The 2020 Holiday Season is unique for many reasons. We may be far from family, and we might be concerned about conserving capital – forcing us to be more frugal in our holiday spending. Fortunately, below are a few thoughtful gifts that show your loved ones you care, with very little cash outlay. Check out the free and under $5 stock stuffers, or to choose to invest in incredible deals that ensure 2021 and beyond are great years for you and your family.
 
Free
Burnout to Brilliant Health Conference
Featuring a Special Message from His Holiness The Dalai Lama and 
and an Important Discussion with Natalie Pace
Learn how to have amazing energy and optimal health no matter how busy or stressed out you are.
​Starts on Nov. 30, 2020.

Free
21 Days of Prosperity Coaching.
Imagine what replacing fear, worry, doubt and debt consciousness with confidence, time-proven strategies and life-transformational tools can do toward making 2021 a prosperous year. Enjoy 21 days of video coaching from Natalie Pace that will break down the walls that keep you stuck in a rut. Place time-proven, easy-to-implement systems as the foundation for your financial home. Learn how to earn money while you sleep safely, save thousands annually in your budget with smarter big-ticket choices and protect your wealth from the pandemic. These solutions have transformed the lives of many.
 
"Just following the 21 days changed my mindset so much that my business went from just barely profitable to reaching record sales and profits 2 months later! I have now played The Gratitude Game a second time and intend to play it at least once a year! Thank you, Natalie!" Suzie

Under $5
The ABCs of Money offers the life math that we all should have received in high school. The sooner you learn this vital information, the faster you create a richer life.  
 
"College students need the information before they get their first credit card. Young adults need it before they buy their first home. Empty nesters can use the information to downsize to a sustainable lifestyle, before they get into trouble." Joe Moglia, chairman, TD AMERITRADE
 
“Many people, including educated men and women, often get into trouble when they neglect to follow simple and fundamental rules of the type provided in this book.  This is why I recommend it with enthusiasm.” Professor Gary S. Becker.  Gary Becker won the 1992 Nobel prize in economics. 

The ABCs of Money for College teaches your tween or teen how to get a better degree for up to half the cost. Student loan debt is a crisis in the U.S., with 40% of loans in forbearance. Parents: start the process of college planning when your kids are young, and the entire family will enjoy a fruitful journey creating the career path of your dreams. This guide also includes the Jobs of Tomorrow, from trade positions to Ph.D.s, and the unique trajectory that is appropriate for each individual.  
 
"There are many strategies in Natalie Pace's book, The ABCs of Money for College, that prepare families - remember education is a family journey - to uplift and educate their children. Natalie also shares strategies for students who are not well-supported at home to create their own pathway to success. Given the central role that investments in the human capital of our children will play in the success of our children and our country, Natalie's book could not be more timely or important." Kevin M. Murphy, McArthur “Genius” Award winner, and George J. Stigler Distinguished Service Professor of Economics, Department of Economics, The University of Chicago Booth School of Business
 
Each ebook is under $5, and makes a great stocking stuffer for loved ones.

Receive a Free Gift Valued at $300*  
Register for the Jan. 16-18, 2021 New Year, New You Financial Empowerment Retreat by November 30, 2020 to receive the best price and a complimentary private prosperity coaching session (value $300).
​
Groups of 5 Pay Just $368.80/Person*
Ensure that everyone you love has the financial foundation necessary to successfully navigate a post-pandemic world by registering for the Jan. 16-18, 2021 Retreat as a family. We’ll help you achieve that goal by giving you an unbelievable price. The individual rate to attend (in the Early Bird pricing period) is $695. (An in-person retreat would cost $995-$1650/person, so this is already incredible savings.) A group of 5 will pay just $368.80/person** – cutting the individual price almost in half. You must register by Nov. 30, 2020 to receive these dramatic cost savings.

​

Real Estate Master Class. January 23, 2021
Interested in buying or selling your home? Want to purchase an income-producing hard asset? There are VERY important considerations and unique opportunities in a post-pandemic world. The math is not simple. However, the proper tools make this fundamental life choice  one that you can evaluate properly and embrace.  Real estate is one of the largest commitments you'll make in life. Yes, you want to stop making the landlord rich and purchase a home for your family. This is key to building wealth. At the same time, buying more than you can truly afford, or at an all-time high (and largely unaffordable) price will be hell. There are opportunities in the shadow inventory that your broker isn't sharing with you. Learn this and more inside secrets at this Master Class! Receive the Best Price when you register by Cyber Monday, Nov. 30, 2020.  Click here to learn more. 

About Natalie Pace
Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 4th edition of The ABCs of Money was released on October 17, 2020. 

Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. ​

​Thanksgiving 2020 may find us far from our families, or connecting with them on videoconference. That's something to be thankful for -- the ability to connect with loved ones around the world face-to-face, on our phones, for a decent price. Ask a Boomer what long-distance phone calls used to cost. Each will have a horror story to tell, perhaps of a tween making a trans-Atlantic phone call to a friend from a hotel room to the tune of hundreds of dollars.
 
The pandemic has limited our lives in many ways that we hope will be behind us soon, perhaps with a vaccine. However, there are a few blessings, too. The skies have never been bluer or cleaner in my lifetime. So, before we return to "normal," my prayer this Thanksgiving is that we will take a look at some of the forced lifestyle changes that we want to embrace by choice once COVID-19 is behind us.
 
I launched a strong “personal net zero” trajectory on Earth Day 2010, which was the year that the BP Oil Spill gushed at least 210 million gallons of oil into the Gulf of Mexico. I knew then that oil companies were drilling a mile beneath the ocean with unproven recovery equipment to feed my oil addiction. It was not easy reducing my driving at that time -- before micro mobility came to our cities. However, a few years ago, I got rid of my car completely. Today, most of my to-do list can be done by walking (something that keeps me healthy), riding a bike, taking public transportation or catching a Lyft. Occasionally, I'll rent a fuel-efficient car for a road trip home to visit the family.
 

​Li and Jonathan Watkins ride their bikes to work every day in Southern England – even when it rains.

Katie and Pete Smith can hardly imagine how they ever afforded their commute before they got jobs in Poundbury, where they live. Rush hour traffic would often turn a 30-mile drive into a two-hour commute. The gasoline budget savings are welcome and useful. However, the time and stress of the commute are also something that Katie is grateful she no longer endures.  
 
Many cities offer very affordable bike-share programs and have expanded bike lanes, making them more visible and customary. Locals are encouraged to take the friendlier road – to share in a kinder, more compassionate way. Single occupancy vehicles have long been the bane of city planners, who received near-constant complaints of gridlock traffic. Every bike or e-scooter makes the commute easier for drivers, taking cars off the road. And of course, when we all stop driving, as we did in the pandemic, then we breathe cleaner air and can see farther out on the horizon.

 
My prayer this Thanksgiving is that blue skies, clean water, wildlife and healthy oceans will be the gifts we endow to the centuries of humans and animals to come.
 
I invite/encourage you to try at least one hour of personal net zero this Thanksgiving weekend (without technology, too). Get tips of what you might try at http://EarthGratitude.org/ in the free Future Earth and Clean Living ebooks (click to download). You can also watch a 4-minute film about a brave young family who made a bold pro-planet choice for their young son on the Earth Gratitude home page.

​One last thing: If you haven't already claimed your 21 Days of Prosperity Coaching, which is my Free Holiday Gift to you this year, simply email info@NataliePace.com with the subject I Want My Free Holiday Gift.
 
Happy Thanksgiving!
 
Natalie Pace
 

​Other Blogs of Interest
Secretary Mnuchin Halts Bailouts
Money Stress Killed My Friend
Real Estate and Housing 2021. Challenges & Opportunities
​Real Estate in a Pandemic. Interview with Mike Fratantoni, the Chief Economist of the Mortgage Bankers Association.
​Bonds are Illiquid & Negative-Yielding.
Annual Rebalancing is a Buy Low, Sell High Plan on Auto-Pilot.
5 Red Flags of a Financial Implosion
Will Regeneron Be Approved Before the Election?
​Tesla Will Have an Outstanding Earnings Report
Should You Wait Until After the Election to Fix Your Wealth Plan?
​The October Surprise
​Is Your Bank a Junk Bond
Do Stocks Fare Better Under Democrats or Republicans?
Put Your Money Where Your Heart Is.
Crystal Ball for the Remainder of 2020 (Including the Election). 
Microcap Gaming Company Doubles 2Q 2020 Revenue.
​Apple & Tesla Stock Splits.
Schwab's Chief Fixed Income Strategist on What's Safe.
China's Tesla (Nio). 2Q Sales Soar.
Why Are You Still Renting? (Errr. There is More Than This to Consider!)
MedMen's Turnaround Plan Attracts A-List Board Members.
​Wealth Myths That Keep You Poor. Prosperity Truths That Make You Rich. 
Protecting Your Wealth and Home in a Recession.
Technology and Silver are Golden.
The Economy Contracts 32.9% in the 2nd Quarter of 2020.
Real Estate: Feeling Equity Rich? Make Sure That Feeling Isn't Fleeting.
Airline Revenue Plunges 86%. 
10 Questions for College Success
Bank Earnings Season. Crimes. Cronyism. Speculation.
Real Estate Solutions for a Post-Pandemic World.
Copper and Chile Update.
Gold Soars. Some Gold Funds Tank. 
Will the Facebook Ad Boycott De-FANG Stocks? 
Why Did My Cannabis Stock Go Down? 
Which Countries Are Hot in a Global Pandemic? 
Is Your Financial Advisor Good at Navigating Stormy Seas?
$10 Avocados, Lies, Damn Lies, Statistics & Wall Street Secrets. 
It's Never a Crash.
Work From Home and Intergenerational Housing.
Biotech Races for a Coronavirus Cure. 
Are You Worried About Money? 
May is a Good Time for Rebalancing.
Is FDIC-Insured Cash at Risk of a Bank Bail-in Plan?
Why Did my Bonds Lose Money?
Cannabis Update. 
Recession Proof Your Life. Free Videocon Monday, May 10, 2020. 
The Recession will be Announced on July 30, 2020. 
Apple Reports Terrible Earnings. 
We Are in a Recession. 
Unemployment, Rising Stocks. What's Going On?
8 Money Myths, Money Pits, Scams and Conspiracy Theories.
21st Century Solutions for Protecting Your Home, Nest Egg & Job.
Wall Street Insiders are Selling Like There is No Tomorrow.
Why Are My Bonds Losing Money?
Tomorrow is Going to be Another Tough Day.
Price Matters. Stock Prices are Still Too High. 
Should You Ride Things Out?
7 Recession Indicators
Corona Virus Update.
The Bank Bail-in Plan on Your Dime.
NASDAQ is Up 6X. 
CoronaVirus: Which Companies and Countries Will be Most Impacted.
Is Tesla Worth GM and Ford Combined.
Artificial Intelligence is on Fire. Is it Time to Buy S'More?
Take the Retirement Challenge.
2020 Investor IQ Test.
Answers to the 2020 Investor IQ Test.
The Cannabis Capital Crunch and Stock Meltdown.
Does Your Commute Pollute More Than Planes? 
Are Health Care Costs Killing Your Budget? 
2020 Crystal Ball.
The Benefits of Living Green. Featuring H.R.H. The Prince of Wales' Twin Eco Communities. 
What Love, Time and Charity Have to do with our Commonwealth. Interview with MacArthur Genius Award Winner Kevin Murphy.
Unicorns Yesterday. Fairy Tales Today. IPO Losses Top $100 Billion. 
​
Important Disclaimers
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace 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 diversified 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.

