Global Recession Hits Malls Hard.

by Natalie Pace.

Includes a Mall Stock Report Card.

Artist rendering of CityCenter, Las Vegas, with Crystals shopping mall.

MGM Grand and its partners, including retail real estate developer Taubman Centers REIT, had grand plans in 2004. CityCenter and the Crystal shopping mall would be a spectacular, multi-use, green, architectural achievement. It would be one of the largest, environmentally sustainable urban communities in the world. And if they had only had this vision five years earlier, the project might have been completed in time to reign over Las Vegas during the heyday of Sin City.

Just two years ago, conventions were overbooked, Las Vegas room rates were as expensive as most four-star hotels in major U.S. cities and occupancy was at full capacity. Today, the hotels are practically giving away their rooms to get people in their casinos. (The Las Vegas Hilton was giving rooms away for $39/night on May 30, 2009!) The mega corporations that own most of the properties on the Strip are struggling -- laying off employees, cancelling projects and reorganizing to meet the debt obligations of projects that have yet to be completed – like CityCenter. And the state of Nevada reported one of the highest unemployment rates in the United States in April 2009, at 10.6% (source: Bureau of Labor Statistics).

What happened? Well, the hot air, inflated values of real estate sank like the Titanic, convention traffic halted, visitors stayed home and record employment (mostly tied to the building industry) ran into an iceberg of layoffs. Median home prices fell another 15.4% in the month of April nationwide in the U.S., with the largest declines in the West, at 21.8%.

The drop-off in real estate values, which began a few years ago, is far from over. Declines in real estate values, shrinking home equity, tight credit markets and high unemployment are making it difficult for the average American to buy discretionary items, like traveling to Las Vegas for a weekend of gambling and show girls. Declines in sales and profitability are preventing corporations from hosting their conventions and sales meetings in Vegas. Banks quit lending. And that is making it hard for Vegas casinos to finish their projects – including CityCenter.

MGM, 50% owner of CityCenter, is not in compliance its financial covenants under its senior credit facility. The company is raising capital (mostly by selling stock to Kirk Kerkorian) and has until June 30, 2009 to get current on their loan covenants. MGM and Dubai World, it’s joint venture partner on CityCenter, agreed to new terms in April 2009, but the agreement will be further strained if economic conditions in Las Vegas worsen. MGM’s liabilities, as of March 30, 2009, exceeded $16 billion, with over $14 billion of long-term debt due. Wall Street investors value the company at just $2 billion, and MGM racked up losses to the tune of $868 million last year.

And if there were a more distressed business to be in than building a mega-city on the Las Vegas Strip these days, it would be in selling mall space to retail outlets there, which is the job of Taubman Center REIT. Crystals, which will be CityCenter’s retail outlet (if it’s ever completed), will have 500,000 square feet of luxury retail space for Taubman to fill.

Taubman’s website still lists late 2009 as the opening date, but with MGM hyperfocused on raising capital and meeting financial covenants, deadlines for construction become harder to meet. Taubman’s only mention of CityCenter in its annual report is to say that the contract renews year-to-year, is good through 2030, but could be canceled for cause with a fee payable to Taubman. It would appear from the report that Taubman has little of its own capital invested in CityCenter, but an exhaustive search for additional information came up short.

Even if Taubman’s exposure to CityCenter is limited to lack of anticipated income (instead of capital investment losses), the fallout of the great American mall is troubling for Taubman, as well as other retail real estate corporations. Taubman has two Las Vegas properties under development, and Taubman’s existing malls are located in some of the most distressed regions of the U.S., including Michigan, Arizona, Southern California and Florida. Taubman reported a decline in occupancy from 89% to 88% in the first quarter of 2009, "primarily due to the closing in late 2008 of three big box store locations at the company’s value centers, which were part of national bankruptcies."

Taubman’s competitors in the mall business are all in harsh times, most with low or negative net profit margins. (Simon Properties boasted an industry high net profit margin of 15.43%, which is frankly hard to believe.) Taubman’s profitability came in dead last, at -6.45% net profit margins.

The first quarter earnings results were positive, but that was largely due to "lease cancellation income," according Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. Check out the numbers for yourself in the attached Mall Stock Report Card.

Real estate was the equity ATM machine that kept consumers shopping between 2003 and 2006. These days, consumers are shopping for a miracle, however. Nevada is leading the nation in foreclosures, with one in every 68 housing units receiving a foreclosure filing. (This is almost seven times the national average.) Following close behind were foreclosures in Florida and California. Michigan, where Taubman is based, reported the lowest home price, with a median price of $11,500 in the Detroit area, and the highest unemployment, at 12.9%. It’s hard to imagine a rush to buy at a mall when people can’t even afford to stay in their homes.

When consumers are losing the only buying power they really had this decade – the equity in their homes – and business are laying off to stay alive and Asia has Macau, who is going to roam and buy luxury goods in the world’s most sustainable, and still unfinished, urban mall? Resorts, retailers and the malls that house them are suffering greatly in this recession and that is likely to continue for some time.

MGM Mirage was added to the Cooling Off list on October 1, 2008 and has lost 71% off the value of its share price since that time. I added Taubman Centers REIT to the Cooling Off list on May 29, 2009.

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.

Obama Handed 55% of Chrysler Over to the Unions. Was It the Right Thing to Do?

by Natalie Pace.

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

Jan 27, 2009: On Capitol Hill, the President listens to a question from a member of the House Republican caucus. Photo by: Pete Souza.

Should the Administration bail out the auto industry? Is real estate ready to recover? How can investors protect their nest eggs? The world’s leading economist weighs in on this and more…

Dr. Gary Becker teaches both sociology and economics at the University of Chicago. He is the father of "human capital", providing quantitative evidence that keeping employees healthy and educated is a sound economic tool for nations to focus on. But, he’s not keen on what he calls "political footballs" – what happens when the government tries to meddle in business.

On April 28, 2009, I interviewed Dr. Gary Becker at the Milken Global Conference. He was calm, patient and happy to explain the ins and outs of the financial crisis that confounds the average American and the stock market losses that have shocked, saddened and numbed people who fear for their future. Never has an entire nation’s mind been on one question – "Are we doing the right thing?" "Is our President leading us to recovery or off a cliff?"

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).

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.

This is the second of a two-part series with Dr. Gary Becker. Review the May ezine, Vol. 6, issue 5, when Dr. Becker predicted when the recession will end and what the government should do with the credit card companies that are charging high fees.

Some of the states where we’ve seen the real estate boom/bust cycle are also experiencing the highest unemployment rates, like Michigan, California and Nevada. Do you think we need special attention for those states?

California is at 10-11% unemployment. The state has to pay attention to the unemployed to help them out. But central government policy should be oriented to general U.S. problems, not in helping California out and ignoring Illinois real estate problems. It’s true that California real estate is going down a lot, but California real estate also went up a lot! General policy would include fighting high unemployment. California, as well as all other states, would benefit from that.

And Detroit? Is the automobile industry implosion a state or a federal problem? Did Obama do the right thing in giving the unions the upper hand over the lenders?

I don’t think the government should be bailing out the automobile industry. That’s a state-by-state problem. Detroit has high unemployment. Much of it’s concentrated in the automobile industry one way or another. Michigan was an important state in the election. And unions were on board.

We know Friedman’s view, but would Keynes support bailing out General Motors and Chrysler?

Free market policies wouldn’t support bailing out Detroit, but neither would Keynesian ideology because that’s just helping out one industry, not the entire economy. Keynes would, however, support the fiscal stimulus package.

What is your advice to investors who want to take ownership of their nest eggs, but are afraid of more losses?

You have to be cautious in uncertain times. You have to be well diversified, not only across stocks, but bonds as well and Treasuries. I feel that the upside potential is good, but there is still risk of further significant downside, and you’ve got to be aware of that.

Do you like the Treasuries better than money markets or Certificates of Deposit? Are you worried about the money markets breaking the buck or the FDIC being overdrawn?

