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When Superstars Burn Out, Featuring the Magnificent 7.

11/4/2026

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When Superstars Burn Out, Featuring the Magnificent 7.
News of the ceasefire on Tuesday evening, April 7, 2026, sparked a rally on Wall Street the following day. The S&P 500 jumped 166 points (2.5%) on Wednesday, April 8, 2026. The S&P500 is now only -3.13% off its all-time high of 7,002.28, set on Jan. 28, 2026.

So, why are Tesla, Microsoft, Palantir (and other technology stocks) off their all-time highs by -31.90%, -32.60% and -38.3%, respectively?

Here are the topics I’ll cover in this blog. I’ll also answer a few key questions that are on everyone’s mind.

The Superstars of 2025
The Year-to-Date Burnouts
2026 Supernovas
Price Matters
A Quick Q&A

And here is more information on each point.

The Superstars of 2025

By now, the term Magnificent 7 has been burned into Wall Street lore. However, did you know that First Majestic Silver (our pick in June of 2025) was the real superstar of last year? The company was up 368% by Jan. 26, 2026. While it was important to lean into AI and the Magnificent 7 in 2025, it was an even better idea to stock up on silver. Copper was strong, but Peru (the world’s 2nd largest exporter of copper) was the better investment. Check out the Superstars Performance Chart below.

The Year-to-Date Burnouts
AI was already starting to disrupt select technology stocks, including Microsoft, Palantir, Salesforce, Workday and many cybersecurity companies – even before the war in Iran. A lot of technology stocks hit an all-time high between August and October of 2025. While the concerns that some of these industries and companies will be negatively impacted by AI are real – including the challenge that AI-dominant firms have in earning profits, one of the reasons for the plunge in share price of select technology stocks was that they were outlandishly expensive – something we’ve been warning about all stocks, but pronounced quite significantly in the Magnificent 7. I warned about Tesla on Jan. 7, 2026, when it was trading close to $500/share. (There were many valuation warnings in 2025.) “Should a company with $5 billion in net profits be worth $1.43 trillion?” I wrote.

Crypto. Bitcoin is down -17.62% year to date. While the White House is pro-crypto, there are more than a few trends that could keep us in a Crypto Winter until 2027. Bitcoin often performs terribly during periods of stock weakness. In 2022, when the S&P 500 sank by -19.44%, Bitcoin bottomed out at -67% losses.

Sources: Morningstar Direct, S&P Dow Jones Indices, MSN.com, Gold.org.

While Bitcoin was the top performer in 2023 and 2024, it’s difficult to lose 2/3rds of your wealth for any period of time. It’s not just a matter of sitting on your hands to endure the downturn. You might actually need that money for something. Your FICO score plunges, particularly if you have any debt.

There is also a very strong correlation between halving events and Crypto Winters. If Bitcoin follows the strong halving trend, Bitcoin could fall further in 2026 and 2027. The recovery might not happen until late 2027 or early 2028. Learn more in my Crypto Winter blog from Nov. 30, 2025. The $126,280/coin high for Bitcoin was on Oct. 6, 2025, right on track with the halving trends.

As you can see in the CAPE chart below, equity prices are still quite expensive.

Source: Prof. Robert Shiller, Nobel Prize winning economist.

The historical trends when prices get so high are not good. Between March 2000 and October of 2002, the NASDAQ Composite Index dropped -78%. A million dollars sank to just $220,000, which is quite a challenge for any person to endure financially and emotionally. It took 16 years to return above 5,000. You know what happened in the Great Depression – another period preceded by outlandish stock prices, leverage and debt.

If you’ve attended a retreat or followed my blogs, you know that I stress rebalancing 1-3 times a year. That is the way to capture gains and smooth out the volatility. Dollar cost averaging into funds that are trading at an all-time high is another important tool to keep us on the right side of the trade. Making sure we have an age-appropriate, diversified plan is the time-proven foundation of any wealth plan.

2026 Supernovas
If you’d like updated stock report cards on the industries listed below, email [email protected]. If you’re attending the April 24-26, 2026 ONLINE Financial Freedom Retreat, we’ll be looking at these industries in greater depth on Day 2 of the retreat. Email [email protected] or call 310-430-2397 to register now.

Oil. So far in 2026, oil stocks are the superstars. However, there are two obstacles that impede continued strength. If the war in Iran is over quickly, prices could return to the $60-$65/barrel range they were mired in prior to the war. The demand for oil products has weakened as global consumers, especially China and Europe, opt for electric vehicles. Fed-up, gas guzzler auto owners might expedite the EV transition.