About Natalie Pace
Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 4th edition of The ABCs of Money was released on October 17, 2020. 

Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. ​

​On November 19, 2020, Treasury Secretary Steven Mnuchin sent a letter to Federal Reserve Board Chairman Jerome Powell reminding him that the “current [CARES Act] facilities are set to expire at year end.” He is recommending that the Board of Governors approve a 90-day extension of the Commercial Paper Lending Facility, the Money Market Mutual Fund Liquidity Facility, the Primary Dealer Credit Facility (banks) and the Paycheck Protection Program Liquidity Facility. That means the bond, bond fund and the Main Street Lending Programs will expire on Dec. 31, 2020.

This is problematic because more than 1000 bonds have been purchased, along with quite a lot of bond funds. Over the past few weeks, another 100 bonds were purchased. Every Dow component, including Microsoft and Apple, has received financial support. 58.8% of the S&P500 companies are at or near speculative status (source: S&P Global). 11.8% of the index is already in junk bond territory, including most of the airlines. A disturbing number of banks and financial services companies are in BBB territory. (AAA is the highest rating. BBB is the lowest investment grade rating, with BB in speculative territory.)

The liquidity facilities and purchasing programs have kept junk bonds and funds artificially high, and have also provided liquidity for everything from investment grade bonds, money markets and even Treasury Bills – all of which had a crisis in March of 2020. Jerome Powell confirmed the policy in a letter to Mnuchin on Nov. 20, 2020, writing, “You have indicated that the limits on your authority do not permit the CARES Act facilities to make new loans or purchase new assets after December 31, 2020, and you have requested that we return Treasury's excess capital in the CARES Act facilities. We will work out arrangements with you for returning the unused portions of the funds allocated to the CARES Act facilities in connection with their year-end termination.”

Can We Keep Printing Money Like There’s No Tomorrow?
Since the pandemic hit, we’ve added $4 trillion to the public debt, which now rings up to $27.254 trillion. (#45 started his Administration with $20 trillion in debt.) We can keep printing until the end of July 2021. However, on August 1, 2020, we’ll hit the Debt Ceiling again. You’ll start hearing more about this in late Spring of 2021. However, with the bond purchasing programs expiring at the end of this year, Congress will have to approve another bailout package to rescue those companies that are still distressed.

What Makes a Strong Economy?
It’s easier to understand what it takes to create a strong economy if you think about what it takes to build and maintain a thriving small business. Successful entrepreneurs create or build a product that people want to buy. They compete with others to make the best version of it, and then sell their wares for a price that people can afford to pay. 
 
Selling oil and gas to the world made the Middle East and Russia rich. With the pandemic, these areas will suffer because travel and the personal commute are both down dramatically. Technology has become central to our lives, benefitting the U.S. and China.
 
So, what can we do to invent and build the products of tomorrow that the rest of the world needs? What will be useful in a post-pandemic world? Will the planet’s denizens focus on climate action? Will clean energy products fare well?
 
Is Borrowing the Right Answer?
Borrowing is always a temporary solution. If there are businesses that are not as relevant in a post-pandemic world, they need to right-size their operations. As Jerome Powell has stated repeatedly, “Many borrowers will benefit from these programs, as will the overall economy, but for others, a loan that could be difficult to repay might not be the answer. In these cases, direct fiscal support may be needed.” As taxpayers funding these programs, we also need to ask ourselves which products and services we want to invest in – the products of yesteryear or the products of tomorrow.
 
In 1992, during a period of very high debt, the Clinton Administration invested quite heavily in the Internet. History has rewarded our country for that policy. If we had not invested in the technology industry during that time, we’d be in a lot more trouble right now. Technology revenue has buoyed up the American economy through the 2020 pandemic. President Clinton presided over the best stock market in history. (Guess which President has the distinction for the second best.)

So, what is the Internet of tomorrow? That’s the question we want to ask going forward.
 
Don’t Fight the Fed
There definitely is a great deal of power in our U.S. Federal Reserve Board. However, it is our tax dollars that the Fed is using. The Fed’s Emergency Authority is intended to be temporary. There are deadlines, such as the programs that will expire at the end of 2020. The propping up of an ailing industry is not intended to be forever. At some point, the industry has to support itself, right-size to a new and lower demand, or become obsolete. It’s key to remember this when you think of the industries you want to support. You wouldn’t want your investing or tax dollars to support the typewriter or the horse and buggy, so apply the same logic to the products that are becoming less relevant in today’s world.
 
Be cautious right now. It’s very easy to be tempted into purchasing risky investment products at the top of the market because you see everybody else making money and you want to join the party. However, ignoring what happened in March could be a very expensive lesson.
 
Here are a few other deadlines to be aware of. Remember that investors and markets are forward-thinking. If you wait for the headlines, it will be too late to protect your wealth. 
 
Debt Limit Must Be Raised Before August 1, 2021
The current debt ceiling has been suspended through July 31, 2021. It will have to be raised before then. You’ll start hearing about this in late Spring of 2021.
 
U.S. Sovereign Rating Has a Negative Outlook from Fitch Ratings
The U.S. has the highest government debt of any AAA-rated country. Fitch has us on a negative outlook, which gives up to 12-18 months to fix the issue. That means that anytime between now and the end of 2021, we could start hearing signs that we’ll lose our AAA rating with Fitch. Canada was downgraded to AA+ on June 24, 2020.
 
What’s Your Best Strategy?
The right answer is not sitting on the sidelines, and it is not buying high. In fact, our easy-as-a-pie-chart system with annual rebalancing is a buy low, sell high plan on auto-pilot. It:
 
* Protects you from the downturns
* Profits from bull markets
* Prompts you to buy more when the markets drop (at a lower price)
* Reminds you to sell high when the party rages (to capture gains)
 
In the 21st Century, you’re riding a Wall Street rollercoaster with a Buy & Hope plan. As Jerome Powell warned on August 27, 2020, expansions now end with “episodes of financial instability.” Those episodes have cost investors more than half of their wealth in the two last major recessions, and up to -35% in March. This crisis is not over, even though stock and real estate prices are higher than ever.
The pie chart plan with annual rebalancing is time-proven. It’s time to replace blind faith and last-century strategies that don’t work with financial wisdom. Learning the ABCs of Money that we all should have received in high school is vital to your fiscal health.

Now is the right time to make sure that you have battened down the hatches on your wealth. Call 310-430-2397 or email info@NataliePace.com to learn about our Jan. 16-18, 2021 Online Investor Educational Retreat, or to receive information on my unbiased 2nd opinion of your financial plan. Register for the Jan. 2021 retreat by November 30, 2020 to receive the best price. Register with a group of friends and family to save hundreds per person!
 

About Natalie Pace
Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 4th edition of The ABCs of Money was released on October 17, 2020. 

Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. ​

Includes 8 Ways to Protect Against Recessions, Pandemics and Other Wealth Viruses
​
Have you ever been stressed out about money? (I know this is a rhetorical question.) Financial empowerment is personal to me because I lost a close friend to suicide. She was inconsolably distressed after her accountant convinced her to borrow against her home equity and invest in an income-producing REIT that went bankrupt. She had other losses from temporarily loaning money to a friend who didn’t return it as promised. I had warned her, but she believed that her "financial advisor" had her best interests at heart. (She didn't know that he earned a substantial commission for selling her into these risky propositions.) Watching what she went through, and then narrowly avoiding the same traps myself, prompted me to spend my life's work on financial literacy and sustainability.
 
Money is one of the biggest stresses in modern life. It can lead to burnout, unhappiness and disease. Most of us don't talk about money. However, wealthy people do educate their families in financial matters -- not just how to balance a checkbook or helping them pay for college. You might have excellent mindfulness, visualization and meditation skills. However, these are band-aids if you wake up each day  to the same fiscal ailments. So, embracing a lifestyle that supports our prosperity and abundance can go a long way to reducing stress and creating health and joy in our lives. 
 
It's easy to believe that our finances are in order when the markets are high and home prices keep going up. However, I’ve watched bubbles pop three times. You’re confident and exuberant when stocks and real estate prices are high, and devastated/destroyed when the bubbles burst. A better plan protects you from losses, while allowing you to grow your wealth in the good times.
 
With 40% of students skipping out on their college loan payments, and over 6 million homeowners and renters missing a payment in September of 2020 (in the U.S.), there are clear signs of distress in the economy. According to Nobel Prize winning economist Robert Shiller, the only two times that stock prices were higher than they are today was in 2000 (before the Dot Com Recession brought losses of up to 78% in the NASDAQ Composite Index) and in 1929, before the Great Depression. Home prices are unaffordable in 63% of the U.S. cities, and 3.5 million homeowners are still underwater on their mortgages.

If you wait for the headlines, it’s too late to protect your wealth. Now is the time to make sure that your financial home is strong enough to protect you from the economic storms that are on the horizon.
 
The solutions are rather simple. However, they require making brave choices and blocking out the onslaught of constant news, hot tips and sales-speak.

8 Ways to Ensure That You are Protected Against Recessions, Pandemics and Other Wealth Viruses

​
8 Ways to Protect Against Recessions, Pandemics and Other Wealth Viruses
​

1. Adopt a Thrive Budget
2. Apply Modern Portfolio Theory to Your Nest Egg
3. Keep the Money in the Family
4. Save Thousands Annually with Smarter Big-Ticket Budget Choices
5. Learn the ABCs of Money That We All Should Have Received in High School
6. Take the 21-day Gratitude Game Challenge
7. Put Your Money Where Your Heart Is
8. Start Preparing for College When Your Kids are Children

 
​And here is more color on each point.
 

1. Adopt a Thrive Budget  
When you allocate 50% of your income to thrive and 50% to survive that assures that you have enough in your budget to:

• Pay yourself first (in tax-protected retirement plans that build up your personal wealth)
• Be charitable (the best networking and a great way to increase your abundance consciousness)
• Double your fun budget (a great investment in happiness and health)

 
How do you get there? You have to adopt the secrets of the wealthy. Rich people pay less in taxes, for medical insurance, and for a boatload of other big-ticket bills, including housing.
 
When you are buried alive in bills and struggling to survive, it is impossible to thrive. This kind of existence is very hard on your health and relationships. Discover a better plan in The ABCs of Money and learn them at our Investor Educational Retreat. (I can’t pack 350 pages and 3 days of teachings into one short blog.)

2. Apply Modern Portfolio Theory to Your Nest Egg
​Buy & Hope is a last-century strategy that has been costing investors half or more of their wealth in the last two 21st Century recessions. They then spend most of the bull markets crawling back to even. That’s not a financial plan. That’s a Wall Street rollercoaster. Incidentally, most financial advisors will tell you that they use modern Portfolio Theory. I’ve been doing 2nd opinions, and I have yet to find one managed plan that was properly protected and diversified.
 
Our easy-as-a-pie-chart system costs less time and money, and earned gains in the last two recessions, while outperforming the bull markets in between. (Again, most people lost more than half of their wealth in the last two recessions on the Buy & Hope plan.) You can read about these time-proven strategies in The ABCs of Money and learn them at our Investor Educational Retreat. If you were concerned about your investments in March of 2020, that’s a red flag that your plan is flawed.

