Grading Obama and the Feds on their First 100 Days in Office.

A Conversation with Nobel Prize Winning Economist Dr. Gary Becker.

Should the Administration regulate the fees that credit card companies can charge? Should they bail out the auto industry? Should they raise capital gains taxes and tax the rich? The world’s leading economist weighs in on this and more…

Aboard Air Force One en route to Trinidad and Tobago, President Obama works on his opening remarks to the Summit of the Americas with speechwriter Adam Frankel on April 17, 2009. Photo: White House photo by Pete Souza.

April 28, 2009. It is the second day of the Milken Global Conference, where 3000 VIP attendees gather to hear 400 CEOs, government policy makers, celebrities and money managers discuss capital solutions for health care, education, the financial crisis, real estate, terrorism, philanthropy, clean energy, infrastructure, the democratization of capital, the preservation of resources and more. But there is just one man that I’m chasing down. He’s hot on the markets, having been right on the money of exactly when the recessions and recoveries would begin and end over the last decade. He keynotes at least two lunch panels every year, since the inception of the Milken Global Conference twelve years ago.

He’s the main man here, and you’d think I was trying to monopolize Zac Efron, as bystanders and fans elbow me out of the way to grab at his hands and shove their face into his, while thanking him profusely (and sometimes even tearfully) for sharing his wisdom with them.

What characteristic could an economist have that would possibly make someone weep? While Dr. Gary Becker is clearly a free markets proponent, like so many economists before him, he is also the man who coined the term "human capital," providing scientific proof of the obvious, that when you educate your citizens and keep them healthy, they work smarter and harder. He brought humanity into the boardroom and his scientific research is the reason that corporations, like Google and others, place a priority on keeping their staff fat and happy. (Google is known for the Google 15 – the amount of weight workers gain as a result of free, healthy food.)

Because of Dr. Gary Becker’s contributions, economists and politicians can no longer talk about prosperity in the U.S. without discussing K-12 education reform. We cannot talk about the fiscal health of a nation without discussing the physical health of the individuals. And this focus on the human side of the equation is, well, touching, and it is with great effort that Dr. Becker and I thread our way through outstretched hands toward the Associates Room, where I am determined to have him all to myself for a twenty minute interview (if I’m lucky enough not to get interrupted by his colleague/fans there).

Dr. Gary Becker is well beyond retirement age, but his mind is more agile than anyone at the conference, young or old. His experience and wisdom on a wide range of subjects dwarf his colleagues on any panel. He teaches both sociology and economics at the University of Chicago, and continues to be a voracious researcher, typically with the most cutting edge statistics at hand -- such as the fact that more women graduate from college these days than men. (That fact silenced the ballroom of the mostly middle-aged, grey-haired, Caucasian men in attendance at the 2009 Milken Global Conference as adeptly as if he’d thrown a cobra in the crowd.)

Dr. Becker is, without question, the alpha dog of economics, to whom all of the other economists and pundits submit their ideology, hoping for a nod of approval. Sometimes, they get a supercilious glance and dismissive rebuttal, as happened a few years back when Nobel prize winning economist Myron Scholes suggested that having 90% bonds and 10% options in the average investors’ portfolio was a sound strategy. Other times, he appears to be channeling Jon Stewart, as he makes jokes about the naked Nobel Laureate who thinks he should be able to deduct his business suits from his taxes.

Today, he settles back into the role of teacher, however. Calm, patient and happy to explain the stock market losses that have shocked, saddened, numbed and confounded Americans, many of who now fear for their future. Never has an entire nation’s mind been on one question – "When will we start to recover?" And never has there been a person more qualified to give us guidance on the answer.

Fortunately, I don’t have to climb to the top of Delphi to gain access to the Oracle, though the price of admission to the conference is steep. (So start saving for next year’s Milken Global Conference now. It’s worth it.)

Interview with Dr. Gary Becker, Nobel Prize winning economist (1992), University Professor, Department of Economics and Sociology Professor, Graduate School of Business, The University of Chicago.

Natalie Pace: Well, here is the question on everyone’s mind. When can we start enjoying life again (i.e. when does GDP growth return)?

Dr. Gary Becker -- These are hard things to predict and I would be fooling you if I thought I knew with any certainty. But I believe that things will start coming back at the end of 2009 or the early part of 2010 -- maybe slowly at first. But I think we’ll stop going down sometime at the end of this year. It might be a little earlier, but that would be my forecast.

Is productivity some sort of a guide or signal that things are improving?

During recessions, productivity doesn’t look very good. The reason for that is that a lot of companies will have excess capital capacity and they keep workers on who are not very productive. They want to hold onto them for when things turn around. When you have excess physical capacity and excess labor, the output to deployment of capital and labor doesn’t look very good. I think productivity will resume once we have a vigorous upswing.

So productivity is not the leading indicator that we’re moving out of the recession. However, doesn’t productivity, at least partially, fuel a robust and vigorous upswing, and if so, how can we spark workers, which are really the engine of the company, to get moving?

No, productivity is not the leading indicator, but it’s powerfully related to two factors in the business cycles. When things are bad, productivity doesn’t do well. When things are good, it does better. This points to the incentives companies have to motivate individuals to innovate. Hopefully those incentives will not be adversely affected by any policies that come into place.

You’re talking about government policies, right?

That’s my concern. When you start taxing capital and investors a lot, you start to discourage innovation. That’s what you have to be careful of. On the other hand, the Administration is putting a lot of money into basic research, and that should be good for the most part.

I’ve been so focused on the financial crisis, toxic assets, market losses, foreclosures, the auto industry meltdown and cracked nest eggs that I must have missed all the talk about raising taxes. What’s being discussed? Please don’t tell me they are eliminating that beautiful 15% tax on long-term capital gains.

They are talking about raising it above the 15%, and they are also talking about taxing higher incomes and about raising the corporate income tax. Those are all counterproductive, particularly during these times, when you need to encourage investment and encourage business rather than discourage it.

What is the correlation between taxation and business growth?

A study done by Nobel Prize winning economist Edward C. Prescott across different countries showed that European countries had slower growth when they taxed at higher rates. There is a significant correlation. I don’t know the exact number, but it is significant enough to be worried about.

Low taxation certainly seemed to play into the amazing growth of Estonia and some of the Eastern European countries in this decade.

European GDP Growth Rate Compared to Tax Rate

Source: 2009 Index of Economic Freedom

Dr. Becker: Yeah, they went to flat tax, and there are about 15 or so countries in the world using flat tax, rather than a constantly fluctuating rate of income. When you do that you end up with a low rate of taxation, maybe 15%. I think we should go to a flat tax. We would be taxing about 20-25%. Compared to what we will be doing, that seems to be fairly moderate.

And put all the accountants to work on solar energy.

Right.

The markets today are lower than they were a decade ago. The prediction for growth, once this contraction ends, is for relatively slow growth. Are you at all concerned that we could be entering Japan-like stagnation?

It’s a risk, if we follow bad policy. If we follow good policy, I think it’s a relatively small risk that we’ll follow Japan. The Feds took a very vigorous response to this recession. The Japanese hesitated for many years before they did anything. Japan thought they could solve the problem through fiscal stimulus. They ran large budget deficits. The ratio of debt to GDP went from about 0.5% to 1.5% over that decade. I hope we’ll take much less of a fiscal stimulus approach. I’m not a big fan that you can stimulate much fiscally.

Is there anything that could have been done to make our economy more stable? We’ve been through boom/bust, boom/bust over and over again in this decade.

We had the Internet bubble. The real estate bubble. But, in terms of the real economy, we were doing pretty well considering 9.11 and some other shocks that we’ve experienced. By real economy, I mean, unemployment, employment growth, GDP, that is, until this recession. This is the first really big recession that we’ve had since 1981- 1982. It may surpass that. We don’t know yet. Since the real economy has done well this decade, I’m optimistic that we’ll do well in the future. But we have to get over the recession. That’s still a challenge. We’re not over it yet.

Credit card fees have gotten out of control and American consumers are complaining to Congress and asking for regulation of the fees. Is this a good idea?

It’s a problem for borrowers. On the other hand, I hate to see the government regulating these rates, just like I don’t like to see the government regulating other interest rates. I don’t think the government can do it successfully. I don’t know enough about the ins and outs of credit card interest rates to be able to say anything in detail. But I can say with confidence that if the government gets involved it will be a mistake.

Why? Won’t people be better able to pay off their debt and start spending again, if they don’t get over-gouged by the creditors they owe money to?

The government will just mess it up and it’ll be a political football. Do you want interest rates set up by a political football? That’s how you set very low rates. Do you want to give away so much credit? You need a higher rate to compensate for the risk of default by the borrower and for the cost of managing small loans. That’s the law of supply and demand that is never violated. It’s a mistake. It’s political pandering, and I hope we don’t do it.

This is the first of a two-part series with Dr. Gary Becker. Tune into the June ezine, when Dr. Becker weighs in on Detroit, the automobile bailout, the Chrysler bankruptcy and more.

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

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

Hulu Your Heroes.

by Natalie Pace.

Includes a Media Stock Report Card.

The Simpsons: Waverly Hills 9021-D'oh Season 20 : Ep. 19

Despite the Recession, which is crippling the legacy media companies and killing print newspapers and magazines, online ad revenue ballooned in 2008, boasting a 10.6% increase in earnings, to a record $23.4 billion in online ad sales. (Total advertising revenue was off by 2.6% in 2008, down to $136.8 billion, according to the Nielsen Company.) After five consecutive years of record gains, Internet advertising revenue is now inching closer to topping the number one advertising revenue vehicle in 2008 -- cable television, at $26.6 billion.