I don’t know. That’s a detail that I’m not up on enough to talk about.

Fannie Mae, GM, AIG, Citigroup and Bank of America were all components of the leading Blue Chip Index prior to becoming the Bailout Index. How can people avoid unknowingly owning these dying industries?

Widespread diversification. Some firms decline and some do well, but you’re not heavily invested in any one. You protect yourself that way. You can have a little GM in your portfolio, but it’s only a small fraction. The fact that GM has tanked to almost zero can hurt you, but not so badly.

Do you have any idea when real estate stops declining. Does real estate have to start recovering before GDP growth resumes?

It is tied. Real estate may lead. There are already signs that the decline in real estate is slowing down. The housing market may recover before the general economy does. A boom in the economy will help the housing market, but I don’t think it’s required for the housing market to recover. The robustness of the recovery will be tied to how the economy is doing.

We’re experiencing, at least here in California, deflation in the pricing of everything from cars, to flat screen TVs, to clothes and hotel rooms. While this is great for buyers, it’s killing the businesses. Is this likely to deepen and exacerbate the recession?

We haven’t had significant price declines yet. We may, and that is the immediate risk. When you are in a recession businesses can’t raise prices because times aren’t good, so it’s pretty obvious why that occurs.

You’ve noted at this conference that with all of the free money being given away, inflation is a concern down the road. How can we deflate the probability of inflation?

The inflation risk will rise once we start a vigorous upswing in the economy. The risk is that we have all of these excess reserves. Banks will start lending. This will lead, unless it’s stopped, in a big and rapid increase in the money supply. The money supply is what will create the inflation. What the Fed will have to do, once you get a vigorous upswing, is to start selling back the assets they bought from businesses. Through doing that, they will soak up the excess reserves. When you sell assets, the Feds get the money and reserves go down. Also, interest rates will rise.

So… those fixed rate loans will come in handy down the road… It sounds like you’ve got a good strategy to prevent inflation. So, why are concerned that this could be a big deal going forward?

Any government that is in power then, whether it is Democrat or Republican, will be concerned because of the rising interest rates. That would put downward pressure on the economy. So the Feds will be under political pressure not to do this so vigorously, and if the Feds succumb to that pressure, we’ll get inflation.

Thanks, Dr. Becker, for the wisdom.

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.

Natalie’s Note:
Although there is certainly great cause of concern over the economy and how to stimulate employment and whether or not the Obama Administration is employing sound fiscal policy, the good news is that, at least for the near term, prices should remain affordable. Gas prices, clothing, cars, computers, vacations and more are more affordable today that they’ve been in years.

Americans can no longer use their home like an ATM machine to live above their means. But if Americans can settle into a recession-friendly lifestyle, the amenities and adventure may be more in reach this year than ever.

Walk and Smell the Roses.

by Frances Anderton, radio producer and host, KCRW.

A delightful and sensible approach to greening your neighborhood, exercising and enjoying the great outdoors everyday with your kids.

LA and the Global Warming Diet
Physical design can solve many problems. But sometimes problems are of our own making and can be tackled through changes in our own behavior.

A huge problem in LA is traffic: congestion, air quality and carbon emissions; another big problem is a large child population at risk of obesity. I decided to put those two together and look at how we might help alleviate both, simply through ceasing to drive kids to school. It’s an approach that’s been tried in other places and is termed the Global Warming Diet.

I was inspired to focus on this when I happened to see a movie called Strangers When We Meet, made in 1960. The movie is a strange melodrama featuring Kirk Douglas as a "modern" architect having a passionate affair with a housewife played by Kim Novak. But what really made an impression on me was the opening scene, which depicted kids heading for the school bus on a regular school day. It was set in a comfortable, hilly neighborhood in LA -- possibly Beverly Hills or Brentwood -- but what was stunning to me was that the kids in the scene were walking or cycling to the bus stop! Even in the place and era that birthed car culture, kids were not being ferried in cars to school.

Fast forward almost 50 years, and I walk my four year-old daughter, Summer to her preschool, which is a few blocks from our apartment in Santa Monica. But with the exception of a couple people walking dogs, and maybe one or two parents and kids, Summer and I are alone on the streets. Typically, the streets, even in our very safe neighborhood, are empty. I find this very sad. Where are all the kids, and their parents? Even if they live just a few blocks away, Summer’s classmates tend to be driven to school.

In the past 50 years the number of kids who walk or cycle to school has dropped from around 90% to almost 10%. Not only are kids missing out on a basic, healthful, childhood experience -- walking or cycling in the neighborhood with their friends or parents – but also many of the children that are not walking or cycling are in cars and that means more cars on the streets. And that means more congestion, and more bad air and more carbon emissions. And, additionally, more children not getting enough exercise.

So I decided that my solution for LA would be to reduce cars simply by encouraging kids to walk or cycle to school or to the school bus. While my focus is on children, and on traffic at a specific time of day, I believe the lessons of this could be applied to other kinds of trips and other demographics.

Here’s a quick look at some stats, provided to me by two national advocacy groups, Environmental Defense and Active Living By Design, as well as the Centers for Disease Control.

Congestion:
It is estimated that 25% of morning traffic during the school year is parents driving their kids to school.
That’s a quarter of all cars!!!

Childhood Obesity:

Forty years ago, nearly 90% of children who lived within a mile of school walked or biked to school. Today only 13% of all trips to school are made on foot or by bike.

In that same 40 years the number of overweight children has doubled! And 35% of kids do not get regular exercise these days.

The Surgeon General says we should all have 30 minutes physical activity per day. You can get that walking just half a mile to school and back.

Air Quality:
Taking cars off the streets would obviously help improve air quality, but note how driving a child to school specifically worsens their personal air quality:

Moving cars expel VOCs (that’s Volatile Organic Carbons AKA foul air pollutants) but when a car is idling, as when waiting to pick up kids from school -- it puts out 3 times the normal amount of VOCs! And if you are idling behind the tailpipe of another car, your car sucks in the air pollutants, even when you turn off the recycled air. It’s like putting kids in a smoking room. That’s what parents are doing when they sit in an idling car at school.

Carbon Emissions::

For each mile you drive, your vehicle creates 1.29 lbs of CO2. Multiply that by 200 days in the school year, and one mile to school (there and back, twice). Add fifteen minutes each way of idling time and you’ve expelled 1872 lbs of CO2 per year.

Multiply this by 700,000 children (approx number of kids in LA School District) and that’s 6,552,000 tons put out into the atmosphere by LA parents per year.

Those are four good arguments for getting kids out of the car and onto foot or pedal. But there’s tremendous resistance from parents, on the grounds of time and distance from school, and fears -- of a child being abducted or hit by a moving car or subject to violence en route to school.

Some of these fears are legitimate, specifically accidents and, in less safe neighborhoods, violence on the street – though it’s worth noting that the most common place for a child to be hit by a car is, guess where, at a school, by another parent.

Some fears border on the paranoid, like abductions.

As one Pasadena mom who cycles with her son to school – and he is the ONLY boy in his school who does -- pointed out: "as rates of child abduction and abuse move down, rates of Type II diabetes, hypertension and other obesity-related ailments in children move up. That means not all the candy is coming from strangers. Which scenario should provoke more panic: the possibility that your child may become one of the approximately 100 children who are kidnapped by strangers each year, or one of the country's 58 million overweight adults?

And some concerns, like distance, have some validity but not enough to warrant the huge drop in kids’ walking and cycling.

Kidnapping makes up less than 2% of all violent crimes against youth and of those only 4% of all kidnappings occur near a school. Of the 800,000 abductions or so that occur annually, only around 100 were by a stranger or non-family member. Stats show that child abductions have been moving downwards over the last 20 years.

Over the last 40 years the number of schools has decreased relative to numbers of children meaning that more children are living at a distance from their school.

In 1969, 34% of children lived less than a mile from school, and 33% lived 3 or more miles from school.

By 2001, 21% of children lived less than a mile from school, and 50% lived 3 or more miles from school.