​3. Keep the Money in the Family
​Intergenerational housing is higher today than it was in the Great Recession. While it was born of necessity, it’s one way to stop making everyone else rich and keep more money in the family. Princes don’t buy their own castles. Wealthy people think a century in advance when they do their financial planning, and include provisions, including housing, for all of the kids. Think rich to become financially free.

4. Save Thousands Annually with Smarter Big-Ticket Budget Choices
​Housing is unaffordable in 65% of U.S. cities. The solution isn’t biting the bullet and paying more than half of your income on a place to sleep. We must get creative about housing, transportation, medical insurance, utilities, gasoline, taxes and other big-ticket bills. Billionaires like Warren Buffett and Bill Gates pay a tax rate that is half or lower to what their executive assistants pay. Passive income (money while you sleep) can protect your wealth from capital gains taxes if you set up tax-protected retirement plans. You can also save tens of thousands annually with smarter choices in your health insurance, utilities and transportation. Wisdom is the cure. This is another major theme in The ABCs of Money and our Investor Educational Retreat.
 
5. Learn the ABCs of Money That We All Should Have Received in High School
When someone says, "Let me do it for you," you’ve just given up your power. When someone says, "Let me teach you how," you are setting the stage for personal freedom. There is nothing more expensive than free financial advice or having blind faith that someone else is managing your money for you. (As I mentioned at the top of this blog, it cost a close friend her life.) Learn the ABCs of Money that we all should have received in high school and watch how fast your life transforms. It’s time to take ownership of your wealth and future, and to be the boss of your money.
 
6. Take the 21-day Gratitude Game Challenge
Wealth consciousness and vision, alongside a time-proven plan, are required to set the stage for your prosperity and abundance. We need the right mindset, toolkit and skillset. The 21-day Gratitude Game Challenge gives you a daily wealth mantra and an action plan. 21 days are needed to jettison the vices and establish new habits.
 
This holiday season, I’ll be offering a free gift of the first seven days of the 21-day challenge outlined in The Gratitude Game. Simply email info@NataliePace.com with the subject I WANT MY FREE GIFT! to receive the links to the daily videos.
 
7. Put Your Money Where Your Heart Is
Once you become financially literate and start building your own personal wealth, you can start fine-tuning your strategy to make sure that you are profiting from the things you believe in. There are many benefits to this, including financial benefits.  
 
When you remain uninformed about where your money is invested – whether that is through your tax dollars, your 401K, your managed brokerage account, your insurance plan, your annuity, or another financial vehicle – you are often profiting from the very companies that you picket. If you wish to stop supporting polluters, then learn how to put your money where your heart is and profit.
 
8. Start Preparing for College When Your Kids are ChildrenIt can feel overwhelming to be a parent these days. Life doesn’t add up. We’re in a pandemic. You might worry about your parents as much as your kids. So, it’s understandable that so many parents just follow the rote path for college and let their teens fall into the student loan debt trap. Student loan debt has reached a crisis, with a grand total of $1.55 trillion in student loan debt and 26 million borrowers who missed a payment in September.  
 
This is a crisis for Millennials and will become a toxic trap for Gen Z, too, unless we become more mindful of how to get a better, more employable degree for up to half the cost. There are many strategies with that goal in mind in The ABCs of Money for College. If you wait until your kids are in high school, it might be too late to put them on the right path. (By that time, they’re not listening to you as much as they listen to their friends.) However, when your family sows the seed of college planning when your kids are children, it becomes the way life is.

Bottom Line
You might feel great about your home equity and your stock portfolio right now. However, that doesn’t mean that your finances are in order. It just means that we’re in a bull market. Since we are also in a pandemic and an unprecedented recession, with many renters, homeowners and industries in extreme distress, now is the right time to make sure that you have battened down the hatches on your wealth. Call 310-430-2397 or email info@NataliePace.com to learn about our Jan. 16-18, 2021 Online Investor Educational Retreat, or to receive information on my unbiased 2nd opinion of your financial plan.
 
 

About Natalie Pace
Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 4th edition of The ABCs of Money was released on October 17, 2020. 

Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. ​

 
Including an 8-Point checklist for would-be home buyers. Join me for my Real Estate Videoconference on November 12, 2020 at 5 pm PT. Email info@NataliePace.com for the logon instructions. Watch it back at YouTube.com/NataliePace.
 
Recently there have been a lot of people itching to buy a home. Maybe it’s the low mortgage interest rates. Perhaps it is the pandemic. With rents so high, it feels like you are just flushing money down the toilet. You’ve watched your homeowner friends brag about how much equity they now have. And now that you can work from pretty much anywhere, maybe you’re thinking of exiting city-life for the more affordable suburb.
 
What is not tempting is the home price itself. Home and rent prices have skyrocketed over the past decade, particularly in the West. Meanwhile, wages have not kept apace.

​

One of my coaching clients is looking to settle down with his fiancée. His annual salary averages about $75,000/year. He qualifies for a $500,000-$600,000 loan. However, in Los Angeles, where he lives, he’s priced out of many neighborhoods. A $600,000 mortgage (over $30,000 annually) would take up 40% of his income – far higher than is recommended for housing costs. However, if he doesn’t buy, his rent could easily cost just as much. It’s easy to understand why he wants to bite the bullet and just buy something – anything.
 
However, buying high and having your home value drop significantly below your mortgage can be hell for years. So can being property rich and cash poor. There is often some unexpected, big-ticket repair that has to be fixed every 7-10 years – whether it is plumbing, a new roof or a tree falling on your car. If you’re overleveraged on the mortgage, you might have to put emergencies on a credit card.
 
It’s hard to be a patient buyer when prices for rent and homeownership keep going up. (It doesn’t make sense, given the negative economic impact of the pandemic and recession, until you factor in the moratoria on evictions and foreclosures. More on that later.) Industry experts predict the rising price trend to continue in 2021 due to a housing shortage. (Click to read my interview with Mike Fratantoni, the chief economist of the Mortgage Bankers Association.)
 
However, once you own the home, it is yours – for better or for worse. So, you simply must do the math on affordability and on price, and create your own opportunity, in a world were none of this adds up. Getting creative is the only process that will get you there. When you take the time and apply the necessary tools to get it right, you’ll come out on the other side with a sanctuary home that you love and can afford, without breaking the family budget.
 
Check out 7 Case Studies in the Real Estate section of The ABCs of Money for real-world examples of navigating home and income-property ownership. There you will find stories of real people who have overcome challenges, seized opportunities and made brave choices to create the home and life of their dreams. Click to watch Alvin and Jada’s story in their 4-minute film on EarthGratitude.org.

8-Point Checklist for Home Buyers.
 
Sanctuary Home
The Thrive Budget
Intergenerational Housing
The 3-Ingredient Recipe for Cooking Up Profits
Shopping in the Shadow Inventory
Safe, Income-Producing Hard Assets that You Purchase for a Good Price
Will Real Estate Ever Be Affordable Again?
Climate Change
 
And here is more color on each point.
 
Sanctuary Home
Your home is ultimately the place where you renew your spirit and nourish your dreams. You will thrive if you find a city and neighborhood that reflect your values, where the people get you. Factor in all that you love doing and the little things that make you smile when considering where you want to live. When you think that this is going to be your home for the next decade or more, you’ll be glad you picked a place where you enjoy living.
 
The Thrive Budget
Overspending on housing creates stress and could put you into unsustainable debt, particularly when the other big-ticket items, like transportation, health insurance, food, cable, phone, utilities, student loan debt, taxes and WIFI can bury you in bills. There are ways, through smarter choices on your big-ticket items, to keep these expenses down. (Read the Thrive Budget section of The ABCs of Money for details.) The target is 50% to survive and 50% to thrive.
 
If you’re spending more than 1/3 of your income on housing costs, you might start resenting rather than loving your home. Credit card debt could start amassing and compounding, putting you in the hole.
 
Many cities are unaffordable at this time. That’s one of the reasons why intergenerational housing has become de rigueur.

Intergenerational Housing
52% of young adults aged 18-29 are living with at least one parent. This is higher than in the Great Depression, which should tell you something about the challenges we face today – that includes, but is not limited to, unaffordable housing. Thinking about this as an opportunity might actually be a blessing in disguise. Having everyone in the family overspending on housing makes others rich. You can keep more of the wealth in the family, and beef up your liquidity to prepare for better housing opportunities, if you look at housing from an intergenerational perspective.  
 
The 3-Ingredient Recipe for Cooking Up Profits
The recipe is simple. The devil is in the details. In most markets, you’re going to have to shop in the shadow inventory to get the 3rd ingredient right.
 

• Start with what you know and love
• Pick the leader
• Buy low, sell high (easy to say, hard to do)

 
Shopping in the Shadow Inventory
There are 3.5 million homes that are severely underwater. In September 2020, 8.5% of renters, 7.1% of homeowners and 40% of student debt borrowers missed a payment (source: Mortgage Bankers Association). There is a lot more distress in housing than you are hearing about – including a trend in some cities, like NYC and San Francisco, where some apartment buildings have become ghost towns. Home prices have dropped almost 5% in both of those cities. For sale listings in San Francisco are up 96% year over year.
 
If you are shopping on the MLS, then you are missing a lot of the opportunities that could start showing up in 2021, after the current moratoria on foreclosures and evictions expires. When 3.4 million people are not paying their mortgage, there could be a lot more opportunity on the horizon than impatient, antsy buyers realize today.
 
Safe, Income-Producing Hard Assets that You Purchase for a Good Price
Hard assets should hold their value better than paper assets in the coming years where there is just too much debt floating around. However, you always have to be careful about buying at an all-time high. You’ll also need to be aware of what could potentially produce income in a post-pandemic world. Shopping in the shadow inventory could create opportunities of purchasing at a discount of up to 35%.
 
Will Real Estate Ever Be Affordable Again?
At the top, the industry experts always say that real estate prices will keep going up, up, up. Will the trend toward intergenerational housing create more supply? Will the underwater mortgages create greater distress in the homeowners who hold this debt? Will the homeowners who are behind on their payments fall into foreclosure? As Todd Teta, the chief product officer with ATTOM Data Solutions, wrote on September 24, 2020, “A plight would normally drop home demand and prices.” This tendency has been curtailed with the moratoria on evictions and foreclosures, and with a shortage of housing. However, there is an expiration date on these policies.
 
Markets do correct. The areas that are the least affordable tend to be the areas that drop the most dramatically. The Multiple Listing Service doesn’t include the shadow inventory, or account for folks who opt for intergenerational housing. All of these factors are already conspiring to negatively impact home prices in San Francisco and New York City (which are still unaffordable). There are also the 4 Ds that can cause a dramatic drop in real estate prices – death, disaster, divorce and depression (or recession).

Climate Change and Natural Disasters
There are many cities on the East Coast that are dealing with rising sea levels. Not only does this stress out residents and home owners and increase their insurance costs, it also affects home prices. As you can see from the chart above, home prices in Virginia Beach, Virginia have increased only 18% in the past decade, far underperforming most cities in the U.S.

Other areas, like Arizona, are dealing with a diminishing supply of fresh water and water wars, or increasing risk of hurricanes and flooding, like the Gulf States. California has been blessed to have a respite from catastrophic earthquakes. However, in 1989, San Francisco’s Marina area had major damage due to liquefaction of the soil in the area, causing 7 buildings to collapse and 63 other structures to be condemned. A double-decker freeway in Oakland collapsed, as well. In 1994, Los Angeles suffered about $35 billion in damages from the Northridge Earthquake. As that quake came on the heels of the Rodney King Riots (1992) and a recession (1990-1991), there was a population exodus. Real estate values dropped by half in the early 1990s in Los Angeles, even in beach areas that are typically more buoyant.
 