Now, within the hot, there is the smoking hot. What is the fastest growing segment of online advertising today? Video! Video more than doubled its revenue stream to $734 million from $324 million, according to the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC). Media executives predict this trend is only beginning.

"You’re going to see huge demand for high quality video advertising on the web," according to Peter Chernin, who recently announced his resignation as the President and COO of News Corp. Speaking at the Milken Global Conference on April 29, 2009, Mr. Chernin predicted that search ads would remain strong. However, since many corporations are frustrated with the returns of online display advertising, there is a migration to video as "a way to deliver emotional messages" with the hope of better results, according to Mr. Chernin.

Enter Hulu.com, Fox. com and CBS.com, three sites that are bringing television and film to the Internet. These sites have proven that viewers can handle watching something more meaningful and time-consuming than a 20-second home video of a dog skateboarding. Fans are now Huluing their Heroes and visiting CBS.com for secret scenes of Survivor, with limited commercial interruption.

Interestingly, Fox (owner of Hulu) and CBS have found a new way to monetize reruns, vintage films and even scenes that would have previously littered an editing room floor. The shows, films and out-takes are shown with 30-second ads, typically with a second watch counting down the time for you, which takes less time to watch than it does to say TIVO.

YouTube is jumping on board with their new TV and film programming. On May 1, 2009, YouTube featured the Leaders of YesterYear programming slate, with Bill and Ted’s Excellent Adventure, an episode of I Dream of Jeanne (that features Napoleon) and a BBC special on Kings. Fox.com looks more like a TV guide than a website these days (as does CBS.com). And then there are the old school sites, like AOL and Yahoo, with their display ads and newspaper format, which is about as appealing as a dictionary to new media junkies.

As you can see in the attached Media Stock Report Card, the explosion of Internet advertising (and implosion of print and network) is already registering on the earnings reports. Revenue was down in the last quarter at Viacom, Time-Warner, News Corp. and down significantly at Sony, which lost 25% in the last quarter versus the same quarter a year ago. AOL’s advertising revenue dropped 20% in the first quarter. Meanwhile, Google was the only advertising-based company that posted 6% earnings growth, year over year.

Google is still topping the charts as the most popular site on the web, while YouTube (owned by Google) pulls in at number four. Under the (former) direction of Peter Chernin, News Corp. sites , including MySpace, Hulu.com and Fox.com, are leading the web in innovative content monetization models, and Hulu.com, like MySpace before it, is making exponential strides from relative obscurity into the mainstream.

Top 10 sites in the U.S.

1. Google
2. Yahoo
3. Facebook
4. YouTube
5. MySpace
6. MSN
7. Windows Live (Live.com, search engine from MSN)
8. Wikipedia
9. CraigsList.org
10. eBay

AOL and CNN (divisions of Time Warner) came in at #11 and #15, respectively.

Source: Alexa.com

Time-Warner, a respected, legacy content provider and owner of CNN, Time magazine, Warner Brothers Studios and more, has very troubling operating margins, at -32.02%. Time-Warner, at the insistence of Carl Icahn, invested almost $3 billion in buying back it’s own stock between August 1, 2007 and April 28, 2009, a period during which the company lost -$13.64 billion, only to have the price drop so low that they had to do a one-for-three reverse split on March 27, 2009. Ouch!

All of the major media companies, with the exception of Google, have noteworthy long- term debt. Meanwhile, Google boasts $4 billion in profits last year and almost $16 billion in cash, cash equivalents and marketable securities, and no debt.

We are still smack dab in the middle of a recession, and advertising is one of the weakest segments in a downturn. So, I wouldn’t be in a hurry to invest in any company this early in the year, even though Google is clearly the leader of the pack – in earnings, in cash, in profit margins, in popularity and in potential.

MySpace, Fox.com and Hulu.com could start to carry their weight going forward, especially once the recession turns the corner. However, News Corporation cannot be thought of as a "healthy" investment at this juncture, due to all of their legacy holdings, their negative earnings in the last quarter and their negative profit margins. Additionally, Peter Chernin (the man who bought MySpace and Hulu for News Corp., lead the industry in innovation and was #2 at News Corp. for the last twelve years) is stepping down. AND the contracts for MySpace CEO Chris DeWolfe and President Tom Anderson are both up for renewal in October of this year. There are a lot of "if’s" in the future for News Corp. that smart investors will take note of.

Everything Google touches turns to gold, but you don’t want to buy high. Time-Warner is a media company that nearly died during the DOT COM bust, and has never regained fiscal health. Time-Warner needs a White Knight to save the day. That happens more in movies than it does on Wall Street, especially since banks are broke, investment bankers have been categorized as "vultures," and the Feds may have spent all of the taxpayer’s money buying up the insurance companies, banks and auto manufacturers.

I am keeping Google on the Watch List portion of the Hot News on Cool Stocks list for now, anticipating that the markets may see further decline, dragging down Google’s share price. I added Time-Warner to the Cooling Off List today.

Full Disclosure: I do not own stock in any of the companies mentioned in this article.

About Natalie Pace:
Natalie Pace, is the author of Put Your Money Where Your Heart Is, a featured teacher in the movie, Spiritual Liberation, and CEO of one of the most respected, independently owned financial news corporations in the U.S. She has been ranked as a #1 stock picker from TipsTraders.com and has partnered content with Forbes.com, Sohu.com, Kiplinger’s Personal Finance and more.  She has appeared on Fox News, Good Morning America, CNBC, Time Magazine, More Magazine, USA Today, NPR and national radio shows. For more information please visit, http://www.nataliepace.com.

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

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

IMPORTANT DISCLAIMER: Information has been obtained from sources believed to be reliable however NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.

Great Mother's Day Gift Ideas.

by Staff.

Every year, we do a survey, and overwhelmingly, in the past, our moms reported that they prefer stock, cash, spa gift certificates and couples’ getaway vacations over chocolate and flowers. This year, gold stocks might generate more smiles than a Bank of America stock certificate, but don’t just blow off the survey altogether and show up with daisies in your hand. Bad idea! Mom loves flowers, but she also desires something more lasting!

If your love is much bigger than your wallet, there is always a gift that is both loving and priced right. Below we’ve put together a few recession-friendly presents that should warm her heart, keep you out of the Hot Seat and not break the bank! Remember, your presence and attention is priceless, so above all, make Mother’s Day a day of celebration.

1. Couples Get Away Vacations.
Some of our favorite destinations are sporting hotel prices that haven’t been this low for over a decade. At Christmas, I was able to get a 4-star hotel in Beverly Hills, California for $135/night, using Priceline’s Name Your Own Price option. New York City, Las Vegas, Florida -- hotels everywhere! – are all offering recessionary discounts on rooms and are often throwing in a few amenities to boot. The Parker Palm Springs (where Brad and Angelina shot their W Magazine shoot while Brad was still married), a fabulous getaway, is offering $99/night during the week!

The trick to the Priceline Name Your Own Price option is that you have to know where you want to go, what kind of hotel you want to stay in and what you are willing to pay. The only thing you cannot control is the exact hotel that you’ll end up staying at. For instance, if I bid $135/night in Beverly Hills for a 4-star hotel, I know I’m not going to end up at a Holiday Inn in Riverside, but I’m not sure whether I’ll get the Four Seasons or the Century Plaza Hotel in Beverly Hills. It’s worth a try!

If you want to book the Parker Palm Springs, call 760.770.5000 before midnight on May 5, 2009 and tell them Natalie Pace sent you! Be sure to try their Muddled Lemonade (shhh.. secret recipe) while you play tennis on their signature clay court!

Helpful Hint: Priceline typically divides each major city into at least four regions. If you absolutely want to stay in one area over another, don’t bid too low. Try bidding 75% of what the hotels in that area are charging. (Priceline tells you that.) If you want to stay in Manhattan and don’t care if you are in Soho or near Central Park, you have seven chances (one for each area) to keep upping your bid until one is accepted. So you can start a little lower in that case.

2. Las Vegas.
Deals abound in Sin City. Trump Hotel Las Vegas is offering great rooms for just $89/night, and is throwing in $50 credit at the Spa! The Venetian is offering rooms for just $169/night with $150 in coupons back to you (including free Internet access, and discounts on Phantom of the Opera tickets and restaurants), if you book before May 31, 2009. Las Vegas is as well known for its shows, spas and restaurants these days, as it is for gambling. And don’t worry (too much) about the heat in the desert. The pools in Vegas are as spectacular as the showgirls.

3. Spa certificates and club memberships.
It’s worth a call to her favorite gym (that she’s been putting off joining until you have the extra dough) to see if they are offering any signup specials. A local gym in Santa Monica was giving away the month of May free to anyone who signed up! Also, if you mention that it is a Mother’s Day gift, the local spa might throw in an extra service just to get your business. Don’t be afraid to ask for special treatment! When business is hurting, as most are these days, buyers are being wooed in with lots of special incentives.

Be sure, however, that this is what she wants for Mother’s Day and that you have selected the exact location that she wants to join. Women can be pretty picky about where they want to be seen sweating. (In other words, she will have had to mention joining this place a gazillion times.)