If the war in Iran continues, that is also negative for oil. Why? High oil prices are highly correlated with recessions, as you can see in the chart below. (The gray lines are recessions.) Although we didn't (technically) have a recession in 2022, when oil prices were as high as they are today, we did have two quarters of contraction and a Wall Street rout, particularly in technology and crypto.

When oil and gas prices rise so dramatically, the demand for oil products plunges. The worst example of this was during the early days of the pandemic, when oil prices dropped to -$37.63/barrel. Yes, you read that right. Future traders were having to pay buyers to take possession of the oil that they wouldn’t be able to store.

When all the family budget is going to the gas pump and the utility bill, no one can afford to take a vacation. Without consumer support, many companies will slash jobs. A rising number of people will be out of work. With almost 70% of the U.S. economy relying upon consumer spending, the cascade of problems becomes chaotic and concerning – two words that investors don’t like.

It’s worth looking at your exposure to oil, gas and defense stocks to consider capturing gains at an all-time high.

Defense. Many defense companies are also trading near an all-time high. Prices hit their zenith at the end of February and have pulled back a little since then. Many of the biggest players have quite low profit margins, substantial debt and very high share prices. If the ceasefire holds and the war in Iran ends, prices could drop quickly – not because there won’t be another war or conflict, but because the prices are high. Boeing, Huntington Ingalls, Textron, RTX Corporation, Northrop Grumman and OshKosh are all rated in the BBB range (the lowest rung of investment grade).

Peru and Clean Energy. These two plays are holding up strong in 2026, with gains of 18.45% and 15.16%, respectively. When people can’t afford to put gasoline in their car or heat or cool their home, they become more interested in electric vehicles and solar panels. Copper is essential to the clean energy revolution, and Peru is the 2nd largest exporter of copper. However, even here, if war continues and a recession kicks in, both sectors will be negatively impacted. Learn more in my Peru blog. (Click to access.)

Our pie chart system, which encourages an age-appropriate, diversified strategy that is rebalanced 1-3 times a year to remain so keeps us protected and performing. If you don’t have these investments and want to, consider dollar cost averaging in. If you have them and are in the money, consider selling high and trimming back your exposure to the appropriate slice amount. You can construct your sample pie chart using our free web app. Email [email protected] for the link. We cover this strategy in detail on Day 1 of the Financial Freedom Retreat. Email [email protected] or call 310-430-2397 to register now.

Gold and Silver. Gold and silver are up 9.90% and 7.28% on the year as of April 9, 2026, respectively. Safe havens can get dragged down in the first phase of a stock rout. However, there will come a point that precious metals decouple, if stocks continue sinking. It’s a smart idea to capture gains if you’ve already doubled your money, and to dollar cost average into a slice or two of a diversified, age-appropriate plan, if you are just now investing.

Watching silver pull back 39% from the high set on January 29, 2026, is a reminder of the power of capturing gains and having a rebalancing strategy. Rebalancing at the end of December, after the Santa Rally, is almost always a great idea.

Price Matters
Stocks, in general, are still trading at very elevated prices. The effects of unaffordable oil prices (for average consumers) will linger, which is negative for GDP growth and Wall Street. According to Mark Zandi, the chief economist of Moody Analytics, “Recession risks thus remain uncomfortably high, with close to even odds of a downturn in the coming year.” Google AI notes that there is a 70% chance of a correction in 2026 – a mid-term year. The past two midterm years have been down years. In 2022, the technology-rich NASDAQ Composite Index dropped by -33%. In 2018, the S&P 500 was down -6.24%.

If you haven’t rebalanced your wealth plan, or if you don’t have a crystal clear understanding of what you are invested in, whether it is your employer-sponsored retirement or a managed plan, now is the time to know exactly what you own and why, and what a healthy wealth plan that protects your wealth, while performing above the market on the at-risk side, looks like.

Learning the life math that we all should have received in high school (at the Financial Freedom Retreat) is a great way to start the process of being the Boss of your Money. Email [email protected] or call 310-430-2397 to register now.

A Quick Q&A
1. Will oil prices fall quickly if the war ends? This is possible, since demand is weakening worldwide. However, it is also likely that it will take time to get the global supply chain functioning at full force again, which could keep prices high in the short- and mid-term.