Yes, that is a challenge, but. . .

Active transport to school has also significantly declined among children who still live less than 1 or 2 miles from school.

Not to mention, in the last five years there’s been a turnaround with 76 new schools built in LA alone.

Conclusion
I believe one could alleviate most of the concerns by having the parent or older family member or teacher accompany kids to school, which affords the added benefit of more leisurely time spent with our kids enjoying the neighborhood.

I also believe, following Jane Jacobs thinking about cities, that the more kids there are on the streets, the more visibility they have and greater safety, through being in numbers.

This kind of thinking is already being applied elsewhere. In other parts of America – many of them as hostile to walkers and bikers as LA – communities are introducing Kids Walk-to-School programs in which convoys of kids and teachers walk together. Where possible, they are combining them with efforts at traffic calming and the creation of bike and walkable routes. You can get more info about this at the CDC web address.

But the real challenge here is changing a pattern of behavior and assumptions we’ve become used to.

It’s commonly viewed these days that today’s 30 and 40-something parents are the most overprotective ever, terrified of letting kids experience the big wide world; and that’s an attitude shared by overprotective schools. The Pasadena mom who rides with her son says that school asks children NOT to cycle. I know of schools on the Westside that prioritize drivers over walkers at drop-off and pick-up.

At the same time, our careers and electronic lives are so consuming that it’s easy for us not to take time out to walk with a child and smell the roses.

But in doing so we’ve lost touch with our bodies, and with our neighborhoods. So while we wait for LA to develop its public transit system, while we wait for everyone to drive a low emissions, low gas consumption car, let’s urge parents and policymakers to take a simple step towards minimizing the traffic, cleaning the atmosphere, regaining children’s health, and enlivening our neighborhoods, by getting kids back onto the streets.

Frances Anderton is the host of DnA: Design and Architecture, a radio show broadcast on 89.9 KCRW and KCRW.com/dna. She is also producer of Warren Olney's daily current affairs shows, To The Point and Which Way, LA?; and LA Editor for Dwell magazine.

Thoughts Become Things.

by Gary Kobat.

What are you creating?

Gary Kobat with Jim Carrey and Will Ferrell

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

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

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

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

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

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

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

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

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

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

The Emotional Guidance System. (EGS)
+10: joy, love, freedom.
+9: empowered, grateful.
+8: passion, appreciative.
+7: enthusiasm, eagerness.
+6: belief, positive.
+5: expectation, knowledge.
+4: optimism.
+3: hopefulness.
+2: contentment.
+1: average.
0: boredom, pessimism.
-1: frustration, irritation.
-2: impatience, overwhelm.
-3: disappointment.
-4: doubt, worry.
-5: blame, discouragement.
-6: anger, revenge.
-7: hatred, rage, jealousy.
-8: guilt, unworthiness.
-9: fear, grief, powerless.
-10: depression.

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

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

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

Gary Kobat is a passionate life and fitness coach, world-class athlete, author, and keynote speaker. Gary works one-on-one with select individuals, customized mastermind groups, and larger goal oriented teams for lasting personal and professional change. If interested in joining a group or for a private consultation, email him directly at: gary@e-coach.com or visit one of his spinning classes at Kinetic Cycling, 11740 San Vicente Blvd., Los Angeles, Ca. 90049 in Brentwood, 310-820-0777.

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Top 10 Things I’d Like My Thoughts to Become…

by Natalie Pace.

The Necker Island Beach Pavilion

1. Beachfront house.
How about a Malibu Retreat where you don’t just play The Billionaire Game, you actually live it! Stay tuned for coming attractions; this is something that is in the planning stages. You can start prepping for this experience (or whatever your dream come true life is) by reading chapter 8, "The Billionaire Game," of Put Your Money Where Your Heart Is. If you want to join me on another once in a lifetime vacation this New Year’s Eve, read the third thing I want my thoughts to become (listed below).

Clive Owen, Oscar nominee, star of Duplicity 2. Sexy Spouse. Oh lover, where art thou? Is it time to rekindle romance with your mate? Or call in that sacred beloved to co-create a rock-star sanctuary home? A Master of Light who lives in a Malibu beach house and travels in his private jet around the world solving problems… That’s my idea of a great time. Oh, and if he’s a sexy beast like Clive Owen, that’s a big plus as well.

3. Dream Come True Vacation

Macchu Picchu, Peru. Stop the presses! I’m actually doing this in July, and I’m inviting you to do it with me again for New Year’s Eve 2010. Imagine having dinner December 31, 2009 at the top of the world and after climbing the sacred peaks! This once in a lifetime vacation is yours for the taking. Call 866.46.7442 for more information. Just a dozen people will join me, and yes, we'll be living the Billionaire Game and learning more about making money while you sleep. Yes, through your investments -- low risk, low maintenance and with a plan that works in bull and bear markets.

4. Respectable Job
If a literature major can become a forensic, investigative financial journalist and top stock picker, the sky is the limit on what you can do. Now as I’m writing this list, I realize just how blessed I already am. I created a great job for myself. I’m going on a dream come true vacation. And with any luck, any moment now, I’ll turn a corner and there my Master of the Light sacred companion will be. So, which gurus helped me get here? T. Harv Eker, author of Secrets of a Millionaire Mind. Michael Bernard Beckwith, author of Spiritual Liberation. Dr. Gary Becker, Nobel Prize winning economist and blogger. Chellie Campbell, author of Zero to Zillionaire. And Gary Kobat, life and fitness coach to the stars. I feature these masters in the ezine quite a lot, and most of them have their own communities where you can learn directly from them as well.

5. Health

Add the caption: Loews Santa Monica Beach Hotel

Here again, I’m so blessed, but I have a lot of help creating this blessed health that I enjoy. Gary Kobat is definitely the guru that has imparted wisdom around fitness and nutrition. Below are the links to some of his best articles in NataliePace.com. Also, if you’re in Santa Monica, California and find yourself wanting a fantastic massage, seek out Nancy Jenkins at Loews Santa Monica Beach Hotel. Nancy gave me the Sole and Stream of Consciousness Treatments last week, along with a mini back massage and I’ve been surfing on Cloud Nine ever since!

"Comeback." by Gary Kobat. The incredible Lance Armstrong, who dropped out of his first two Tour de Frances.
"When You Believe in People, They Do the Impossible." by Gary Kobat.
"Expanding." by Gary Kobat.
"It’s Hip to Get a New Hip!" Q&A with Gary Kobat.

Israeli and Palestinian Seeds Unite 6. Peace One of the highlights of my life was when Queen Noor of Jordan allowed us to publish her thoughts on Peace in my ezine. Please read her article, "Peace on Earth: Weaving a Tapestry of Understanding," from Vol. 2, issue 12. Also, check out Seeds of Peace, an organization that brings together Palestinian and Jewish teens in a camp experience to foster friendship and dialog.

7. Food for everyone Well, anyone who knows me knows that I do donate food daily to the homeless. It’s just helping one person a day, but it feels great. So, here again, I’m blessed. But someone else found a way to feed over 1,000 people daily. In 1989, Marianne Williamson founded Project Angel Food, a meals-on-wheels program that serves homebound people with AIDS in the Los Angeles area. Today, Project Angel Food serves over 1,000 people daily.

9. Solar-powered airplanes
Today the problem with gasoline is that it is so expensive, our airlines are having difficulty staying profitable. Within 40 years, scientists predict that we’ll have sucked our oil and gas resources completely dry. So, who will be the next Wright Brothers to get planes to fly on solar power?

10. Jon Stewart
Irreverent. Hilarious. But bitingly accurate. "When news breaks, we fix it" is the Daily Show tag line.

And fix it they did when CNBC’s Jim Cramer came on The Daily Show on March 12, 2009 and had to eat crow for leading the day-trading lemmings off the stock market cliff. Were you one of the viewers who believed, "In Cramer We Trust," only to learn that Cramer was entertaining you (not enlightening) you? Click on The Daily Show to watch the Jon Stewart interview with Jim Cramer.