The Bottom Line
Buying high in real estate or purchasing more home than you can truly afford can create a living hell for you that is difficult to extricate yourself from. Once you own a home, it’s yours. Real estate is not a buy and flip proposition in 2021, even though prices are predicted to remain high, according to the housing industry economists. So, if you do wish to purchase, keep the 8-point checklist in mind. Buy what you can afford. Shop in the shadow inventory and create a better buying opportunity, where you might be able to get a discount on the price. Get creative and determine whether intergenerational housing is right for you. Successful investing always requires being a patient buyer ad an opportunistic seller.
 
 
If you’d like to learn more about how to shop in the shadow inventory, or how to think bigger to get a better deal and create some income support, then join me for my Real Estate Master Class on January 23, 2020. Call 310-430-2397 for pricing and information. You’ll receive the best price if you register by Nov. 30, 2020.
 
https://www.nataliepace.com/realestatemc.html
 

Real estate is an important part of your wealth strategy. However, buying high in real estate can be one of the most expensive lessons you'll ever learn. For that reason, we spend one full day on what's safe and real estate at our Investor Educational Retreats. 

Register for the Jan. 16-18, 2021 New Year, New You Retreat by Nov. 30, 2020 to receive the best price. Learn more in the retreat flyer. (Click to access).

​

Other Blogs of Interest
​Real Estate in a Pandemic. Interview with Mike Fratantoni, the Chief Economist of the Mortgage Bankers Association.
​Bonds are Illiquid & Negative-Yielding.
Annual Rebalancing is a Buy Low, Sell High Plan on Auto-Pilot.
5 Red Flags of a Financial Implosion
Will Regeneron Be Approved Before the Election?
​Tesla Will Have an Outstanding Earnings Report
Should You Wait Until After the Election to Fix Your Wealth Plan?
​The October Surprise
​Is Your Bank a Junk Bond
Do Stocks Fare Better Under Democrats or Republicans?
Put Your Money Where Your Heart Is.
Crystal Ball for the Remainder of 2020 (Including the Election). 
Microcap Gaming Company Doubles 2Q 2020 Revenue.
​Apple & Tesla Stock Splits.
Schwab's Chief Fixed Income Strategist on What's Safe.
China's Tesla (Nio). 2Q Sales Soar.
Why Are You Still Renting? (Errr. There is More Than This to Consider!)
MedMen's Turnaround Plan Attracts A-List Board Members.
​Wealth Myths That Keep You Poor. Prosperity Truths That Make You Rich. 
Protecting Your Wealth and Home in a Recession.
Technology and Silver are Golden.
The Economy Contracts 32.9% in the 2nd Quarter of 2020.
Real Estate: Feeling Equity Rich? Make Sure That Feeling Isn't Fleeting.
Airline Revenue Plunges 86%. 
10 Questions for College Success
Bank Earnings Season. Crimes. Cronyism. Speculation.
Real Estate Solutions for a Post-Pandemic World.
Copper and Chile Update.
Gold Soars. Some Gold Funds Tank. 
Will the Facebook Ad Boycott De-FANG Stocks? 
Why Did My Cannabis Stock Go Down? 
Which Countries Are Hot in a Global Pandemic? 
Is Your Financial Advisor Good at Navigating Stormy Seas?
$10 Avocados, Lies, Damn Lies, Statistics & Wall Street Secrets. 
It's Never a Crash.
Work From Home and Intergenerational Housing.
Biotech Races for a Coronavirus Cure. 
Are You Worried About Money? 
May is a Good Time for Rebalancing.
Is FDIC-Insured Cash at Risk of a Bank Bail-in Plan?
Why Did my Bonds Lose Money?
Cannabis Update. 
Recession Proof Your Life. Free Videocon Monday, May 10, 2020. 
The Recession will be Announced on July 30, 2020. 
Apple Reports Terrible Earnings. 
We Are in a Recession. 
Unemployment, Rising Stocks. What's Going On?
8 Money Myths, Money Pits, Scams and Conspiracy Theories.
21st Century Solutions for Protecting Your Home, Nest Egg & Job.
Wall Street Insiders are Selling Like There is No Tomorrow.
Why Are My Bonds Losing Money?
Tomorrow is Going to be Another Tough Day.
Price Matters. Stock Prices are Still Too High. 
Should You Ride Things Out?
7 Recession Indicators
Corona Virus Update.
The Bank Bail-in Plan on Your Dime.
NASDAQ is Up 6X. 
CoronaVirus: Which Companies and Countries Will be Most Impacted.
Is Tesla Worth GM and Ford Combined.
Artificial Intelligence is on Fire. Is it Time to Buy S'More?
Take the Retirement Challenge.
2020 Investor IQ Test.
Answers to the 2020 Investor IQ Test.
The Cannabis Capital Crunch and Stock Meltdown.
Does Your Commute Pollute More Than Planes? 
Are Health Care Costs Killing Your Budget? 
2020 Crystal Ball.
The Benefits of Living Green. Featuring H.R.H. The Prince of Wales' Twin Eco Communities. 
What Love, Time and Charity Have to do with our Commonwealth. Interview with MacArthur Genius Award Winner Kevin Murphy.
Unicorns Yesterday. Fairy Tales Today. IPO Losses Top $100 Billion. 
Price Matters. 
Will There be a Santa Rally? It's Up to Apple. 
Harness Your Emotions for Successful Investing.
What the Ford Downgrade Means for Main Street.
The Dow Dropped Over 1000 Points
Do We Talk Ourselves into Recessions? Interview with Nobel Prize Winning Economist Robert J. Shiller.
Ford is Downgraded to Junk.
Gold Mining ETFs Have Doubled. 
The Gold Bull Market Has Begun. 
The We Work IPO. 
The Highs and Hangovers of Investing in Cannabis. 
Recession Proof Your Life. 
What's Your Exit Strategy? 
It's Time To Do Your Annual Rebalancing.
Are You Suffering From Buy High, Sell Low Mentality?
Financial Engineering is Not Real Growth.
The Zoom IPO. 
Uber vs. Lyft. Which IPO Will Drive Returns?
Boeing Cuts 737 Production by 20%.
The Lyft IPO Hits Wall Street. Should you tak
Cannabis Doubles. Did you miss the party?
12 Investing Mistakes
The High Cost of Free Advice. 
2018 Was the Worst December Since the Great Depression. 
Russia Dumps Treasuries and Buys Gold
OPEC and Russia Cut Oil Production. 
​
Important Disclaimers
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace 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 diversified 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.

​ 
Home prices are skyrocketing. However, so are missed mortgage and rent payments. For answers, I interviewed Mike Fratantoni, the chief economist of the Mortgage Bankers Association.
 

​Are you sick of renting? Have you watched real estate prices soar, and rue the day that you didn’t buy? Are you feeling equity-rich, but itching for a move? Are you worried about losing your home or job? Are you underwater on your mortgage? What’s the best plan for real estate in the pandemic and beyond?
 
Signs of Distress
In September 2020, 8.5% of renters, 7.1% of homeowners and 40% of student debt borrowers missed a payment (source: Mortgage Bankers Association). Meanwhile, home prices soared to an all-time high of $311,800, up 14.8% year over year (source: National Association of Realtors). How is it that there are so many distressed borrowers (2.82 million rental households, 3.37 million homeowners and 26 million student debt borrowers), and why isn’t that impacting home prices? Should you buy a home now, while mortgage rates are at an all-time low, or hold off until home prices are more affordable? Mike Fratantoni shares his wisdom, research and crystal ball projections for home prices and mortgage interest rates in 2021 and beyond.
 
Natalie Pace: How is it that unemployment is high, concerns about the ongoing pandemic are heightened, missed mortgage and rent payments are elevated, and yet home prices are soaring?
 
Mike Fratantoni: Mortgage rates are very low. The Millennial cohort is getting to peak homebuyer age. There are enough people who have jobs and have not been directly impacted by the shutdown. They are able to maintain their income, and have enough confidence that they are able to maintain that going forward. We are very optimistic about the purchase market in the next couple of years. We’re more worried that there is just not enough inventory on the market. You’re talking only 3 or 4 months of supply at the current pace. There are not enough units on the market.
 
NP: According to AttomData, median-priced homes are unaffordable to the average wage earner in 61% of U.S. counties. Where are prices headed for the rest of the year? Will the pandemic and unaffordability pull prices down?
 
MF: In a situation where we don’t have enough housing stock in the country, prices are going to stay high. Home prices are likely going to keep going up. Even with high unemployment, the mismatch between still strong demand and constrained supply is going to keep home prices increasing even next year, as we exit from this pandemic.
 
NP: There are still 3.5 million homes that are severely underwater on their mortgage. Do you think these homes, and other shadow inventory, might be a factor in subduing home prices going forward?
 
MF: I don’t see that as a large number of households at this point, given that home prices have grown in the last decade and will continue to grow into next year. That is not the same issue as it was in the Great Recession.
 
NP: Unaffordability has become an industry buzz word, yet the situation is only becoming more dire. What can be done to right-size prices for would-be homeowners?
 
MF:  We see it as an issue of constrained supply. We need more buildings in cities, suburbs and rural areas. We need it everywhere.
 
NP: Some cities, like Manhattan and San Francisco where the average wage earner is completely priced out of ownership, have seen a dramatic increase in listings and a lowering of prices. According to Zillow, home prices sank 4.2% and 4.9% in 2020 in Manhattan and San Francisco, respectively. Inventory in San Francisco has jumped 96%.
 

MF: You naturally would see Millennials leave the cities and move to the suburbs as they are having children and looking for schools. That was happening any way. With the pandemic and concerns about urban conditions, is this just another reason on the list to move out of the city? Will we see that happening in more and more places? In most parts of the country, it’s tough to tell if this is an additional factor or just the continuation of a new trend.
 
NP: Your data shows that credit is tightening. Will that impact buyers?
 
MF: We’ve seen a jump in delinquencies of FHA loans. That has led many lenders to become more cautious with first-time buyers who might get an FHA loan. So, they’ve put in an overlay requiring a higher minimum credit score. At the other end of the market, for jumbo borrowers, we’ve seen tightening. Banks have so many competing demands that they have tightened up any type of loan that they were going to hold. That includes jumbo loans. However, credit being tight is not impacting overall purchase demand.
 
NP: Where are mortgage interest rates headed?
 
MF: Mortgage rates tend to track the 10-year Treasury rate. Because of the large U.S. deficits and the incredible amount of debt the Treasury is going to have to auction, there will be some upward pressure on 10-year Treasury rates and mortgage rates. Today, we’re closer to 3.0% for a 30-year fixed mortgage rate. We think that will be closer to 3½% next year. It’s not an enormous increase. Prior to this year, that would have been a record low. I would not be surprised if in two or three years, we’re back above 4.0% again. That’s not historically high, but it is higher than we are today.
 
NP: Back to the distressed homeowners and renters who are behind on their payments. What should be done to help them?
 
MF: It’s important either through stimulus payments, or enhanced unemployment insurance, or through direct rental assistance, to help them pay their rent, as opposed to preventing them from being evicted after they don’t pay their rent. An eviction moratorium transfers the problem from a rental household problem to a landlord problem, and kicks the can down the road. The eviction and foreclosure moratoria make sense from a public health standpoint. But it is not correct to think that they are going to solve or mask a problem. It is just delaying and transferring that problem onto another actor.
 