2. Why have the Magnificent 7, Bitcoin and even silver and gold pulled back so much from their all-time highs, especially when compared to the S&P500? Each story is slightly different, as you can see in the details above. However, much of the story has to do with irrational exuberance and very high prices. When things soar too high, they can also drop like a rock. I’ll keep you updated on each of these industries throughout the year. However, in general, we still have hot slices of silver, AI (which a lot of the Magnificent 7 companies are leading in), cybersecurity and clean energy.

Even with the recent pullbacks, over the 12 months:

* Silver is still up 150%
* Peru 122%
* Google (Alphabet) 115%
* Nvidia 89%
* Clean Energy 75%
* Gold 59%
* Tesla 55%
* Apple 50%
* S&P 500 36%

Rebalance. The pie chart system prompts us to buy low and sell high, and takes emotions (which often stoke us to do the opposite of what we should) out of the equation.

3. Is it a good idea to just buy and hold an S&P500 index fund? I just wrote a blog on this! Click to access it.

4. If AI is so hot, why are all the Magnificent 7 stocks down -10-33% off their highs, while the S&P500 is only down -3.13%? The 2023 – 2025 period was all about the Magnificent 7. They were the drivers on Wall Street. Most of these companies have impressive year-over-year revenue growth, robust profit margins and a treasure chest of cash. The price earnings ratios were just ridiculous. When prices get so far out of whack from reality, they might crash – even in healthy, strong companies. (Wall Street whales know how to take their profits.)

5. How can a Main Street investor smooth out the Wall Street rollercoaster? Adopt an age-appropriate, diversified strategy and rebalance 1-3 times a year. Understand what’s safe in a Debt World. Be the boss of your money. This can be on autopilot with our easy pie-chart system. Read about it in my bestselling books. Learn and implement it at our online Financial Freedom Retreat. Or get an unbiased 2nd opinion and an effective, easy-to-follow blueprint in my private coaching. Email [email protected] or call 310-430-2397 to learn more now.

Bottom Line
Rebalancing to capture gains is a much better idea than thinking stocks only just go up. Chasing headlines, whether it was AI last year or oil and defense stocks today, can be a losing bet. If you placed that bet early and are in the money, now might be a great time to cash in your winnings. If you’re tempted to buy high, remember that we’re always late when we chase headlines. When everyone wants to buy, it’s better to be in the position of selling and capturing gains. When no one wants to buy (or can’t because they lost too much money), opportunities abound. That’s why buy low, sell high is so easy to say and so hard to do.

Are you aware that the hot funds we've been featuring in our sample pie charts and retreats performed at the top of Wall Street in 2025? Silver tripled. Peru (copper) was on fire with over 100% gains. Even clean energy scored 55%...

Why not treat yourself to the gift of financial freedom to create a New Year, New Me in 2026?

Register now to join us at our online Financial Freedom Retreat April 24-26, 2026 where you'll learn how to protect your wealth, save thousands annually in your budget, invest in hot industries like AI, gold, crypto and more, and how to be in the best seat during our volatile Debt World. Register with friends and family to receive the best price. (Ask for access to a recording of our Real Estate, Bond or Rebalancing masterclass as our gift to you.) Email [email protected] to learn more and register now.

If you'd like a life-changing adventure of a lifetime, be our guest at a royal manor house in Cornwall, England, March 4-11, 2027. (With just eight rooms available, this exclusive, private, bucket-list adventure sells out a year in advance!) Call 310-430-2397 or email [email protected] to learn more. The 2025 Restormel Retreat was a magical and royal experience. Click to learn more.

Request testimonials at [email protected]. You can also view some on the flyer page of the retreat.

Learn how to:

* Invest in hot industries, such as cryptocurrency, Nvidia, artificial intelligence, and quantum computing,
* Save thousands annually with smarter big-ticket choices
* Hedge against a weaker dollar,
* Invest and compound your gains,
* Green your retirement plan,
* Easy and efficacious nest egg strategies,
* Get hot and diversified (including in artificial intelligence, quantum computing and crypto),
* Evaluate stocks,
* Avoid capital gains and financial predators,
* Keep an age-appropriate amount safe, and,
* Know what's safe in a Debt World.

Yes, it's a complete money makeover.

Email [email protected] or call 310-430-2397 to learn more and register. Learn the 15+ things you'll master and read testimonials in the flyer on the home page at NataliePace.com.

