NataliePace.com Home Page Article
to Get Safe in Today's Debt World.
by Natalie Pace.
Investor Alerts and Resources on Gold, Real Estate, Bonds, Stocks and more.
June 8, 2012, Standard and Poor's released a statement warning that there remains
a negative outlook on the U.S. credit rating, and that, unless the debt and
deficits are dealt with, they could lower the credit rating again. This release
occurred on Friday, after the markets had closed, so the news media largely
ignored it. It was a warning after all. Not an action.
However, warnings of this
nature are not to be taken lightly. Last year, on August 5, when the S&P
stripped the U.S. of its AAA rating, the Dow Jones Industrial Average lost 635
points overnight. As I've outlined in depth in my article, "The
Safest Countries in the World," the very sad and severe crises in
Portugal, Italy, Ireland, Greece and Spain (PIIGS) are all debt related. Two
years ago, they were just warnings, too. In fact, since these PIIGS countries
are in the Eurozone, they still receive a T&C Assessment of AAA by Standard
and Poor's, which investors, like MF Global, took to heart -- at great peril.
And you've already noticed
how our Debt World has affected your investments in real estate, stocks, bonds
and even gold -- most of which have had flat, if not dismal performance this
year. MF Global, the 8th largest bankruptcy in U.S. history was as a result
of bad bond investments (in PIIGS). Last year, on November 9, 2011, Jefferson
County, Alabama filed for bankruptcy, in the biggest municipal failure -- $3.1
billion -- in history. Detroit is nearly bankrupt, and more municipalities are
at risk than their bond investors are aware of.
Gold is down 17% from its
high of $1,895, set on September 5, 2011. Millions are still losing their homes,
which drags down home prices, and reduces the creditworthiness of buyers.
So, how do you get safe?
How do you save your home? Who do you trust?
Below are the Best Of articles
that I've penned on each subject, offering actionable strategies that have yielded,
and will continue to yield superior results.
Ed's Note: Please note
that the data in the articles corresponds to the date the article was penned,
and may be different today -- for better or for worse.
for Getting Safe in Gold, Real Estate, Saving Your Home, Protecting Your Assets,
Stocks, Bonds and Much, Much More
If you purchased gold at $850/ounce in 1980, you had to wait 26 years for
the value to return. Most of the time, gold seesawed between $250-$350 an
ounce over that period. Now, with prices near $1600/ounce, large holders of
gold, including the United States, Russia, Brazil and more, could be tempted
to sell high. For a brief history of gold and information on which countries
are the biggest holders of gold, read, "Gold
Investors Beware" from the April 2012 NataliePace.com ezine, volume
9, issue 4, and "The
Gold Crash of 1980," from the September 2010 ezine, volume
7, issue 9.
- Real Estate
(including saving your home). Almost 10 million properties were repossessed
between 2008 and 2012 (9,896,211). Earlier this year, RealtyTrac
predicted that foreclosure activity would be higher in 2012 than 2011 (in
other words, over two million), but lower than 2010 (so, less than three million).
So, far this prediction is right on course. There were 967,698 foreclosure
filings between January and the end of May. This means that there will no
real upside in real estate prices (except in certain cities) until
2013. However, it could be a good time to buy, while interest rates are low.
Most people forget that the largest expense in the home purchase is interest,
so with rates at an all-time low, even if the value of your home declines
a little this year, you'll still end up paying tens of thousands less than
investors will pay next year, if interest rates rise.
So, if you can
buy a home, buy. If you can re-fi with a fixed mortgage at rates near or lower
than what you have currently, do it now.
If you are underwater
on your mortgage or delinquent on your payments and are considering the "unthinkable,"
read the important articles listed below now. Do not drain your nest
egg trying to keep a home you cannot afford. That is sinking your lifeboat
and making the bankster rich, instead of covering your own assets first.
You Short Sale? by Natalie Pace.
Collection Facts. by the FTC.
Freedom. Good-Bye Debt. by Natalie Pace.
You Do the Unthinkable? Call-in radio show.
Estate: Interview with Dr. Lawrence Yun, chief economist, Realtor.org
Are Underwater. Experts Discuss How to Get Safe. by Natalie
Will Real Estate Recover? Q&A with Dr. Lawrence Yun, the chief
economist of the National Association of Realtors.
