​The 12-Step Guide to Successful Investing.
Your easy-as-a-pie-chart plan to lasting wealth & money while you sleep. Follow the 12-step program below to get started.

12 Steps to The ABCs of Investing  
​
1. Tithe 10% to your Buy My Own Island Fund.
2. Keep a percent equal to your age safe, not in stocks.
3. Overweight or underweight safe based on market conditions.
4. Know what is safe.
5. Diversify into 10 funds.
6. Underweight the bailouts & vulnerable companies or industries.
7. Get hot.
8. Rebalance 1-3 times a year.
9. Use limit orders to capture gains, not stop losses.
10. Be the boss of your money.
11. Buy & Hope is a last-century strategy.
12. Real estate.


And here are more details on each step.


1. Tithe 10% to your Buy My Own Island Fund

Remember to put 10% of your gross income into tax protected retirement accounts. (Rich people don’t put money in jars.) You want your investments in retirement accounts so that your wealth grows without you having to pay capital gains taxes. These plans are also financial predator proof (debt collectors can’t put a lien on your retirement accounts).
 
Match your employer’s contribution in the 401(k), but not more, IMHO. The good news is that the employer’s contribution is free money. The bad news is there is not very much freedom of choice in your 401K. That’s why it’s important to also contribute to your Health Savings Account, your own IRA, your kids’ college or dependent IRA funds, etc. (The college funds should be coming out of your education fund.) Self-directed IRAs typically have freedom to invest in the universe of stocks and funds. This is where you can add in hot industries and countries that might not be found in your 401K selections.
 
Name your funds with goals. That will make it more exciting to do your regular rebalancing, as you see just how much progress you are making toward the desired destination.

2. Keep a percent equal to your age safe, not in stocks.
​
The rule of thumb is to always have a percentage equal to your age safe, not in stocks, equity funds, mutual funds, etc. Most people have far more at risk than they realize. The last two recessions have lost investors more than ½ of their at-risk investments. Simply keeping the proper amount safe protects your wealth from these devastating drops.  
 
3. Overweight or underweight safe based on market conditions.
 
In 2021, the U.S. economy is expected to grow at 6.5% GDP. That’s better than it’s done in decades. If stocks and real estate weren’t already so high priced, it would be smart to overweight into equities (stocks). When the economy is expected to contract, overweighting safe is a good idea. (This is something we encouraged before the last three recessions. Yes, the data is that reliable.)

Basing your strategy on data is far better than running with your emotions, such as those risk tolerance questionnaires that many broker salesman will give you. Your emotions are rarely your friend in investing, particularly if you are a newbie. Most people have a lot of risk tolerance when stocks are high. Market tops are when you want to sell high and get more conservative, however. Few people have any tolerance for risk at the market bottom because they feel that we are in an Apocalypse. Often, they’ve already lost a lot of money. However, the market bottom is the time when you could be thinking about leaning into risk, particularly if the recovery is looking strong.

4. Know what is safe.
​
We live in a world of debt, where many things are very highly leveraged. That adds credit risk to the “safe” side of the traditional retirement strategy. At the same time interest rates are at rock-bottom. So, you have credit risk and interest rate risk in bonds. Bonds are traditionally thought of as safe. However, today they are vulnerable to capital loss, and they can also be illiquid.

Getting safe in 2021 is so tricky that we spend one full day on it at our Investor Educational Retreat. If you have a lot of bonds and wonder if you might be more vulnerable than you know, then I strongly encourage you to read the Bond section of The ABCs of Money. Consider getting an unbiased second opinion from me or attending our June 4-6, 2021 Investor Educational Retreat. We host retreats at least three times a year, so check out the NataliePace.com homepage for an upcoming retreat. Call 310-430-2397 or email [email protected] for pricing, testimonials and additional information.

5. Diversify into 10 funds.
 
Diversifying into 10 funds makes your investment strategy easy-as-a-pie-chart. 10 funds are all you need for proper diversification, and they are far easier to manage when you’re doing your rebalancing session. If you have pages and pages of holdings, chances are you actually only have 2-4 slices, rather than the 10 funds. (That many holdings is a red flag that you are on the Buy & Hope, last-century strategy – riding the Wall Street rollercoaster and losing half of your wealth in recessions.)
 
What are the 10 funds you should be diversified into? Small, medium and large, value and growth, and four hot industries or countries. See the sample pie chart below. FYI: the target date retirement funds are not well-diversified and typically perform below the market index. They do not allow you to rebalance regularly, which is an essential strategy in today’s world.

6. Underweight the bailouts & vulnerable companies and industries.

Over half of the S&P500 is at or near junk bond status. There are companies that have very strong revenue growth, almost no debt and a boatload of cash (like many technology firms), there are also companies that have been borrowing from Peter to pay Paul for a very long time, have very low credit ratings, have very high debt, and are either losing revenue or have flat revenue growth (like Boeing, Ford, most of the major U.S. banks, and many more companies that were founded more than 50 years ago). General Electric is proof of what happens when you invest in highly leveraged companies for the dividends. So be careful of your value funds and dividend funds. We address that as well at the Investor Educational Retreat.

​

7. Get hot.
​
Have you been seduced into the crypto craze? Even with the correction of the past month, Bitcoin is still up more than 3-fold on a 12-month basis. Whatever you think is going to Shoot the Moon this year, whether it is crypto, cannabis, electric vehicles, artificial intelligence or biotechnology, if you have a slice of it in your nest egg that can increase the performance and your wealth. Also, because shooting stars can drop back to Earth, the pie chart system and regular rebalancing helps you to be on the right side of the trade. If your slice of Bitcoin becomes 10 slices, as it did in April of this year, the pie-chart system is prompting you to sell high and trim your 10 slices back to one or two slices. Not only does that allow you to keep your money, it also affords you the opportunity and the emotional fortitude to buy more at a lower price, if the asset value tanks (and you still think it’s hot).

8. Rebalance 1-3 times a year.

Rebalancing 1-3 times a year is one of the most important things that you can do. Every year you get a little bit older, and should have more on the safe side. In a bull market, your wealth increases. Most of your slices swell in size.

When you compare a sample pie chart of what you should have with what you do have, rebalancing becomes easy and quite visual. If the slice is bigger than it should be, it is prompting you to sell high. Conversely if a correction has plunged prices and your slices are slim, they are prompting you to buy low. In this way, the system puts your emotions on the right side of the trade, whereas brokerage statements do quite the opposite, with losses in red and gains in green.  
 
The safe side and overweighting protect you from the plunge. Market timing doesn’t work. When you feel like selling, that’s usually the best time to buy, and vice versa. Rebalancing regularly is a buy low, sell high plan on auto-pilot.

It’s important to remember that the reason people don’t buy low is that they cannot buy low. If they have suffered massive losses, they have no liquidity – no money on hand to take advantage of opportunities. When you are keeping an appropriate amount liquid, as the pie chart system instructs you to do, you have the capital to buy low.

9. Use limit orders to capture gains, not stop losses.

Think capture gains, not stop losses. A lot of people think they should be using stop losses to prevent themselves from losing money. Your best protection from a correction is keeping a percent equal to your age safe. Overweight a little more (act older than you are) if you think the economy is weak. Because of the volatility in equities, bonds and real estate, if you set stop losses you will be losing over and over again. If you simply changed your strategy to a capture gains system, which is what the diversification and regular rebalancing is all about, then every time the markets shoot the moon, you’re selling high. Every time the stocks tank, you’re buying low. Limit orders can help this process. We talk about this at the retreat as well.

10. Be the boss of your money.

Your accountant should be well-versed in tax strategies. Your broker-salesman should be helpful in setting up a new account, making a contribution, rolling over a 401(k) into an IRA and other brokerage transactions. Be careful getting stock tips or strategies from “financial advisors” (who are most often hired as salesmen) or accountants (who should be buried in tax strategies, not equity analysis). There are still a lot of brokerages and broker-salesman that adhere to the last-century Buy and Hope strategy, which has been a disaster in the 21st-Century. Be the boss of your money. Adhere to the time-proven 21st-century strategy of proper diversification and regular rebalancing. Your financial team works for you. It’s your money and your future at risk, not theirs. Once you know what a healthy nest egg looks like, you can take charge, rather than having blind faith that someone else is doing the right thing for your money. Select your financial team as if your life depends upon it because your lifestyle does.