How do you make millions by watching CNBC? Start with hundreds of millions!

So keep digging in the dirt for the truth, Jon Stewart, and then serving it up with humble pie and a slip on the banana peel. We love it!

What are you dreaming of?
I’m so glad that I did this exercise because what I realized is that there are so many awesome people who are making my dreams come true. We are truly in this together, and there is an abundance of talent, vision and hard work here in America. So many Americans are making our world a better place, helping those who are in need and reaching across the world to share some of our prosperity as well. Certainly there is always more to do, especially now during this "crisis," but as we continue to invent tools and technology to make life easier, doing more doesn’t have to mean working longer and harder. It can just be working smarter and pooling our gifts and resources.

Together we can achieve so much more than any one individual. And I am so very grateful that so many of my friends and colleagues are working collectively to make my top ten dreams come true. C’est la bon vie!

FYI: I’m heading out to Peru for three weeks in June/July – to start the planning process for the New Year’s Eve Retreat at the top of Macchu Picchu. The July 2009 issue will be a BEST OF ezine, filled with past great articles, while I’m having a grand adventure! Remember to take your profits early and often if you are investing in individual companies, and to get a percentage equal to your age, plus 20% safe, in your nest egg. There will be no updates on the Hot News on Cool Stocks List on July 1, 2009.

Ask Natalie:

Help! I’m Desperate!

Dear Natalie:
My husband and I recently lost our jobs. We have two teens and only a few thousand dollars left. What should we do?

Signed,
Desperate

Dear Desperate,
You are in a bind. That’s for sure. And the most immediate thing that you must do is to cover basic needs. If you and your husband are both out of work and unemployment won’t keep you in your home and eating, then you’ll need to get help from friends and family right away. Certainly start thinking outside the box right here and now, so that you don’t have to watch the remaining money just sift through your fingers like sand in an hourglass. That’s only going to make you even more desperate.

Even if you are getting some unemployment, it could pay to move in with a family member for a pre-determined period of time, while your family regroups. Remember that this is a real emergency, and that requires immediate, bold actions that only have to work for a temporary period of time. In fact, if you can muster up a positive attitude, you might even position this for your teens as a unique, bonding adventure for your family. This will be a period when you get to re-imagine everything, understand from a fundamental perspective that love is the foundation of your life (not money) and experience a renaissance of family closeness where everyone pitches in to solve the problem. Remember that what you tell yourself about this time is largely the story that you will live and create.

I’ve heard about all kinds of success stories that were born in the desperate times of a person’s life. A football coach went back to school and became the Chairman of a multi-billion dollar corporation. A single mother became a bank executive. A college dropout co-created Apple computer. And the one thing that all of these people share is the willingness to be uncomfortable and live with a friend or family member for a short period of time, while they invested in the education, their new business or their new career.

Remember also that these things happen to everyone. Don’t carry around a chip on your shoulder because being a surly person means you’re less likely to get a job or to find a friend or family member who wants to take you in.

Finally, I have a 21-day coaching call series that might be of help to you. You wake up an extra 15 minutes early each day to listen to the pre-recorded calls. This series is specifically designed to create a natural state of wealth consciousness in you by starting each morning with 10-15 minutes of centering, intention setting and energy activation. It is all about energy, and once you focus your brainpower on enriching your life and creating wealth more easily and effortlessly, using the wisdom and guidance I will provide daily, extraordinary changes begin to happen in your life.

You will need an active subscription to access the call-in information, which is located on the Sharing Wisdom bulletin board. So, if you don’t have a subscription yet, you can sign up for 30 days free at the Join Now link on the home page at NataliePace.com. All you need is your email address and to select your passwords. And certainly, please, feel free to share this information with any other friends you know who are also experiencing a rough patch in their lives (like so many in Michigan, Nevada, California, Florida and Arizona).

How to Fly Like the Birdman.

by Natalie Pace.

8 Ways to Soar Through the Storms to the Life of Your Dreams.

This year, he was a star for the Denver Nuggets during their losing bid to become the Western Conference champions of the NBA. But in 2006, Chris the "Birdman" Andersen was at a lifetime low, after receiving a two-year ban from the NBA for drug abuse.

Most people don’t come back that strong from that kind of adversity. Relapse is common among addicts and it is clear that Andersen was thrown out of the NBA for abusing methamphetamine, heroine or cocaine – he won’t disclose which one -- all of which are highly addictive. But he soared so high in game four of the Western Semi-Finals on May 25, 2009 that he almost made a Nugget fan out of this die-hard Laker-phile.

If the Birdman can survive his storms, many of which were internal, then perhaps his methods can help you through tough times as well. Andersen had everything he ever desired, and then lost it all. His fiancé left him. His house was partially destroyed in Hurricane Katrina. And then he was fired and prevented from working in his job for two full years.

Many people get sucked into that downward spiral and never find their way back to their former glory. How Chris Andersen pieced his life back together is in keeping with the general principles of how anyone collects the shards of their broken dreams and rebuilds a dream-come-true life. Let his inspiring story be the wind beneath your wings.

8 Keys to Flying (When You are Buried in Basic Needs):

Here is how it works.

Get help with the source problem.
The source problem with the Birdman was substance abuse. So, he went to rehab to get off the drugs and then committed to a drug-free existence, while he remained under the care of a close friend. He took weekly drug tests. Whether your source problem is out-of-control credit card debt, a house you can no longer afford or that you lost your job, you likely need help figuring out the solution. Start with a trusted source, especially if your problem involves money. Many of the people who helped to create the housing crisis and subprime mortgage implosion are now the scam artists on the other side of the phone taking your money (illegally) under the ruse of helping you solve the problem. These days, the SEC.gov, FederalReserve.gov, HUD.gov, Treasury.gov and more offer real solutions for distressed Americans, along with a list of government-approved agencies.


Focus on healing and rebuilding.
If you are behind on payments, the debt collectors will hound you day and night. But the solution to paying them is income, not fretting over debt. Once you have your budgets in order and more money coming in than going out, paying off your debts will be easy. Don’t ignore your debt collectors. Do work out a payment plan that you can commit to, and then turn your focus, your time and your energy to reducing expenses and creating more income. How did the Birdman focus on healing when he was out of a job? He went to live with a friend. Sometimes couch-surfing is the best solution. Read that article, in Vol. 6, issue 3, for inspiring stories on other VIPs who have faced challenges, slept on couches and soared!


Reduce expenses.
The Birdman went to live with a friend while he got his act together. The Chairman of a ten billion-dollar corporation went back to live with his parents for a time when he switched careers. Single moms who move in together buy themselves more time, in addition to the cost savings. Check out CoAbode.org, if you’re a single mother and interested in that solution. Can you rent out an extra room or the garage to a college student? Should you move an ailing parent into your home for the time being? Be creative.


Stay clean and surround yourself with supportive friends.
Develop a new network of friends who will support you in your new habits. The same group of friends who were partying with you while the storms gathered are part of the problem – not part of the solution. Take a class at a local college, or join a club, or start dancing or hiking or … Chris Andersen went skiing with his attorney friend and the family! Have some fun. But also understand that real wisdom and right action are the foundation of a dream come true life. And the people who embody that are going to have results dating back for the past decade, during both bull and bear markets -- fair and foul weather.


Have a good resurrection strategy.
When I became a single mother, I was working as a part-time schoolteacher. The salary was too small to make ends meet and within two years, I was in danger of losing my home. Originally, I’d chosen that job because I could be at home for my child afterschool. But I found that I was grading papers into the night, working longer hours than if I had a regular job! So, part of my resurrection strategy was to get an executive position that better used my diploma and paid me for my expertise.
Should you get more education, develop more skills, etc? Is now a good time to invest in increasing your worth on the job, while you wait for the labor conditions to improve? Never stop learning!
Increase income.
Read the Billionaire Game (in Put Your Money Where Your Heart Is) for tips on how to create your dream come true life. The first thing you should be doing is to tithe to your own Buy My Own Island Fund (formerly known as your retirement plan). This becomes even more critical when you have debt burdens because the 10% contribution cannot be taken by your creditors, if it is placed into an IRA, 401(k) or other retirement vehicle. Tithing to yourself first is giving yourself a raise, increasing your assets, and making sure that you have enough protected from anyone who might try to get at your money. Other ways to increase income? Focus on your customer. When you can create a great product or service that people really need and value, they will pay you for that.


1. Have a little good, clean fun.
   A lot of debt spins out of control in the first place because people are trying to drink in all of their life from the dregs that is left over at the bottom of the cup each month. Feeling eternally deprived, you might become a shopaholic or a rage-o-holic or an alcoholic, when if you just pulled out some cash first for your fun and spent it freely on things that made you laugh and sing, you’d be smiling a lot more. Endorphins are good for your health. A healthy person can work harder. So have more fun, knowing that you are paying down debt in the metaphysical realm, depositing into the bank of endless possibilities, by doing so.
   
   
2. Rinse and repeat.
   "The journey of a thousand miles begins with a single step." Lao Tzu. And then another, and another, and another, and another. Practice the sound fiscal habits outlined in Put Your Money Where Your Heart Is and watch your life change a little more every single day. Before you know it, you’ll be living the life of your dreams, thriving, instead of just surviving.

You might not soar as high as the Birdman on the basketball court, but in your own life, in your own way, you can truly fly. Every cent you own and every moment you spend is always an investment. Why not invest in living the life of your dream right here and now, with no more delays?

The Best Investment They’ll Never Tell You About.

by Natalie Pace.

Hmmm. Stocks are in the toilet. Real estate is still sinking. Bonds are vulnerable. CDs, annuities, pensions and money markets are stressing the Treasury, which in turn is printing paper money like Monopoly. The FDIC and PBGC are overdrawn. Banks, brokerages and insurance companies are belly-up or bailed out.

On May 20, 2009, The Pension Benefit Guaranty Corporation reported that the plan had posted a $33.5 billion deficit for the first half of fiscal year 2009, based on unaudited financial numbers as of March 31. The deficit represents an increase over FY 2008’s $11 billion shortfall, and is the largest in the agency’s 35-year history. PBGC Acting Director Vince Snowbarger stated (in written testimony to the Senate Special Committee on Aging), "The increase in the PBGC’s deficit is driven primarily by a drop in interest rates and by plan terminations, not by investment losses." Snowbarger added, "The PBGC has sufficient funds to meet its benefit obligations for many years because benefits are paid monthly over the lifetimes of beneficiaries, not as lump sums. Nevertheless, over the long term, the deficit must be addressed."

Additionally, most people are unaware that the PBGC has a cap on their annual benefits, which could be significantly less than what your corporation has promised you, in the event that your pension plan is liquidated. Certainly, you cannot assume that your pension and insured deposits are completely safe these days, though it’s probably not a great idea to start screaming fire to all of your friends. A run on the banks would create a much bigger problem – perhaps even a global financial meltdown.

Not losing money is winning in this harsh climate, but most investors are mystified as to what is really safe anymore. (Treasury Bills are considered one of the safest investments, since they are backed by the U.S. government. You can get information on how to buy them at TreasuryDirect.gov.)

When everything seems to be losing, is there any investment that is likely to pay a good rate of return in the near future? If we take a lesson from the 1980 recession (the 2^nd worst recession of our lifetime), when interest rates soared above 20%, one investment comes to mind. Today, interest rates are currently bottomed out near zero. So, one of the most valuable investments in 2010 and beyond will be an assumable low-interest, fixed rate loan, assuming, as economists do, that interest rates will start to rise and inflation will be a concern going forward. For that reason, your best investment today is liquidity, a great credit score, a patient disposition and the ability to negotiate a fixed-rate, assumable loan on a great piece of cash-positive property that you buy at least 25% below the assessed value later this year, in December of 2009.

Here’s how it works.

1. Assume real estate will continue to drop in 2009. (Statistics are listed below to support this premise.)
2. Be patient and look for a short sale or REO (Real Estate Owned by the bank) in the late fall of 2009.
3. Save up for a robust down payment while you wait. (If you have creditors, the best place to save may be in a tax-protected IRA or 401(k) because retirement plans are protected from creditors.)
4. Keep your credit score up, but realize that a healthy down payment could make all the difference in getting the loan. Cash is king!
5. Make sure that the property can pay for itself in the worst-case scenario for a minimum of five years in a potentially slow recovery marketplace. A cash-positive apartment building located near a popular college or university could make a great investment, especially at fire sale prices.
6. Negotiate hard for the best sales price (at least 25% below the current assessment) and a fixed rate, assumable loan – i.e. one that you can turn over to another buyer in the future.
7. If you are in a profit position in 2011 and beyond, and interest rates are much higher than today, your low-interest, fixed rate, assumable loan makes your property the most attractive investment on the block! The loan itself becomes very valuable when all of the other loans cost twice as much (or more) in interest.

Why do I think housing prices will continue to drop?
According to the Lawrence Yun, the Chief Economist for the National Association of Realtors, "The national median existing home price in April was $170,200, which is a decline of 15.4 percent from one year ago. It is the second largest year-over-year decline. The largest was in January of this year when prices fell by 17.5 percent." In his May 27, 2009 Commentary, Dr. Yun wrote, "Disproportionately high distressed home sales will continue for the remainder of the year because foreclosures and the release of foreclosed properties onto the market will be rising for the remainder of the year."

RealtyTrac® (realtytrac.com), the leading online marketplace for foreclosure properties, released dismal foreclosure statistics on May 13, 2009. "Foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 342,038 U.S. properties during April 2009, an increase of 32 percent from April 2008." The report also showed that one in every 374 U.S. housing units received a foreclosure filing in April, the highest monthly foreclosure rate ever posted since RealtyTrac began issuing its report in January 2005.

Nevada, Florida, California and Arizona posted the top state foreclosure rates. Nevada foreclosures were one in every 68 housing units, an increase of 111 percent from a year ago. Florida foreclosures were one in every 135 housing units, up 75% from April 2008. While California homeowners foreclosed at a rate of one in every 138 housing units, up 42% from last year.

Dr. Gary Becker predicted that economic recovery could be delayed until the first quarter of 2010. According to Dr. Becker, in my interview with him of April 27, 2009, "I believe that things will start coming back at the end of 2009 or the early part of 2010 -- maybe slowly at first." So, if Dr. Yun, Dr. Becker and the foreclosure trends are right on the money, the smart, patient investor wouldn't be in a hurry to buy before the end of the year.

S/he would, however, continue to fortify her cash position, so as to be the most attractive customer at the bank when it comes to time to negotiate the loan. In 2009, cash is king. But in 2010, 2011 and 2012, it very well could be the low-interest, assumable loan!

Are Your Savings Safe?

by Natalie Pace.

A Guide to What Is and Is Not Protected by FDIC Insurance. From the consumer pages of the Federal Deposit Insurance Corporation.

So - you feel your cash is safe and protected when you walk through the door of the bank or saving association, much safer than when you kept it under your mattress. And you should. BUT, are your funds all covered by FDIC insurance just because you walked into a secure-looking building with iron bars and guards? Not necessarily - it depends on which of the bank's products you decide to use and whether the bank is FDIC insured.

What Is Insured?
You are probably familiar with the traditional types of bank accounts - checking, savings, trust, certificates of deposit (CDs), and IRA retirement accounts - that are insured by the FDIC. Banks also may offer what is called a money market deposit account, which earns interest at a rate set by the bank and usually limits the customer to a certain number of transactions within a stated time period. All of these types of accounts generally are insured by the FDIC up to the legal limit of $250,000 and sometimes even more for special kinds of accounts or ownership categories. For more information on deposit insurance see FDIC brochure "Your Insured Deposits."

What Is Not Insured?
Increasingly, institutions are also offering consumers a broad array of investment products that are not deposits, such as mutual funds, annuities, life insurance policies, stocks and bonds. Unlike the traditional checking or savings account, however, these non-deposit investment products are not insured by the FDIC.

What about Treasury Securities?
Treasury securities include Treasury bills (T-bills), notes and bonds. T-bills are commonly purchased through a financial institution.

Customers who purchase T-bills at banks that later fail become concerned because they think their actual Treasury securities were kept at the failed bank. In fact, in most cases banks purchase T-bills via book entry, meaning that there is an accounting entry maintained electronically on the records of the Treasury Department; no engraved certificates are issued. Treasury securities belong to the customer; the bank is merely acting as custodian.

Customers who hold Treasury securities purchased through a bank that later fails can request a document from the acquiring bank (or from the FDIC if there is no acquirer) showing proof of ownership and redeem the security at the nearest Federal Reserve Bank. Or, customers can wait for the security to reach its maturity date and receive a check from the acquiring institution, which may automatically become the new custodian of the failed bank's T-bill customer list (or from the FDIC acting as receiver for the failed bank when there is no acquirer).

Even though Treasury securities are not covered by federal deposit insurance, payments of interest and principal (including redemption proceeds) on those securities that are deposited to an investor's deposit account at an insured depository institution ARE covered by FDIC insurance up to the $250,000 limit. And even though there is no federal insurance on Treasury securities, they are backed by the full faith and credit of the United States Government - the strongest guarantee you can get.

Bank Savings: CDs
The FDIC has a tool that allows customers of a failed bank to determine whether their accounts are fully insured or if they need to contact FDIC. Click on the link to access. https://www2.fdic.gov/drrip/afi/index.asp

Annuity
The NAIC’s Consumer Information Source (CIS) provides information about insurance companies you can use BEFORE purchasing insurance. There you can access key information about insurance companies, including closed insurance complaints, licensing information and key financial data. https://eapps.naic.org/cis/

So What is FDIC-Insured*?
* Checking Accounts (including money market deposit accounts)
* Savings Accounts (including passbook accounts)
* Certificates of Deposit

*When the bank is an FDIC insured bank. Read the fine print on the account information and check with FDIC.gov to ensure that the institution is a FDIC insured bank or savings association.

What is Not FDIC-Insured?
* Investments in mutual funds (stock, bond or money market mutual funds), whether purchased from a bank, brokerage or dealer
* Annuities (underwritten by insurance companies, but sold at some banks)
* Stocks, bonds, Treasury securities or other investment products, whether purchased through a bank or a broker/dealer

For More Information from the FDIC Call toll-free at 1-877-ASK-FDIC (1-877-275-3342) from 8 a.m. until 8 p.m. Eastern Time, Monday through Friday.

For TDD call 1-800-925-4618.

Avoiding Madoff and other Slick Shysters. Investor Checklist.

by FINRA.org.

Investor Checklist: These steps can help you minimize the chances of being involved with a firm that becomes financially distressed:

* Check if the brokerage firm is registered. Visit FINRA BrokerCheck or call FINRA at (888) 295-7422. Also contact your state securities regulator—to find yours, visit the North American Securities Administrators Association or call (202) 737-0900.

* Check if the brokerage firm is a member of SIPC. If the brokerage firm is not a member of SIPC, there may be legitimate reasons why the firm is exempt from SIPC membership. Note that all introducing firms and carrying firms MUST be members of SIPC. In addition, remember that just because a firm is a member of SIPC, it does not mean that SIPC will make customers whole with respect to every loss. You can get more information about what SIPC does/does not cover from its Web site: www.sipc.org. In addition, you can search SIPC's Membership Database or contact its Membership Department at the address below to find out whether a firm is a member of SIPC:

Securities Investor Protection Corporation
805 15th Street, NW
Suite 800
Washington, D.C. 20005-2207
phone: (202) 371-8300

* Check the financial condition of the firm. You may ask to see the firm's audited financial statement. You can get a copy of its annual audited balance sheet and other select information by contacting the SEC at (800) 732-0330.

* Check whether your firm has private insurance beyond SIPC, and the amount of coverage. Ask what scenarios would trigger this protection to you, the customer.

* Make payments only to firms that are registered with FINRA. NEVER use an abbreviated version of the brokerage firms name, spell out the full name of the brokerage firm. In addition, where you are dealing with an introducing firm that maintains a relationship with a clearing firm, FINRA recommends you make your check payable to the clearing firm. In addition, when dealing with a special products firm that does not maintain a clearing firm relationship, checks are usually made payable to the issuer of the product, and not the brokerage firm selling the product. Understand why you are making the check payable to a particular party. The prospectus, or offering memorandum, will usually provide a guide as to who the issuer is and to whom to make checks payable. Be very cautious when making checks payable to entities that are not registered or subject to regulation as your investments may not be covered if the firm with which you are dealing fails.

* If you make a payment to any entity other than a SIPC member brokerage firm (such as to the issuer of the securities or to a bank escrow agent), check to make sure your funds are applied properly. Where possible, have your bank provide you with a copy of the front and back of such checks so you can check for improper endorsement and/or an assigning of the check to another party. Never make a payment to an individual sales representative.

* Check your account statements and trade confirmations for accuracy and to determine who your clearing firm is. Ask your firm how often you can expect to receive your periodic account statements (most firms provide statements on at least a quarterly basis). If you do not receive a statement, contact your carrying firm to determine why. Be advised: The failure to provide statements may indicate the brokerage firm has gone out of business or is experiencing financial difficulty.

FINRA.org is the Financial Industry Regulatory Authority. They promote investor protection and market integrity. FINRA is the largest independent regulator for all securities firms doing business in the United States. They oversee nearly 5,000 brokerage firms, 173,000 branch offices and 653,000 registered securities representatives. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.

Get Safe; Stay Strong.

by Natalie Pace.

Includes my Hot News on Cool Stocks List.

May 29, 2009

General Stock Market Performance

Hot News on Cool Stocks Highlights!
85% of the companies and positions listed below are in the money. Woo hoo!
452% gains on U.S. Gold
Massive gains on the Cooling Off List, and three new opportunities highlighted.
TipsTraders ranked me #11, above over 830 A-list pundits, in 2008.

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

Market Update:

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

Get safe; stay strong. Be patient. It’s not time to resurrect yet. Most people still need to get a better strategy. Buy and hold doesn’t work anymore. Modern Portfolio Theory, Exchange Traded Funds and semi-annual rebalancing will make you rich. Read on. I’ll explain.

It’s been quite a down-trending roller coaster ride the past year and a half, which is a lot of fun, if you’re along for the ride, instead of being strapped in a contraption you didn’t stand in line for. 85% of the positions listed below are in the money, meaning that we have definitely found out how to capitalize on the ups and downs. We’ve had gains on the Hot List (stocks that are expected to go up in value) and the Cooling Off List (stocks that are expected to go down in share price) by using the mantra "Take your profits early and often." We’ve had great performance in nest eggs by using the mantra, "Keep a percent equal to your age PLUS 20% safe, diversify into 10 ETFs and then do twice a year rebalancing." Both of these strategies mean that you’d be richer today, instead of joining the ranks of the global billions who are hurting and wondering "What happened?"

It also means that options are an important strategy in your trading portfolio (not your nest egg). Overweighting an additional 20% safe in your nest egg, due to the continuing recession, continues to be critical. Foreclosures were up 32% from a year ago (source: RealtyTrac). Home sales prices declined another 15.4% in April, after the record January decline of 17.5% (source: National Association of Realtors). GDP growth is still negative, with preliminary reports for the 1^st quarter of 2009 coming in at -5.7%, according to the Bureau of Labor Statistics. Since the stock market has had a mini-rally (which is unsustainable considering the fundamental, ongoing problems of foreclosures, unemployment and an implosion of home values), now is a great time to get safe, diversified and educated.

The General Motors bankruptcy announcement on Monday could rattle investors' nerves. Not to mention the livelihoods of so many people living in Michigan. My heart goes out to you. Know that there is a way through the storm. Join me on Friday, on my BlogTalkRadio.com show with host Shaun Daily for tips on how to get through this. Get the call-in information at BlogTAlkRadio.com/NAtaliePace.

Returns of the Dow Jones Industrial Average, NASDAQ and the S&P 500

May 26, 2008 through May 29, 2009

I first began warning of the recession in the January 1, 2008 ezine (Vol. 5, issue. 1), in the "Are You Gambling With Your Nest Egg -- Without Even Knowing It?" article.  At that time the markets were trading above 13,000.

It’s time to wake up! You cannot continue to ignore your statements because you’re afraid to "lock in your losses." ETFs, Modern Portfolio Theory, overweighting safe and annual rebalancing would have kept you rich, saved your assets and will resurrect your nest egg much faster going forward. The same losing strategy that got you into this mess, if left as is, will keep you stuck in the rut of this recession, even while others are on the road to resurrecting their net worth going forward. And if the markets tumble further, then having the right amount safe means that you don’t lose anymore.  When markets fall, not losing is winning.  

Easy as a Pie Chart Nest Egg Strategies that work

1. Modern Portfolio Theory. Personalize and diversify your investments into a simple formula based upon your age and ten ETFs. See page 92 of Put Your Money Where Your Heart Is for a sample pie chart. Read up on Modern Portfolio Theory principles, ETFs, and annual rebalancing strategies in chapter 7, "The Santa Rally and Other Wall Street Secrets." You can purchase Put Your Money Where Your Heart Is anywhere books are sold. Always keep a percent equal to your age safe, i.e. not invested in risky assets, like stocks and funds.
   
   
2. Own ETFs. Exchange Traded Funds allow you to easily diversify by size, style and industry, whereas most mutual funds are too big to be truly diversified. Check out PowerShares.com, iShares.com, AMEX.com and your favorite financial website for ETFs. Canadians should try their favorite mega-portals, finance section, for ETFs. Click on the Top 25 Holdings to be sure that you are picking ETFs with the companies you wish to support with your investment dollars.
   
   
3. Keep a percent equal to your age safe. The safest investments today are Treasury bills. Money markets and Certificates of Deposit were safe in the past (before banks and brokerages began failing) and will be again in the future – once the current crisis is behind us. Bonds that you already own in highly-rated corporations were traditionally considered safe as well, but be aware that former Blue Chips, like General Motors, banks, brokerages and insurance companies are all being bailed out and are not safe anymore. Many corporations have slipped below investment grade and buying new bonds right now is not a fantastic idea because low-yielding bonds in 2009 will not be worth much if interest rates rise in the years to come. Higher yielding bond offerings in 2009 come with higher risk (taking them out of the safe category).
   
   
4. Underweighting and Overweighting. Add 20% safe during this recession. Weight back into normal stock exposure when recovery begins and overweight 10-20% into stocks during a bull run. If you don’t have a reliable source to guide you on the market dynamic, just stick with the pie chart, ETFs and annual rebalancing. That works much better than market timing or Buy and Hold. We remain in a recession, as measured by the continuing negative GDP growth reports of the Bureau of Economic Analysis, the astronomic number of foreclosures and the implosion of home values, so overweighting safe is a solid strategy.
   
   
5. Once or twice a year meetings. Plan on meeting once or twice a year to rebalance your portfolio. Simply look at the pie chart you own and compare that to the personalized, age appropriate pie chart blueprint that you should own. When you see a slice of the pie explode in your portfolio, gobble up those gains! Re-diversify according to your pie chart plan and your nest egg will be fattening up on a regular basis. Read chapter 7, "The Santa Rally and Other Wall Street Secrets," of Put Your Money Where Your Heart Is for details on the best months to have these meetings with your Certified Financial life partner.
   
   
6. Invest in emerging industries. What industries are hot this year? Which ones are dying? You don’t want to be investing in the Pony Express, once Charles Lindbergh proves that airmail is viable. Read Chapter 5, "Hitch Your Wagon to a Star."

If you want to jumpstart your nest egg resurrection strategy, come to my June 11-13, 2009 retreat. There will be just 14 people in a boardroom learning nest egg, Stocks on Steroids and options strategies with me personally for three full days. Only two seats remain available. Subscribers who register before May 30, 2009 receive early bird pricing and a free 12-month Premium Subscription upgrade (valued at $2000). Call 866.476.7442 to reserve your space now!

An options trader reports 55% gains in his trading portfolio since coming to my retreat last year. Three women went on to found an investment club that is earning 40-150% gains over the last eight months. Another couple made the cost of the retreat back in less than one month. And Bill and Nilo discovered easy-as-a-pie chart nest egg strategies that saved all of their assets, while their family and colleagues lost hundreds of thousands of dollars. Don’t wait. Act now. It’s sooo easy and so much fun, that, as Kavi Ladnier says, "You’ll wonder if you’re doing it wrong."

Now, as you know, this Hot News on Cool Stocks report is a list of individual stocks that you might try taking on higher risk for higher gain in your trading portfolio. Your trading portfolio should be separate from your nest egg, and should be directly related to your experience, market wisdom, patience and ability to monitor and capitalize on the performance. For most people, trading individual companies should be part of their fun and/or education budget – not part of their retirement strategy at all. Once you get to be Warren Buffett or Peter Lynch in terms of success in trading, then you can consider individual stocks as part of your net worth strategies. (btw: It is important to remember that both men were buying chunks of companies and able to negotiate stronger deals and influence the management in ways that most individuals do not have access to.)

Stocks on Steroids Trading Strategies

1. Stocks on Steroids. The Stock Report Card (Chapter 6 in Put Your Money Where Your Heart Is) is a great tool for picking amazing companies that are poised to earn great gains. The report card lines up your favorite company with the competition. Additionally, read chapter 5 for Four Questions that help you determine if you are "Hitching Your Wagon to a Star."

   These novel, simple approaches have underpinned the success of my stock picks, and earned me the ongoing reputation as a top stock picker for the last decade.

2. 3-Ingredient Recipe for Cooking Up Profits. Of course, lining up your favorite company alongside it’s peers is key to picking the leader in the sector, but it is only one ingredient in my 3-ingredient recipe for cooking up profits. See chapter 3 for the recipe.
   
   
3. Nonstop News. Don’t read the headlines daily. That will only upset and confuse you because headlines are written to incite your emotions (mostly stomach acid) and news is something that already happened. Additionally, these days with trimmed down news teams and our best writers on furlough, the facts are coming from press releases, i.e. the company’s version of the events. When the company bends the truth, there are fewer Bethany McLeans on staff to ferret them out. (Ms. McLean was the Fortune reporter who warned of Enron six months before the implosion began.)
   
   
4. Avoid the Common Investing Mistakes. Have a trusted source for financial news that can help you stay abreast of emerging industries, so that you can be invested in the future and emerging industries and economies. That is where the greatest returns are made, if you have a rebalancing, diversified strategy that allows you to capture those gains! Read the Get Savvy section of Put Your Money Where Your Heart Is for the most common investing mistakes and other red flags.

As we enter the summer doldrums, there’s not much incentive to put money at risk. The economic climate remains harsh. The last two years have been volatile and down-trending, but that reality hasn’t really sunk into the investor sentiment yet.

And after the last two horrific years, frankly, we all need a vacation. Toward September and October, it will be time for the Back to School Stock Sales, which is a better period of the year to contemplate a more proactive resurrection strategy. If you have fine-tuned your nest egg as outlined above, and have the proper amount safe, then you are likely in a better position than you’ve been all decade. I wouldn’t be in a big hurry to jump into the ten ETFs, outside of gold. Give yourself the time to research exactly what you want and monitor the price of the ETF between now and the end of September 2009.  Tiptoe back in. As for trading strategies, buy low/sell high works better when there is volatility and movement than it does during the summer doldrums. Hard to catch wind for sailing to the Promised Land when everyone is ready to take a long-needed break from the market storms.