 
 
If you’d like to hear my full interview with Mike Fratantoni, including his wisdom on the commercial real estate market, go to YouTube.com/NataliePace.
 

​​

 
Real estate is an important part of your wealth strategy. However, buying high in real estate can be one of the most expensive lessons you'll ever learn. For that reason, we spend one full day on what's safe and real estate at our Investor Educational Retreats. 

Register for the Jan. 16-18, 2021 New Year, New You Retreat by Nov. 30, 2020 to receive the best price. Learn more in the retreat flyer. (Click to access).

There is a Real Estate section of The ABCs of Money, which includes seven real-world case studies. 

Other Blogs of Interest
​Bonds are Illiquid & Negative-Yielding.
Annual Rebalancing is a Buy Low, Sell High Plan on Auto-Pilot.
5 Red Flags of a Financial Implosion
Will Regeneron Be Approved Before the Election?
​Tesla Will Have an Outstanding Earnings Report
Should You Wait Until After the Election to Fix Your Wealth Plan?
​The October Surprise
​Is Your Bank a Junk Bond
Do Stocks Fare Better Under Democrats or Republicans?
Put Your Money Where Your Heart Is.
Crystal Ball for the Remainder of 2020 (Including the Election). 
Microcap Gaming Company Doubles 2Q 2020 Revenue.
​Apple & Tesla Stock Splits.
Schwab's Chief Fixed Income Strategist on What's Safe.
China's Tesla (Nio). 2Q Sales Soar.
Why Are You Still Renting? (Errr. There is More Than This to Consider!)
MedMen's Turnaround Plan Attracts A-List Board Members.
​Wealth Myths That Keep You Poor. Prosperity Truths That Make You Rich. 
Protecting Your Wealth and Home in a Recession.
Technology and Silver are Golden.
The Economy Contracts 32.9% in the 2nd Quarter of 2020.
Real Estate: Feeling Equity Rich? Make Sure That Feeling Isn't Fleeting.
Airline Revenue Plunges 86%. 
10 Questions for College Success
Bank Earnings Season. Crimes. Cronyism. Speculation.
Real Estate Solutions for a Post-Pandemic World.
Copper and Chile Update.
Gold Soars. Some Gold Funds Tank. 
Will the Facebook Ad Boycott De-FANG Stocks? 
Why Did My Cannabis Stock Go Down? 
Which Countries Are Hot in a Global Pandemic? 
Is Your Financial Advisor Good at Navigating Stormy Seas?
$10 Avocados, Lies, Damn Lies, Statistics & Wall Street Secrets. 
It's Never a Crash.
Work From Home and Intergenerational Housing.
Biotech Races for a Coronavirus Cure. 
Are You Worried About Money? 
May is a Good Time for Rebalancing.
Is FDIC-Insured Cash at Risk of a Bank Bail-in Plan?
Why Did my Bonds Lose Money?
Cannabis Update. 
Recession Proof Your Life. Free Videocon Monday, May 10, 2020. 
The Recession will be Announced on July 30, 2020. 
Apple Reports Terrible Earnings. 
We Are in a Recession. 
Unemployment, Rising Stocks. What's Going On?
8 Money Myths, Money Pits, Scams and Conspiracy Theories.
21st Century Solutions for Protecting Your Home, Nest Egg & Job.
Wall Street Insiders are Selling Like There is No Tomorrow.
Why Are My Bonds Losing Money?
Tomorrow is Going to be Another Tough Day.
Price Matters. Stock Prices are Still Too High. 
Should You Ride Things Out?
7 Recession Indicators
Corona Virus Update.
The Bank Bail-in Plan on Your Dime.
NASDAQ is Up 6X. 
CoronaVirus: Which Companies and Countries Will be Most Impacted.
Is Tesla Worth GM and Ford Combined.
Artificial Intelligence is on Fire. Is it Time to Buy S'More?
Take the Retirement Challenge.
2020 Investor IQ Test.
Answers to the 2020 Investor IQ Test.
The Cannabis Capital Crunch and Stock Meltdown.
Does Your Commute Pollute More Than Planes? 
Are Health Care Costs Killing Your Budget? 
2020 Crystal Ball.
The Benefits of Living Green. Featuring H.R.H. The Prince of Wales' Twin Eco Communities. 
What Love, Time and Charity Have to do with our Commonwealth. Interview with MacArthur Genius Award Winner Kevin Murphy.
Unicorns Yesterday. Fairy Tales Today. IPO Losses Top $100 Billion. 
Price Matters. 
Will There be a Santa Rally? It's Up to Apple. 
Harness Your Emotions for Successful Investing.
What the Ford Downgrade Means for Main Street.
The Dow Dropped Over 1000 Points
Do We Talk Ourselves into Recessions? Interview with Nobel Prize Winning Economist Robert J. Shiller.
Ford is Downgraded to Junk.
Gold Mining ETFs Have Doubled. 
The Gold Bull Market Has Begun. 
The We Work IPO. 
The Highs and Hangovers of Investing in Cannabis. 
Recession Proof Your Life. 
What's Your Exit Strategy? 
It's Time To Do Your Annual Rebalancing.
Are You Suffering From Buy High, Sell Low Mentality?
Financial Engineering is Not Real Growth.
The Zoom IPO. 
Uber vs. Lyft. Which IPO Will Drive Returns?
Boeing Cuts 737 Production by 20%.
The Lyft IPO Hits Wall Street. Should you tak
Cannabis Doubles. Did you miss the party?
12 Investing Mistakes
The High Cost of Free Advice. 
2018 Was the Worst December Since the Great Depression. 
Russia Dumps Treasuries and Buys Gold
OPEC and Russia Cut Oil Production. 
​
Important Disclaimers
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace 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 diversified 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.
​

About Natalie Pace
Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 4th edition of The ABCs of Money was released on October 17, 2020. 

Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. ​

​The Safe Side of Your Nest Egg is at Risk.
Bonds are illiquid and losing money. What does that mean? It means that there are a lot fewer buyers than there are sellers. If you want or need to sell your bonds, odds are extremely high that you’ll have to take a haircut, i.e. receive less money than you paid for it.
 
You might think, “Well, I’ll just hold on then.” However, the longer you hold on, the less valuable a negative-yielding, illiquid investment becomes. Additionally, you’re not getting paid for the risk that you will lose money on the investment itself. So now, while many investors are feeling more complacent and are less aware of the risk in bonds, could be a window of opportunity to secure the safe side of your nest egg from capital losses.
 
Check out the liquidity chart below.

​Both bonds and the Dow Jones industrial Average were illiquid even last year – before the pandemic.

​Why is there such a problem with bonds these days? Because too many slow-growth, debt-laden companies were borrowing more and more money at very low interest, and using the proceeds to repurchase their own stock and pay high dividends. Meanwhile, many of these companies neglected to pay down debt, save for a rainy day, or invest in R&D and their team. Boeing is the poster child of this scenario, with corporate buybacks of $9.3 billion in 2018, while $20.3 billion of their pensions and Other Post-Employment Benefits (OPEBs) were underfunded. After a few of their planes had epic failures, the 737 Max was grounded, and then the pandemic hit. Boeing’s credit is at the lowest rung of investment grade, with a negative outlook from S&P Global Ratings.
 
Financial Challenges Remain Heightened for Vulnerable Companies
The pandemic sparked a financial crisis in March of this year – before the first stay-at-home order was issued in the U.S., as a result of having too many companies carrying too much debt.
On November 5, 2020, the Federal Reserve Board released a press release, writing, “The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.”
 
Bonds Normally Earn Gains in Recessions
Bonds earned gains in the last two recessions. However, in 2020, bonds are losing money. In the Dot Com Recession, the Federal Reserve was able to start their interest rate cuts from 6.5%. As the Feds cut rates, bond investors became very interested in the bonds that were paying a higher premium. If you wanted to sell your bond, you could sell it for up to 25% more than you paid for it. The same was true in the Great Recession, when the Feds started their rate cuts from 4.75%. Today, with interest rates at zero, there are few buyers willing to take on the risk of holding bonds in an over-leveraged world, which is why bonds are illiquid and negative-yielding (losing money).
 
Over 50% of the S&P500 is At or Near Junk Bond Status
Over half of the S&P500 companies are at or near junk bond status. When a company gets downgraded, their bonds become even more illiquid. The gap down can occur overnight. (You didn’t receive advance notice before Ford Motor Company was downgraded to junk. However, if you knew where to look for the corporate debt and liabilities, the event was easy to foretell.) There are currently 111 companies on the S&P Global Potential Fallen Angel List. These are companies that are at risk of being downgraded to junk bond status in the near term.

As you can see in the chart above, financial institutions are at most risk of being downgraded. There are over 20 at BBB- financial services companies with a negative outlook, including Discover, Ally Financial, Bank of Ireland (Ireland), Cit Bank, Synchrony Financial, Virgin Money (U.K.) and more. The 2nd most vulnerable industry is media and entertainment (including casinos and hotels). Many companies in this sector have already been downgraded, including Carnival Corp. and Royal Caribbean. Other companies at risk of a downgrade to speculative status include Expedia, Hyatt Hotels, InterContinental Hotels and Marriott.
 
Las Vegas Sands is on CreditWatch Negative (along with four other companies), meaning the company has only 90 days or less to overcome their current challenges before potentially being downgraded to speculative status. The remaining 106 companies on the list have anywhere from six to 24 months to make things right.
 
What’s Safe in Today’s Recession?
Getting safe in 2020 is so tricky that I spend one full day on this topic at my retreat. There is an entire section discussing this in The ABCs of Money. Getting safe is a two-step process. The first step is keeping your money, perhaps in FDIC-insured cash. The 2nd step is to invest in safe, income-producing hard assets that you purchase for a good price. You’ll have to consider what can safely produce an income in a world where 52% of young adults between 18 and 29 are living with a parent, and unemployment is so high.

 

​Clearly there is a lot to consider and learn. However, the price of not getting this right can be devastating. The reason most people don't buy low is that they can't buy low. When you don't have liquidity and you've lost too much money, all you can do is hope and pray to recover from your losses. If you keep enough safe and liquid, then you may find opportunities in bonds in a few years, when the risk is lower and the reward is more attractive. 
​
Getting Safe is Not Market Timing
Keeping a percentage equal to your age safe and overweighting safe in a recession is not market timing. You always want to have an appropriate amount at risk that is properly diversified and rebalanced one to three times a year. Jumping all in or all out of stocks and bonds is a losing strategy. You want to put your emotions aside, and rely upon wisdom and a time-proven strategy for your long-run game plan. This diversified, rebalanced plan is easy-as-a-pie-chart and earned gains in the last two recessions, while outperforming the bull markets in between.
​
You can read about this recession-proof, wealth-preservation strategy in The ABCs of Money 4th edition. You can learn and implement this strategy by attending the Jan. 16-18, 2021 Retreat. If you’d like to protect your wealth now, then call 310-430-2397 or email info@NataliePace.com to receive an unbiased 2nd opinion on your current plan, alongside a blueprint for proper diversification and protection.
 
Buy & Hope is a last-century strategy that has lost more than half in the last two recessions. We now live in a world where economic expansions end with “episodes of financial instability” (Jerome Powell’s words), which is why 21st Century recessions look more like depressions.
 