4. A Day of Pampering.
If money is really preventing you from buying the gift of her dreams, don’t underestimate the value of just getting it right all day long! Wake her up with, "I love you," on your lips and handpicked flowers in your hand. Deliver a handwritten card featuring five things you love about her as a woman and a mother. Treat her to her favorite breakfast – in bed, of course. Jump in the car and take a long walk at her favorite destination, whether it is the beach, the lake or the mall. Gaze into her eyes at sunset. Toast to her with her favorite libation – whether it is champagne or sparkling water. And at the end of the night, could she use a foot massage? Women swooned over the scene when Kevin Costner painted the toenails of Susan Sarandon in Bull Durham. Can you beat that? Try to. It’ll pay off in spades for the Queen of your home.

There is a scene in everyone’s life that plays on the Favorites Highlight reel, and most of the time, it didn’t cost a thing. Make it your goal to achieve that.

I didn’t mention the kids here because, of course, they will join you for breakfast, or for the walk and perhaps even most of the day. But be sure to make time just for you, as her husband, to honor her and express love in a more meaningful way than you ever have before.

5. Stocks and Cash
Does she have her own brokerage account? Many of the online discount brokerages will let you set up an IRA online with a pretty small amount of money. If you want to really impress her, set up the account and do a monthly auto-deposit as well (which can be as low as $100, if need be). Include my book, Put Your Money Where Your Heart Is and a subscription to the NataliePace.com ezine so that she learns how to get rich, while enriching the world, with her newest piece of financial freedom! That’s a pretty empowering gift package for a very reasonable price. (The book is just $17 online and the subscription is specially priced at $75 for the year. See below for details.)

9 Months Free When You Purchase 3 Months of the NataliePace.com Ezine
We’re offering a special on the ezine of nine months free when you sign Mom up for three months. So she’ll receive ongoing support all year long! Simply go to the JOIN NOW link at NataliePace.com, and register for three months. Pay $75 on your credit card. Then send Heather@NataliePace.com a quick note asking for a Happy Mother’s Day email that you can forward to your beloved. Heather will send you the Welcome email, and add nine additional months of subscription in the back office.

You can buy Put Your Money Where Your Heart Is at your local book store or online for a great gift that satisfies her desire to build a better life and a better world at the same time.

6. Get Away Vacation and Stock Retreat rolled into one!
Join Natalie Pace for a 3-day Get Rich and Enrich Retreat June 11-13, 2009. You and your beloved will get three full days of hands-on abundance, prosperity and investing training from Natalie Pace, a #1 stock picker, personally in a board room setting with just fourteen people. The retreat takes place in the beautiful, sunny beach town of Santa Monica, California, and Natalie does some of her training right on the sand, while watching the sunset.

Remember that Natalie saved Bill and Nilo’s nest egg with a pie chart that she drew up on a napkin. Imagine the easy-to-follow wisdom she can impart to you in 3-days!

This is truly a retreat where couples (and singles and family members) get to have fun, expand their wisdom and be a little adventurous all at the same time. Mom will love it! Many women, including the Green Goddess Investment Club, who are earning 40-150% gains over the last eight months, got their start at the Get Rich and Enrich Retreat.

Register NOW, before Mother’s Day, and receive Early Bird Pricing of just $1995 per person or $3,300 per couple. There are only four seats remaining at this retreat, so CALL 866.476.7442 NOW TO BOOK YOUR SEAT!

Remember that Mother’s Day is as important to get right as the engagement ring was when you asked your wife to marry you. Splurge a little this year, if not in money, then in creativity! Plan something special.

If you are a mom, please weigh in on your favorite gift at the survey on the home page at NataliePace.com. That way your hubby and kids have a chance of getting you what you really desire. (Just leave the page open on your computer strategically, so that they can see the survey results…) Check out what this year’s survey reveals if you’re looking to buy Mom something she’ll really appreciate!

Ask Natalie: Should I Start a 401(k)?

I’m 54 and don’t have any retirement plan…

Dear Natalie:

I just started a new job and my employer is offering me a 401k auto deduction of 3% before taxes beginning May 1, if I choose. How do I know if this is the best choice for my money to invest?  I have no current investments or retirement accounts......... am 54 years old and need to make some wise safe investment decisions........ Can you please advise?

Signed Better Late Than Never?

Photo: Stacie Isabella Turk. Ribbonhead.com. (C) 2008 Stylist and Makeup: Arlene Hylton-Campbell.

Dear Better Late Than Never!

Yes. Read my new book, Put Your Money Where Your Heart Is, to learn all of the reasons why, but yes, to 401(k), yes to investing, and, yes, get started right away. Did you know that if you were 18 and you only earned $14 an hour, but put 10% into a 401k religiously, and never got a raise, you’d be a millionaire before you were 50? It’s best to start the investing habit early, but never too late to start doing the right thing! Here’s how it works.

The first year you would contribute $2,890 and your returns would be, on average, $347 (or 12%). The second year, you contribute another $2,890. Your new principal is $6,127. Your gains are $735. By the 6^th year, you are making as much in gains as you are contributing each year. By the 10^th year, you have over $50,000, and are earning $6,082 in gains that year. This is based upon an average annual return of 12% in stocks, which is what stocks have been doing most of this century. And even if you don’t get those kind of gains (keep reading because this is a consideration), you still have monthly 401(k) contributions going toward your Fund My Dream Life account, instead of poured down the drain of your spending habits.

Now, you might say, stocks are doing terribly and you’re afraid and everyone around you is telling you it’s the Apocalypse and the markets are going to continue to drop! Acckkk! But, you don’t have to lose the money you put in your 401(k). Most plans have a "safe" or at least safer allocation, such as Treasury bills, short-term government bonds or the money markets, which are not invested in the "stock market."

There have been many opportunities over the last ten years to make a lot of money in the stock market, without a lot of time or attention. You do need the "know how," however, which is why it’s important to read my book – because buying and holding mutual funds doesn’t work in a slow growth economy (which we’re in). The last ten years has seen a series of booms and busts, where you could have earned a lot of money if you were 1) properly diversified in ETFs (instead of mutual funds), 2) rebalancing once a year and capturing your gains, and 3) keeping at least a percent equal to your age safe. (If you just bought and held and checked off boxes blindly, you would have lost a little money.)

You need to learn how much to keep safe and how to properly diversify your holdings, so that you easily can see and capture gains each year. Don’t get scared, it’s as easy as a pie chart and that is outlined in my book also (page 91, I believe). For now, just start your 401(k) and put most or all of it in the safest place you can, such as Treasury Bills or a short-term government bond fund.

Get started in the habit of investing in a better life and then make it your job to start learning just four other important things.

1. Get educated so that your money can really gain while you sleep (no fuss, no fret, no babysitting). Reading my book is a great start. Coming to my retreat means that in three days, you’ll set up your retirement blueprint for life! Buy Put Your Money Where Your Heart Is anywhere that books are sold. Get more information on my next Get Rich and Green Retreat on the home page at NataliePace.com. There are only four seats remaining so if you’re interested, call 866.476.7442 right away to reserve your seat.
   
   We have a special on the price now through May 15, 2009. Subscribers receive the Early Bird Pricing and a $2000 gift of a 12-month premium subscription. That way you get the 3-days of education and then ongoing support all year long, in the form of monthly ezine, mid-month update and quarterly teleconferences with me.

2. Ask your employer if they do a match! Many employers do. That’s an instant raise.

3. Figure out how to put 10%, not just 3%, into your retirement plan. If the 401(k) is capped at 3%, then go to an online discount brokerage and find out other tax-protected plans that you might qualify for, including IRAs (SEP, ROTH, traditional), health savings accounts, and more. Tithe to yourself and watch how your Buy My Own Island Plans grow quickly! 401ks, IRAs and health savings accounts all have tax advantages, and at least part of this is money that you would be paying Uncle Sam. So, it’s not more money being spent. It’s a check you write to yourself instead of the IRS at the end of the year.

4. Pick a better name. No one wants to start or grow a retirement account or 401k. Everyone wants to start and nourish his or her Buy My Own Dream House fund or the Send my Grandchildren to College account. Pick a goal of why you want to start earning money while you sleep, and what exactly you will do as you gain more assets! This will inspire you to keep contributing to the plan, maximizing the performance, adjusting as needed for greater gain and then reaping what you profit once you’re ready to purchase one more piece of your dream life!

About Natalie Pace:
Natalie Pace, is the author of Put Your Money Where Your Heart Is, a featured teacher in the movie, Spiritual Liberation, and CEO of one of the most respected, independently owned financial news corporations in the U.S. She has been ranked as a #1 stock picker from TipsTraders.com and has partnered content with Forbes.com, Sohu.com, Kiplinger’s Personal Finance and more.  She has appeared on Fox News, Good Morning America, CNBC, Time Magazine, More Magazine, USA Today, NPR and national radio shows. For more information please visit, http://www.nataliepace.com.

IMPORTANT DISCLAIMER: Information has been obtained from sources believed to be reliable however NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.

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Change.

Change.

by Paul Woods, President and CEO, Odyssey Advisors.