SPECIAL NOTICE: I’m going to be in Peru from the middle of June through the middle of July, with no updates available during that time. You’ll be on your own. Wall Street typically vacations during the month of August, and historically the volume on Wall Street is much lower in summer. We’re already seeing lower Vol. s this month than normal.

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. 68 positions listed below – 85% -- have delivered impressive gains over the past two years, even while the Dow Jones Industrial Average is trading lower than it was ten years ago! Only twelve of our listings went in the opposite direction of the reporting, which is quite impressive given the horrible market drop of 2008-2009. Additionally, in 2008, nineteen out of 27 companies that were featured in our monthly articles and stock report cards posted strong gains. That is also a 77% winning track record! (We are really coming up with the winning 7s this year.)

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, and one (Myspace) performed well above the market. That’s the kind of record that puts you on top on Wall Street.  (I launched my first publication on 11.15.02, and featured the first Company of the Year on 1.1.03.)

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

Market Movers:
The Federal Open Market Committee and Monetary Policy
The Fed funds rate continues to be "0 to ¼ percent." In the 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.

Preliminary GDP growth rates for 1Q 2009 were a decline of -5.7%. The economy contracted at -6.3% in the 4^th quarter of 2008. Final GDP growth estimates for 1Q 2009 will be released on June 25, 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 minutes 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 Pace and Prosperity Show with Natalie Pace on BlogTalkRadio.com on Wednesday, June 3, 2009 at 5:00 p.m. PT (8:00 p.m. ET). Get log-in instructions on the Sharing Wisdom bulletin board. This is a Q&A format, where you can Twitter in your questions. Be sure to write down your most pressing questions now, and become a friend to Natalie Pace on Twitter at Twitter.com/NataliePace, so that you can Tweet on the show.

3. Survey Results:
Each month we have three new surveys so that we can stay in touch with your needs and desires. This month, with Father’s Day and the upheaval in the auto industry, we’re asking what you think Dad 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 1.00% (main refinancing), 1.75% (marginal lending) and 0.25% (deposit facility). The next meeting and interest rate announcement is scheduled for June 4, 2009 at 2:30 p.m. CET. (June 18, 2009 after that.)

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

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

Profit-Taking (Take your profits early and often):
HOKU (HOKU) +51%
KCI Concepts (KCI) +23%
LDK (LDK) +85%
New Zealand Dollar Currency ETF (BNZ) +21%
U.S. Gold (UXG) +452%

DELETIONS (Take your profits early and often):
Altair Nanotechnologies (ALTI) 4.13.09
American Superconductor (AMSC) 4.13.09
eBay (EBAY) 4.13.09
Eastern European Fund (EUROX) 4.13.09
Emcore (EMKR) 6.1.09
Ener1 (HEV) 6.1.09
FMC Corporation (FMC) 5.4.09
General Electric (GE) 4.13.09
Google (GOOG) 4.13.09
Maxwell (MXWL) 4.13.09
MEMC Electronics (WFR) 4.13.09
Microsoft (MSFT) 4.13.09
PowerShares CleanTech Portfolio (PZD) on 5.4.09
PowerShares Wilderhill Clean Energy ETF (PBW) +60%
Satcon (SATC) 4.13.09
Sociedad de Quimica (SQM) on 5.15.09
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%. Deteled 5.15.09: SQM with gains of 38% and 62%. Deleted 5.31.09: EMKR with losses of 13% and 88% and Melco with losses of 8%. Ener1 with gains of 11% and 17%.

Recently Deleted from the Hot News list:
Altair Nanotechnologies (ALTI)
American Superconductor (AMSC)
eBay 4.13.09
Emcore (EMKR) 6.1.09
Ener1 (HEV) 6.1.09
EUROX 4.13.09
FMC Corp. 5.4.09
GE 4.13.09
Google 4.13.09
Maxwell 4.13.09
Melco Crown (6.1.09)
MEMC Electronics 4.13.09
Microsoft 4.13.09
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
Sociedad de Quimica y Minera 5.15.09
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)
eBay (4.15.09)
Ener1 (6.1.09)
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)
Sociedad de Quimica y Minera (5.15.09)
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)
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):
Baidu (BIDU)
Taubman Centers REIT
Wells Fargo

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 Weekly Pace and Prosperity Show on BlogTalkRadio.com. Note That There Will Be NO Hot News on Cool Stocks Update on July 1, 2009.

Machu Picchu, Peru. One of the “new” seven wonders of the world.

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.

Spin to Serve Pre-Teens in Need. SM, CA
Thursday, June 4th, 2009
8:00AM through 9:00AM
David Lee, actor extraordinaire (from Get Smart) and spinning instructor is donating all of the proceeds from his spinning class at Revolution Fitness to the Young Storytellers Foundation. Spin, have a great time and help others! Now that's a great bottom line!

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 Pace on BlogTalkRadio with Host Shaun Daily
Friday, June 5th, 2009
9:00AM through 9:30AM PT
Pace and Prosperity to you! This week's show will focus on getting safe when banks, brokerages and insurance companies are being bailed out! Call-in at (347) 215-7305 and log on at BlogTalkRadio.com/NataliePace.

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...

PREMIUM SUBSCRIBER Teleconference
Wednesday, June 10th, 2009
5:00PM through 5:30PM PT
Premium subscribers’ teleconference with Natalie Pace. What will the markets do this summer? Are you safe? Will your nest egg start resurrecting? What's hot? Gold? Get the call-in info on the Premium Subscribers section of the Sharing Wisdom bulletin board.

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.

Pace and Prosperity. Ask Natalie Show
Wednesday, June 17th, 2009
9:00AM through 9:30AM PT
Weekly Ask NataliePace Twitter-in show where you can learn how to lean into thriving, instead of drowning in basic needs. Get rich and enrich. Peace and prosperity. Yes, you can have it all. Get Call-in information at BlogTalkRadio.com/NataliePace.

Mid-Month Update: Hot News on Cool Stocks
Thursday, June 18th, 2009
The mid-month update of the hot news on cool stocks report will be published after the markets close.

Natalie Pace LIVE in Miami, FL
Friday, June 19th, 2009
7:00PM through 10:00PM ET
The Universal Truth Center for Better Living presents Natalie Pace Live in Miami, FL. Learn how to profit (legally) in this crazy marketplace, how to avoid scams, increase income and all that with less worry and stomach acid! Get more info at

FOMC Meeting
Tuesday, June 23-24, 2009
8:00AM through 5:00PM ET
The Federal Reserve Board governors meet June 23 and 24, 2009. Hmmm. What tricks do they have up their sleeve now to stimulate the economy?

GDP 1Q 2009 report (final)
Thursday, June 25th, 2009
8:30AM through 8:45AM ET
The U.S. Dept. of Commerce, Bureau of Economic Analysis (BEA.gov) releases its final report on GDP growth in the 1st quarter of 2009. Preliminary estimates from the BEA came in at -5.7%. Will the preliminary numbers hold?

Best Of NataliePace.com Ezine
Wednesday, July 1st, 2009
5:00PM through 11:00PM
The July 2009 ezine will be a best of edition, with reprints of our favorite articles over the last 24 months. There will be NO Hot News on Cool Stocks update.

Soul Sisters Retreat, LA, CA
Friday, July 31st, 2009
7:00AM through 11:00PM
Flower and Fly with Dr. Rickie Byars Beckwith, Rev. Greta Sesheta and the Soul Sister Angels at the 11th Annual women's retreat. A celebration of the Divine Feminine. Agape Int'l Spiritual Center event.

eWomen Network International Conference, Dallas, TX
Thursday, August 6th, 2009
Attend the largest 4-day women's conference and expo in North America with CEO Sandra Yancey. Access new customers, expand your business resources and hear Mimi Donaldson share her tips on Negotiating for Dummies.

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.