"Ten minutes into the first day I was already much smarter about investing than I ever thought I would be in my life and I knew I was in exactly the right place at this retreat. I am amazed at how EASY and FUN it is to make my money work for me and those I love. I think this kind of information should be compulsory in schools. I wish I'd learned this sooner." CM

"Many people, including educated men and women, often get into trouble when they
neglect to follow simple and fundamental rules of the type provided [by Natalie].
This is why I recommend them with enthusiasm."
Professor Gary S. Becker. Dr. Becker won the 1992 Nobel Prize in economics for his theories on human capital

"College students need this 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, former Chairman & CEO, TD AMERITRADE.

If you’d like an unbiased 2nd opinion on your current wealth plan, email [email protected] for pricing and information.

Click through to the flyer to learn more. Call 310-430-2397 or email [email protected] for pricing, additional information and to register. Register with friends and family to receive the best price. Teens and college students can attend for just $99.

Join us for our Restormel Royal Immersive Adventure Retreat. Spring Equinox 2027. Email [email protected] to learn more. Click for testimonials, pricing, hours & details. Register now to receive two 12-month all-access passes to our online training and four private, prosperity coaching sessions. There are only 4 rooms available. Considering the perks, you're receiving a 65% discount to learn the life math that we all should have received in high school, and the room is free! Email [email protected] to learn more. Yes, it's a great idea to register and start transforming our lives now with the online ABCs of money courses.

Natalie Wynne Pace is an Advocate for Sustainability Financial Literacy & Women's Empowerment. Natalie is the bestselling author of The ABCs of Money (6th edition) and The Power of 8 Billion: It's Up to Us, and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book 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 6th edition of The ABCs of Money and the 2nd edition of The ABCs of Money for College are the most recent releases of these books. Follow her on Instagram.

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.

Check out Natalie Pace's Substack podcast and watch videoconferences and webinars on Youtube.

Other Blogs of Interest
Should You Just Own an S&P 500 Fund?
Gold, Silver and Crypto. Are the Safe Havens Sinking?
Hot Countries.
Oil Prices Soar. Stocks Sink.
15 Rules of the Rich.
The Venus Fly Trap of High-Yield and Private Credit Funds.
AI Says There is a 70% Chance of a Correction in 2026. Learn why.
Investors Sell Magnificent 7 for Chevron and Caterpillar. (Is this a good idea?)
6 Rules to Earn Tens of Thousands with Low Risk.
2026 Investor IQ Test.
Answers to the 2026 Investor IQ Test.
Finding Harmony: A King's Vision. Half a Century of Sustainability Leadership.
Silver and Gold's Very Bad Day.
Why are Mortgage Rates so High?
The War Over Warner Bros.
Is an EV Winter Coming?
Copper and Peru are Hot, Hot, Hot.
2026 Rebalancing IQ Test.
Answers to the 2026 Rebalancing IQ Test.
2026 Crystal Ball.
Is the AI Bubble About to Pop?
A+ 2025 Performance Report Card with Bragging Rights.
Are We Headed for Another Crypto Winter?
Will the World Cup Save the Travel Industry?
Save Thousands Annually on Health Insurance and Medical Care.
2026 Bonds and Fixed Income Without Paper Losses Strategy.
Magnificent 7 Update. On Fire. Expensive.
Crypto. Copper. Silver. Gold. More Magnificent than the Magnificent 7.
Stablecoins. Should You Invest?
Clean Energy. Solar Generation is On Fire.
HHS Cuts MRNA Research. Weight Loss Drugs Soar.
Are You Paying Thousands to Lose Money?
Crypto Goes Mainstream. The Genius Act Becomes Law.
Wealth Hacks: Are You Getting Killed in Capital Gains Taxes?
Our Super Performing Hots and Value Replacements.
Is Your Income Strategy Losing Money?
Gold and Silver Soar.
Get Safe & Hot in 1 Easy Plan.
Home Prices Soften. Is Your City Next?
Tesla Vision vs. Waymo LiDAR and Air Taxis. Are Any of Them Safe?
Archer Aviation is Chosen to be the Exclusive Air Taxi Service for the 2028 L.A. Olympics. Company of the Year?
USA Downgraded. Is U.S. Reserve Currency Status Threatened?
Utilities: In the Eye of the Natural Disaster Storms.
Aging Mom Doesn't Want to Discuss Dilapidated House. Investors Ask Natalie.
Tesla, Tariffs, Chinese Competition and Price Wars.
Health Savings Accounts. Save Thousands. Get a Tax Credit. Provide for Tomorrow's Healthcare Needs.
Restormel Manor House 2025. A Truly Royal and Magical Adventure.
9 Ways to Cut Your Tax Bill in Half and Save Thousands Annually.
Should I Have a Money Manager?
10 Rules of Successful Investing.
Indonesia: Rich in Nickel with Ambitions of Becoming an EV Battery Hub.
RoboTaxis. AI. The Magnificent 7.
Canadian, Australian and U.S. Banks. Are Any of Them Safe?
Ireland. Rich in Technology, Biotechnology and Agribusiness.
9 Money Secrets of the Ultra Wealthy.
Housing & Budgeting Solutions.
Fast Fashion. Fossil Fuels. Plastic Clothing. Atacama Desert Waste Dumps.
Fintechs and Brokerages that Fail are Not FDIC-Insured.
Housing. Unaffordable. What Works? Case studies and creative solutions.
The Underperforming DJIA, Full of Fossil Fuels and Forever Chemicals.
13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough.
11-Point Green Checklist for Schools.
10 Wealth Secrets of Billionaires and Royals.
Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments.
BRICS Currency. Will the Dollar Become Extinct?
Is Your FDIC-Insured Cash Really Safe?
Money Market Funds, FDIC, SIPC: Are Any of Them Safe?