11. Buy & Hope is a last-century strategy.

Buy & hope is a strategy that has lost over half in the last two recessions. On this plan, investors have to use the bull markets to make up losses, rather than build their wealth. That is not a financial plan; that is a Wall Street rollercoaster. The easy-as-a-pie-chart nest egg strategy with annual rebalancing earned gains in the last two recessions and has outperformed the bull markets in between. It’s less time and less money. It’s easy and logical. It works.

12. Real estate is part of your wealth, but not part of your liquid assets (nest egg).

When you were constructing your sample Nest Egg Pie Chart, do not include the equity you have in your home or any other hard asset in the line that asks for your liquid assets. Real estate and other hard assets are an important piece of your wealth. However, you want liquidity (savings, stocks, bonds) and stability (hard assets).

Owning your own home is one of the best ways to build wealth – unless you purchase at too lofty of a price or buy more than you can afford. For important real estate strategies, read the Real Estate section of The ABCs of Money. This is also covered in our Investor Educational Retreats. My May 14, 2021 blog talks about how the real estate market will be impacted by the end of the eviction and foreclosure moratoria. Since almost five million Americans are behind on their payments, and real estate prices are unaffordable in many cities, is important to get your strategy from the data – not a real estate broker-salesman.
You can personalize your own pie charts using our free web apps. Simply go to NataliePace.com and click on the app badge. Or you can email [email protected] with the subject line, “I want my free web apps.”
 
Fix the Roof While the Sun is Still Shining
 
You wouldn’t wait for the rain to see whether or not your roof is leaking. You want to make sure your house is secure before any natural disasters occur. In a world where financial disasters are coming pretty regularly, it’s a very good idea to make sure that your fiscal house is sound now, while stocks and real estate are hitting all-time highs. It’s very easy to be complacent when everything is going well. However, stocks and real estate can’t keep shooting the moon forever. Both are very expensive. In the 21st-century, the corrections come swift and deep. If you wait for the headlines that trouble has arrived, it is always too late to protect yourself. (The next headlines about the Debt Ceiling will happen at the end of July.) So, make sure that your wealth is properly diversified, hot & protected now. Fix the roof while the sun is still shining.
 

Other Blogs of Interest
​Gardeners Creating Sanctuary & Solutions in Food Deserts.
2021 Company of the Year
​Almost 5 Million Americans are Behind on Rent & Mortgage. Real Estate Hits All-Time High.
​Beyond Meat, Oatly & The Very Good Food Co. 
Is Cryptocurrency the New Gold?
Rebalancing Your Nest Egg IQ Test.
Answers to the Rebalancing Your Nest Egg IQ Test.
Tesla & Nio Will Report Spectacular Earnings.
The Coinbase IPO.
Restore Our Earth on April 22nd (and Every Earth Day).
Should You Sell in May and Go Away? 
Adding Shoot the Moon Performance to Your Nest Egg.
Videoconferencing in a Post-Pandemic World (featuring Zoom & Teladoc).
Sanctuary Sandwich Home. Multigenerational Housing. Interview with Lawrence Yun, the chief economist of the National Association of Realtors. 
10 Budget Leaks That Cost $10,000 or More Each Year.
The Stimulus Check. Party Like It's 1999. 
Kushner's Times Square Building Plunges 80% in Value.
Will There be a Spring Rally?
Cannabis and the Road to Decriminalization in the U.S.
Hot ETFs Return Up to 50% Since October. 
​Investor IQ Test 2021.
Investor IQ Test Answers
​Shoot the Moon Stock Picks
​2021 Crystal Ball.
Would You Pay $50 for a Cafe Latte? Is Your Tesla Stock Overpriced?
Can Medmen Avoid Bankruptcy?
​Bitcoin is Back, Baby!
Real Estate Prices are Going Up. And Down.
Movie Theaters are in Trouble
Airbnb Should Have a Spectacular IPO Today.
​Cannabis is Decriminalized. Stocks Triple.
Airbnb's IPO. Should Hosts Invest?
Gifts Under $5 and Free.
Thanksgiving in a Pandemic. The Sustainability Silver Lining.
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.
​
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. ​

 
Dr. Sherridan Ross wasn’t ready to take it easy when he retired from medicine. He was, rather, determined to get his hands dirty and clean up some issues at home. Compton, California has a rich history – a past that sleeps in the soil. It’s not that easy to see it today, amidst a farrago of car exhaust, blaring sirens, eye-blight vacant lots and nutrition-deficient fast-food restaurants. Obesity is a crisis in food deserts like Compton. Dr. Sherridan knew that a big piece of the answer was hiding beneath their feet.
 
Compton was once an agricultural mecca of the U.S. It is still today one of the few cities permitted for agriculture – where you can raise horses, chickens and pigs, if you have enough land. When the city was being developed, no one tore up the soil. The houses and concrete were just strewn on top. Dr. Ross, who is a master gardener, knew just how to “wake the soil up,” with something as simple as egg shells (calcium) and banana peels (magnesium). So, he rallied some volunteers, convinced the owner of a vacant lot to come on board, and in just two weekends created the Compton Community Gardens.
 
The Fire Department was the first to sign up for having their own garden beds at the Compton Community Gardens. Locals pay $50 every six months for their own box, which can feed a family of four for that entire period of time. Dr. Ross points out that folks with a yard could get rid of the grass and sow their own lettuce, tomato and zucchini seeds instead… Once you wake up the soil in Compton, you’re in for a rich yield. There are free gardening classes available to get anyone started, regardless of whether they have a bed in the community.
 
Why Gratitude is Important
One of the first things you’ll see when you visit the gardens is that every bed has an empowering message painted on it. Gratitude. Rebirth. Forgiveness. According to TemuAsyr Martin Bey, a Cordon Bleu trained chef who has become an integral partner to the Compton Community Gardens, “We put affirmations all around the garden to create a more positive vibration. Gratitude helps us to operate from a higher place. Once you feel good, it’s easier to do good.”

The Compton Community Gardens team encourages seed sharing and community. They organize volunteers to help with planting and harvesting, and offer ongoing training through their free classes. The Compton Community Gardens have expanded into a second plot and into nine local elementary schools. Kids are learning where their food comes from, and just how delicious fresh produce can be.
 
The Gleaning Beds
The Compton Community Gardens is also dedicated to helping the neighborhood. Though most of the garden beds are rented, there are always “gleaning” beds set aside for the public good. Using Dr. Ross’ companion method, people are harvesting 70 pounds of tomatoes out of one plant in a 4’x 8’ bed – far more than any one family can eat. The food delivered by the Gardens’ volunteers was a Godsend in the pandemic for thousands of families in need, and will continue to play a role in the recovery.
 
Fast Healthy Organic Food
New gardeners are always surprised at just how fast food grows in healthy soil. According to Dr. Ross, a head of lettuce grows to maturity in just 33 days. Zucchini grows four inches a day in the biodynamic Compton soil. Tomatoes that have a strawberry plant next to them don’t suffer from the attack of the tomato hornworm. The guidance of a master gardener makes all the difference. As Dr. Ross told me:
 
We teach people how to grow their garden. Once your garden is growing, you should be able to stand at the end of your garden and not see any soil at all. When you plant a diverse garden, you confuse the insects. Now they don’t get the smell they want to attack your vegetables. You’re cutting down the water by 2/3rds. If the sunlight can’t get to the soil, it can’t dry out the soil. You have to water once or twice a month, instead of once or twice in a week.
 
 
It’s About Much More Than a Garden
Dr. Ross’ vision was to get people eating healthy food and roll back the obesity crisis in his beloved birthplace. He works with teens, not just to give them food, but also to give them hope. Temu believes that fresh, healthy, organic food creates a memory and can actually reduce crime. In fact, the inspiring messages on the garden beds were all painted by local teens, some of which are affiliated with gangs. According to Temu, “Developing a relationship with food helps us to have healthier relationships overall. When you create a healthier life, it’s easier to create a healthy community. This is life-changing. It can revolutionize and uplift our community.” As Temu speaks, someone stops their planting to say, “Amen.” Heads nod in agreement all around the garden, as everyone acknowledges the grander vision and mission of creating health and sanctuary in their city.  
 
