their heirs.

* Get Independent Advice: Reverse mortgages are such complicated transactions that the federal government requires borrowers to meet with HUD-approved counselors before obtaining a federally guaranteed loan. (Most loans are federally guaranteed, but increasingly lenders are offering proprietary loans that are not.) Make sure that any counselor recommended by your lender is truly independent by asking whether he or she receives any funding from the lender or the mortgage industry. Even if you are applying for a loan that is not federally guaranteed, it is a good idea to get advice from a trusted financial adviser who has no interest in either the mortgage or any investment you plan to make with the proceeds. In any event, before you agree to a reverse mortgage, be sure to consult with legal and tax professionals who know the consequences of reverse mortgages for residents of your state and who are not connected in any other way to the transaction or the lender.

* Be Skeptical of Reverse Mortgages as Part of an Investment Strategy: If someone urges you to obtain a reverse mortgage to make an investment or purchase an insurance product or a security, such as a deferred annuity, be very skeptical, particularly if they are promising high returns. In essence, they are encouraging you to speculate with your home equity, which you may need for more critical purposes down the road. Also consider what will happen if the returns turn out to be less than promised, or worse, you lose the principal. If you cannot sustain that kind of low return or loss, you should probably not be making the investment with your home equity.

* Ask the Right Questions About the Proposed Investment Strategy: Reverse mortgages are an extremely costly way to fund an investment. Before you obtain a reverse mortgage for investment purposes, make sure you understand both the terms of the loan AND the terms of the investment. What fees must you pay, directly or indirectly, for the reverse mortgage? What are the costs and fees associated with buying the investment? With selling it? How easy will it be to get your money out if you need it suddenly? Does the investment have a long surrender or lock-up period? What is the potential downside? Is it marketed and sold by the same person or entity that is offering the reverse mortgage? How is the reverse mortgage broker compensated? How is the seller of the investment compensated?

The Bottom Line
Home equity is often a homeowner's most valuable asset, and most precious source of retirement security. Reverse mortgages can be a useful tool for certain older Americans who might otherwise face losing their homes. But for anyone else, they are an expensive option that may prematurely deplete your home equity. Homeowners should consider all the risks and explore all of their options before taking out a reverse mortgage, and even then, should use the loan funds wisely.

Additional Resources
* FINRA Alert: Seniors Beware: What You Should Know About Life Settlements
* FINRA Alert: Betting the Ranch: Risking Your Home to Buy Securities
* FINRA Alert: Variable Annuities: Beyond the Hard Sell
* FINRA Alert: Equity-Indexed Annuities—A Complex Choice
* U.S. Department of Housing and Urban Development: Reverse Mortgages for Seniors

 

Turn off the Tele and Turn on the Returns!

NataliePace.com subscribers chat with Blue Chip stock picker, Kelley Wright, managing editor, Investment Quality Trends stock newsletter.

This is a reprint of the online chat with Kelley Wright Chat of 3.19.08. Kelley’s specialty is Blue Chips. His stock newsletter, IQTrends.com, follows over 350 with specialty screens to determine buying and selling ranges.

Kelley Wright, Managing Editor, IQTrends.com stock newsletter

I read and hear a lot about International stocks. What do you think about International stocks?

Kelley: International stocks offer regional and currency diversification. You can achieve much of this diversification by investing in American companies that are multi-nationals; meaning that they derive a fair percentage of their revenues from overseas operations.

Does your private client group use any international?

Our primary focus is the domestic market, however, as mentioned previously, a large number of the companies we follow are multi-nationals.

Kelley, what are some internationally diversified companies that you track, and of those, are any in your Timely Ten or highlighted as in buying range right now?

The list is quiet long, actually, but in the Timely Ten you will find: Rohm and Haas (ROH); Mc Donald’s (MCD); General Electric (GE); Johnson and Johnson (JNJ); PepsiCo (PEP) and Kimberly Clark (KMB).

Citigroup is another corporation with a huge presence abroad, right? They were first movers in mainland China and purchased one of the largest banks in Turkey as well. What do you think of Citigroup right now. It’s trading at multi-year lows…

Citi is indeed multi-national. In fact, its credit card facility is the primary lender in lesser-developed and emerging countries that do not have mature credit and banking markets. Citi is in a bit of a bind right now due to its indiscretions in the subprime mortgage and derivative markets. The new CEO is a real smart guy and given some time, Citi will be okay. It’s probably a little too early to jump in yet, however. If you want to make a bet on the financials, look at BankAmerica (BAC).

We hear such gloom and doom that one wonders if it’s best to stay in cash. But then our dollar is so weak, you wonder if that’s good…

Natalie’s Note: As of January 2008, stocks had returned 12.4% for the last 25 years, including a lot of down cycles, Black Monday 1987 and the 2000-2002 recession.

The financial media is in the business of selling advertising. To do that they have to reach eyeballs and nothing grabs attention like gloom and doom. Forget the noise and concentrate on what you can control, primarily what goes into your portfolio. Remember, the key is to focus on the market of stocks, not the stock market. Buy good companies with great track records of earnings and dividends when they offer historic good value and you will be fine. Natalie, if you still have the link to the Mid-February Investment Outlook, it deals with this topic.

Natalie’s Note: Check out, "Enlightened Investors, Not Market Timers, Crystal Ball Readers and Chart Junkies, Earn Great Gains," by Kelley Wright, in the March 2008 ezine.

Does Bear Stearns portend a possible banking crisis?

Bear Stearns, in my opinion, is a case study in hubris. Hopefully BSC is an isolated incident. If so, that might just be the bottom on financials.

Natalie’s Note: there have been reports from senior officials that regional banks, especially those concentrated in the regions most affected by subprime – where there are the highest concentrations of subprime exposure – may be vulnerable to failure, but the word from the officials as yet has not extended beyond that in any testimonies that I’ve read. What have you heard, Kelley?

The problem for regional banks isn’t so much that they will have write-downs (regional banks focus on loan origination, packaging those loans and selling them to the mortgage backed bond market, which replenishes their capital and allows them to originate more loans) but the loss of income from loan origination fees. This is to say that their earnings engine is taking a significant hit. For those banks that do carry and service their own loans, if those loans head south then they may not have sufficient reserves to remain solvent. In the regional bank space we like West America Bancorp (WABC), Associated BankCorp (ASBC), TCF Financial (TCB), First Midwest Bank (FMBI), BB&T Corp (BBT), Bancorpsouth (BXS), Susquehana Bank (SUSQ) and M&T Bank (MTB).

Is Goldman Sachs a buy to hold, now?

We don’t follow Goldman. As for the other brokers they still have some problems and there may be a bank or two that will have to be rescued. The bogeyman hiding in the closet is derivatives.

Do you have any names of banks that might be the most vulnerable?

National City, Fifth Third…

Have you heard anything about Washington Mutual in California?

Washington Mutual needs some more cash and some time. The company has a terrific platform and network and should be okay if they can get some more reserves.

Explain derivatives and who is going to have problems with them and why…

Derivatives is a pretty deep subject. How about I write something out for Natalie to post?

How could regulatory bodies allow the hubris with BSC? Does this indicate there may be more problems hiding in the bushes?

Natalie’s Note: My sources don’t think it was hubris that brought Bear Stearns down. There were a lot of people who were excited about what sub primes were doing to help more Americans own their own homes. There was a lot of "financial innovation" going on, and the one thing that was fueling the real problem is that the value of real estate and homes was skyrocketing out of the affordable range for most Americans, especially those areas where the highest concentration of sub primes was the only thing allowing people to own. The media fueled the idea that it was "now or never" for the possibility of owning a home. This was a snowball effect. The sub primes worked fine as the tool they were intended to be. It became a problem when real estate values skyrocketed, and then flattened out and then began heading beneath the value that some borrowers owed on their new homes. Even Nobel Laureate winning economists, like Dr. Gary Becker, were taken aback at the depth and breadth of the problems with subprime. No one expected the real estate market to have such a dramatic, rapid pullback.

Kelley: Regarding BSC though, they continued to trade in sub primes and seemed semi-oblivious to the weakness in that market.

Natalie: Yeah. I’d call that other names than hubris… We’ve seen hedge fund managers implode before. It’s usually panic. Double up to make up. Over-exposure. The kinds of mistakes that even newbie investors make, but on steroids…

Kelley; My definition of hubris is believing that trees can grow to the sky and then some…

Natalie: You’re kinder than I am. I’ve been trying to avoid the word stupidity. It doesn’t take a rocket scientist to figure out that if real estate increases on average 6.4% every year, you can’t have double-digit gains forever.

Is it profits now and no foresight? Kind of like the Bush Administration?

When home prices exceed incomes by too far a margin, the fundamentals will eventually be reasserted. All bull markets end with excesses; it’s just the nature of the beast.

Natalie: That’s why Kelley has been in business for decades. He produces steady gains that are above the general gains in the marketplace, with less volatility. The extra 1-2% gains that his portfolio produces per year compounds at a beautiful rate. Kelley, do you have any comments here to help us understand this better?

If you earn 2-3 percent after inflation and taxes your capital will compound at an astounding rate.

What do you mean "the bottom of the financials"? And what do you anticipate for the market over all the rest of the year?

By the bottom, I mean that the bulk of the bad news might be out, which the market has probably discounted. Assuming there aren’t some problems with derivatives crashing and burning we could see the end of selling in financials.

Do you think technology stocks will continue strong? IBM, Cisco, Microsoft?

IBM has done well and Cisco is experiencing a bit of a resurgence. Microsoft is a whole other story, but I don’t think we will see a replay of the boom cycle in the 90s with the technology sector.

Which blue chips look good to buy right now?

BankAmerica (BAC), Clorox (CLX), General Electric (GE), Johnson & Johnson (JNJ), Kimberly-Clark (KMB), McDonald’s (MCD), Pepsico (PEP), Rohm & Haas (ROH), Wal-Mart (WMT).

Which blue chips are overvalued and would be a good time to sell right now? Are there any?

In the last issue of Investment Quality Trends there were 70 companies, almost 24% of our Select Blue Chip universe that were Overvalued; far too many to list here. As you might guess the list spans across many industries. The one sector that seems problematic to me though is the Utilities, which look a little toppy in here.

It seems at this time that an investment strategy is to stick with stocks with strong fundamentals and not try to leverage (margin).

I usually avoid margin as that sword cuts both ways.

What is your strategy for your private clients right now? Are you buying? Selling? Options?

I like big pharma. I like Eaton Vance for when the market really turns. I like Pepsi, McDonald’s, Johnson and Johnson, Clorox and Wal-Mart. Think about stuff that consumers will buy regardless of the economy. Gannett (GCI) is kind of interesting, although media stocks have been hammered.

I don’t comprehend the term "toppy" and "margin avoidance" regarding utility stocks. My FPL Group stock is ten dollars from its top 63/73. Do I need to sell that, since the price FPL and others pay to generate energy can’t be recouped from strapped households?

You need to look at your cost basis. If the Undervalued area is still above your basis, hold on. As for margin, I just don’t like it in general.

Natalie’s Note: You might find some information to help you determine your buy/sell strategy in the two articles from February 2008 ezine – "Recession Proof Your Portfolio" and "Trading Tips for Turbulent Times."

Are we headed for a recession?

I think a recession might actually be shorter and more shallow than is being reported. I like the defensive stocks I mentioned because they all offer good value right now. A defensive stock is a company that sells goods or services that the average consumer will continue to buy regardless of the economic situation.

What about biotechnology? People still have to take their medication right?

I love a company called Sigma-Aldrich (SIAL). They make the chemical building blocks for pharma and biotech. Another good specialty chemical company is Rohm and Haas (ROH).

What about alternative energy? Why is it floundering?

Ethanol may be over-hyped, but I don’t want to go there. Look at United Technologies (UTX). They are doing some cutting edge stuff in alternative energy.

I watched Suntech Power Holdings go up and down, for example. Particularly in growth stocks, I can’t tell when to sell, especially if I think I am in early.

Natalie’s Note: Remember gang, that Kelley’s specialty is Blue chip companies. There aren’t too many alternative energy companies, outside of GE, that have been around long enough to meet Kelley’s criteria. Alternative energy is still largely a growth industry.

We have a very hard and fast sell discipline. When a company hits its historically repetitive high-price/low-yield area, we are gone.

Do you think it’s a good time to buy UTX now?

UTX is a Dow stock that is doing some good work in the alternative energy field. UTX is a component of our 2008 Lucky 13 and we think it is attractive at current levels.

I’m in cash right now, do you think I should jump in now, that the water’s fine, in the stocks you mentioned, or tip toe in?

Buy shares of companies that have long track records -- 25 years – of uninterrupted dividends that are trading at low prices and high yields. When the yield drops (from price appreciation) most of the reward has been wrung out of the stock. That’s the time to sell and find another Undervalued position.

How do your subscribers know when to buy and sell?

We alert subscribers that a stock has entered the Overvalued or Undervalued area. We publish every 15 days.

Define nest egg! Does that mean IRA?

Nest egg is any money you absolutely cannot put at risk of loss.

How much does a private client need to invest to have you manage the account?

Our minimum account size is one million. I have been managing for 25 years. My area of specialty is high-quality, dividend paying blue-chip stocks.

Natalie’s Note: So, for those of you who love T. Harv Eker and Peak Potentials, you just had access to a millionaire money manager. You can really now say that YOU have a millionaire mind!

Kelley Wright is an experienced money manager, with an impressive track record, who has been in this business for decades. He is a private money manager, not an economist or policymaker.

Kelley Wright’s stock newsletter Investment Quality Trends is currently performing at the top all of his peers on Wall Street for the past 20 years, in the top 10 of all-star performance, and #4 in risk-adjusted performance. Kelley’s stock newsletter, IQTrends.com, is earning 12.5% in annualized gains over the past 20 years, according to Hulbert’s Financial Digest, compared to general stock market performance of 11.8% (as of January 2008). IQTrends.com also has lower risk and volatility than the market average. To subscribe, go to IQTrends.com.

REGULATORY REMINDER: Please keep in mind that as an investment newsletter, the staff at Investment Quality Trends are legally bound to only answer questions of a general nature and are unable to provide specific buy/sell recommendations or specific advice on an individual basis. For those interested in obtaining more information on individual management services in accordance with our approach, our sister company, I.Q. Trends Private Client Asset Management, is a Registered Investment Adviser with the U.S. Securities and Exchange Commission. Among the platforms available through I.Q. Trends Private Client are individual portfolio consultations and active account management. For more information, please contact Mr. Michael Minney at (866) 927-5250. Disclosure documents are located at: http://www.iqtrendsprivateclient.com.

April 2008 is the month of the annual Milken Global conference. If you are a big investor, this is a conference that is well worth spending the money on attending. You can find a link to this conference at the calendar section of NataliePace.com.

Other articles of interest:
Are We Headed Into a Recession? Subscribers Chat with Global Strategist Dr. Marc Miles.
Recession Proof Your Portfolio. By Natalie Pace.
Trading Tips for Turbulent Times. by Natalie Pace.

Why You Should Rebalance Your Portfolio.

by Bryan Olson, vice president, Schwab Center for Financial Research

Bryan Olson, vice president, Schwab Center for Financial Research

Rebalancing your portfolio (buying or selling assets to restore your portfolio to your original target allocation) is an important part of controlling risk. It is one of those things that sounds logical, but in practice can often feel counterintuitive because rebalancing requires you to sell assets that are performing well and buy assets that are currently out of favor. Try thinking of it this way: You're taking profits from your winners and buying other assets likely poised to rally.

Getting Started
Before talking about rebalancing and its benefits, you need something to rebalance. The initial step, as always, is picking a strategic asset allocation plan appropriate for your risk profile, investment goals and time horizon.

Creating an asset allocation and investment plan is only the first step of the portfolio management process. A long-term successful strategy requires important ongoing maintenance in order to achieve the desired results. In the case of investing, rebalancing is a key form of maintenance.

Fighting Your Worst Nature
In rising stock markets, people often take on more risk than they're suited for. We saw this in the late '90s, when large numbers of investors fell in love with technology stocks and didn't rebalance. Many even added to their already overweighted technology positions by buying more and more, assuming the stellar performance trend would continue indefinitely. Even a broadly diversified hypothetical portfolio of 60 percent stocks and 40 percent bonds grew to a much riskier nearly 80 percent stock mix. When the market began a sharp fall in 2000, people's investments were pounded -- more than they likely expected and more than if they had rebalanced.

The same holds true today with the strong performance of small-cap and international stocks since 2002, outperforming bonds by more than 15 and 20 percentage points annualized, respectively. Recent outsized investor flows into these categories illustrate that many investors may have increased their risk beyond what is appropriate for them today and may by repeating mistakes of the past.

Indeed, many times people only realize they've taken on too much risk when they experience the negative effects of that risk -- when the market goes down. Then, they scramble to unload, and usually sell after experiencing substantial declines in investment value. For those who added to their stock positions during the rise, they've bought high and sold low -- contrary to conventional wisdom. Without a disciplined rebalancing plan, you're making the mistake of letting the market and emotions dictate the risk level of your portfolio.

The Value of Regular Rebalancing
Pension plans and foundations that manage hundreds of millions of dollars have learned over time the critical need for regular rebalancing. Most have documented policies for when to rebalance and formal investment committees that meet regularly to evaluate their portfolio's allocation. This systematic review strategy is a smart way to control risk and avoid poorly timed emotional decisions.

A regular rebalancing plan helps to instill discipline in your investing process. To show the value of this discipline, we looked at the risk and return of annually rebalanced portfolios versus portfolios that were not rebalanced. In most case, a rebalanced portfolio had lower risk and similar-to-slightly-higher returns.

This lower risk and higher return combination is optimal, and it's due to the contrarian nature of rebalancing. When you rebalance, you sell some of the asset classes that have performed well and move to asset classes that haven't done so well -- in other words, you buy low and sell high.

There are some tax-smart ways to approach rebalancing, like using a tax-deferred account to avoid taxable gains from such sales. If that is not possible, target any new saving for the asset category that has fallen behind. Another option is to receive dividend and capital gain distributions in cash and channel them toward underweight asset classes. These strategies can help you get gradually back up to your target allocations without incurring fees and taxes on the sales of your investments.

How often should you rebalance? We recommend taking a look at your portfolio at minimum once a year, and adjusting any asset class that's deviated from its target by more than 5 percent. Depending on portfolio makeup and market movement, you may want to evaluate more frequently and combine with an evaluation of the quality of your individual investments. Rebalancing is an art, rather than a science.

For more investing and market commentary, go to:
http://www.schwab.com/marketinsight

To subscribe to RSS feeds for articles and podcasts, go to:
www.schwab.com/rss

IMPORTANT DISCLOSURES
This information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice or an offer or solicitation to purchase or sell any particular security. It is not intended to be a substitute for specific individualized tax, legal or investment planning advice. The strategies mentioned may not be suitable for everyone. Each investor needs to review investments and strategies in light of his or her own particular situation. Where specific advice is necessary or

appropriate, Schwab recommends consultation with a qualified tax advisor, CPA and/or attorney. Data contained here is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

This information is for educational purposes only and should not to be considered investing or tax advice. Diversification strategies do not assure a profit and do not protect against losses in declining markets. Past results are not indicative of future performance.

Market Mood Swings: Capitalizing on Fear and Loathing on Wall Street.

by Natalie Pace.

Includes my Hot News on Cool Stocks List.

Track Record of our Reporting
The Hot News and Cooling Off lists below have a winning track record –

Natalie Pace, founder and CEO, Women’s Investment Network, LLC Photo by: Stacie Isabella Turk, Ribbonhead.com ©2008 Stylist: Arlene Hylton-Campbel, 818-710-0079

in bear and bull market years. 15 companies listed below have performed well this volatile year, versus just five that went in the opposite direction of the reporting. Even during the flat year of 2007, our featured companies had outstanding performance between Oct. 2006 and June 2007! 4 out of 9 companies – almost half – doubled or more. 48% of the companies featured in my stock newsletter between 2002 and 2005 – 25 out of 52 companies -- DOUBLED from the time we listed them in our feature article to the time when I took the company off of the Hot News on Cool Stocks list, and the majority of the remaining 52% well outperformed the marketplace. (See the chart in the article, "25 of Our Companies Have Doubled," from volume 4, issue 4, the April 2007 ezine, for a listing of companies.)

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

Additionally, the market performance of the companies that are featured in my Hot News on Cool Stocks list has kept me at the top of over 830 A-list pundits on TipsTraders.com. I’ve repeatedly occupied the #1 position. TipsTraders.com listed me as a Highly Recommended Stock Picker, in 2006 and 2007. Some of our best picks include: Bioteq Environmental (BQE) +144%, Blockbuster Video (BBI) +82.5%, Genentech (DNA) +415%, Google (GOOG) +545%, Las Vegas Sands (LVS) +139%, LifeCell (LIFC) +180%, Macerich (MAC) +150%, Opsware (OPSW) +690%, Rio Tinto (RTP) +145%, Sohu (SOHU) +150%, Suntech Power Holdings (STP) +107%, Taser (TASR) up to 9000% gains and World Water & Solar (WWAT) +181%.

General Stock Market Performance

Commentary: Trading Tips for Turbulent Time
We issued a 911 UPDATE ON THE HOT NEWS ON COOL STOCKS LIST on March 11, 2008, the morning after the markets dropped to their lowest point in years. This update is still available online at the Sharing Wisdom bulletin board in the topic of the same name.

As we indicated in the Hot News List this month, there is so much volatility in the marketplace that we may be providing updates to the list between the updates! So, even though most of the news on the individual companies remained the same (outside of the financial sector, which continues to be under extreme pressure daily), on March 11, 2008 the markets dropped to their lowest point since the beginning of 2006. Oil was over $100 per barrel and the financial markets were reeling.

March 2008 was your chance to own companies like Google for prices that haven't been seen for years. Imagine, if you bought Google for $411 on 3.11.08, you were buying at a discount of 45% from the high of $747.

So, read the Hot News updates on any of the companies listed below that you are interested in adding to your portfolio. What this note is intended to do is to alert you to the prices that these stocks are trading at today, so that you can decide if they should jump into your Stock Shopping Cart or stay on your Stock Shopping List. Remember that in your long term portfolio, you’re looking for a multi-year low price, so that you can hang onto the company for years to come (at an ever-increasing profit). In your short term trading portfolio (which should be a very small percent of your investment portfolio), it is important to take profits early and often when the markets are swinging 200 points in opposite directions day to day.

Some of the companies listed on the Hot News list are more appropriate to add to your long term portfolio, and others are more appropriate for you if you’re interested in short term trading. How can you tell the difference? If the company has a market capitalization that is under $1 billion then it is a "small cap" company with a higher risk of volatility in the share price.

In a market that swings as wildly as this market has in the past few months, that means that the share price is having dramatic fluctuations (something options traders love). If you don’t want the stomach ache or to monitor the position daily, and if you aren’t prepared to take your profits early and often, it’s best to avoid individual small cap companies. On the other hand, when you see companies that are valued at over $50 billion trading at multi-year lows, like Google, Johnson & Johnson and General Electric were in the first part of March, that might be a good time to add them to your long term portfolio. The markets can shake the price around, but over the long term – many years -- if you can buy for a 40-50% discount, that should pay off.

Note that the general market trends continue to be down-trending with very high volatility.

So, why did I think that share prices might go up again, when March 10th felt so awful? Because the Feds were expected to come riding to the rescue again with another dramatic rate slash. According to a report from Reuters on March 11, 2008, Goldman Sachs analysts were expecting the Fed Fund rate to fall to two by April. As you can see, the rate was slashed as they predicted and currently stands at 2 ¼ percent. There has been a very high correlation between these rate slashes and the markets getting stronger again.

Also, please note that some of our top performers are on the Cooling Off list. If you don't know options trading, you should consider coming to my May Retreat. This is where most of the money is being made in today's marketplace -- in puts. And because the downtrend has been so strong and dramatic, you can make quite a lot in a short period of time, even buying into options that don't expire until 2009. Of course, the commitment you MUST make when trading options is to keep the amount limited to a VERY small portion of your stock portfolio and equal to your experience. In other words, if you have never traded options before, do it in a fictitious portfolio for a year before putting your hard-earned cash on the line. And, because the market mood swings are daily, you have to commit to a daily awareness of whether your puts and calls are "in the money."

Options are very high risk and are only for the experienced trader. AND YOU SHOULD NEVER BE TRADING YOUR NEST EGG (not in options or individual stocks). Taking a long term view and letting the magic of compounding and religious investing each month (where you participate in various buy and sell moments) really does work over time. The average gains for the last 25 years were still 12.4% as of January 2008, and that includes 9.11.01, the Asian Crash of 1997, Black Monday 1987...

To learn "Trading Tips for Turbulent Times" and how to "Recession-Proof Your Portfolio," read the articles in the February 1, 2008 ezine, which is archived at NataliePace.com in the online magazines section.

Ask Natalie:
Question: Natalie, how does one watch gold prices online? I have a few American Eagles and wonder whether I should sell them (now that gold is supposed to be record high) and transfer to some of the undervalued stock such as Google and Microsoft? What do you think? Where would be the best place, in your estimation, to cash out of gold? Signed – Gold Bug

Dear Gold Bug,

Diversification is the most important part of any portfolio, second only to rebalancing. You are right to think that you should take profits on any industry that is trading near its high and buy back into undervalued assets in another industry. Always make sure that you are doing this according to that carefully laid out plan of diversification, however, so that you are never over-extended in any one asset class. For instance, if you’re 50 and you already have 50% or more of your assets in stocks, then it might be more appropriate to take some gold profits and buy some Treasury bills or international bonds. Certainly, if you don’t have any large cap stocks, and Google, Microsoft, General Electric, and more are trading at multi-year lows, that should be a consideration.

However, with stocks, remember that you must keep a percent equal to your age safe — i.e. NOT in the stock market.  In bear market years, such as we are experiencing currently, many professionals overweight to liquidity.  Do not be in a hurry to buy anything when cash is king.  Cash will afford you the option to buy even lower next year on many different assets, especially if we are close to or entering a recession.  

As for the exact point that is the highest for gold prices, no one has a crystal ball. There is a big difference between all and nothing, however. If you’re happy with the price you’re receiving and feel that money can be redeployed elsewhere to mark up gains again, that’s as great as it gets. I’ve listed the annual gains of various assets directly below. Anytime you perform above the general marketplace, you are assuring that your wealth increases more robustly than your peers, and that is a great, steady, calm, easy way to increase your prosperity and abundance. Trying to "get rich quick" or wait too long for the top price is often a money-losing proposition. In volatile markets like today, many professionals take profits early and often (which is one of the main reasons we are experiencing such dramatic volatility).

Investment Portfolio

Average Annual Gains 1968-2007

Source: Morningstar and Realtor.org © 2008

You can probably find a site that tracks gold prices by "Googling" gold prices!  Good luck!  

Additionally, below are links to two interviews that Natalie did with gold specialist, CEO and Chairman Rob McEwen (U.S. Gold). Rob has been in the gold industry for two decades, and he shares his wisdom candidly in these interviews. He notes that gold prices are tied to consumer confidence in the financial markets. When people have less faith in banks, they move to gold. If the financial sector continues to experience so many problems, then the interest in gold could continue to increase, even if it seems high right now. There are a lot of if’s in that sentence, however.

Sitting on a Gold Mine. by Natalie Pace. Exclusive Q&A with Celebrated (Former) Goldcorp CEO, Rob McEwen.  Vol. 3, issue 2.
Nuggets Of Wisdom (320 sec.) Gold industry veteran Rob McEwan on investing and exploring. 2006-08-22 on the Forbes.com Video Network

(If you have trouble finding the Forbes.com VN interview, just go to Forbes.com, enter Natalie Pace in the search box, and you’ll see the interview listed there.)

Current Economic Conditions:
According to Chairman Ben S. Bernanke, speaking on February 27, 2008 in his Semiannual Monetary Policy Report to the Committee on Financial Services, U.S. House of Representatives:

1. The recently enacted fiscal stimulus package should encourage Americans to spend during the second half of 2008 and the first part of 2009.

2. Business, outside of the financial sector, is in good financial condition, with strong profits, liquid balance sheets, and corporate leverage near historical lows.

3. Real GDP is forecasted to grow a dismal 1.3 percent to 2.0 percent in 2008. If this works out as planned, the United States will avoid a recession in 2008. As you can see from the aggressive rate cutting that the Feds have been doing since September of 2007, the Feds are bending over backwards to ensure that candidates have a reasonably decent economy for the 2008 election cycle.

4. The housing and financial markets are not expected to recover until 2010. These sectors will likely continue to experience weakness in 2008 and 2009.

5. Consumer price inflation has spiked, largely on the price of oil. Food prices are also significantly higher, and the dollar has declined. Ouch for the average American’s wallet! Expect to see this play out as reduced consumer spending on discretionary items.

You can read this report firsthand at Federalreserve.gov.

Market Movers:
The Bureau of Economic Analysis released its final report on the 4^th quarter GDP growth on March 27^th. The numbers came in at .6% -- a screeching halt from the robust 4.9% GDP growth in the 3^rd quarter of 2007. The next report – advance estimates for the 1^st quarter 2008 GDP growth – will be released on April 30, 2008. This is a report that will be widely watched by institutional investors, so expect April 30^th to be another wild ride in the markets – up if the numbers are more robust than anticipated (not expected), down, if the numbers are as anemic as the 4^th quarter of 2007 was.

The market’s wild mood swings are almost directly correlated with headlines – up when Federal Reserve Board Chairman Ben Bernanke saves the day with another interest rate cut, crashing down whenever the reality of the depth and breadth of the real estate crunch hurts another fundamental measurement (like GDP growth). In short, I wouldn’t expect great news on April 30^th. However, remember that if you’re capitalizing on the volatility in the markets, bad news one day usually means a rate cut the next day (and yet another rally). This month, the Federal Open Market Committee’s 2-day meeting begins the day before the GDP numbers are released, on April 29^th, so be careful getting too gleeful about a Fed rate cut if they choose to take preemptive action on the GDP growth numbers. Anticipate that April 30th could feature a different headline about the economy’s dangerous descent into negative growth (and a recession), unless a miracle happens and the economy performed better in the first quarter of 2008 than it appeared to have.

For more BEA release dates, go to the BEA.gov website and be sure to visit the NataliePace.com calendar section often.

The Federal Open Market Committee and Monetary Policy
The Federal Open Market Committee has dropped the Fed Fund Rate each of the last five sessions. The Fed funds rate currently stands at two and one-quarter percent. Expect the Federal Reserve Open Market Committee to continue to ease investor worries, while monitoring inflation. The prevailing sentiment is still weak growth, a continued housing slump, more subprime foreclosures, a weak dollar, moderate consumer spending and rising unemployment.

Volatility prevails. In your nest egg, take a long term view and make sure that your assets are properly allocated. Keep a percentage equal to your age + 10-20% safe, i.e. not invested in the stock market (which means NOT invested in mutual funds, ETFs or bond funds). Safer investments include bonds, Treasury Bills, money markets, certificates of deposits, etc. FYI: Modern portfolio theory recommends that you always keep a percent equal to your age safe. Adding 10-20% is called overweighting into the safe categories, which is a good idea in turbulent, down-trending markets.

If Dr. Marc Miles, global strategist, is correct in his forecasts, the bottom of the market might occur between May and July of 2008. For more of Dr. Miles’ observations, be sure to read the transcript of his online chat in the March 2008 NataliePace.com ezine.

EDUCATIONAL OPPORTUNITES AND INFORMATION:

1. FOMC Information: Interested in reading the press release of the March 18, 2008 FOMC meeting for yourself? You can. The official Federal Reserve document is available online. Click on FOMC, or go to FederalReserve.gov, to read! According to the press release." Recent information indicates that the outlook for economic activity has weakened further. Growth in consumer spending has slowed and labor markets have softened. Financial markets remain under considerable stress, and the tightening of credit conditions and the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters."

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

2. Calendar Section: Conferences, Online Chats and more: Check out the Calendar section of NataliePace.com regularly. There are many wonderful opportunities to chat one-on-one with millionaire money managers, life coaches, economists, respected money gurus, real estate veterans and CEOs! Be sure to check out the dates of the mid-month Hot News on Cool Stocks Update and the publication date of our next ezine. Get more information on how to best use our articles in the FAQs article, located under the Investor Edu link on the home page of NataliePace.com. Don’t miss the Milken Global Conference, the biggest gathering of billionaires, CEOs, Nobel Laureates, policymakers and money managers of the year.
   
   
3. Survey Results. Who is your favorite Presidential candidate? What will be the top performing asset class in 2008? Make your opinion count with our online surveys.

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

Hot News List (highlighted)
Altair Nanotechnology (ALTI)
Conergy (CEYHF)
Emcore (EMKR)
LDK Solar (LDK)
PowerShares Clean Energy ETF (PBW)
Trina Solar (TSL)
U.S. Gold (UXG)
Wisdom Tree (WSDT)

DELETIONS:
Echelon
General Electric
Suntech Power Holdings
World Water & Solar
Zoltec

HOT NEWS on COOL STOCKS LIST

 Recently Deleted: Take your profits early and often!

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 since 1.30.08.

Recent Deletions:
AU Optronics was removed on 3.1.08
General Motors was deleted on 3.1.08

Altair Nano, Conergy, Echelon, Emcore, General Electric, Powershares Wilderhill Clean Energy Portfolio, Suntech Power Holdings, Satcon, Trina Solar, World Water and Solar, Wisdom Tree and Zoltec were all moved back on the Hot News List.

Recently Deleted:

Cooling Off Stocks List (may be Poised for a Decline in Share Price).

Note: The companies listed in bold have recently been added to this cooling off list and/or may be currently poised for a decline in value. Investors who have them in their portfolio should read the recent news and consider whether it is time to sell and take profits, dump losses, short the position and/or simply weather the storms, while keeping the company in their long-term portfolio. At any rate, always consult your certified financial partner before making adjustments to your portfolio. (Again, note that the stocks on this chart are expected to go DOWN in price.)

Highlighted Companies (Cooling Off List):

Boston Properties (BXP)

Macerich (MAC)

Recently Deleted:
Fannie Mae on 2.11.08

NataliePace.com Calendar:

Don’t miss the biggest global conference of the year – the Milken Global Conference. Also, join us for chats with Natalie Pace and life and fitness Coach Gary Kobat, on how to beautify your fiscal and physical fab self!