"The party that pretends to believe in limited government and free market solutions took office in 2000 with a surplus and left taxpayers with a trillion dollar deficit and the economy in shambles."
- Paul Woods

President Barack Obama, the 44th President of the United States. Photo: by Pete Souza

Not since Jimmy Carter left office has an incoming U.S. President inherited more economic problems than Barak Obama. The standard bearer for the party that pretends to believe in limited government and free market solutions took office in 2000 with a surplus and left taxpayers with a trillion dollar deficit and the economy in shambles. Citizens of the U.S. saw a record amount of their wealth destroyed in 2008, and a little common sense could have prevented most of this damage. Change was inevitable.

President Obama’s inauguration produced adoring crowds, fawning press coverage, and the largest inaugural day drop in the stock market in history. Since then, gold has gone to new highs and the stock market has lost over 20% of its value, which is also unprecedented for a new president. Investors appear to be saying that different isn’t the same as better and piling a lot more debt on future generations isn’t an exciting new change of direction.

What’s billed as change looks a LOT like the Clinton administration with a new guy in charge. During the campaign, the implied promise to voters was change would turn the economy around sooner rather than later. Once Obama was elected, however, backpedaling to lower expectations began immediately. Now, we’re being told that turning around the economy may take a long time and things will probably get worse before they get better.

Natalie’s Note: The Dow Jones Industrial Index and S&P500 index have lost 7% and 4% respectively since the beginning of the year, while NASDAQ is up 7%, as of May 4, 2009!

Even though a stimulus package in 2008 failed to prevent the economy from going into a recession a few months later, a bigger version was passed in the first quarter of 2009 amid warnings of the dire consequences of inaction. While our infrastructure has been neglected too long and needs to be modernized, most of this bill consists of pork barrel spending and one time tax refunds for people that don’t pay taxes, paid for by taking more money from the people that create jobs in this country. Investors considered the implications of this new "stimulus" bill carefully, and the stock market immediately went to new lows. To add insult to injury, we were getting lectures from the French about fiscal responsibility as the quarter ended.

In the first quarter of 2009, the value style was a disaster, larger companies did better than smaller ones, and investing in growth stocks produced the least damage. For reference, here’s the stock market segment scorecard for the first quarter of 2009:

Source: Telmet Orion

Within these market segments, any industry with tech in the name outperformed everything else and gold stocks also did well. Interestingly, handgun producers were the top performing sub-industry. Large financial companies are now facing regulatory micromanagement and, if they pay bonuses to keep their top people, all hell will break loose in Congress. These and REITs continued to get pounded. For reference, here’s the stock market index and industry group scorecard for the first quarter of 2009:

Source: Telmet Orion

In the bond market, interest rates rose a bit and there was a continued flight to quality in the first quarter while liquidity continued to be a problem in other sectors. U.S. Treasury yields are currently at unsustainably low levels and have prompted the Federal Reserve to announce they will purchase $300 Billion in Treasury securities in the open market in an effort to improve credit conditions. Treasury debt is expected to be around $1 trillion higher this fiscal year than last, and the Fed will be absorbing a significant share of this new supply.

Source: Bloomberg LP

Credit quality has driven returns during the quarter. U.S. Government Agency spreads narrowed versus Treasuries and the liquidity in corporate bonds improved slightly. Municipal bond yields are still higher than Treasuries for almost every maturity, which has historically been a good buying opportunity. The flight to quality has driven Treasury bonds to overvalued levels and there is currently a gradual shift from credit risk to interest rate risk in the bond market. This should allow other sectors to perform better from here. As a result we are keeping our exposure diversified to help reduce interest rate, credit, and other risks. We are investing in the higher-quality sectors whose yields have increased significantly such as Agency bonds, Municipals, and investment-grade corporate debt in strong companies better able to survive the economic downturn.

As the first quarter ended, the stock market rallied from its lows and investors were wondering whether they had seen the bottom. Our crystal ball is currently in the shop for repairs, so we’re not going to attempt an answer. However, interest rates are still low, so bonds aren’t much competition. Earnings estimates for 2009 appear to be stabilizing after being cut dramatically a few months ago. Stock market valuations are in the low end of their historic range and there is currently a mountain of cash on the sidelines. As a result, if earnings finally start meeting or beating expectations, the downside risk is probably limited from this point. However, if earnings miss estimates again in the first quarter of 2009, investors may end up wondering why they forgot the saying "sell in May and go away."

About Paul Woods
Paul Woods is the President, Chief Executive Officer, and Chief Investment Officer of Odyssey Advisors. He has over 35 years of experience in the investment management and research analysis of common stocks. He manages the Odyssey Clean Energy Portfolio. Paul has done a great deal of independent research on clean energy and has written multiple articles on various segments of this industry. He can be contacted at pwoods@odysseyadvisors.com.

Information has been obtained from sources believed to be reliable however Odyssey Advisors LLC does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this material and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.

Copyright © 2009 by Odyssey Advisors LLC.

Bearing Up in a Bear Market:

You Still Need to Open Your Account Statements.

FINRA.org Investor Alert.

Especially in a down market, investors may be tempted to try and avoid the trauma of seeing the reduced value of their holdings by not opening their statements for their brokerage, mutual fund, or 401(k) or other retirement plan accounts. It has even been suggested that avoiding looking at your statements may be a good way to respond to turbulent financial times, because it prevents you from selling out at the market bottom and foregoing the expected—but unpredictable—turn around in the markets.

Don't Check Out on Checking Up
This advice may be comforting—and may even help keep you focused on the long-term performance of your investments—but ignoring your statements can blind you to problems in your accounts other than their performance. No one can protect your accounts like you can, and so you need to open your statements and see what is going on in your account.

Looking for Trouble
Here's a checklist to help you identify potential problems you may need to respond to promptly:

Verify the activity in your account:

• Are there any trades or cash transfers that you didn't authorize?
• Are the trades reported consistent with your confirmations?
• Are any cash withdrawals or additions not accurate?
• Are the size and price of all purchases and sales correct?
• Are all anticipated dividend and interest payments reflected?

Review your account holdings:

• Are all securities and cash positions and any debits or credits accurately reflected?
• Does your portfolio agree with your diversification and asset allocation objectives?

Confirm basic account information:

• Are any address changes accurate?
• Are there any charges or fees that you don't understand?
• Are any important changes in your relationship with the firm or your broker reported?
• Are there any notices that require a response?

Don't Snooze and Lose
Some of these problems, such as incorrect electronic fund transfers, must be identified to your stockbroker or banker within 60 days after they occur or you waive your right to a correction. Still others may result in actions by your firm you don't want and—if you don't act promptly—take time, effort, and cost to undo. Immediately question any transaction or entry that you do not understand or did not authorize. Don't be timid or ashamed to complain. Here are the steps you should take:

• If you think it's a minor mistake, talk to your broker. This may be the fastest way to resolve the problem.
• If you can't resolve the problem with your broker, or you think your broker engaged in unauthorized transactions or other serious misconduct, report it to the firm's management or compliance department in writing.
• If you and your firm still can't resolve the problem, contact us. You can file a complaint using our online complaint form. If you are seeking to recover money, you may want to consider arbitration or mediation.

Bottom Line
Always check to see if there are problems in your statement that you can—and need—to correct. While it may feel better to avoid seeing the losses in your portfolio from the bear market, you can be opening yourself to problems if you don't open your statements.

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

The Treasury's Plan to Buy Bank Assets.

by Dr. Gary Becker.

One good aspect of the Treasury's plan to enlist the private sector in buying mortgage-backed and other bank assets is that it reduces the uncertainty-if it is implemented! - about what the government plans to do further in aiding banks. Starting with the vacillations of Henry Paulson, the former Treasury Secretary, the federal government's efforts to help banks have lacked a clear direction, and have wasted a lot of taxpayers money. Especially during a serious recession (I will call this a recession, not a depression, until the cumulative fall in GDP equals or exceeds 8-10 percent-so far the fall in US GDP has been about 2%, and world GDP has hardly fallen), consumers and businesses can cope much better if they know what the government plans to do. They can adjust much more easily to known government policies, even if they are not good policies, than to changing policies that lack any direction.

A major criticism of early plans for the government to buy bank assets through an asset auction was that the government would overpay for the assets since they did not know the worth of the assets offered to them. Although that difficulty might be overcome, the Geithner proposal uses government money to encourage hedge funds, pension plans, and other financial institutions to buy bank assets in order to use private competition to determine the worth of these assets. Hedge funds and other financial institutions do not want to overbid since that would reduce their profits from any future appreciation in the value of the assets bought. Competition among different financial intermediaries for these assets would prevent them from underbidding since they would then not be able to buy the assets.

To encourage private participation, the Treasury Secretary is offering bidders very generous terms. If say a hedge fund bids $100 for an asset, the fund would have to risk only about 7%, or $7. Another 7% would be risked by the Treasury (i.e., from taxpayers), and the rest would be a loan guaranteed by the Federal Deposit Insurance Corp. (FDIC). If the asset rises in value over time, the Treasury and the hedge fund would share the profits equally, while the hedge fund's losses if the price goes below $100 is limited to the $7 it puts up, no matter how low the price goes.

Therefore, the downside loss to private companies in this example would be sharply limited by the equity they put in, while the upside gain could far exceed their initial equity. This means that hedge funds and other funds would find riskier assets very attractive, and they would bid more for them than for less risky assets with the same expected return. For example, suppose one asset had a 100% chance of being worth $100 in the future. The expected value of the asset is obviously $100, but a private fund would bid $107 because the Treasury would pay $7 of this bid.

Suppose, on the other hand, there is another asset that has a 10% chance of appreciating to $1000, but it has a 90% chance of becoming worthless. The expected value of this asset is also $100, like the safe asset, but in my example it is worth much more to bidders under the Treasury's terms since the FDIC would pay the successful bidder 86% of its bid price if the asset became worthless. It can be directly shown that private funds bidding their expected value would then bid about $242 for this asset, which far exceeds the asset's overall expected value of $100 because the FDIC is guaranteeing most of the loss, and the fund would collect half the appreciation.

Even if it were desirable to subsidize private funds to bid for bank assets, is it wise to structure the subsidy in this way so that the bidding is skewed toward more risky assets? One reason for doing so is that assets with greater variability in their future worth are presumably harder to value. Hence banks holding these assets might value them more than other financial institutions would. These would then be the type of assets that banks would be reluctant to sell in an unsubsidized market since market bids would be below bank estimates of their value. The Treasury's approach raises the willingness to pay by hedge funds and other financial institutions for precisely such risky assets.

Posner's proposal is to do more of what the government did earlier; namely, lend to banks in return for preferred stock in the borrowing banks. This has the advantage of being simpler than the Treasury's convoluted proposal, and Posner gives some other advantages. However, I would worry a lot that the government when they hold greater amounts of stock would try to micromanage banks even in greater detail than they are already doing. Congress and the president have complained loudly about bonuses, pay levels, golf outings, and other business activities, and legislation was introduced to limit pay and perquisites. Under Geithner's plan, Congress might have less incentive to micromanage the decisions of hedge funds and others who buy bank assets since the government would have an equity interest in particular assets rather than an equity interest in the overall profits of these funds.

However, Congress would also complain a lot if hedge funds and others made a large profit from the assets they bought with government guarantees. Perhaps this is why the Treasury's proposal gives such a huge subsidy to the funds that would bid for bank assets. In the absence of large subsidies, leaders of these funds would be reluctant to expose themselves to the torrent of criticism and interference from Congress and perhaps also the President. Nevertheless, it is highly worrisome that taxpayers would become committed to such potentially large additional subsidies to the financial sector.

Addendum to the Treasury's Plan to Buy Bank Assets-Becker
Above, I give an example to illustrate the Treasury's plan to buy the "toxic" assets of banks. Since I left a few quite important implications of the example unclear, this addendum will consider the same example in more detail.

Recall that the Plan would encourage hedge funds and other financial institutions to bid for bank assets. These institutions would only have to put up about 7% of their bid price since the Treasury will supply another 7%, and the FDIC will loan the remaining 86%. If assets appreciate in value over the bid price, the Treasury and funds share the profits equally after the FDIC is repaid. If the asset declines in value, funds are only liable for 7% of the decline, and the FDIC and Treasury absorb the rest.

In my example, there is a 10% chance that an asset will be worth $1000, and a 90% chance that it will be worthless, so that the full expected value of the asset is $100. Assuming competition among funds forces them to bid the expected value of this asset to them, how much will they bid? When the asset pays off $1000, a fund would get half the difference between $1000 and 86% of its bid price, while if the asset becomes worthless they would be compensated for everything but 7% of what they bid. The expected value of these outcomes is approximately $243, and that would be the price that competition forces hedge funds and other funds to pay for the assets. Since the expected value of the asset is only $100, government subsidies would encourage funds to bid about 2 1/2 times the true worth of the asset!

The government would pay the difference between the bid price and the worth of an asset, or $143 in this example. Contrary to many assertions made about the Treasury Plan, this subsidy does not on average go to successful bidders since the expected cost of the asset to them equals the expected value of the asset to them. Of course, the luckier buyers of these assets can make a lot of profits, and they could be subject to Congressional wrath that they profited at the government's expense. The $143 subsidy goes to banks, for they would receive almost 2 1/2 times the worth of their "toxic " assets.

Perhaps good reasons motivate the government to use this indirect way to subsidize banks rather than to give them the subsidy directly. However, it is a strange program indeed where banks get subsidized in proportion to how many "bad" assets they hold. This will make banks wish that they had made even greater mistakes, and held more assets that are likely to be truly worthless. However, these worthless assets could be worth a fortune to banks.

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

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

Spring Cleaning Your Body.

by Carolyn Schropp BS, NC, Functional Nutritional Consultant and Educator at HealthWalk©

It happens every spring. We fling open the windows, put away our winter coats, and suddenly get the urge to clean the house. But do we ever think about "spring cleaning" the toxins from our body?

Detoxifying in the spring is an important part of the traditional ayurvedic medicine seasonal routine. Spring is the kapha season; because the wet and cool weather reflects the moist, cool, heavy qualities in the body that ayurveda believes predominate during this time of the year.

Biologically, nature supports cleansing of the body in the spring. In winter the digestive fire is high, and people eat more sweet, rich and heavy foods. Mostly we are unable to assimilate these hard to digest foods so the undigested wastes and toxins accumulate in our bodies. If you don’t assist these toxins in moving out of your body, you can become prone to flu, colds, cough or allergies. You might feel unusually fatigued, sluggish or drowsy after a meal. Your skin can be less radiant, heavier, and oilier. If the toxins are allowed to keep accumulating in the body, even more serious illnesses can result.

Spring is the best season for detoxification; nature is already trying to clear out the toxins. It’s the time of year to help the body efficiently detoxify. How do you help the body with its own spring cleaning?

Here at HealthWalk we have several modalities to support you in this process and we will work with you to tailor a program for your personal needs. Vital Hematology live blood analysis can show the condition of your blood, which circulates throughout the body once every 70 minutes. An accurate picture of the body’s overall health can be revealed – from parasites, microorganisms, heavy metals, stress and vitamin deficiencies can be seen among other stressors.

Functional Nutritional Counseling, Adrenal and Hormonal Analysis and Biomarkers Analysis can show you how the various crucial adrenal, hormonal and biomarkers balances in your body are operating. Together the HealthWalk team will then work with you to regain and maintain the optimal equilibrium to sustain your health through supplementation, nutrition and lifestyle adjustments.

Eating organic might be more expensive but well worth it. Committing to eating only foods that haven’t been sprayed with pesticides is an immediate way to dramatically cut your exposure to toxins. On an average those of us who eat conventional fruits and vegetables consume over a gallon of neurotoxins per year from pesticides on the food. Another great benefit of eating organic produce is that they are packed full of more nutrients and anti-oxidants than its chemically showered alternative.

The liver is the second largest organ in the body. This organ’s job is to process and filter the toxins in the body. Because of the many chemicals, additives and pollutants it deals with every single day, our livers are chronically over worked. The problem with this is that the overworked liver can let toxic chemicals, heavy metals, excess sugars and hormones out into the blood stream and body, contributing to and/ or causing health problems such as PMS, skin rashes, fatigue, obesity, cancer and more. Treat your liver well and it will do its job. Here at HealthWalk our nutritionist will work with you on how to detoxify the body through proper nutrition and supplementation.

You are what you eat. One of the best ways of detoxing your body is to eat good, nutritious and detoxifying foods. HealthWalk’s nutritionist will help take the guesswork out of what foods to eat to properly detoxify. Sticking to whole foods and cutting out processed foods can really help. Processed foods are full of additives and the plastic and tin cans that processed food comes in can leach dioxins and metals like aluminum into your body as well as produce/deposit pseudo-estrogens in men and women which mimic the hormone estrogen, creating hormonal imbalances which can lead to cancer among other diseases.

At HealthWalk we can analyze and support the rebalancing of your hormones based on saliva hormone testing (Hormone/Adrenal Analysis). World Health Organization has found that 100% of the population has hormonal imbalances and that a good percentage of our illnesses are due to this factor. It is now apparent that resolving hormone imbalances is one of the keys to good health and wellness.

A client came into HealthWalk complaining about all of the medications his physician has him taking. He has developed several health problems from some of the medications including night sweats, fatigue and extra weight gain. He worked with our Vital Hematologist and Functional Nutritionist to analyze his overall health so that there is a comprehensive plan to support his wellbeing. They put him on a natural detoxification program, suggested a few natural supplements and recommended some dietary changes to account for the effects of his medications. He has now lost weight, gained his energy back and his night sweats are gone.

Detoxifying your body is a wonderful gift to give yourself this spring. You will rid yourself of the winter sluggishness, lose weight and feel more vibrant. Come to HealthWalk we can help you detoxify and help you feel healthier and happier too!

At HealthWalk© we are dedicated to working with you to provide the most comprehensive picture of your health so that you are empowered with the knowledge and solutions to achieve and maintain vibrant health.

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

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

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

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

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

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

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

Chief Everything Officer (aka Mom):

by Natalie Pace.

Cast Off Your Burdens and Really Enjoy This Mother’s Day!

Photo Credit: Doug Mazell Stylist/Makeup: Arlene Hylton-Campbell

As the Chief Everything Officer of my home, which most mothers are, I often thought that certain people in my life were letting me down. This person owed me a phone call. That person: money. My husband: a better gift. My children: more chores. I was all caught up with showing and telling everyone how to live better (i.e. setting them straight on all of the things I thought they should be doing for me!).

I’d seen and heard lots of advice on the merits of cleaning up your own life before you start worrying about the lives of others, but one day it finally sunk in a little deeper. While my husband and son were taking a nap, resting and snoozing away without a care in the world, I was wrestling with myself over which exact minute they should be waking up and what we would do to have fun as a family once they did. (They were already having fun; I was the only one not counting it as that.)

Just the day before, I’d stressed myself out because they always wanted something from me and I never had a moment for myself. "Mom, where are my soccer cleats?" "Honey, we’re out of half and half."

Wow. How crazy is that? You know you’re mindset is whacked when you get the thing you most want – in this case, time to myself and peace and quiet -- and instead of enjoying it, you are already trying to fix something else that’s not right.

I decided to take a bath. It wasn’t that much fun, the first time I focused off of others and onto myself, but I forced myself to read a little in the tub and kept heating it up until my fingers shriveled.

Over time, as I kept training my focus from fixing them to righting myself, I found I wasn’t nearly as bossy or moody. I was not imprisoned with worry and responsibility about what others were or were not doing. I focused my heart and mind and morals and energy into what I was doing and what I was creating and how and what I wanted to be a part of. That still included being a soccer mom and learning how to bake the Desperate Housewives brownie recipe, but it also began to include rollerblading with a girlfriend every Saturday morning, and opening a brokerage account for myself, with a monthly auto-deposit.

Instead of crying that no one had ever thrown me a birthday party, I invited 40 friends to celebrate with me at a charity fundraiser dinner. (My hair caught on fire, but that is another story. Never put dozens of candles on a birthday cake. It is a fire hazard!)

Instead of counting up all the times that my son did not take out the trash, I simply tied his allowance to his trash chore! No more bickering. Do it and you get paid. Do not do it and your allowance suffers. I took myself out of the mix. I am not a child development expert here, so consult the experts, but when the chore was no longer about me, or about my child proving that he really loved me (by taking out the trash), it was easier to find ways to get it done.

And the process of that helped me to become a person that I actually enjoyed being every day, regardless of what others do to me or do not do for me. I was discovering that my son could find his own soccer socks (if I didn’t jump and find them for him), my husband could pick up the milk (if I asked him to), and I could research which stocks I wanted to own and rollerblade my way back to the body I once sported (if I quit fixing everyone else and focused on making myself into the best person I could be).

Have a great Mother’s Day. As for me, I promise myself that I will say "Thank You" for my gifts, even if they are burnt pancakes and orange juice with a little too much frozen concentrate. And I also promise to take a little time for myself to do something that I love.

Speaking of things I love, this job is the most fun I’ve ever had working and I feel blessed every day. Thank you for continuing to support NataliePace.com and my new book because your support allows me to continue operating! Your purchase of my book and your ongoing subscription allows our team to continue to add a splash of green to Wall Street and transform lives on Main Street. This Mother’s Day, we’re offering two specials for Mom, as our thanks to you for your support all of these years. See below!

FYI: CNN is doing a feature on my book, Put Your Money Where Your Heart Is the day before Mother’s Day, May 9, 2009. So please visit the NataliePace.com Calendar section for more information.

Mother’s Day Gift Offers:
1. 1. 9 Months Free When You Purchase 3 Months of the NataliePace.com Ezine
We’re offering a special on the ezine of nine months free when you sign Mom up for three months. So she’ll receive ongoing support all year long! Simply go to the JOIN NOW link at NataliePace.com, register for three months. Pay $75 on your credit card. Then send Heather@NataliePace.com a quick note asking for a Happy Mother’s Day email that you can forward to your beloved. Heather will send you the Welcome email, and add nine additional months of subscription in the back office.

2. Great Gift for $25 (or less online): You can buy Put Your Money Where Your Heart Is at your local book store or online for a great gift that satisfies her desire to build a better life and U.S. and world.

3. Get Away Vacation and Stock Retreat rolled into one!
Register NOW for the Get Rich and Green Retreat in Santa Monica, CA, before Mother’s Day, and receive Early Bird Pricing of just $1995 per person or $3,300 per couple. There are only four seats remaining at this intimate, investing retreat that is taught hands-on by Natalie Pace for three days in a boardroom setting. So CALL 866.476.7442 NOW TO BOOK YOUR SEAT! Get more information on the banner ad at NataliePace.com.

To my mother (who died before the age of 36) and my grandmother (who passed on before the age of 26), "You are great. You are beautiful. You are one with God. You are loved." (This is one of Dr. Rickie Byars Beckwith chants.)

5 Tips for Avoiding Foreclosure Scams.

by the Federal Reserve.

1. Work only with a nonprofit, HUD-approved counselor.
If you are looking for help to prevent foreclosure, be sure the counseling agency is on the Department of Housing and Urban Development's list of approved agencies. Visit HUD's website for an easily searchable list of HUD-approved housing counseling agencies, or call 877-HUD-1515 (877-483-1515) for more information. If you are approached by foreclosure counselors--by mail, phone, or in person--make sure the counseling agency is HUD-approved before you do business with them.

2. Don't pay an arm and a leg. You should not have to pay hundreds--or thousands--of dollars. Most HUD-approved housing counselors provide no-cost counseling services and many more provide low-cost counseling. Do not agree to work with a counselor who collects a fee before providing you with any services or who accepts payment only by cashier's check or wire transfer. In general, do not pay money to anyone unless you know exactly what services you will receive.

3. Be wary of "guarantees."
A reputable counselor will not guarantee to stop the foreclosure process, no matter what your circumstances. Working with a legitimate counselor can certainly increase your chances of keeping your home--but be wary of people who promise a sure thing. Again, get the details of your transaction, along with any promises, in writing first.

4. Know what you are signing--and be sure you sign it.
Don't let a counselor pressure you to sign paperwork you haven't had a chance to read through carefully or that you don't understand. Don't sign any blank forms or let "the counselor" fill out forms for you. Be sure to talk with an attorney before signing anything that transfers the title of your home to another party.

5. If it sounds too good to be true, it probably is.
If you feel you may be the target or victim of foreclosure fraud, trust your instincts and seek help. For tips on spotting scam artists, visit the Federal Trade Commission's webpage on foreclosure rescue scams. Report suspicious schemes to your state and local consumer protection agencies, which you can find on the Federal Citizen Information Center's Consumer Action Website.

Sell in May and Go Away.

by Natalie Pace.

Includes my Hot News on Cool Stocks List.

May 4, 2009

General Stock Market Performance

Hot News on Cool Stocks Highlights!
418% gains on U.S. Gold
87% of the companies and positions listed below are earning profits
Massive gains on the Cooling Off List, and some new opportunities highlighted
TipsTraders still has me ranked as #11, above over 830 A-list pundits

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

Market Update: It is important to note that NASDAQ has been kicking assets on the Dow and S&P all year. In the ongoing race to the bottom in 2009, the Dow Jones Industrial Average (aka the Bailout Index) has lost 7%, the S&P500 has lost 4%, while NASDAQ is actually UP 7% since January. NASDAQ is also trouncing the returns of Warren Buffet’s Berkshire Hathaway fund, which is shadowing the returns of the S&P500, so far this year.

Performance of NASDAQ, DJIA, S&P500 and Berkshire Hathaway (BRK.A) since January 1, 2009

Source: MoneyCentral.MSN.com

Photo: Stacie Isabella Turk. © 2008. Ribbonhead.com Stylist/Makeup: Arlene Hylton-Campbell

The current rally has investors absolutely gleeful, but it defies logic and thus, in my view, is probably going to run out of steam sooner rather than later. You’ll see below, that I’ve removed (taken profits on) most of the companies off of the Hot List and have more than a few highlighted on the Cooling Off list (where I put companies that I expect to lose value).

It’s difficult to imagine a long-term market love fest, when faced with the dismal -6.1% advance GDP growth report which the Bureau of Economic Analysis (BEA.gov) released on April 29, 2009. We still have to endure the Treasury’s Bank Stress Test results on May 7, 2009. And beyond that, there is the larger issue of the availability of credit for distressed corporations. Most of the casinos in Vegas, many airlines, many auto manufacturers, etc. will need dough to rise again, and those with the dough are being vilified these days when they ride to the rescue. Just about every market (outside of Internet advertising, so read the "Hulu" article) is suffering from weaker sales and needs to ride through the storm on credit.

The investment bankers and economists that I spoke with at the 2009 Milken Global Conference expressed grave concern (as in graveyard) over the Administration’s handling of the Chrysler bankruptcy. What creditor will want to loan money to distressed corporations when they lose priority positioning in the reorganization process? Should an investor be called a vulture when s/he rides in to save the day with emergency funding (demanding a higher return for taking on the colossal risk) after many years of mismanagement and negative operations that resulted from unions, employees and management not making great products in a sustainable way?

Corporations founded before 1980 promised pensions and health benefits to employees that they are now unable to deliver on. When they promised those benefits, the average person died at 64, one year before retirement. Now people live beyond 80. And health care costs are more expensive in the last six months of life than many people earn in a lifetime. This is a legacy, social issue that no one in the government has been willing to address – which we all need to pull together to solve. However, demonizing profits, business and capital lenders will not lead to freedom, comfort, peace, love and understanding. Money is the fuel of innovation. It is not evil, unless it is used for evil.

And money is not at the root of the pension crisis and aging of America. Health is. We are healthier and more beautiful today than we’ve ever been. 80 is the new 60. 60 is the new 40. And our expectations of what life is, what fun is and how mighty we want to make our nation could be the only solution necessary to switch America out of the graying nation, into the greatest nation once again. The war between labor and corporations is fueling our own demise. Corporations need great employees to make the most innovative products and services necessary to live in and co-create the best planet in the solar system. That is what America was built upon.

Free markets have proven to be the best fuel for innovation and prosperity known on the planet. Nationalization (Communism) was a resounding failure. Whether Chrysler is owned by the U.S. government, in cooperation with the unions, Fiat and the Canadian government, in the absence of fundamental business practices, including the preservation of lending rights, it is impossible for the business to be viable. And even if the business can be kept "alive," the soil is not ripe for innovation, which is what America has prided itself in since the birth of our nation.

I have been reporting on the pension problems since the inception of my ezine in 2002, and my understanding of how that issue plays in the general marketplace is a large part of my success over the last decade. Pensions and health care costs are the fundamental reason why the U.S. is in a stalled economy. The stock market is worth less this year than it was a decade ago. It is the fundamental reason why the NASDAQ, where companies founded after 1980 (and use 401ks instead of pensions) are concentrated, is outperforming the Dow Jones Industrial Average by a large margin this year and will continue to going forward. Over 10% of the Dow is still concentrated in companies that are being bailed out, like Citigroup, Bank of America and General Motors. Fannie Mae, AIG and Phillip Morris tobacco company were components of the 30-component index in 2008.

This is why you must get smart with regard to your nest egg. The only hope of resurrecting your portfolio is to:

1. Know what you own
2. Avoid the Bailout Index
3. Employ Exchange Traded Funds, not mutual funds
4. Keep a percentage equal to your age safe (and know what "safe" is)
5. Have an annual rebalancing strategy

Most money managers and CFPs are still relying on Buy and Hold strategies that DO NOT WORK in a slow growth environment. It is ESSENTIAL that you stop employing blind faith and get educated now. These are the strategies that I teach in my retreats. It saves nest eggs, will bring you returns and help to create a better world in the bargain. Yes, you can get rich and enrich.

There are only four seats available at the June 11-13, 2009 Get Rich and Green retreat. I highly recommend that you take a look at the flyer on the home page at NataliePace.com and then call 866.476.7442 immediately to register for your seat. Current subscribers receive early bird pricing, if you register before May 15, 2009. You will also receive a 12-month premium subscription, valued at $2000 per person. Premium subscribers receive ongoing support through my monthly ezine, mid-month update and quarterly teleconferences.

Most professionals spend over a quarter of a million dollars educating themselves to become income earners. You can spend a small fraction of that to become a smart investor, so that your money earns gains while you sleep, instead of watching it slip through your fingers down the drain!

At minimum, please be sure to read my new book, Put Your Money Where Your Heart Is, to ensure that you learn the only strategies that have worked for the last decade on Wall Street. And do your friends a favor. Pass this note over to them also!

Track Record of our Reporting
While the markets have fallen in 2008, the Hot News and Cooling Off lists below have a winning track record – in bear and bull market years. 72 positions listed below – 87% -- have delivered impressive gains over the past two years, even while the Dow Jones Industrial Average is trading lower than it was ten years ago! Only eleven of our listings went in the opposite direction of the reporting, which is quite impressive given the horrible market drop of this fall. Additionally, in 2008, nineteen out of 27 companies that were featured in our monthly articles and stock report cards posted strong gains. That is also a 77% winning track record! (We are really coming up with the winning 7s this year.)

See the article, "New Year. New You. New Nest Egg," in Vol. 6, Issue 1, for the chart and more details.

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

3 out of 6 Company of the Year selections more than doubled.  My 2003, 2004 and 2007 Companies of the Year posted up to 9000% gains (Taser), up to 690% gains (Opsware) and up to 215% gains (Suntech Power Holdings), respectively, before we took them off of the list.  MySpace, my 2006 Company of the Year, was a large part of News Corp’s success with shareholders that year.   So three out of six are superperformers, one (Myspace) performed well above the market. That’s the kind of record that puts you on top on Wall Street.  (I launched my first publication on 11.15.02, and featured the first Company of the Year on 1.1.03.)

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

Market Movers:
The Federal Open Market Committee and Monetary Policy
The Fed funds rate continues to be "0 to ¼ percent." In the 4.29.09 press release, the Federal Reserve Board further elaborated on the reasoning behind the rock bottom rates, writing: "Although the economic outlook has improved modestly since the March meeting, partly reflecting some easing of financial market conditions, economic activity is likely to remain weak for a time… Moreover, the Committee sees some risk that inflation could persist for a time below rates that best foster economic growth and price stability in the longer term."

That is Fed-speak for "We are experiencing deflation now as retailers try to stay afloat by selling everything and the kitchen sink at rock-bottom prices." Economists worry that deflation is the immediate concern, but more importantly that inflation could be a big issue going forward once the economy starts to recover.

The Milken Institute estimates that the bailout to date has cost the taxpayer $9.9 trillion.

The next meeting takes place on June 23-24, 2009.

Advance GDP growth rates for 1Q 2009 were a decline of -6.1%. The economy contracted at -6.3% in the 4^th quarter of 2008.

Preliminary GDP growth estimates for 1Q 2009 will be released on May 29, 2009 at 8:30 a.m. ET. These release days tend to be very active on Wall Street. Negative GDP tends to cause sell-offs in the stock markets. Robust GDP growth reports spark rallies. Since the advance estimates were so dismal, it’s hard to imagine a big downside surprise. For more BEA release dates, go to the BEA.gov website and be sure to visit the NataliePace.com calendar section often.

EDUCATIONAL OPPORTUNITES AND INFORMATION:
1. FOMC Information: Interested in reading the press release of the April 28-29, 2009 FOMC meeting for yourself? You can. The official Federal Reserve document is available online. Click on FOMC, or go to FederalReserve.gov to read!

The tentative FOMC meeting schedule for the 2009 calendar is: June 23-24, 2009 (Tuesday-Wednesday), August 11-12, 2009 (Tuesday-Wednesday), September 22-23, 2009 (Tuesday-Wednesday), November 3-4, 2009 (Tuesday-Wednesday), December 15-16, 2009 (Tuesday-Wednesday), January 26-27, 2010 (Tuesday-Wednesday).

2. Calendar Section: Conferences, Online Chats and more: Check out the Calendar section of NataliePace.com regularly. There are many wonderful opportunities to chat one-on-one with millionaire money managers, life coaches, economists, respected money gurus, real estate veterans and CEOs! Be sure to check out the dates of the mid-month Hot News on Cool Stocks Update and the publication date of our next ezine. Get more information on how to best use our articles in the FAQs article, located under the Investor Edu link on the home page of NataliePace.com.

Don’t mIssue the Premium Subscriber’s teleconference with Natalie Pace on Wednesday, May 6, 2009 at 5:00 p.m. PT (8:00 p.m. ET). Get call-in instructions on the Sharing Wisdom bulletin board. This teleconference is open to all subscribers. Be sure to write down the call-in information now. You will need your passwords!

3. Survey Results: Each month we have three new surveys so that we can stay in touch with your needs and desires. This month, with Mother’s Day and the upheaval in the auto industry, we’re asking what you think Mom most wants and how you would have handled the Chrysler bankruptcy. Cast your vote on our survey page!

4. Euro interest rates: ECB rates are at 1.25% (main refinancing), 2.25% (marginal lending) and 0.25% (deposit facility). The next meeting and interest rate announcement is scheduled for May 7, 2009 at 2:30 p.m. CET.

Hot Stocks List
Investors who "never pay retail," note that the BOLD highlighted stocks are trading at their 52-week lows or near the price featured in NataliePace.com’s article. This may be a good buying opportunity. (If the stocks are not highlighted, then in our estimation, this is not a good time to buy. Reasons are explained in the news commentary.) The companies that are listed below which are not highlighted may not be in a good buying range, but they appear to be poised to continue performing well (if you have already purchased them). There are never any guarantees in life, and all stocks are risk-based investments. Consult your certified financial planner before making any changes to your investment strategy. And remember that these "Stocks on Steroids" are not intended to be part of your nest egg strategy at all – not even for "pros." If you’ve never traded individual stocks before, this is your "fun" or "education" money. You should not stake your future on anything that you don’t have mastery over.