 
 
You can learn more about gardening in Dr. Sherridan Ross’ book Introduction to Organic Gardening. Follow The Compton Community Gardens on Instagram to learn when the next volunteer planting or harvesting day will be. (The next Harvest Day is May 28th.) You can support their work by ordering a t-shirt or tote bag at https://www.ComptonCommunityGarden.com/. Click to watch Temu and Dr. Ross discussing the Compton Community Gardens.
 

See more inspiring Earth Gratitude stories on our YouTube channel. Read about conservation and sustainability projects from around the world in the Earth Gratitude free ebooks. 

There are actually two companies that top the charts for 2021. They are providing things that most of us need most right now, which we didn’t concern ourselves at all with a year ago. They are not the only companies doing what they do. However, they are doing it best. Discovering which company is the best in a hot field requires going to the basics of what makes a company great. What is the product? Who are the customers? Why is that company‘s product superior and why does everyone want it more than the competition’s version? Who is leading the company and can the leadership team and Board of Directors continue to produce a superior product and keep the competition at bay?
 
The Product and Customers
When you think of the one thing that everyone is clamoring to get, which none of us cared about a year ago, it’s the coronavirus vaccine. The marketplace is the largest one we’ve ever seen – potentially everyone in the world.
 
The Competition
Many major biotech companies have launched a vaccine. Pfizer and Moderna have a leg up on the competition with FDA approvals and solid distribution. Johnson & Johnson and AstraZeneca have been dogged with production malfunctions, side effects or regulatory concerns. With over 1/3 of U.S. adults vaccinated (or in the process of receiving their 2nd shot), you might think that the party will be over for the companies that are currently approved. However, there is still the rest of the world, and any booster shot that might be needed, which many experts agree is likely.
 
When I was analyzing companies that are competing with the Covid-19 vaccine, I also put in a company that provides Covid testing and companies that are developing immunology and therapeutic solutions for the virus. What I discovered was that the revenue growth of two of the companies on my Stock Report Card was positively eye-popping. Moderna’s revenue increased to $1.9 billion in the 1st quarter, from just $8 million in the year prior – an increase of 23,000%. The company expects to deliver 800 million doses of their vaccine in 2021, with a goal of increasing that to 1 billion. At that level, Moderna’s revenue in 2021 could easily reach the $19.2 billion indicated by the APAs (Advance Purchase Agreements). MSN.com pegs Moderna’s forward price-earnings ratio at just 6.47, which is astonishing for a company with this kind of growth.
 
Fulgent Genetics, makers of a Covid-19 test, along with many other diagnostic tests, saw revenue increase by 4,500% to $359.4 million, with net income of $200.7 million. Fulgent is another company with a very low P/E of just 4.54.
 
Biotechnology Risks
Biotechnology is a very volatile sector. The Covid-19 vaccine came out quickly, without any longitudinal testing. Many folks had already received the Johnson and Johnson vaccine, when they were advised that there was a small risk of blood clotting. If any major health side effects should be revealed and tied to Moderna (or Pfizer), you can expect the stock to drop pretty suddenly. (This makes an investment in Fulgent slightly safer.) The only thing that saves publicly traded biotechs from share price volatility is a preauthorized buyback plan. (That’s what Boeing has done for the past two years to keep its stock high, amidst the multiple problems with their airlines and the airline industry itself.)
 
Immunology
If you might be interested in how the body can be aided in healing itself, then you might be more interested in Regeneron, Adaptive and Vir Biotechnology. These companies all have benefits beyond Covid-19. All of these companies have strong connections to The National Institute of Health and the CDC. Adaptive has partnerships with Amgen and Microsoft, to name a few. Vir Biotechnologies partners include The Gates Foundation. Smaller companies like Vir Biotech and Adaptive Biotechnologies have extreme share price volatility. Vir’s price soared to $140 a share earlier this year. Today’s price is quite a bargain compared to that, if it can reach those heights again. The pipeline, trial results and FDA approvals are what tend to fuel investor interest.
 
3-Ingredient Recipe for Cooking Up Profits
Whether you are interested in Moderna, Fulgent, Vir or Adaptive, after you’ve found your leader, you must then purchase the stock for a good price to make sure that you are on the right side of the trade. There’s no reason to think about price, until you’ve found the leader. (Take the ingredients in order.)
 
3-Ingredient Recipe for Cooking Up Profits

1. Start with what you know and love
2. Pick the leader (using our Stock Report Card® & 4 Questions®)
3. Buy low, sell high (easy to say, hard to do)

 
Price-earnings ratio can be one tool for making sure that you are purchasing for a reasonable price. For instance, Moderna is trading close to an all-time high. However, based upon the 2021 and 2022 sales potential, the price is actually quite low. As more and more headlines emerge about the astonishing revenue growth of Moderna, the price could be pushed up from where it currently is. So, if you try and wait for a better price, it may never come. On the other hand, if there is any problem with the vaccine, then the price could plummet. Biotech offers higher risk, and higher rewards.
 
Fulgent is trading at a 62% discount from the highs set in January of 2021. If you think there will be no need for Covid-19 testing going forward, then Fulgent isn’t the company for you. However, Fulgent is projecting revenue of $830 million this year, which is double last year’s. That’s amazing growth, particularly for a company that is trading at a P/E of 4.54.
 
Companies of the Year
2021’s Company of the Year designation is shared by Moderna and Fulgent. In 2021, the world needs a Covid-19 vaccine. Beyond 2021, we will likely need a booster. We will also continue to need Covid testing, particularly if we want to travel.
 
Regular Rebalancing & Babysitting
Whenever you are investing in an individual company, it requires babysitting. If the company shoots the moon, it’s a very good idea to do a little profit taking and take some gains off the table, just in case there is any kind of bad news down the pike. Here’s where the pie chart system and regular rebalancing can help you. Buy & Hold is not a strategy that has worked in the 21st-Century – not for stocks, gold, crypto or real estate. Proper diversification with regular rebalancing does.
 
The Macro Environment
2021 is predicted to bring 6.5% GDP growth in the U.S. (compared to 8.4% in China). That would usually equate to a stellar year for stocks. However, the recovery is already priced into most stocks. (Moderna and Fulgent are some of the only stocks I’ve seen that are trading at a value). There is a Debt Ceiling debate coming up for the end of July in Congress. Additionally, the U.S. has a negative outlook on their AAA credit rating from Fitch Ratings. A downgrade or Congressional gridlock would be negative for stocks.
 
It’s important to remember that the macro environment can influence the trajectory of any company’s share price. A rising tide lifts all ships. A sinking tide can ground them.
 

Join us for our June 4-6, 2021 Financial Empowerment Retreat. (Click to learn more.) In 3 days, you'll learn how to pick great companies (like Moderna and Fulcrum), and how to incorporate them into a well-diversified wealth plan. You'll discover how to protect your wealth and save thousands annually in your budget with smarter big-ticket choices. The retreat is a complete Money Makeover that will transform your life forever. Bring your friends, family and teens for an unbelievably low group rate. Call 310-430-2397 or email [email protected] to learn more now. Call 310-430-2397 or email [email protected] 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. ​

Almost 5 Million Americans are Behind on Rent & Mortgages, While Home Prices Hit New Highs.
Real Estate: Beyond the Looking Glass.
11 Critically Important Facts to Factor in if You’re Considering Purchasing or Selling Real Estate
 
2.56 million renters and 2.33 million homeowners are behind on their payments (households). Missed rental payments are at about $35 billion, with missed mortgages at about $68 billion. In addition, 41.4% of student debt borrowers (26 million) have missed payments on their college loans, totaling $122.3 billion in missed payments (source: RIHA).
 
The U.S. Treasury has been busy writing checks to try and slow down any foreclosures and evictions. On May 13, 2021, the department announced that $742 million has been distributed to a Homeowner Assistance Fund, while $21.6 billion has been allocated for Emergency Rental Assistance. If you are in need of assistance, click on the blue highlighted links to get additional information. Be aware, however, that the HAF and ERA funds are going to “governmental entities,” not directly to landlords or renters. If you qualify, then you should be able to apply for assistance through your state agency. The new funding came just at a time when the rental and foreclosure moratoria was slated to end on June 30, 2021. (A federal judge threw out the moratoria last week as well.)
 
​We all know someone who is touched by these missed payments. However, the news is telling us that real estate is on fire – creating a thirst for buying among Millennials, who are bidding up already unaffordable home prices. These new bailouts, alongside the moratoria, have kept a massive amount of shadow inventory, all of this distressed property, from hitting the multiple listing services. That would have been devastating to real estate, causing a plunge in prices, which could sink the economy back into a crisis. That is something the Feds, U.S. Treasury and The Administration are all trying to prevent.
 
New homebuyers are simply not factoring the big picture into their decisions, but are being seduced into purchasing at an all-time high from the sexy ads and sophisticated real estate broker/salesmen. Almost 1/3 of purchasers are first-time home buyers (31%). It’s a seller’s market. 

​The high price of real estate is helping with the land value of commercial real estate, even if malls, hotels and office buildings are still largely vacant.
 
Despite what you hear about real estate that puts you in a frenzy to own a new home, it pays to understand what is really going on and to be patient about a purchase that will affect your life for the  next decade or longer. Real estate is not a short-term investment. If you buy high and the price drops, it becomes an illiquid nightmare with octopus arms that reach into every vein of wealth you might have, making your FICO score plunge and draining your nest egg dry. As a warning of how quickly things can head south, a Times Square mixed-use building plunged 80% in value over the last few years.  

​Below are some Beyond the Looking Glass facts and indicators that tell a richer story than what you are seeing and hearing in the mainstream media. Factoring this data into the mix will help you to understand how to navigate your own home and real estate investments, with a view beyond the near-term. Just how could the economy and a general repricing affect your retirement and stock/bond portfolio, in addition to the value of your home?
 
11 2021 Real Estate Facts
 
Landlords are hitting a wall
Renters get another bailout
Intergenerational Housing
Hotels
Malls are turning into Amazon warehouses
Earnings are everything but
Office buildings are incorporating social distancing
Shadow inventory
Exodus
Credit ratings
High price-earnings ratios
 
And here is more color on each point.
 
11 2021 Real Estate Facts
 
Landlords are hitting a wall. Some have had to reduce the rent for struggling tenants. Others have tenants that haven’t paid at all since the pandemic started. The arrears are technically due. However, will the money ever be collected? Can the landlords afford to write off the unpaid rent, or will they lose their property?
 
Renters get another bailout. Renters may qualify for relief. However, many understand this is a short-term fix for housing costs that were unaffordable to begin with. As a result, we’re seeing a dramatic increase in intergenerational housing.
 
Intergenerational Housing. 18% of the homes that Gen Z are purchasing, and 12% overall, are multigenerational homes – pushing up the prices of larger homes. Folks are thinking, while I’m getting an extra room or two for my Work-from-Home office, why not move the parents in (who can help out with the mortgage)? Vice-versa, when a young professional gets behind, their first call might be to the parents for room at the inn until the financial trouble subsides. As you can see in the chart below, intergenerational housing has hit a record high – higher than it was during the Great Depression (another time of necessity).
 

Hotels. Hotels are hoping for a renaissance in the 2021 summer vacation market. Others are remodeling to become multi-unit housing. In the meantime, revenue was down by 50% or more in many casinos and hospitality/travel companies. Despite that fundamental weakness, many companies are trading near their all-time highs and unsustainably high prices. Booking Holdings (Priceline) has a 65 forward price-earnings ratio, while Las Vegas Sands Corp’s P/E is 389.
 
Malls are turning into Amazon warehouses. Amazon has been buying up empty malls and turning them into fulfillment centers. The concept has struggling mall REITs, like Simon Property Group, trading near 52-week highs, though revenue is still down (and being propped up by earnings that are everything but sales).
 
Earnings are everything but
When S&P Global downgraded Cushman & Wakefield from BB- to B+ on March 21, 2021, the note included a revealing fact. “The majority of the company's EBITDA came from add-backs for interest expense ($197.6 million) and depreciation and amortization ($263.6 million), which we view as lower quality compared with core earnings,” S&P reported. Office buildings and malls are vacant and empty, so how are they reporting earnings at all? The answer lies in add-backs and other financial engineering. In other words, be careful about investments in REITs and other distressed property that is undergoing a structural shift in its business model.

Office buildings are incorporating social distancing. Work-from-Home and the pandemic changed the business model for office buildings overnight, and look to be a structural shift going forward. Salesforce’s President Brent Snyder announced on February 9, 2021, that ”the 9-to-5 workday is dead.” According to Snyder, most of their staff will work remotely or “flex,” coming into the office only 1-3 days/week for “team collaboration, customer meetings and presentations.” This “work-from-anywhere model” means that Salesforce will be able to reduce its real estate footprint. I reported on this more in depth while I was in New York City in March. Click to read that blog.  
 
Shadow inventory. According to AttomData, 1/3 of mortgaged homes are considered to be equity-rich. (If this describes you, be sure to read my Equity-Rich blog, to be sure you can withstand a world where housing takes a downward spiral.) However, 2.6 million homes are also severely underwater (where the loans are 25% higher than the home value). 2.3 million households are behind on their mortgage, with probably some cross-over in the two.
 
This distress is not showing up on the MLS. However, these homes are vulnerable to foreclosure and auction. (If you’re in this position, contact our office at [email protected] or 310-430-2397 for some key information that might save your life boat.) Patient home buyers who purchase in the shadow inventory, where prices can be discounted by up to 1/3, will find better bargains than those relying solely upon a broker-salesman.

Exodus. California’s population fell by 182,000 in 2020, costing it one Congressional seat. New York City’s population fell by 108,000 in 2020. Sadly, part of the drops were due to COVID-19 deaths. However, unaffordable housing costs in both areas are pushing residents to more affordable areas, particularly now that employers have become more flexible with working from home. Areas like Sacramento and Modesto have attracted former San Francisco residents, according to Lawrence Yun.
 
​Credit ratings. REIT investors should be alerted that many have very high debt and very low credit scores. Companies in junk bond status include: Cushman & Wakefield, Wynn Resorts and Beazer Homes, among many others.
 
High price-earnings ratios.
Revenue growth in 2021 could start to look good even for severely distressed companies, simply because it’s not difficult to look better than 2020 – the worst year, economically speaking, of our lifetime. 2021 is projected to produce the best year in decades, with 6.4% GDP growth. However, this is already priced into the stock market. The forward outlook for price-earnings ratios are historically high…
 
As you can see in the chart below, the only two times in history when price-earnings ratios have been this high were before the Dot Com Recession (2000) and before the Great Depression (1929). Now would be a good time to know exactly what you own in your managed brokerage account and your retirement account, and to be sure that you are comfortable with the amount of risk that you have.

Bottom Line
There has been a massive, historic effort by the U.S. Treasury and the Federal Reserve Board to keep prices of real estate and stocks right where they are. This has resulted in the bull market we are enjoying in both markets, even while the economic fallout of the pandemic is still swirling in the clouds, soil and shadow inventory. 
 
In the short-term, if you purchase a home or any real estate right now, it might look like you are a genius. However, buying high in any hard asset can be a decades-long nightmare. Here are a few key strategies that should pay off.

• Be a patient buyer,
• Shop in the shadow inventory,
• Have a vision of what works over a 10-year period (or beyond),
• Do the math. Thrive Budget for your own home; your own P&L if it’s to be a business,
• Be aware of the 4 Ds of real estate – disaster (and pandemics), divorce, death and depression,
• Think bigger on how you might monetize your home with multigenerational housing or room-mates,
• Every soul has her own geography. Be sure that you can create a sanctuary home in any locale you’re considering relocating to.

 
Also, read the Real Estate Blogs & Interviews below.
 