Hopefully we’ll break free of fueling economic expansions with low interest rates in the coming decades. Low interest rates create asset bubbles. When asset bubbles pop, the drop is more rapid and severe. Between February 19, 2020 and March 23, 2020, the U.S. stock market saw the most rapid shift from a bull to bear market in history. If you wait for the headlines, it’s too late to protect yourself. A better idea is to fix the roof now, while the sun is still shining – before winter sets in.
 
The last two recessions cost most Americans more than half of their wealth. Millions of homes were foreclosed on, short sold, went to auction or became bank-owned. There are still 3.5 million homeowners who are severely underwater on their mortgage. The current rally in stocks and real estate affords all of us a 2nd chance to get a better plan. I encourage you to take this information and data seriously, and do as much as you can to batten down the hatches on your financial future before the economic storms on the horizon make landfall.
 
Register for the Jan. 16-18, 2021 New Year, New You Retreat by Nov. 30, 2020 to receive the best price. Learn more in the retreat flyer. (Click to access).

Other Blogs of Interest
Annual Rebalancing is a Buy Low, Sell High Plan on Auto-Pilot.
5 Red Flags of a Financial Implosion
Will Regeneron Be Approved Before the Election?
​Tesla Will Have an Outstanding Earnings Report
Should You Wait Until After the Election to Fix Your Wealth Plan?
​The October Surprise
​Is Your Bank a Junk Bond
Do Stocks Fare Better Under Democrats or Republicans?
Put Your Money Where Your Heart Is.
Crystal Ball for the Remainder of 2020 (Including the Election). 
Microcap Gaming Company Doubles 2Q 2020 Revenue.
​Apple & Tesla Stock Splits.
Schwab's Chief Fixed Income Strategist on What's Safe.
China's Tesla (Nio). 2Q Sales Soar.
Why Are You Still Renting? (Errr. There is More Than This to Consider!)
MedMen's Turnaround Plan Attracts A-List Board Members.
​Wealth Myths That Keep You Poor. Prosperity Truths That Make You Rich. 
Protecting Your Wealth and Home in a Recession.
Technology and Silver are Golden.
The Economy Contracts 32.9% in the 2nd Quarter of 2020.
Real Estate: Feeling Equity Rich? Make Sure That Feeling Isn't Fleeting.
Airline Revenue Plunges 86%. 
10 Questions for College Success
Bank Earnings Season. Crimes. Cronyism. Speculation.
Real Estate Solutions for a Post-Pandemic World.
Copper and Chile Update.
Gold Soars. Some Gold Funds Tank. 
Will the Facebook Ad Boycott De-FANG Stocks? 
Why Did My Cannabis Stock Go Down? 
Which Countries Are Hot in a Global Pandemic? 
Is Your Financial Advisor Good at Navigating Stormy Seas?
$10 Avocados, Lies, Damn Lies, Statistics & Wall Street Secrets. 
It's Never a Crash.
Work From Home and Intergenerational Housing.
Biotech Races for a Coronavirus Cure. 
Are You Worried About Money? 
May is a Good Time for Rebalancing.
Is FDIC-Insured Cash at Risk of a Bank Bail-in Plan?
Why Did my Bonds Lose Money?
Cannabis Update. 
Recession Proof Your Life. Free Videocon Monday, May 10, 2020. 
The Recession will be Announced on July 30, 2020. 
Apple Reports Terrible Earnings. 
We Are in a Recession. 
Unemployment, Rising Stocks. What's Going On?
8 Money Myths, Money Pits, Scams and Conspiracy Theories.
21st Century Solutions for Protecting Your Home, Nest Egg & Job.
Wall Street Insiders are Selling Like There is No Tomorrow.
Why Are My Bonds Losing Money?
Tomorrow is Going to be Another Tough Day.
Price Matters. Stock Prices are Still Too High. 
Should You Ride Things Out?
7 Recession Indicators
Corona Virus Update.
The Bank Bail-in Plan on Your Dime.
NASDAQ is Up 6X. 
CoronaVirus: Which Companies and Countries Will be Most Impacted.
Is Tesla Worth GM and Ford Combined.
Artificial Intelligence is on Fire. Is it Time to Buy S'More?
Take the Retirement Challenge.
2020 Investor IQ Test.
Answers to the 2020 Investor IQ Test.
The Cannabis Capital Crunch and Stock Meltdown.
Does Your Commute Pollute More Than Planes? 
Are Health Care Costs Killing Your Budget? 
2020 Crystal Ball.
The Benefits of Living Green. Featuring H.R.H. The Prince of Wales' Twin Eco Communities. 
What Love, Time and Charity Have to do with our Commonwealth. Interview with MacArthur Genius Award Winner Kevin Murphy.
Unicorns Yesterday. Fairy Tales Today. IPO Losses Top $100 Billion. 
Price Matters. 
Will There be a Santa Rally? It's Up to Apple. 
Harness Your Emotions for Successful Investing.
What the Ford Downgrade Means for Main Street.
The Dow Dropped Over 1000 Points
Do We Talk Ourselves into Recessions? Interview with Nobel Prize Winning Economist Robert J. Shiller.
Ford is Downgraded to Junk.
Gold Mining ETFs Have Doubled. 
The Gold Bull Market Has Begun. 
The We Work IPO. 
The Highs and Hangovers of Investing in Cannabis. 
Recession Proof Your Life. 
What's Your Exit Strategy? 
It's Time To Do Your Annual Rebalancing.
Are You Suffering From Buy High, Sell Low Mentality?
Financial Engineering is Not Real Growth.
The Zoom IPO. 
Uber vs. Lyft. Which IPO Will Drive Returns?
Boeing Cuts 737 Production by 20%.
The Lyft IPO Hits Wall Street. Should you tak
Cannabis Doubles. Did you miss the party?
12 Investing Mistakes
The High Cost of Free Advice. 
2018 Was the Worst December Since the Great Depression. 
Russia Dumps Treasuries and Buys Gold
OPEC and Russia Cut Oil Production. 
​
Important Disclaimers
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace 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 diversified 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.


​

About Natalie Pace
Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 4th edition of The ABCs of Money was released on October 17, 2020. 

Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. ​

Annual balancing is one of the most important things that you can do to preserve, protect and grow your nest egg. (It’s also important to have your nest egg properly diversified, and to know what is safe in a world where bonds are illiquid and negative-yielding.) 2020 has been a clear example of that. Stocks dropped 35% between February and March. If you were trading on emotions, you were tempted to sell. Technology has been on fire since March, which has everyone wanting to join the party. Successful investing means that you don’t chase returns over the cliff, or sell at the bottom so you can sleep again.
 
Annual Rebalancing is a Buy Low, Sell High Plan on Auto-Pilot for Your Nest Egg
Rather, one to three times a year, simply draw a pie chart of what you have and compare that to a pie chart of what you should have. (We have a free web app where you can personalize your own sample nest egg pie chart.) The large slices prompt you to sell high, capture gains and make sure you have the right amount safe. The small slices prompt you to buy low.

Keeping enough safe (and knowing what is safe) protects you from losses when stocks tank like they did in March of 2020, and as they did in the Great Recession and in the Dot Com Recession before that. 21st Century recessions are different than previous periods in that they end with “episodes of financial instability,” according to Federal Reserve Board Chairman Jerome Powell.

At your rebalancing, it is a good idea to examine what’s hot and safe for the coming year. Every year that changes. You might also consider swapping out some of the funds in your slices, particularly if you’ve used replacement funds. (You might have swapped out value funds this year.)

Below is a 6-point checklist to assist you with your annual rebalancing. It would be a good idea to do your rebalancing now. If you need help, consider getting an unbiased 2nd opinion from me. (Call or email our offices for pricing and information at 310-430-2397 or info@NataliePace.com.) Many people have no idea what they own, and therefore aren’t really capable of putting their holdings into an easy-to-understand pie chart for comparison purposes. After a retreat, you’ll get better at this. There’s too much at stake in this recession. It’s important to know exactly what you own, how much at risk you are and for you to be the boss of your money. If a financial advisor loses your money, it is your loss, not theirs.
 
As a heads up, I’ve been doing a lot of 2nd opinions over the past few years. Not even one of the portfolios that I’ve reviewed have been properly diversified. Most are far more at risk than the client realizes. Knowing what you own allows you to be the boss of your money. Email info@NataliePace.com or call 310-430-2397 to learn more.
 
Rebalancing 6-Point Checklist

1. Mock Up What You Currently Have in Your Nest Egg
2. Personalize a Sample Nest Egg Pie Chart
3. What’s Hot and What’s Safe Change Every Year
4. Your Action Plan Is Obvious Once You Are Properly Diversified
5. Should You Consider a Replacement Fund?
6. Stick to Your Knitting

And here’s additional information on each of these key points.

1. Mock Up What You Currently Have in Your Nest Egg
Your nest egg consists of all of your liquid assets. Your home and any other real estate or hard asset are a part of your wealth. However, these are not part of your nest egg (liquid assets). Use an Excel file to help you organize the funds you have into basic categories based upon size and style. If you’ve decided to invest in something that you think is hot, like gold, cryptocurrency or a fund of FANG*, then allocate those holdings to one of the hot slices. You should be able to see your holdings in a pie chart that looks similar to the sample.

2. Personalize a Sample Nest Egg Pie Chart
 
Start with your age. As a general rule, you’ll keep a percentage equal to your age safe. As you get older, and closer to retirement, you can’t afford to lose half or more of your wealth in stocks when recessions hit. (That was the price of the last two recessions.) If we’re in the late stage of the business cycle or in a recession (as we are today), then consider overweighting safe (pretending that you are older than you are). If a 50-year old had overweighted 20% safe in October of 2007, she would have earned gains instead of losing more than half, like many people did.

​Once you’ve overweighted safe, simply divide the at-risk portion by 10 funds, with small, mid and large caps, both value and growth, and four hot slices. This plan is far more diversified than 18 pages of holdings, which typically amounts to a few giant slices of large cap growth and value, bonds and maybe some international holdings, with nothing hot and not nearly enough safe. Again, you may personalize your own sample pie chart using our free web app.

3. What’s Hot and What’s Safe Change Every Year
FANG* has been hot for years. The technology-rich NASDAQ has gone up more than seven-fold since the Great Recession. Gold is up over 60% since 2011. Cannabis was the hottest thing in 2018, and is the lowest-priced today. Bitcoin was $20,000/coin in December of 2017.
 
Bonds saved the day in the Great Recession and were top performers in the Dot Com Recession (if you avoided the telecom and Enron bonds). Between February and March, bonds and bond funds became illiquid. Investors who sold lost principal.

*Facebook, Apple, Amazon, Netflix, Nvidia and Google.
​

​More than half of the S&P500 is at or near junk bond status, including a majority of U.S. banks and financial services companies.

So, what’s hot and what’s safe for 2021? Technology and biotechnology should continue to be strong. This is already priced in, however. China, Vietnam and Indonesia are predicted to have the strongest recovery from COVID. Gold remains a leader, with silver yet to shine (but typically runs in line with gold). I discuss this at greater length in the 4th edition of The ABCs of Money, which has been updated to include vital information on the current pandemic and recession. The ebook is free through Halloween.