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

Profit-Taking (Take your profits early and often):
HOKU (HOKU) +50%
KCI Concepts (KCI) +18%
LDK (LDK) +79%
Sociedad de Quimica (SQM) +47%

DELETIONS (Take your profits early and often):
Altair Nanotechnologies (ALTI) 4.13.09
American Superconductor (AMSC) 4.13.09
Citigroup (C) on 3.15.09
eBay (EBAY) 4.13.09
Eastern European Fund (EUROX) 4.13.09
FMC Corporation (FMC) 5.4.09
General Electric (GE) 4.13.09
Genentech (DNA) on 3.15.09
Google (GOOG) 4.13.09
Maxwell (MXWL) 4.13.09
MEMC Electronics (WFR) 4.13.09
Microsoft (MSFT) 4.13.09
OSI Pharmaceuticals (OSIP) on 3.15.09
PowerShares CleanTech Portfolio (PZD) on 5.4.09
PowerShares Wilderhill Clean Energy ETF (PBW) +60%
Rio Tinto (RTP) on 4.1.09
Satcon (SATC) 4.13.09
Sunpower (SPWRA) 5.4.09
Suntech (STP) 4.13.09
TREMX 5.4.09
Trina Solar (TSL) 4.13.09
Westpac (WBK) 4.13.09

HOT NEWS on COOL STOCKS LIST

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

Recently Deleted from the Hot News list:
Altair Nanotechnologies (ALTI)
American Superconductor (AMSC)
Citigroup (C) on 3.15.09
eBay 4.13.09
EUROX 4.13.09
FMC Corp. 5.4.09
GE 4.13.09
Genentech on 3.15.09
Google 4.13.09
Maxwell 4.13.09
MEMC Electronics 4.13.09
Microsoft 4.13.09
OSI Pharmaceuticals on 3.15.09
PowerShares Clean Tech ETF (PZD) on 5.4.09
PowerShares Wilderhill Clean Energy ETF (PBW) on 5.4.09
Rio Tinto on 4.1.09
Satcon 4.13.09
Sunpower (SPWRA) 5.4.09
Suntech Power Holdings 4.13.09
TREMX 5.4.09
Trina Solar 4.13.09
Westpac 4.13.09
Wisdom Tree 5.4.09

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

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

Recent Additions:
Altair Nanotechnology (4.15.09)
American Superconductor (4.15.09)
Citigroup (4.1.09)
eBay (4.15.09)
FMC Corporation (5.4.09)
Google (4.15.09)
Maxwell Technologies (4.15.09)
MEMC Electronics (4.15.09)
Microsoft (4.15.09)
PowerShares Clean Energy fund (PBW)
Rio Tinto (RTP)
Satcon (4.15.09)
Sunpower (5.4.09)
Suntech (4.15.09)
Trina Solar (4.15.09)
Westpac (4.15.09)

Recent Deletions:
Apple (moved to Cooling Off list on 5.4.09)
Applied Materials (moved to Cooling Off list on 5.4.09)
Baidu (moved to Cooling Off List on 3.27.09)
First Solar (moved to Cooling Off list on 5.4.09)
Intel (moved to Cooling Off list on 5.4.09)

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

Highlighted Companies (Cooling Off List):
American Express (AXP)
Apple (AAPL)
Applied Materials (AMAT)
Baidu (BIDU)
First Solar (FSLR)
Fortress (FIG)
Intel (INTC)
Sears Holding Corporation (SHLD)
Time-Warner (TWX)
Wells Fargo (WFC)

DELETIONS:
None

Recently Deleted in 2008/2009:
Fannie Mae was deleted on 2.11.08 after losing -50% and -56% of its share price value, and then again on 7.1.08, after losing another -40%. (Both puts more than doubled.) Novastar Financial (NFI) was deleted on 6.2.08 with -95% share price implosion. Sears Holding Corp. was deleted on 7.1.08 with 64% gains on the put option. Wells Fargo was deleted on 7.1.08 with 83% gains on the put. Apple was deleted on 8.1.08 with 35% gains on the put. The Google put, deleted on 8.1.08, was another great performer, with over 50% gains. First Solar had gains of over 32-34%. Mentor was deleted on 9.30.08 with 75% gains on the put option (-17% on the share price); Medicis was deleted with gains of over 37% on the share price (down direction). Boston Properties, Las Vegas Sands and Macerich were deleted on 10.9.08 with gains of 16-30%, 66% and 28-42% respectively. Wells Fargo was deleted on 11.6.08 with 35-50% gains on the put and again on 12.1.08 for 50-70% gains. American Express posted 35% gains in just 30 days, between 2.1.09 and 3.2.09.

IMPORTANT DISCLAIMER (PLEASE READ):

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

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

IMPORTANT DISCLAIMER: Information has been obtained from sources believed to be reliable however NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.

NataliePace.com Calendar:

Don’t miss the Subscriber Teleconference this Wed., May 6, 2009, or Betty Nguyen's interview with Natalie Pace on CNN on Saturday, May 9, 2009,or the Get Rich and Green Retreat on June 11, 2009.

Betty Nguyen, anchor, CNN

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

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

Subscriber Teleconference
Wednesday, May 6th, 2009
5:00PM through 5:40PM
Want to earn gains like 450% in U.S. Gold? Time to start resurrecting your nest egg? Wish you knew how to get Modern Portfolio Theory, ETFs and semi-annual rebalancing into your game plan? Bring your Questions! Get the call-in information on the Sharing Wisdom bulletin board. You will need your passwords, so make sure that get the access information now!

Professional Business Women of California 2009 San Francisco Conference
Wednesday, May 6th, 2009
20th Anniversary Conference. Over 50 speakers, 200 exhibitors, 5,000 attendees. Join the largest gathering of professional women in the San Francisco Area for a day of learning, networking and inspiration. Workshops, lunch and keynotes from some of the most successful business leaders, providing you with the tools you need to succeed in the business world. Your company might pay for you to attend! Ask them!

Bank Stress Test Results To be Released by the Treasury Department
Thursday, May 7th, 2009
The Treasury Dept. will release the results of its bank stress tests today. The report could significantly impact the markets, particularly the banks receiving negative marks.

Natalie Pace on CNN
Saturday, May 9th, 2009
CNN anchor Betty Nguyen interviews Natalie Pace about her new book, Put Your Money Where Your Heart Is, and how people can profit from investing during a recession.

Alice Waters, Chez Panisse founder, speaks on Edible School Yards, Santa Monica, CA
Tuesday, May 19th, 2009
7:00PM through 9:00PM
Alice Waters, founder of Chez Panisse and the Chez Panisse Foundation and an international governor of Slow Food, will speak in Santa Monica about her experience bringing the Edible Schoolyard program to public schools. Benefits a local public school.

Natalie Pace on BlogTalkRadio.com Twitter-in with your Questions!
Wednesday, May 20th, 2009
9:00AM through 9:30AM
Host Shaun Daily interviews Natalie Pace on how to make money in these crazy times! Learn how you own Wall Street and have the power to stop the bailout and start the resurrection of a new world.

Verdi's La Traviatta at LA Opera!
Thursday, May 21st, 2009
7:30PM through 11:00PM
Verdi’s heart-rending story of a Parisian courtesan with a sordid past and no future features some of the composer’s most ravishing and popular music.

Get Rich and EnRich Retreat, Santa Monica, CA
Thursday, May 21^st through Saturday, May 23^rd, 2009
3-day retreat with Natalie Pace. Resurrect, resurrect and rehab your life and nest egg. Learn how to profit in downtrending, turbulent markets. Only 14 people at this intimate retreat! SOLD OUT! (There are still a few seats in the June Retreat. Get more info on the home page at NataliePace.com.)

Deepak Chopra & Marianne Williamson. LA, CA
Saturday, May 23rd, 2009
9:00AM through 6:00PM
The Soul of Success: Consciousness and the Economy. Deepak Chopra and Marianne Williamson lead a day-long seminar at the Ritz-Carlton in Marina del Rey, CA. Learn the difference between money and wealth and the spiritual laws that can center your life during turbulent times.

Sophia 2010 World Conference, Bulgaria
Monday, May 25th, 2009
Sophia 2010 is a major world conference to achieve global goals to improve social conditions, preserve nature and honor spirituality towards a peaceful, prosperous and sustainable world.

Memorial Day
Monday, May 25th, 2009
Memorial Day was originally called Decoration Day. It is a day of remembrance for those who have died in the service of our nation.

Revelation 2009, Atlanta, GA
Thursday, May 28th, 2009
Agape's Annual Revelation Conference 2009 is hosted by Michael Bernard Beckwith, founder of Agape Int'l Spiritual Center, and Dr. Rickie Byars Beckwith, the artistic director of the Agape International Choir. Be inspired. Supercharge your spiritual path.

T. Harv Eker's Extreme Wealth School: Los Angeles
Thursday, June 4^th through Sunday, June 7^th, 2009
Money gurus teach you how to invest like the rich do, in this 4-day educational/blueprint changing intensive. Natalie has been a speaker for the last few years. Will she speak again this year? Hmmm...

Step Up Inspiration Awards, Beverly Hills, CA
Friday, June 5th, 2009
12:00PM through 2:30 PM
Honor Marcia Cross, Lisa Ling and Lauren Zalaznick at a Step Up Fashion Show and Luncheon to benefit teen girls, mentoring programs and college!

Celebrate Your Life! Conference, Chicago
Friday, June 5th, 2009
Meet All Your Favorite Authors in One Powerful Weekend Event! Michael Bernard Beckwith, Rickie Byars Beckwith, Neale Donald Walsch and more...

Get Rich and Green Retreat with Natalie Pace, Santa Monica, CA
Thursday, June 11^th through Saturday, June 13^th, 2009
When you check off the boxes blindly, you are invested in the Bailout Index. When you learn Modern Portfolio Theory, ETFs and rebalancing, you have a blueprint that is as easy as a pie chart that makes you rich. Just 14 people in a boardroom setting taught hands on for three full days by #1 stock picker, Natalie Pace. Don’t miss this once in a lifetime opportunity. Your life will be empowered forever. You spend hundreds of thousands to learn how to be a good income earner. Spend a fraction of that learning how to be a great investor!

Forbes CEO Forum. Scotland
Sunday, June 14th, 2009
The Gleneagles Hotel, Scotland, UK. The Global Innovation Machine: Fueling New Growth in Tough Times. Keynote speakers include Steve Forbes, Stephanie Bell-Rose, Managing Dir. Goldman Sachs, Lady Barbara Thomas, Chairman of the UK Atomic Energy Authority and more.

Put Your Money Where Your Heart Is by Natalie Pace.

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