Interview with Lawrence Yun, the Chief Economist of the National Association of Realtors
Blog
Videoconference

Times Square Building Plunges 80% in Value

Real Estate Prices are Going Up

Real Estate Challenges & Opportunities

Real Estate: Feeling Equity-Rich?

Real Estate Solutions


​We spend one full day mastering time-proven real estate investment strategies, including income-producing property, at the Financial Empowerment Retreat June 4-6, 2021. Join us!

Join us for our June 4-6, 2021 Financial Empowerment Retreat. (Click to learn more.) In 3 days, you'll learn how to pick great companies (like Beyond Meat, The Very Good Food Co., Oatly, Zoom Video, Tesla, Aphria, Veritone and Nio), and incorporate them into a well-diversified wealth plan. You'll discover how to protect your wealth and save thousands annually in your budget with smarter big-ticket choices. The retreat is a complete Money Makeover that will transform your life forever. Bring your friends, family and teens for an unbelievably low group rate. Call 310-430-2397 or email [email protected] to learn more now. Get the best price when you register by Saturday, May 15, 2021. Call 310-430-2397 or email [email protected] to learn more. 

Other Blogs of Interest
​Beyond Meat, Oatly & The Very Good Food Co. 
Is Cryptocurrency the New Gold?
Rebalancing Your Nest Egg IQ Test.
Answers to the Rebalancing Your Nest Egg IQ Test.
Tesla & Nio Will Report Spectacular Earnings.
The Coinbase IPO.
Restore Our Earth on April 22nd (and Every Earth Day).
Should You Sell in May and Go Away? 
Adding Shoot the Moon Performance to Your Nest Egg.
Videoconferencing in a Post-Pandemic World (featuring Zoom & Teladoc).
Sanctuary Sandwich Home. Multigenerational Housing. Interview with Lawrence Yun, the chief economist of the National Association of Realtors. 
10 Budget Leaks That Cost $10,000 or More Each Year.
The Stimulus Check. Party Like It's 1999. 
Kushner's Times Square Building Plunges 80% in Value.
Will There be a Spring Rally?
Cannabis and the Road to Decriminalization in the U.S.
Hot ETFs Return Up to 50% Since October. 
​Investor IQ Test 2021.
Investor IQ Test Answers
​Shoot the Moon Stock Picks
​2021 Crystal Ball.
Would You Pay $50 for a Cafe Latte? Is Your Tesla Stock Overpriced?
Can Medmen Avoid Bankruptcy?
​Bitcoin is Back, Baby!
Real Estate Prices are Going Up. And Down.
Movie Theaters are in Trouble
Airbnb Should Have a Spectacular IPO Today.
​Cannabis is Decriminalized. Stocks Triple.
Airbnb's IPO. Should Hosts Invest?
Gifts Under $5 and Free.
Thanksgiving in a Pandemic. The Sustainability Silver Lining.
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.
​
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 plant-based protein market is steadily growing. In 2019, global sales were $17.2 billion. By 2027, vegan meat substitutes and plant-based protein liquids (like Oatly) are projected to ring up almost $28 billion in sales. While Beyond Meat® and Impossible® were the pioneers in vegan burgers, Canada’s The Very Good Company is gaining traction with its savvy branding and chef-inspired recipes. Even old-school food makers like Kellogg, Conagra, Archer Daniels and Midland and Dupont Food are all showing up at the party. So, which is the best horse to bet on?
 
Oatly is launching its U.S. IPO with $421 million in sales and a global footprint. The Very Good Food Company, which started in Canada and is expanding into the U.S., is lapping the competition in revenue growth. 2020 revenue was $3.8 million (U.S.), up 364% year over year. Beyond Meat enjoys partnerships with large restaurant chains, and one hundred times the sales of the Very Good Company, at $407 million in 2020.
 
Below is a more detailed examination of the strengths and weaknesses of:

• Beyond Meat,
• The Very Good Food Company,
• Oatly, and,
• The old-school food providers that are leaping over themselves to join the plant-based protein party.

 
Beyond Meat
Beyond Meat has great partnerships. It has shelf space at major food retails, like Whole Foods, Kroger, Sprouts, and Target, and branded fare at fast food chains, like Carl’s Jr. and McDonald’s McPlant menu. With all of those marquise partnerships, why in the world did the market value of Beyond Meat just drop by half, to a 52-week low of $103/share (on May 10, 2021)?
 
Retail was up a respectable 28% in the 1st quarter, compared to the same quarter a year ago. However, Beyond Meat’s food service vertical (fast food) was down 26%. Beyond Meat’s CEO Ethan Brown cited COVID-19 as the cause for the weakness in food services. In the 1st quarter of 2021, people were still more comfortable cooking at home. With the vaccine roll-out and more states opening up, there is cautious optimism that the food service vertical will come back. Meanwhile, the company’s focus is on building out the production infrastructure needed for continued expansion in the U.S., the EU and China.
 
Beyond Meat’s shares were trading above $200/share in late January of this year. While it’s easy to blame the tepid 2.7% year-over-year revenue growth in the 1st quarter for the share price plummet, the core cause is more likely insider selling. The insiders of Beyond Meat have been on a selling spree since the company hit the January 2021 high. This is something to be wary of with The Very Good Food Company, too. Insiders are always going to be tempted to sell into strength, to turn some of their wealth on paper into usable currency – particularly after the pandemic scare.
 
Beyond Meat has $1.1 billion cash on hand (as of April 3, 2021). One billion dollars worth of bond buyers were willing to bet on the price of Beyond Meat more than doubling. They are receiving no interest, but will be able to convert to shares at approximately $206/share in 2027.
 
Beyond Meat has $1.1 billion cash on hand (as of April 3, 2021). One billion dollars worth of bond buyers were willing to bet on the price of Beyond Meat more than doubling just two months ago, on March 2, 2021. They are receiving no interest, but will be able to convert to shares at approximately $206/share in 2027.

​The Very Good Food Company (TSXV: VERYV) (OTCQB: VRYYF) (FSE: 0SI)
Anytime you see sales/revenue growth of 364%, it is positively eyepopping, particularly when the most recognized brands, like Beyond Meat, are flatlining. So, how is The Very Good Food Company achieving such feats? According to CEO Mitchell Scott in the 4Q 2020 earnings report, The Very Good Food Company’s “eCommerce channel demonstrated an 825% increase in online orders,” while “retail distribution points [grew] from 100 to 1,300.” The company has a very smart social networking strategy in place. The minute the company name came up on my radar (from a WhatsApp text), I started getting ads on my Instagram account. The sassy approach to branding is quite appealing, too.

This year, The Very Good Company purchased the Cultured Nut and will rebrand this popular artisanal nut cheese as The Very Good Cheese Co. On May 6, 2021, the company signed a distribution deal with United Natural Foods to distribute their products in the U.S. UNFI is the largest publicly traded wholesale distributor of health and specialty food in North America. This deal expands the partnership the two companies began in Canada in the 4th quarter of 2020.

The addition of The Very Good Cheese Co., UNFI distribution, and a new production facility in California, to expand into the U.S. market, bodes well for continued rocket-like revenue ascensions.
 
The only downside to an investment now in The Very Good Food Company is that the share price is even more astronomical than the revenue growth. The company soared from 57 cents to $7.43 after its public listing in Canada. (It trades off the boards in the U.S.) You might think that the current price of $3.69 is a pretty good deal, until you realize that the company’s market value is $434 million, while the annual revenue is under $4 million. Last year’s net loss was $11.42 million. The Very Good Food Company is valued at 112 price-to-sales ratio, compared to Beyond Meat’s price-to-sales ratio of 17. Both companies are still in the red – ramping up production to meet increasing demand.
 
With the whirlwind of acquisitions and distribution deals, it’s certainly possible that The Very Good Food Company grows beyond its current valuation, without ever dipping. However, that bet is a gamble, particularly when insiders might be tempted to cash in some of their paper gains.
 
Oatly
Oatly is another company with astonishing revenue growth. Sales doubled in the most recent quarter compared to the prior year. Oatly has oatmilk, yogurt and ice cream, making these popular delights available to the lactose-intolerant, as well as those folks who want a lower carbon footprint. You can buy Oatly in grocery and drug stores around the world. 64% of Oatly’s revenue comes from EMEA, with 24% in North America and 13% in Asia. (Oatly is based in Sweden.)
 
According to Oatly’s website, “Oatly exists in order to help as many people as possible make the switch from an animal-based diet to plant-based, which scientists say is one of the most effective actions an individual can take right now to save our planet.” If you’re a fan of Oatly’s products and mission, chances are you’re going to want to own the stock. The only real question is, “Is the price right?” Should you buy now, or wait for a better bargain?
 
Once Oatly announces its price offering and hits the big boards, it will be easier to determine if the price is a deal or too lofty. The F-1 IPO filing is missing a few key elements, such as board members. It warns that Oatly may be a “controlled company” that doesn’t have to adhere to all of the rigors of most publicly-traded companies, such as boards. Another potential red flag for investors (not for customers) is that the company has lost money for several years, with $60.4 million and $35.6 million lost in 2020 and 2019, respectively. Oatly, like Beyond Meat and The Very Good Company, is investing in expansion – like many younger, popular companies (such as Nio and Tesla). Any kind of supply disruption with oats would be catastrophic.

Old-School Food Providers
Plant-based cuisine is only a small piece of the old-school food manufacturers, like Conagra, Kellogg, Tyson, Archer Daniels and Midland and Dupont. Food manufacturing tends to be a very low-margin business, with predictable sales. As such, many of these century-old companies have flat revenue growth, and are carrying a substantial load of debt. Whereas the three plant-based protein leaders listed above are borrowing money to keep up with surging demand of their innovative products, most of the old-school food manufacturers have borrowed money to pay dividends and buy back their own stock (financial engineering). Conagra is rated BBB-, Kellogg is BBB, Tyson is BBB+. BBB is the lowest rung of investment grade before the company becomes speculative (a junk bond).
 
Bottom Line
Investing in Beyond Meat at today’s price is a 50% discount from where the company traded in January of this year. The Very Good Food Company is still trading at a very lofty price, even with a 50% discount off the high. Oatly’s price might be delicious. We’ll just have to open up the package once it hits the big boards to see. (Stay tuned to my Twitter feed for an update, as the pricing and the public listing are announced.)
 
Beyond Meat’s share price rollercoaster ride is an example of why regular rebalancing is key to successful investing in the 21st-Century. (Click to get more information on how to rebalance regularly in your wealth plan.) Rebalancing works. Market timing rarely does.
 
Full Disclosure: I own shares of Beyond Meat.                            
 
 
Join us for our June 4-6, 2021 Financial Empowerment Retreat. (Click to learn more.) In 3 days, you'll learn how to pick great companies (like Beyond Meat, The Very Good Food Co., Oatly, Zoom Video, Tesla, Aphria, Veritone and Nio), and incorporate them into a well-diversified wealth plan. You'll discover how to protect your wealth and save thousands annually in your budget with smarter big-ticket choices. The retreat is a complete Money Makeover that will transform your life forever. Bring your friends, family and teens for an unbelievably low group rate. Call 310-430-2397 or email [email protected] to learn more now. 

Other Blogs of Interest
Is Cryptocurrency the New Gold?
Rebalancing Your Nest Egg IQ Test.
Answers to the Rebalancing Your Nest Egg IQ Test.
Tesla & Nio Will Report Spectacular Earnings.
The Coinbase IPO.
Restore Our Earth on April 22nd (and Every Earth Day).
Should You Sell in May and Go Away? 
Adding Shoot the Moon Performance to Your Nest Egg.
Videoconferencing in a Post-Pandemic World (featuring Zoom & Teladoc).
Sanctuary Sandwich Home. Multigenerational Housing. Interview with Lawrence Yun, the chief economist of the National Association of Realtors. 
10 Budget Leaks That Cost $10,000 or More Each Year.
The Stimulus Check. Party Like It's 1999. 
Kushner's Times Square Building Plunges 80% in Value.
Will There be a Spring Rally?
Cannabis and the Road to Decriminalization in the U.S.
Hot ETFs Return Up to 50% Since October. 
​Investor IQ Test 2021.
Investor IQ Test Answers
​Shoot the Moon Stock Picks
​2021 Crystal Ball.
Would You Pay $50 for a Cafe Latte? Is Your Tesla Stock Overpriced?
Can Medmen Avoid Bankruptcy?
​Bitcoin is Back, Baby!
Real Estate Prices are Going Up. And Down.
Movie Theaters are in Trouble
Airbnb Should Have a Spectacular IPO Today.
​Cannabis is Decriminalized. Stocks Triple.
Airbnb's IPO. Should Hosts Invest?
Gifts Under $5 and Free.
Thanksgiving in a Pandemic. The Sustainability Silver Lining.
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.
​
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. ​

Is cryptocurrency the new gold?
  
When Boomers are worried about a weak dollar or the U.S. economy being buried in debt, they think of gold as a hedge. Gen Z and Millennials get excited about cryptocurrency – peer-to-peer money that bypasses banks. When Jerome Powell compared cryptocurrency to gold this year (multiple times), his rationale is that both are vehicles for speculation. Cryptocurrency, like gold, is not being used to pay for things. Yes, theoretically you can buy a Tesla with Bitcoin, and secure, peer-to-peer monetary transactions could indeed take hold in the future. However, when word on the street is that Bitcoin is going to hit $100,000/coin or a million a coin, the heart of that hyperbole is the hope of getting rich quick. Speculation.

Tesla was by far the hottest investment of 2020, rising more than 8-fold on the year. Bitcoin almost quadrupled. Gold scored a respectable gain of 22.3%.
 
2021 saw Bitcoin soar even higher. The coin hit $64,899 on April 13, 2021, and is currently at $54,905. The volatility in crypto is not for the faint of heart. (See below when we discuss the Crypto Crash of 2018.)
 
All cryptocurrencies are not created equal. Some were created as a joke (Dogecoin). Others are out and out scams (those #WallStreetBets crypto schemes, MLM coin clubs, and Joff Paradise and his Trade Coin Club scam, which I warned of in my blog of June 25, 2017). Some are run by executives who have been in trouble with the SEC in previous ventures (Ripple XRP).

Also, since crypto is a traders’ paradise right now – and is not being used as currency – it’s important to apply tried and true investing strategies. Buying high, hoping to sell higher, is rarely a good idea. The Buy and Hold strategy wiped out crypto investors just a few years ago. It’s easy to lose sight of the lessons of the past (the very recent past) when stocks and crypto are trading at all-time highs. However, it’s better to be sobered up by data and statistics than by reality.
 
Elon and Jack
Bitcoin‘s most recent surge has a lot to do with Elon Musk and Jack Dorsey. Both have gotten behind Bitcoin in big ways. When they added the Bitcoin symbol to their Twitter profiles, popularity in Bitcoin began to soar. Jack has 5.3 million followers; Elon has 52.7 million. (The symbol is no longer in Elon’s profile, but is still on Jack’s.)

On March 15, 2021, Tesla’s CFO Zach Kirkhorn added the title Master of Coin to his CFO standing. (Elon became the Technoking.) Tesla has begun accepting Bitcoin in the U.S. (but not Bitcoin fork products, like Bitcoin Cash or Bitcoin SV).

In 2020, Square’s 2020 total net revenue was $9.5 billion, more than double that of 2019. If you exclude Bitcoin revenue, the total drops to $4.93 billion – a mere 17% increase over 2019. Square enjoyed a $4.6 billion revenue bump by offering Bitcoin to its Cash App customers. Since the company has to purchase Bitcoin in order to sell it, there isn’t a great deal of profit yet. Square’s Bitcoin costs in 2020 were $4.47 billion. According to the Square 4Q 2020 Shareholder Letter, “In January 2021, more than one million customers purchased Bitcoin for the first time.”
 
Both Tesla and Square claim to be Bitcoin believers for the long run. However, Tesla sold 10% of its holdings, according to an Elon Tweet on April 26, 2021. Both Square and Tesla also acknowledge that if the price of Bitcoin goes down, they will be forced to take a charge. Value of investments must reflect the current market fair price, according to accounting rules. If the price of Bitcoin falls as precipitously as it did in 2018, or if a downtrend starts developing, both companies might decide to do a little profit-taking, while the getting is good – in order to avoid a massive, devastating write-down. CFOs are in charge of liquidity, ROI and good earnings reports. Having a large markdown won’t please their shareholders.

On face value, you might think that with the support of Square and Tesla, Bitcoin almost has to stay high. However, with Bitcoin’s trillion-dollar market value, Tesla and Square investments are a smaller piece of the pie. There are many hedge funds, private equity and even venture capital funds that are invested in Bitcoin. Finance geniuses are well aware that making a return on investment involves selling to capture your gains. No one wants to be caught holding the bag. So, once a whale starts selling, the knife drop can slice rather quickly, which is exactly what happened in 2018, and in April when Bitcoin dropped by $10,000/coin. The April 2021 Bitcoin rally to $64,899/coin was led by retail traders (Main Street), with whales taking profits, according to Coindesk.
 
The Crypto Crash of 2018
Bitcoin ballooned to a value of $20,000 in December 2017. Within two short months, the coin crashed by 60%. At the end of the year, it was down more than 80% making the correction worse than the Dot Com crash (of -78%). No one stepped forward to claim that they were the ones who pocketed all the gains. However, a crash of that magnitude inevitably involved the whales. The individual Main Street investor is the one who typically gets caught on the wrong side of the trade. Many Bitcoin millionaires were destroyed in 2018. An online search should reveal some pretty heartbreaking tragedies (and, sadly, suicides). That’s why it’s very important to adhere to a time-proven system for investing when you are considering a crypto trade in 2021.
 
Invest Within Reason
Volatility is one of the reasons why it’s a good idea to think of cryptocurrency investments as a slice of your wealth strategy and not the whole banana. If you really believe in Bitcoin or another coin, then mock up a sample pie chart using my free Nest Egg Pie Chart web app. (Email [email protected] with Web App in the subject to receive links to it.) Consider investing a couple of the hot slices in the cryptocurrencies you most believe in. If the coin shoots the moon, and your slice becomes ten slices, it is prompting you to sell high. (Keep a slice or two if it’s still hot.) If the coin drops in price and you still believe in it, you are prompted to buy more at a lower price. Learn more about nest egg rebalancing in this Nest Egg IQ Test.

Crypto Criminals
Be very wary of any cryptocurrency investment tips that you receive by email or as a hot tip from a friend. Grade your guru before you listen to anything they say. (Click to read a blog on why this is imperative.) Whenever any asset or industry gets hot, the thieves and rats crawl out of the woodwork. They will try to hide their predatory nature in the cloak of something that really appeals to you – like an investment you’re infatuated with or a brand you believe in. If someone is demanding that you act now or miss out on the opportunity, that’s a common hard-sell technique. If the amount that you’re offering to invest is too small and they say you have to up the commitment because they’re already making an exception for you, same thing. Big red flag.

Dogecoin
This is a coin that started out as a joke. The creator was active in warning against speculative trading in cryptocurrencies, and is no longer a part of the company. He now works for Adobe. (Click to see an interview from 2018 with Jackson Palmer.)
 
Elon purchased Dogecoin for his one-year-old son on February 10, 2021 (according to his Tweet) and is promising Dogefather will appear on SNL on May 8, 2021. Mark Cuban also purchased some Dogecoin for his son. All of that press made Dogecoin the top mover in crypto trades today. The coin hit a high of $0.57, after starting at 7 cents before Elon’s Feb. 10, 2021 Tweet.

Be careful with this coin because it is a meme stock. Many meme stocks have the parabolic arc of a shooting star. Always choose a reputable platform, such as Coinbase, for your crypto trading and wallet. Therein lies another problem. Dogecoin hasn’t met the criteria to begin trading on Coinbase’s crypto platform.

What is Currency?
Currency is essentially a promise. Any promise is only as good as the person making it. We’ve seen crypto criminals who tried to entice investors in by saying their crypto would be backed by gold. MLM Bitcoin clubs tout the slick words of serial scam artists. Venezuela launched a coin that was backed by oil. Since their economy wasn’t stable, the coin faltered. China has launched a coin. Most of the world still uses fiat currencies, with the U.S. dollar still the dominant currency in the basket of currencies that have become the world’s reserves.

​Crypto 2021 is a Trading Platform
As mentioned at the beginning of this blog, currently investors are interested in cryptocurrency as a way to get rich quickly. That’s not a currency.
 
Buy Low, Sell High
The investing commandment of buy low, sell high is easy to say, but hard to do. It’s hard to decline the invitation to the party when you see Bitcoin rocketing from a low of $5,000/coin in March of 2020 to $54,900 today. It’s equally hard to say, “I see opportunity,” when crypto crashes, as it did in 2018. And that is why a simple pie chart diversification strategy can be very beneficial and useful. The other benefit is that if you take profits off the table when the price soars, you’ll be emotionally prepared to buy more, and will have the cash on hand to do just that, when/if crypto crashes again.
 
Bottom Line
Cryptocurrency is the new gold for Gen Z and Millennials. Bitcoin was definitely the hottest investment in 2020 (behind Tesla) and could be in 2021, too, if we don’t have a crypto crash like 2018.
 
Now that people can buy a Tesla with their Bitcoin, and there are a number of nascent Bitcoin millionaires, the trend toward further adoption of peer-to-peer exchange via crypto could be on its way. (There is still an issue of the amount of energy it takes to produce a Bitcoin.) Mass adoption doesn’t mean that Bitcoin can be worth millions of dollars per coin, however. (That’s a speculative trading bubble, not a stable currency.)
 
In 2021, there will be a tightrope between traders who want to lock in gains and newbie investors who are late to the party and are willing to buy high. Newbies are always at great risk for being on the wrong side of the trade.
 
Each currency must be forensically examined to ensure that it is a coin, company and team that is worthy of your trust. Meme stocks rarely are. Musk and Mark Cuban have a few bucks they can lose, while teaching their kids a lesson about investing.
 
 
Join us for our June 4-6, 2021 Financial Empowerment Retreat. (Click to learn more.) In 3 days, you'll learn how to pick great companies (like Zoom Video, Tesla, Aphria, Veritone and Nio), incorporate them into a well-diversified wealth plan, receive a complete Money Makeover and transform your life forever! Bring your friends, family and teens for an unbelievably low group rate. Call 310-430-2397 or email [email protected] to learn more now. 
 
 

​Regular Rebalancing of Your Stocks, Bonds and Retirement Plan.
 
Take this 20-Question IQ Test to see how much you really know about protecting your wealth, diversifying your nest egg, adding in Shoot the Moon performance and other time-proven, 21st-Century strategies. Regular rebalancing of your nest egg is key in the 21st-Century. It is a buy low, sell high plan on auto-pilot, whereas Buy & Hope has been riding the Wall Street rollercoaster, losing half or more in recessions and using the bull markets to make up losses. As you can see in the chart below, Pew Research shows that most Americans are worth less today than they were in 1996.

Rebalancing Your Nest Egg IQ Test

1. What does rebalancing mean?
2. Why do you need to rebalance?
3. How often should you rebalance? Why?
4. What is the easiest way to rebalance your nest egg?
5. What are some of the fundamentals to properly diversifying your nest egg?
6. Which assets go into your nest egg?
7. Which assets do not go into your nest egg?
8. Should you invest in individual companies in your nest egg?
9. What is the difference between value and growth?
10. What is the difference between small, mid and large cap funds?
11. Why do we evaluate the funds we own?
12. What kind of funds do we want to avoid?
13. What kind of funds do we want to own?
14. What is an “everything and the kitchen sink” fund? Is this a fund we want to own? Why or why not?
15. When do we switch out funds and pick something new?
16. What are some key dates to consider rebalancing? Why?
17. What kind of return are you aiming to achieve in your nest egg?
18. How can limit orders help your rebalancing?
19. How do you determine your limit sell order price?
20. What is the difference between a “Stop Loss” mindset and a “Capture Gains” mindset?

 
Answers are listed in the "Rebalancing IQ Test Answers 2021" blog at NataliePace.com.
https://www.nataliepace.com/blog/

How much do you know about the following:

1. The average returns of stocks, bonds, gold, cryptocurrency, real estate and other investments,
2. The most important question you must ask your financial advisor before hiring him/her,
3. Red flags that your retirement is riding a Wall Street rollercoaster.

Take the 2021 Investor IQ Test. Click to access. 

Email info @ NataliePace.com or call 310-430-2397 if you have any questions about this test, or about the answers, or if you are interested in learning time-proven investing, budgeting, debt reduction, home buying solutions that will transform your life.
 
 

​Other Blogs of Interest
Answers to the Rebalancing Your Nest Egg IQ Test.
Tesla & Nio Will Report Spectacular Earnings.
The Coinbase IPO.
Restore Our Earth on April 22nd (and Every Earth Day).
Should You Sell in May and Go Away? 
Adding Shoot the Moon Performance to Your Nest Egg.
Videoconferencing in a Post-Pandemic World (featuring Zoom & Teladoc).
Sanctuary Sandwich Home. Multigenerational Housing. Interview with Lawrence Yun, the chief economist of the National Association of Realtors. 
10 Budget Leaks That Cost $10,000 or More Each Year.
The Stimulus Check. Party Like It's 1999. 
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Will There be a Spring Rally?
Cannabis and the Road to Decriminalization in the U.S.
Hot ETFs Return Up to 50% Since October. 
​Investor IQ Test 2021.
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​Shoot the Moon Stock Picks
​2021 Crystal Ball.
Would You Pay $50 for a Cafe Latte? Is Your Tesla Stock Overpriced?
Can Medmen Avoid Bankruptcy?
​Bitcoin is Back, Baby!
Real Estate Prices are Going Up. And Down.
Movie Theaters are in Trouble
Airbnb Should Have a Spectacular IPO Today.
​Cannabis is Decriminalized. Stocks Triple.
Airbnb's IPO. Should Hosts Invest?
Gifts Under $5 and Free.
Thanksgiving in a Pandemic. The Sustainability Silver Lining.
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.
​
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. ​

Answers to the Rebalancing Your Nest Egg IQ Test
 

1. What does rebalancing mean? Rebalancing is a financial practice meaning that you’ll make sure that your current equity and fixed income holdings are in line with your goals.
2. Why do you need to rebalance? Stocks and bonds gain or lose value throughout the year(s). Regular rebalancing of a properly diversified nest egg is a buy low, sell high plan on auto-pilot.
3. How often should you rebalance? 1-3 times a year. Why? Each year you get older. As you age, you should be keeping more safe. A severe loss of principal when you are close to retirement could be devastating. More than three times a year would be overkill. You’d be more likely to make mistakes. Your nest egg should be money while you sleep, not an obsession that you have to babysit.
4. What is the easiest way to rebalance your nest egg? Print out a sample pie chart of what you “should have.” Mock up a pie chart of your current holdings and their value. Compare what you have to what you should have. Sell high in the slices that are too large. Buy low in the slices that have become slivers. Use our Free Nest Egg Pie Chart web app to help you mock up a sample pie chart of what you should have. Simply email [email protected] with FREE SAMPLE PIE CHART in the subject line.
5. What are some of the fundamentals to properly diversifying your nest egg? Always keep a percentage equal to your age safe. Overweight or underweight safe based upon market conditions. Know what is safe. (What’s hot and what’s safe changes every year.) Diversify your at-risk equity holdings into ten funds – large, mid and small caps, value and growth, and four hot industries or countries. At our Investor Educational Retreat, we also teach you how to lean into the future and make sure that you are not investing in the typewriters of yesteryear or companies that are drowning in debt, losing sales/revenue, and not making enough profit to meet their massive obligations.
6. Which assets go into your nest egg? Liquid assets, such as stocks, bonds, funds, REITs, cash, money market funds, annuities, savings, cryptocurrency, etc.
7. Which assets do not go into your nest egg? Hard assets, such as your home, income property and other real estate investments, with the exception of REITs (which are paper assets).
8. Should you invest in individual companies in your nest egg? Funds offer more protection than individual stocks. However, in 2021, if you choose to invest in a few trillion-dollar multinational companies in your large cap slices, you can make a case for that.
9. What is the difference between value and growth? Value funds should have companies that are on sale. Growth funds include companies that are experiencing strong sales/revenue growth.
10. What is the difference between small, mid and large cap funds? Small companies typically offer better performance. Trillion-dollar companies offer stability.
11. Why do we evaluate the funds we own? There are many reasons to know what you own. You can lean into the products and services of tomorrow, and avoid last-century products and companies. You can begin to transition into putting your money where your heart is, and ensuring  that you are not profiting from polluters. Blind faith has been a Wall Street rollercoaster. Having to use the bull markets to recover from losses is not a solid strategy. Most investors are worth less today than they were in 1995, due to the massive corrections of the 21st-Century, combined with broker fees and commissions.  
12. What kind of funds do we want to avoid? Some funds are filled with debt-laden, slow-growth companies that are paying high dividends to keep investors interested. Just as with bonds, the higher the dividend the higher the risk of loss of principal.
13. What kind of funds do we want to own? The fund company should be a creditworthy company that has been around for decades and is managed by a respected CEO. When diversifying, we can include foreign countries.
14. What is an “everything and the kitchen sink” fund? Is this a fund we want to own? Why or why not? These are funds (like target date retirement funds) that try to do everything in one fund. These were designed for a Buy & Hold strategy – a last-century game plan that hasn’t worked in the 21st Century.
15. When do we switch out funds and pick something new? What’s hot changes every year. So, evaluate your hot slices when you do your rebalancing. If you have made any substitutions, then you might consider going back to the tried and true plan, once the replacement strategy is no longer needed.
16. What are some key dates to consider rebalancing? Why? September is historically the worst performing month. The Santa and Spring Rallies are typically the strongest. So, you might find some Back to School Stock Sales (fund sales) at the end of September. January and May might be good profit-taking rebalancing times.
17. What kind of return are you aiming to achieve in your nest egg? 10% annualized gains. The Buy & Hope system has been losing more than half in recessions, and using the bull markets to make up losses. Annual rebalancing with proper diversification is a buy low, sell high, keep your wealth strategy on auto-pilot, and is the only way to achieve steady gains in a world where recessions look more like Depressions. In 2021, the safe side of your nest egg is likely to underperform. Bonds are illiquid and negatitve yielding. This won’t be forever. But it’s important to know current market conditions.
18. How can limit orders help your rebalancing? With a little math, and an optimistic (and sometimes outlandish) target price, a limit order can sell high for you, even if you are on vacation in Antarctica.
19. How do you determine your limit sell order price? The equity side of your nest egg  is where you take on higher risk for higher gain (and why you lean into fixed income as you age). The hot slices are ideally super performers. So, you want to be sure that your limit orders are set higher than the gain you hope to achieve. (In 2021, we’ve seen several Shoot the Moon performers with unbelievable, short-lived gains.) If the share price hits the limit sell price, your slice will automatically rebalance (sell high) with the limit order. At the rebalancing session, you can always change any limit order to a market order to trim back hefty slices.
20. What is the difference between a “Stop Loss” mindset and a “Capture Gains” mindset? With the pie chart system, you are protected because you are keeping an appropriate amount safe. If market conditions are perilous, overweight more safe. There is no need to set a stop loss to protect yourself because you are already protected. That allows you to instead adopt a “Capture Gains” winning game plan. In a volatile market, if you set stop losses, you can be losing time and again. On the flip side, if you are anticipating the volatility and setting optimistic sell prices, you might be winning over and over again.  

Of course, the devil is in the details. Implementing this strategy will be easier if you attend our Investor Educational Retreat June 4-6, 2021, and then take our next Rebalancing Master Class. We’re currently on schedule for April 30, 2022 as the next Rebalancing Master Class (online). However, if there is enough demand, then we’ll consider hosting one on Saturday, June 12, 2021. Call 310-430-2397 or email [email protected] to learn more.
 
 
Email info @ NataliePace.com or call 310-430-2397 if you have any questions about this test, or about the answers, or if you are interested in learning time-proven investing, budgeting, debt reduction, home buying solutions that will transform your life.

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