The NataliePace.com Calendar section features conferences, retreats, educational opportunities, cultural events, galas, market events and online chats with executives and VIPs. Stay plugged in! Visit our calendar section often.

See below for just a few of the amazing educational and networking opportunities that world-class organizations are offering for you. To access links to the event website and registration, go to the Calendar section at NataliePace.com.

World Premiere of The Moses Code, LA, CA
Friday, April 4th, 2008
8:00PM through 10:30PM
The sequel to The Secret by the director, featuring Michael Bernard Beckwith, Neale Donald Walsch, Mary Manin Morrisey and more.

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

Chat with Life and Fitness Coach Gary Kobat
Wednesday, April 9th, 2008
8:45AM through 9:30AM PT.
21 days to a healthier, wealthier, more beautiful you. It's all about energy, tapping into, nourishing and maximizing what you already have to make extraordinarily easy life changes to embody your highest potential. THIS 21-DAY COACHING CALL SERIES WITH NATALIE PACE AND GARY KOBAT BEGINS IN April, 2008. SIGN UP NOW AT THE JOIN NOW LINK AT NATALIEPACE.COM. Don’t wait to become the best you ever, and watch how everything in your life – your health, your wealth and your relationships – become more beautiful as a result.

Success Strategies for Biz Women Conference, Washington, DC
Friday, April 11th, 2008
Office Depot presents this one-day conference, awards luncheon full of great biz tips and even the latest gossip from the celebrity apprentice star Nely Galan.

Premium Subscriber Online Chat with Natalie Pace
Wednesday, April 16th, 2008
8:45AM through 9:30AM PT
Hot industries, like solar energy, and sinkholes, like the financials. What's the best strategy for the next few months? Did you make your IRA contribution?

Revelation 2008: Quantum Quickening, LA, CA
Thursday, April 17th, 2008
Agape's 15th Annual Transformational Conference, featuring Rev. Michael Bernard Beckwith, star of The Secret, Dr. Rickie, the Agape International Choir and more to transform your life.

Business Goes Green Expo: NY, NY
Friday, April 25th, 2008
DISCOVER HOW FORWARD THINKING COMPANIES CAN GO GREEN AND STILL MAKE MONEY. Summit is from April 25 through 27 at the NY Hilton.

The Milken Global Conference, Beverly Hills Monday, April 28th, 2008 This 3-day conference, from April 28-30, brings together some of the most extraordinary people in the world – business executives, institutional investors, asset managers, government leaders, academics and Nobel laureates. Network, share & learn.

Bill Maher and Tony Snow Lecture, LA, CA
Monday, April 28th, 2008
7:30PM through 9:30PM
2008 Public Lecture Series, brought to you by American Jewish University and Whizin Center for Continuing Education. Call 310.440.1246.

FOMC Meeting
Tuesday, April 29th, 2008
8:00AM through 5:00PM
The Federal Reserve Board governors meet to determine whether inflation is more of a factor than the housing pullback and subprime defaults. Will the Feds keep the rate where it is, raise it or lower it?

Professional Biz Women's Conference, San Francisco, CA
Tuesday, April 29th, 2008
Make a New Year's resolution to jumpstart your career and come to Northern California's premier event for professional women. get the skills and knowledge you need to take your career in a new direction. Madeleine Albright and Cokie Roberts keynote.

GDP 1Q 2008 report (advance)
Wednesday, April 30th, 2008
8:30AM through 8:45AM ET.
The U.S. Dept. of Commerce, Bureau of Economic Analysis (BEA.gov) releases its advance report on GDP growth in the 1st quarter of 2008.

FOMC Meeting
Wednesday, April 30th, 2008
8:00AM through 5:00PM
The Federal Reserve Board governors meet to determine whether inflation is more of a factor than the housing pullback and subprime defaults. Will the Feds keep the rate where it is, raise it or lower it?

Get Rich and Healthy Retreat with Natalie Pace, LA, CA
May 2008
How would you live if you had all the money in the world? Learn green investing, sustainable living and play the billionaire game with Natalie Pace, #1 stock picker and the most trusted name in financial news. Get more information at the banner ad of the same name on the home page.

5th Annual Inspiration Awards, Beverly Hills, CA
Friday, May 9th, 2008
12:00PM through 2:30PM
Each year, Step Up Women's Network rolls out the red carpet & gathers 700 members, celebrity supporters, industry elite, & community insiders to honor 3 women who embody the spirit of Step Up through their philanthropic impact in the lives of women & girls.

Alternative Fuels & Vehicles Conference, Las Vegas
Sunday, May 11th, 2008
14th annual conference will run from May 11-14, 2008 in Las Vegas, NV. Waste Management, UPS, the United States Postal Service, the City of Dallas and Wal-Mart all know that green is gold. 200 experts discuss economics, market opportunities, technology, electric cars, biofuels and fuel efficiency.

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