​Today you have to be as careful on the safe side as you are on the at-risk side. As I have already said, bonds are illiquid and negative-yielding. Money market funds are subject to redemption gates and liquidity fees. Bond funds, even mid-term Treasury bill funds, can lose value. Annuities that are tied to the stock market can lose value. Insurance companies are over-leveraged and often get into trouble in recessions. (Many, including AIG, were bailed out in the Great Recession.) Insurance products are not FDIC-insured.
 
It’s very important to educate yourself on how to win in an over-leveraged world where most assets are in a bubble: stocks, bonds and real estate. That’s why I updated The ABCs of Money. There’s an entire section on What’s Safe in the book.
 

4. Your Action Plan Is Obvious Once You Are Properly Diversified.
When you compare your sample pie chart to your holdings pie chart, your action plan becomes obvious. The slices that are larger than they should be get sold high. You capture your gains, while leaving the appropriate amount at risk. The slices that are smaller than they should be get beefed up. You buy more at a lower price – unless you think that you could substitute a better fund for that slice. This is how annual rebalancing is a buy low, sell high plan on auto-pilot.
 
5. Should You Consider a Replacement Fund?
Novice investors are often tempted to replace funds that have underperformed. However, past performance is not a good measure of future performance. We’re underweighting value funds because they are full of companies that have the slowest revenue growth, are vulnerable to recessions and have a dangerous amount of debt. If you were basing this decision on performance, you might think, “Well, the markets have recovered somewhat, maybe I’ll keep these.” Value funds typically offer dividends. However, many companies have been forced to suspend or cut their dividends.
 
With regard to hots, hot funds have the best performance by far. However, they also have a great deal of volatility. I discuss the issues with gold, cryptocurrency, technology and more in the 4th edition of The ABCs of Money (which was updated in September and published last week).
 
6. Stick to Your Knitting
This is an age-old adage in investing. If you have a time-proven plan (our time-proven, 21st Century easy-as-a-pie-chart nest egg strategy), then you stick to it. Disregard the noise you hear in the media. If you wait for the headlines, you’ll be too late. When the headlines finally say we’re in an Apocalypse, that’s often the bottom, when you’d do better to buy low. (Many people sell low at this moment.)
 
Misinformation in the Financial Media
In 1999, you would have heard a lot of media experts explain that we were in a New Economy where Dot Coms could be cash negative for more than five years. In 2007, you were drowned in ads offering no down, Liar’s Loans and easy access to your home equity ATM machine (even though that would send over 10 million homes to auction in the coming years). Jon Stewart skewered Jim Cramer for recommending Bear Stearns days before it imploded in 2008 and was bailed out by JP Morgan, losing more than 90% of its value. Today, you’re hearing how great our economy is doing, despite the facts that:

• We are in an unprecedented recession
• Homes are unaffordable in most U.S. cities
• Debt is absolutely astronomical
• More than 1/5th of Americans have less than $5000 saved for retirement
• 11 million homeowners and renters missed paying their rent or mortgage in September and 40% are delinquent on their student loan debt

So now, when the markets are back to all-time highs is a great time to rebalance your nest egg (your 401K, IRA, Health Savings Account, etc.).
 
The 3rd quarter 2020 GDP report was very good news, as expected. However, expectations for the news were already priced in, which is why we’ve seen the Dow Jones Industrial Average fall more than 2000 points since mid-October.

Additional Tips About What’s Hot and What’s Safe
FYI: The tips below are from a blog that was published in May of 2019 – well before we saw the bond liquidity crisis. We’ve been warning that bonds are negative-yielding and at risk of loss of principal for years now. Financial wisdom is the cure for mainstream media misinformation.

1. Bonds are vulnerable.
2. Money market funds have redemption gates and liquidity fees.
3. CDs often have an opportunity cost. Some are not FDIC insured.
4. Getting safe is a two-step process. First you must keep your money, so be sure that your cash is in an FDIC-insured account. Then you want to think about safe income-producing hard assets that you purchase for a good price. You also have to consider what can produce income reliably and safely in a post-pandemic world.
5. Most hard assets are not a good price right now.
6. Solar panels and other energy efficiency upgrades – including perhaps a solar water heater, solar tubes, a gray water system or better insulation in your home, that will dramatically reduce your utility bill – could be great investments right now. The energy efficiency tax credits are set to expire at the end of 2021. So you can cut up to 90% from your electric bill, and save up to 26% on the cost of the system.
7. If you start researching now into what safe, income-producing hard asset is right for you, and understand how to do the math, and make sure that it is a viable income-generating business, then, when real estate prices become affordable again, you will be ready to make your move. When preparedness meets opportunity, therein lies success. Every word in those sentences is important.
8. If you are going to add cannabis as a hot, you will need to select individual companies. The industry is too new to find a reputable fund.  Also, these companies are very volatile, so you’ll have to adopt a strategy of taking your profits early and often (rather than just annually rebalancing them). I added cannabis as a hot slice in October of 2018 and by March the companies I highlighted had doubled. They then pulled back again. Some, like Tilray and Aphria, are trading near their 52-week lows. Not all cannabis companies are created equal (some are pump-and-dump schemes), so be sure to read my cannabis blogs, and learn how to evaluate individual companies by attending our Investor Educational Retreat.
9. Having four hot slices in your nest egg pie chart adds a lot of performance. Many times, our hot slices have doubled within one or two years. Again, this is not day trading. It’s maximizing performance.
10. If you’re going to buy solar, be sure to get your energy usage as low as possible before getting your quote. The amount of solar you need is directly correlated with the amount of power you use.
11. Getting safe is so tricky in 2021 that we spend a full day on this topic at our Investor Education Retreats. Call 310-430-2397 to learn more. 
    
    

The truth is that buying low and selling high is easy to say and hard to do. Why? Because it is completely against human nature. Also, when you ride the Wall Street rollercoaster up and down, you simply don’t have any money to buy low with. You have suffered so many losses that the only thing you can do is pray and hope to recover. (This happens in real estate, too.)

Buy & Hope is a 20th Century strategy that has lost more than half in each of the last two 21st Century recessions. Fortunately, a time-proven 21st Century strategy is easy-as-a-pie-chart. You can read about this system in my bestselling books. You can learn and implement the system by attending an Investor Educational Retreat. If you’re worried about what you own, then consider getting an unbiased 2nd opinion, which includes a step-by-step action plan for diversification, performance and safety. Call 310-430-2397 or email info@NataliePace.com to learn more now.


Register for the Jan. 16-18, 2021 New Year, New You Retreat by Halloween to receive the lowest price and a free 50-minute private prosperity coaching session (value $300). Learn more in the retreat flyer. (Click to access).

​My conversations with Wall Street are very different than those with Main Street. On Main Street, I hear a lot of people parroting sales pitches. Some might say, “I sold my bonds low in March! If I waited until today, I would have made hundreds of thousands of dollars.” (Not true.) Others say that stocks have gone “up and up and up!” (True of some, not true of a lot of others.) Both of these statements are misinformed, as you can see in the charts and information below. And these sentiments are not those held by Wall Street insiders.
 
Bonds are Illiquid and Negative Yielding
As you can see in the charts below, bonds are highly illiquid, even today. If you were trying to sell bonds today, you would have as much trouble as you had in March. Nobody wants to gamble 30 or 40 years on a bond that is paying them a measly 3-5% yield – when odds are so high that more debt will have to be issued at a higher rate (making the current bond completely illiquid) or debt will have to be restructured (making the bond a big loser).

What’s just as important to note is that they were just as illiquid in December of 2019 – before the pandemic.

​

So, what does Wall Street have to say about bonds? In my interview with the Chief Fixed Income Strategist of Charles Schwab Inc. Kathy Jones, she said:
 
You could see depreciation in [treasuries] between the time you invest and the time they mature. One thing to do is to shorten the maturity or the duration. The longer the term, the more the risk of rates rising and seeing a price decline. With short term, you still have that safety and liquidity, but you’re not taking interest rate risk.
 
Short-term T-bills are very liquid, as you can see in the chart above. You can read my blog Q&A with Kathy Jones at NataliePace.com/blog. You can watch my full interview with her on my YouTube.com/NataliePace channel.

​Your safe side shouldn’t be at risk of capital loss. In our retreats, we spend one full day on what’s safe. Bonds aren’t. Getting safe is a two-step process. The first step is to keep your money, so that you have the ability to buy low when asset values correct. The second step is to look for safe, income-producing hard assets that you purchase for a good price. You’ll have to consider what will be a steady, reliable income in a post-pandemic world. Things have changed dramatically for the foreseeable future. Of course, both of these steps require financial literacy and education (not what the broker-salesman sells you). Call 310-430-2397 to learn more.
 
Stocks Are Hotter Than Ever: Errr… More Overpriced Than Ever
Technology and biotechnology stocks are indeed hot, hot, hot. The old-school companies that are slow or negative growth and are heavily in debt are not hot at all. The markets have come back a little, but many of those companies are still way down. The ones that are up are propped up with bail-outs, and are at risk of financial fall-out. They can’t borrow from Peter to pay Paul forever, and they are getting to the point of no return (debt restructuring in a bankruptcy proceeding) to continue operating. The airline, travel, hospitality, retail, casino, oil, municipality and commercial real estate industries are all vulnerable right now.
 
FANG companies (Facebook, Amazon, Apple, Netflix, Nvidia and Google) have been leading the U.S. economy for years now and have pushed the NASDAQ Composite Index to highs above what we saw in February of 2020 (pre-pandemic). However, the stocks are priced at astronomical levels. That is why Netflix stock is down 12% since reporting earnings on Oct. 20, 2020. Revenue growth was 23% and the net income of $790 million was higher than it had been in years – all great signs. However, investors are forward-looking. So, predictions of just 20% revenue growth in the 4th quarter, with net income that could be 22% lower sequentially, alongside an 82 price-earnings ratio, inspired traders to take profits.
 
As Nobel Prize winning economist Robert Shiller has been warning since 2018, stock prices are alarmingly high. Shiller wrote, “The only time in history going back to 1881 when [stock prices] have been higher are, A: 1929 and B: 2000. We are at a high level, and its concerning. People should be cautious now.”

​The average price-earnings ratio is 16-17. Growth companies typically take a higher PE. However, Zoom’s PE is 740. Google’s is 35, with negative revenue growth in the most recent quarter. Nvidia’s is 98. Should Amazon be worth $1.6 trillion, when its sales and income are only $280.5 billion and $11.59 billion, respectively? Also, when stocks tanked -35% in March 2020, technology stocks sank, too. It’s difficult for even a great company to remain buoyant when economic storms roil the markets.
 
The Biggest Bailout Index is Illiquid
Daily we hear reports about the ups and downs of the Dow Jones Industrial Average, with media and politicians boasting about stock gains, as if that is a broad measure of how the economy is doing. We’re currently in a bull market in the midst of an unprecedented recession. So, how are stocks so high? Basically, the Federal Reserve purchased over 1,000 bonds and 17 bond funds to keep many of the most highly leveraged companies from going under. The Treasury Department, with Congressional permission, handed out payroll support to industries like the airlines. Today, the airlines are begging for more bailout money, so that they don’t have to “right-size” their operations. Demand in the travel industry is off by 85%-90%.
 

​Revenue has tanked similarly in many industries, including casinos, car rentals, commercial real estate and more. Auto sales are off by half in Ford and GM.
 