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, funds or projects 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 an age-appropriate, diversified wealth plan, which has been designed strategically, with the assistance of financial professionals who are 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, patience and diversified strategy.

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.

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Should You Just Have an S&P500 Fund?

9/4/2026

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Image created by MetaAI.

Should You Just Have an S&P500 Fund?

Is your managed plan worth the fees? Are you at greater risk than you realize? Are you underperforming the S&P500?

Most managed plans do what the markets do, only 1.5-2% lower due to the fees ($15,000-$20,000 in fees per million dollars per year). If you were focused on a lot of older companies or a Dow Jones Industrial Average index fund, your portfolio would have performed far lower than the S&P500 – and dismally beneath a diversified plan that included hot industries and growth.

How can you tell how well you did? Simply ask for a chart of your return compared to the S&P500 over the last three, five, and 20 years. If you are shadowing the market, there are a number of concerns you should be aware of, including the fact that you’re paying 1.5-2.0% annually for something that you could get almost free. (Many online discount brokerages do not charge trading fees at this time.) If all you are doing is shadowing the market, then you can have all those companies that your broker-salesman is trading in one easy fund and be just as diversified. FYI: a professional analyst would be tasked with less than a dozen companies. A hundred or more companies is impossible to keep track of even if your account was being managed by the minute, which it isn’t.

The total return of the S&P 500 between 2023 and 2025 was 86.11%. How much more are you worth today than you were at the end of 2022? Has your plan almost doubled in value?

The main things that I’ll discuss in this blog are performance and protection. We want both. As we get closer to retirement, we can’t afford to have too much of our money riding on the Wall Street rollercoaster. The placating platitude that many of us receive that we should just sit on our hands during corrections, bear markets, and recessions doesn’t work in the real world. If we lose half of our wealth, our FICO score plunges, the interest rates that we’ll have to pay to borrow skyrocket, we might have trouble paying our bills and we could even be at risk of losing our home. This is not what the Whales of Wall Street do.

Investing is easy when you adopt a time-proven system. There are a few foundational rules. Everybody wants the value of their stocks to go up. In a downturn, nobody wants to lose. Both performance and protection are important, as is income. However, in today’s Debt World, people are getting sold into some very risky money losing, illiquid “safe” assets in the name of earning income. I’ll talk about that after we discuss protection and performance. You can also learn more about Safe, Income-Producing Assets with No Paper Losses in the resources directly below.

Bond and Fixed Income Without Paper Losses Masterclass (Oct. 2025). Receive access to the recording when you register for the Spring Financial Freedom Retreat. (You’ll want to attend the retreat before watching the masterclass.)

The Venus Fly Trap of Private Credit Funds

Should You Have a Managed Portfolio? (There are a few important and true cautionary tales included in this blog.)

(Click on the blue-highlighted words to access additional information.)

Here are the main topics of this blog.

Performance
Rebalancing
Protection
Income
21st Century Recessions

Here is more information on each point.

Performance
As I mentioned above, many people could beat the performance of their managed plan with a simple S&P500 index fund. It offers more gains with far lower fees. However, as you can see in the chart above, if you are only doing the S&P500, and are not leaning into some hot industries, you’re missing out on the incredible performance of silver, Peru, the Magnificent 7 and clean energy.

Every year, what’s hot and what is safe changes. Over the long-term, small caps outperform large caps. (That hasn’t been the case over the last decade.) If you didn’t have growth in the most recent up cycle, you were really missing out on the performance of the Magnificent 7. Silver, Peru, technology (including AI and cybersecurity) and clean energy (four of the hot slices mentioned in our sample pie charts at our Financial Freedom Retreat) were the superstars of 2025.

Rebalancing
Rebalancing at least once a year, preferably 1-3 times a year, ensures that you remain properly protected and diversified. It also encourages you to capture gains, and to buy low when stocks go down. In other words, using our pie chart strategy, we have a buy low, sell high plan on autopilot that prompts us to do what we’re supposed to do. This system takes the emotions out of investing and is very easy to self-direct.

Even if you have a managed plan, it’s important that you are adhering to a properly protected, age-appropriate, diversified, plan that is rebalanced regularly to ensure that you are staying within the proper risk/reward parameters. Of course, if you only have 10 funds (which is all you need), you don’t necessarily need a money manager. Most people would be a lot more diversified with the 10 funds mentioned in our sample pie charts than they are in a managed plan, which tends to be concentrated on large caps. Either way, be the boss of your money. Your financial advisor works for you.

Protection
As we get older, we can’t afford to have as much at risk. Having exposure to growth and hot industries can keep our at-risk side earning above market gains. At the same time, we can earn 3.5-3.9% safely without any losses, which also secures our portfolio. In downturns, it is the side that is protected from losses that’s going to keep us happy and fiscally strong.

Buy and hope only works when the markets go up. When the markets go down, and especially when they go down like a normal recession does – which hasn’t happened since 2009 – we could lose half of our wealth. For many of us who are hoping to earn some income, the amount that we can earn income on can be cut in half, if we haven’t properly protected our assets from corrections, bear markets and recessions.

On the other side, if we are 50 and we’re keeping 50% safe, a downturn of 50% or more in stocks is not going to cut our portfolio in half. Many people who used our strategy in the Great Recession earned gains, while those around them lost more than half of their wealth.

If there are a lot of economic storms on the horizon, and there are plenty in today’s world, including war, elevated share prices and outlandish debt, you might even act a little older than you are, overweighting more safe.

It’s important to remember that most people don’t buy low because they can’t. When you lose half of your wealth, you might be struggling to pay your bills and to keep your home. You are not going to be in a position to buy stocks for a bargain or purchase an affordable home. Only those who have liquidity are in a position to take advantage of great prices when the economy struggles for everyone else.

Income
A 3.9% return on $1 million is $39,000 every year. I want to stress that paper losses are far more problematic than the salesperson is telling us. High-yield bonds and above-market dividend-paying stocks are also high-risk. If the company gets into trouble, they may cut the dividend without warning. A gap down in share price occurs before we (or our money manager) can do anything to protect our principal.

Our sample fixed income strategies have been enjoying a safe, competitive return since 2009 with no paper losses. It’s not difficult to do this. It’s just tricky. Many broker-salesmen are compensated and rewarded more when they sell higher-risk assets.

As I mentioned above, I hosted a Bond and Fixed Income Without Paper Losses masterclass a few months ago. Register for the Spring Financial Freedom Retreat, and we would be happy to provide you access to the recording of that. We spend one full day on What’s Safe at the retreat to lay the foundation for what you will need for the Bond masterclass.

21st Century Recessions
The Dow Jones Industrial Average dropped 55% in the Great Recession and took about six years to recover. You don’t want to spend half of the bull market earning back losses. The NASDAQ Composite Index plunged 78% in the Dot Com Recession. It didn’t return to its March 2000 highs until 2016. That’s a 16-year recovery period.

Since 2009, the trajectory for stocks has been up. There have been brief episodes where they went down. We had a correction that almost became a bear last April 2025. We had a big scare in the pandemic when the S&P500 dropped almost 38% in less than a month. However, we printed up $4.6 trillion, so that we wouldn’t have a recession of note. The concern was that we could enter a Great Depression without that level of financial engineering. The result was the shortest recession in history, and a very quick recovery (by August 2020). That is not normal, however.

Even after losing -19.44% in the S&P 500 and -33% in the NASDAQ Composite Index in 2022, everything recovered and came up roses.

Source: MSN.com. (c) Microsoft. Used with permission.

However, it’s hard to watch your money drop that much without getting disillusioned and wanting a new money manager or wealth plan – unless you’ve kept the proper amount safe. (We received many love letters in the pandemic.) Imagine a million dollars dropping to just $330,000, as a Bitcoin or Tesla investor would have endured during 2022.

Again, regular rebalancing and an age-appropriate, diversified plan positions and prompts us to be on the right side of the trade. Our emotions are more in check when our wealth is stable.

Bottom Line
If you want to set it and forget about it then just keep a percent equal to your age safe and the rest in an S&P500 fund. That is assuming you want to have all your wealth plan betting on the U.S. We are using value replacement country funds, which offer increased diversification in countries with lower debt to GDP. (Click to read my blog about that.)

Rebalance at least once a year to keep the plan age appropriate.

In a Debt World, getting safe is tricky. It’s not difficult, but it is tricky. We must know basic life math and take ownership of our wealth. If you’d like an unbiased 2nd opinion (I don’t sell financial products) or personalized education, I offer that in my private coaching. You can read about this time-proven system, which is enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, in my bestselling books or learn and implement it at our Financial Freedom Retreats.

If you are concerned about the massive amount of debt in the United States, there are ways to add performance and reduce risk through a simple, easy diversified plan that keeps enough safe. Having blind faith that somebody else is navigating all of this for you could prove to be a very bad bet, as it often is in recessions. Self-directing your own easy plan, or making sure that your managed plan is well-designed, will keep you achieving your performance goals, while protecting your principal. It's important to do this before the recession. As you can see in the charts below, if you wait for the headlines, it's too late.

Are you aware that the hot funds we've been featuring in our sample pie charts and retreats performed at the top of Wall Street in 2025? Silver tripled. Peru (copper) was on fire with over 100% gains. Even clean energy scored 55%...

Why not treat yourself to the gift of financial freedom to create a New Year, New Me in 2026?

Register now to join us at our online Financial Freedom Retreat April 24-26, 2026 where you'll learn how to protect your wealth, save thousands annually in your budget, invest in hot industries like AI, gold, crypto and more, and how to be in the best seat during our volatile Debt World. Register with friends and family to receive the best price. (Ask for access to a recording of our Real Estate, Bond or Rebalancing masterclass as our gift to you.) Email [email protected] to learn more and register now.

If you'd like a life-changing adventure of a lifetime, be our guest at a royal manor house in Cornwall, England, March 4-11, 2027. (With just eight rooms available, this exclusive, private, bucket-list adventure sells out a year in advance!) Call 310-430-2397 or email [email protected] to learn more. The 2025 Restormel Retreat was a magical and royal experience. Click to learn more.

Request testimonials at [email protected]. You can also view some on the flyer page of the retreat.

Learn how to:

* Invest in hot industries, such as cryptocurrency, Nvidia, artificial intelligence, and quantum computing,
* Save thousands annually with smarter big-ticket choices
* Hedge against a weaker dollar,
* Invest and compound your gains,
* Green your retirement plan,
* Easy and efficacious nest egg strategies,
* Get hot and diversified (including in artificial intelligence, quantum computing and crypto),
* Evaluate stocks,
* Avoid capital gains and financial predators,
* Keep an age-appropriate amount safe, and,
* Know what's safe in a Debt World.

Yes, it's a complete money makeover.

Email [email protected] or call 310-430-2397 to learn more and register. Learn the 15+ things you'll master and read testimonials in the flyer on the home page at NataliePace.com.

"Ten minutes into the first day I was already much smarter about investing than I ever thought I would be in my life and I knew I was in exactly the right place at this retreat. I am amazed at how EASY and FUN it is to make my money work for me and those I love. I think this kind of information should be compulsory in schools. I wish I'd learned this sooner." CM

"Many people, including educated men and women, often get into trouble when they
neglect to follow simple and fundamental rules of the type provided [by Natalie].
This is why I recommend them with enthusiasm."
Professor Gary S. Becker. Dr. Becker won the 1992 Nobel Prize in economics for his theories on human capital

"College students need this 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, former Chairman & CEO, TD AMERITRADE.

If you’d like an unbiased 2nd opinion on your current wealth plan, email [email protected] for pricing and information.

Join us for our Restormel Royal Immersive Adventure Retreat. Spring Equinox 2027. Email [email protected] to learn more. Click for testimonials, pricing, hours & details. Register now to receive the best price, the best room and four private, prosperity coaching sessions. There are only 4 rooms available. This retreat includes an all-access pass to all of our online training for a full year for two. Considering the perks, you're receiving a 65% discount to learn the life math that we all should have received in high school, and the room is free! Email [email protected] to learn more. The best rooms at the 2025 retreat were sold out in 2024! Yes, it's a great idea to register and start transforming our lives now.

Check out Natalie Pace's Substack podcast and watch videoconferences and webinars on Youtube.

Other Blogs of Interest
Gold, Silver and Crypto. Are the Safe Havens Sinking?
Hot Countries.
Oil Prices Soar. Stocks Sink.
15 Rules of the Rich.
The Venus Fly Trap of High-Yield and Private Credit Funds.
AI Says There is a 70% Chance of a Correction in 2026. Learn why.
Investors Sell Magnificent 7 for Chevron and Caterpillar. (Is this a good idea?)
6 Rules to Earn Tens of Thousands with Low Risk.
2026 Investor IQ Test.
Answers to the 2026 Investor IQ Test.
Finding Harmony: A King's Vision. Half a Century of Sustainability Leadership.
Silver and Gold's Very Bad Day.
Why are Mortgage Rates so High?
The War Over Warner Bros.
Is an EV Winter Coming?
Copper and Peru are Hot, Hot, Hot.
2026 Rebalancing IQ Test.
Answers to the 2026 Rebalancing IQ Test.
2026 Crystal Ball.
Is the AI Bubble About to Pop?
A+ 2025 Performance Report Card with Bragging Rights.
The 6 Rs of a Sustainable Holiday.
Are We Headed for Another Crypto Winter?
Will the World Cup Save the Travel Industry?
Save Thousands Annually on Health Insurance and Medical Care.
The S&P500 Has Doubled Over the Last 5 Years. Which Industries Performed Best?
Bank Stress. Loan Fraud. Auto & Airline Bankruptcies. Augurs of a Recession?
2026 Bonds and Fixed Income Without Paper Losses Strategy
Magnificent 7 Update. On Fire. Expensive.
Crypto. Copper. Silver. Gold. More Magnificent than the Magnificent 7.
Stablecoins. Should You Invest?
Clean Energy. Solar Generation is On Fire.
HHS Cuts MRNA Research. Weight Loss Drugs Soar.
Are You Paying Thousands to Lose Money?
Coke & Pepsi Suffer From Poor Fiscal Health.
Crypto Goes Mainstream. The Genius Act Becomes Law.
Wealth Hacks: Are You Getting Killed in Capital Gains Taxes?
Our Super Performing Hots and Value Replacements.
Is Your Income Strategy Losing Money?
Gold and Silver Soar.
Get Safe & Hot in 1 Easy Plan.
Home Prices Soften. Is Your City Next?
Tesla Vision vs. Waymo LiDAR and Air Taxis. Are Any of Them Safe?
Archer Aviation is Chosen to be the Exclusive Air Taxi Service for the 2028 L.A. Olympics. Company of the Year?
USA Downgraded. Is U.S. Reserve Currency Status Threatened?
Utilities: In the Eye of the Natural Disaster Storms.
Aging Mom Doesn't Want to Discuss Dilapidated House. Investors Ask Natalie.
Tesla, Tariffs, Chinese Competition and Price Wars.
Will Oil Prices Sink or Soar? Executives are Uncertain.
Health Savings Accounts. Save Thousands. Get a Tax Credit. Provide for Tomorrow's Healthcare Needs.
Restormel Manor House 2025. A Truly Royal and Magical Adventure.
9 Ways to Cut Your Tax Bill in Half and Save Thousands Annually.
Should I Have a Money Manager?
10 Rules of Successful Investing.
Indonesia: Rich in Nickel with Ambitions of Becoming an EV Battery Hub.
RoboTaxis. AI. The Magnificent 7.
Canadian, Australian and U.S. Banks. Are Any of Them Safe?
Ireland. Rich in Technology, Biotechnology and Agribusiness.
9 Money Secrets of the Ultra Wealthy.
Housing & Budgeting Solutions.
Fast Fashion. Fossil Fuels. Plastic Clothing. Atacama Desert Waste Dumps.
Fintechs and Brokerages that Fail are Not FDIC-Insured.
Housing. Unaffordable. What Works? Case studies and creative solutions.
The Underperforming DJIA, Full of Fossil Fuels and Forever Chemicals.
13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough.
11-Point Green Checklist for Schools.
10 Wealth Secrets of Billionaires and Royals.
Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments.
BRICS Currency. Will the Dollar Become Extinct?
Is Your FDIC-Insured Cash Really Safe?
Money Market Funds, FDIC, SIPC: Are Any of Them Safe?

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, funds or projects 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 an age-appropriate, diversified wealth plan, which has been designed strategically, with the assistance of financial professionals who are 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, patience and diversified strategy.

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.

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