- 911 Investor Alert:
Bonds and Treasury Bills. Now
that even Warren Buffett has admitted bonds should come with a warning label,
you need to get smart on how to understand the risk in bonds and select high
quality safe areas for your money. I first warned about bonds in September
2010 -- well before the Greek bond crisis and the S&P downgrade
of the U.S. credit. Get bond smart by reading the important bond articles
from the May
2011 ezine (volume 8, iss. 5), the September
2011 ezine (volume 8, iss. 9) and the December
2011 ezine (volume 8, issue 12). In the meantime, low-risk, cash-positive
hard assets are King (and no, as I indicate above, I'm not suggesting to go
all in on gold). Bonds and bond funds are vulnerable to loss of principal
value now. Credit risk, more than interest rate risk is driving the bond markets,
as is seen clearly in the PIIGS countries. (The European Central Bank rates
are right in line with the U.S. Federal Reserve, while PIIGS countries are
forced to offer interest rates 5-6X higher to attract lenders.)
One More Article of
Beautification Project," from the NataliePace.com ezine, vol.
7, issue 10.
- Stocks. I update
the Hot News on Cool Stocks report and market update twice a month, in the
monthly ezine and then around the 15th in the mid-month update. Each year,
I update the stock pie charts, which include important notes on what is safe,
what is hot and how to diversify. I also provide new analysis on a regular
basis as to monthly, annual and election year market performance trends. It
would be too lengthy to list every article because there are a minimum of
three in each ezine. So, browse the archives and be sure you are up to date.
Or, if you want to have fun and get it all in one shot, just come to my next
Educational Retreat. Call 310-430-2397 to learn more.
- Municipal Bonds.
Bond salesmen sell muni bonds on the basis of being triple tax free. But are
investors aware of the principal loss risk they are taking? The higher the
interest rate, the higher the risk. There is a special FINRA
Investor Alert in this ezine on municipal bonds that all muni bond
investors owe it to themselves to read.
- Solar Panels.
Solar kit prices have come done markedly in the last three years, and the
tax incentives continue to be available to Americans. The payback on your
investment could be 4-7 years. Why have your money sitting idle, earning no
interest (or worse, at risk of principal loss in your stock/bond portfolio),
when you could invest in something that will power your home for the rest
of your life? The cost savings, particularly during peak hours, put more money
in your pocket when you need it most, and the panels keep paying dividends
(putting money in your wallet that would be spent on utilities) when you retire,
lose a job or get sick.
of 2008 (when I first warned to get safe from the Great Recession) and March
of 2009, the Dow Jones Industrial Average lost more than half of its value.
of the Dow Jones Industrial Average
January 1, 2008 through March 30, 2009
Money.MSN.com. For illustration purposes only.
Using one smart, easy trick,
investors like Bill
and Nilo Bolden saved their nest egg and earned gains, while
those around them lost hundreds of thousands of dollars. (Click on their names
to hear them talk about this in their own words.)
of the Powershares Laddered Treasury Bond Fund
October 1, 2007 through October 1, 2009
Money.MSN.com. For illustration purposes only.
Will this trick work again
in 2012? Unfortunately no.
But other strategies will.
And those who act before the fall are the ones who are poised, as Bill and Nilo
were in 2008, to gain.
Call 310-430-2397 if you
wish to join me at the July 6-8, 2012 Investor Educational Retreat. We still
have one seat available, in this boardroom retreat that is limited to just a
dozen attendees. If you can't make the July retreat, the next boardroom retreat
will be October 6-8, 2012, in the sunny beach town of Santa Monica, California.
About Natalie Pace:
Natalie Pace is the author of You
Vs. Wall Street and Put
Your Money Where Your Heart Is. She is the founder and CEO of the
Women’s Investment Network, LLC (a global financial news, information and education
site), where she has been adding a splash of green to Wall Street and transforming
lives on Main Street for more than a decade. Natalie is a blogger on HuffingtonPost.com
and a repeat guest on national television and radio shows such as Good Morning
America, Fox News, CNBC, ABC-TV, Forbes.com, NPR and more. As a strong believer
in giving back, she has been instrumental in raising tens of millions for public
schools, financial literacy, the arts and underserved women and girls worldwide.
Follow her on Facebook.com/NWPace.
For more information please visit 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 North America. 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 all in on any asset class or individual stocks. 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.
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.