As you can see in the chart below, the Dow Jones Industrial Average is almost as illiquid as bonds are. The DJIA is composed of 30 companies, all of which took a bailout from the Federal Reserve (except the banks, which are receiving other kinds of support). Many Dow components are slow or negative growth with very high debt. A lot of these companies were borrowing at cheap rates, while allowing their credit rating to fall to the lowest rung of investment grade. Over half of the S&P500 is at or near junk bond status, including a lot of the U.S. banks.
 
What were they using that borrowed money for? Most used it to buy back their own stock and pay dividends, which benefit the executives, board and investors. In the worst examples, like Boeing, the company was neglecting to fund their pensions and OPEBs and underinvesting in product design, while making the rich insiders richer.
 
Real Estate Prices are Higher Than Ever… Because of a Moratorium
There is currently a moratorium on evictions and foreclosures. As a result of that house of cards and the successful sales of motivated commission-based real estate and mortgage brokers, home sales were up 21% year over year in September of 2020. The median existing-home price soared to an all-time high of $311,800 (source: the National Association of Realtors).    
 
Meanwhile, there are clear indicators of major financial distress in the housing market. According to the Mortgage Bankers Association research, in the 3rd quarter of 2020:
 
​

• 11 million households are behind on rent or mortgage
• Missed Rent Payments = $9.2 billion (in the 3rd quarter)
• Missed Mortgage Payments = $19.4 billion
• 40% of Students Missed a Student Loan Payment (30 million)
• Missed Student Loan Payments = $29.5 billion

 
Asset Bubbles
Again, you’ll hear the current Administration, White House and Presidential political party touting stock market gains and a strong real estate market as signs of what a good job they are doing, while going radio silent on any unflattering financial indicators. Housing unaffordability is a crisis. Debt is astronomical. Bailouts were handed out to companies that were run by financial engineers. Many of those companies had to be rescued before the first Stay-at-Home order was issued in the U.S. Low interest rates create asset bubbles, which make an economy look better temporarily than it really is. (That was the same problem before the Great Recession.) As you can see from the Asset Bubble Chart below, printing up $27 trillion has allowed asset bubbles to form in every category that was a problem before the Great Recession.

Most investors lost more than half of their wealth in both of the last two recessions. (Our easy-as-a-pie-chart investing strategy earned gains in the last two recessions and has outperformed the bull markets in between. Call 310-430-2397 or email info@NataliePace.com to learn more.) In his now famous Jackson Hole speech on August 27, 2020, Federal Reserve Chairman Jerome Powell admitted that expansions used to end with inflation. However, more recently, bull markets and economic expansions end with “episodes of financial instability.”   
 
The economy is not stable enough to support normal interest rates. The Federal Reserve has indicated that it is their intention to keep interest rates at zero until 2023. That will help us to continue to meet our financial obligations on the massive $27 trillion debt. If interest rates rise, then our debt repayment will become an issue, if not a major problem. Last year, the U.S. spent $375 billion (1.8% of GDP) on debt. With an additional 3.5 trillion in debt added this year, even with low interest, the debt load will be a lot higher.

The October Surprise
The October Surprise will be that the economy was much stronger in the 3rd quarter than it was in the 2nd quarter. The 2nd quarter contraction was 31.4%, with the 2020 contraction predicted to be -5% (or more). The 3Q 2020 advance GDP results will be released this coming Thursday, on Oct. 29, 2020 at 8:30 am ET. Learn more about the Surprise in my blog of the same name.

Having a better 3Q doesn’t mean that we’re out of the woods yet. It’s basically a bounce off of the bottom. However, politicians will use the numbers to say what a great job they are doing. It’s important for investors to remain sober about this because of the 5 points highlighted above. Those indicators are red flags that the economy is very, very overleveraged and unhealthy. That will not go away soon. We’ll be paying off the debt for decades. Having overpriced real estate mean that it is unaffordable, which translates to fewer buyers. Sellers will eventually have to lower prices to attract the market back.
 
Stock valuations are too lofty as well. That’s why they fall so far, so fast at the first sign of economic weakness. Stocks lost 35% before anyone (besides the Wall Street insiders) knew what a problem the pandemic would be.
 
Buy & Hope? Buy on a Dip?
A recession-proof financial plan is easy-as-a-pie-chart. Buy & Hope and Buy on the Dip can be devastating, as we’ve seen in the last two recessions. (Charts below.) A diversified plan protects you from losses, while allowing you to participate in profits when markets rise. Annual rebalancing is a buy low, sell high plan on auto-pilot. This time-proven plan is less time and money than you are currently spending. So, step off the Wall Street rollercoaster and into a system that is easy and works.
 
Try our free web app, where you can personalize your own pie chart by answering just a few simple questions. (Click to access.) You can read about time-proven recession strategies in the newly released 4th edition of The ABCs of Money. If you have a lot at risk and would like an unbiased 2nd opinion on your plan, email info@NataliePace.com or call 310-430-2397 for pricing and information. You can also learn the ABCs of Money that we all should have received in high school at the Jan. 16-18, 2021 Online Investor Educational Retreat. Register by Halloween to receive the lowest price and a free 50-minute private prosperity coaching session (value $300). Learn more in the retreat flyer. (Click to access).
 
 
 

The President accredits Regeneron’s antibody cocktail with curing him of COVID19 and helping him to feel better than he has ever felt. Could an FDA fast-track approval happen before the election? Will the treatment be free? The Cliff Notes are that the fast-track is pretty unlikely, and the first 70,000-300,000 doses will be free.
 
Regeneron filed for a fast-track approval under the Emergency Use Authorization from the FDA on Oct. 8, 2020. The FDA is under extreme pressure from the White House to approve a treatment before November 3, 2020. Whether or not this will happen is anyone’s guess. The trial results reported by Regeneron and the President were positive, but are not yet validated in a peer-review trial.
 
Typically, the FDA wants to see at least six-months of follow-up to ensure that there are no serious adverse events after the treatment. If that standard is applied, then the approval will not happen before the election. Regeneron began its first phase of trials on June 11, 2020. The 2/3 phases were launched on July 6, 2020.
 
How much money will the company get for potentially saving the President’s life? How can the drug be free, if the company wants to stay in business? According to Regeneron’s press release of Oct. 7, 2020, the government has committed to making the treatment available to Americans at no cost, if the REGN-COV2 investigational antibody combination for COVID-19 is granted an Emergency Use Authorization from the FDA. Regeneron received $450 million from the U.S. Department of Health and Human Services to manufacture 70,000 to 300,000 treatments of REGN-COV2, which will be owned by the government. So, this number of initial treatments will be free.
 
Many more doses will be needed, however. There have been 8.2 million COVID19 cases in the U.S., with 219,541 deaths (as of 10.19.2020). There are almost 50,000 new cases announced daily in the U.S. Sadly, even at the upper range of the deal – 300,000 – Regeneron’s therapies wouldn’t last a week. There are currently 50,000 doses of the drug available, with a goal of having 300,000 doses within a few months.   
 
Will a Treatment Send Regeneron’s Stock Soaring?
Stocks are purchased by people, and people can be irrational. So, regardless of whether it is a good investment, an approval could positively impact Regeneron’s stock, even though the stock is already near an all-time high, with a price-earnings ratio of 23. A year ago, the stock was trading at half of today’s value.
 
The government deal will not dramatically increase Regeneron’s earnings – at least not in the near term. If the 3Q 2020 revenue is similar to 2Q 2020, then the year-over-year revenue will decline about 5%. That is including the government’s check.
 
If future treatments go through the normal pricing system, then this should help to boost Regeneron’s earnings and support a higher share price. However, if the government wants to keep the treatments free, then the price is fixed for Regeneron at lower than the normal marketplace.
 
As an example, when Gilead was approved for Sovaldi (a cure for Hepatits C) on December 6, 2013, the company’s share price went from $70/share to $114/share. In the months leading up to the approval, the share price doubled, just on the potential of the approval. However, Gilead was roundly censured for making the cost of the cure $84,000 or more. With the political heat of a pandemic, it is doubtful that Regeneron, or any other company, will attempt those kinds of profits.
 
Regeneron reports 3Q 2020 earnings on Nov. 5, 2020, two days after the election, before the markets open.
 
Smaller Companies Involved in the Race for a COVID Treatment and Vaccine
There are two other smaller companies with COVID partnerships with the NIH that are promising. Adaptive Biotechnology has a partnership with Amgen and Microsoft, among others. On August 4, 2020, the company announced the first T-cell monitoring tool that will be useful in developing a vaccine. Amgen is part of the NIH’s public-private partnership to advance a COVID treatment and cure.
 
Vir Biotechnology has a partnership with GlaxoSmithKline and is currently in a Phase 3 trial for a treatment for COVID called VIR-7831. Results on that study are expected to be available at the end of 2020. The Vir antibody treatment could be a competitor of Regeneron’s. Vir’s president and CEO is George Scangos, Ph.D. He was the former CEO of Biogen, a $44 billion company. Vir is part of the NIH’s public-private partnership to advance a COVID treatment and cure.
 
Finally, Inari Medical launched an IPO this year, and has gone on to see sales soar by 152%. The company is not a COVID contender. Rather they have an FDA-approved clot retriever product that helps patients suffering from venous diseases, without the use of thrombolytic drugs. The market is projected to be $3.6 billion annually. Inari’s trailing 12-month revenue is $86 million. So, the growth potential is noteworthy.
 
All three of these companies are still cash-negative. Inari and Adaptive are trading near their 52-week highs, while Vir Biotechnology is at $37.25, down from a high of $75.00 in August. All of these companies were trading at much lower prices in March 2020, during the stock market rout. Vir's price weakness has a lot to do with insider selling, which can be a red flag -- particularly when the company is promoting an effective treatment during a pandemic. The chief seller is Herbert Virgin, the Chief Scientist.
 
Large Companies Involved in the Race for a COVID Treatment and Vaccine
GlaxoSmithKline, Pfizer, Johnson and Johnson, Eli Lilly and more are also involved in the race for a COVID19 treatment and cure. As you might have heard, there was a patient with a serious adverse event (a disease that is not being disclosed due to patient confidentiality) that has paused the Johnson & Johnson Phase 3 clinical trials for a vaccine. Eli Lilly has also had a study paused.
The large biotechs will become distribution partners, if one of the smaller companies beats them to a treatment or vaccine. Like many massive companies, the large biotechs have slow or negative revenue growth. However, unlike a lot of other industries that have had to suspend or cut dividends this year, the companies mentioned directly above are still offering a dividend.
 
If you’re interested in viewing our Biotech Stock Report Card, please request for it on one of our social media platforms, or by emailing info@NataliePace.com. You can reach us at Twitter.com/NataliePace,  Instagram.com/NatalieWynnePace and Facebook.com/TheABCsofMoney.
 
 
Full Disclosure: I own shares of some of the biotechnology companies mentioned in this blog.
 
If you'd like to learn how to evaluate stocks from a No. 1 ranked stock picker, register for the Jan. 16-18, 2021 New Year, New You Retreat. Sign up by Oct. 31, 2020 (Halloween) to receive the lowest price and a complimentary 50-minute private, prosperity coaching session. Call 310-430-2397 or email  info@NataliePace.com now to learn more or to register. You can also access additional information by clicking on the banner ad below, which will take you to the retreat flyer.  

Other Blogs of Interest
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Should You Wait Until After the Election to Fix Your Wealth Plan?
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​
Important Disclaimers
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace 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 diversified 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.
​

About Natalie Pace
Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 4th edition of The ABCs of Money was released on October 17, 2020. 

Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden.