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Archive for March, 2008


The “S” Word – Investing During Stagflation

Wednesday, March 26th, 2008

The financial press is a-buzz with talk about “stagflation.” But you won’t know how to handle the hype unless you know what stagflation really means for you and your portfolio.

Investopedia.com calls stagflation “a condition of slow economic growth and relatively high unemployment – a time of stagnation – accompanied by a rise in prices, or inflation.”

Right now, we are looking at a possible scenario in which the economy slows dramatically and, as a double whammy, inflation runs higher than normal. The average fixed-income investment won’t keep up with the higher inflation rate, and most stocks will drop in value because of the slower economy.

So how do you invest during a period of stagflation? Very carefully. 

During periods of high inflation, natural-resource investing is one of the best ways to outperform the market. Gold, uranium, silver, and other natural resources tend to move higher. 

Resource investing is not my area of expertise, but my colleague, Dr. Rusty McDougal, is an accomplished natural-resource investor. He writes the Resource Windfall Speculator newsletter, which can help you through a difficult time like this in the market.

[Ed. Note: Rick Pendergraft is a professional trader and market analyst. In Rick's new investment service, he reveals how you can make hundreds - even thousands - of dollars just by playing a simple game of "guess the pattern." Learn more here.]

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The 25-50-25 Formula

Wednesday, March 26th, 2008

Issue #2313

  • WEALTHY: How to invest during a period of stagflation (Rick Pendergraft)
  • HEALTHY: A food that can help build healthy muscle (James LaValle)
  • WISE: Glenn Wilson on information overload

ALSO IN THIS ISSUE:

  • A simple way to cure "analysis paralysis" brought on by info overload (Bob Bly)
  • You’re welcome to millions of dollars’ worth of our most valuable treasure (Charlie Byrne)
  • It’s Good to Know… about dust-borne germs
  • Add "redound" to your vocabulary

(more…)

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Whey Cool!

Wednesday, March 26th, 2008

One of the things that bothers many of my male patients about growing older is losing the strong, muscular body they enjoyed in their youth. There are lots of good reasons to want strong, healthy muscles. While "washboard abs" may not be a realistic goal for you, strengthening your abdominal muscles can play a big role in protecting your back against injury. Plus, a muscular body burns more calories than a fat body – even when you’re not exercising – by simply raising your "basal" (resting) metabolic rate.

Muscle in your body is constantly being built up and broken down. That makes whey protein an excellent food to consider. Whey comes from the liquid that remains after milk has been processed into cheese, and there are very good reasons why it’s so popular with body builders. In one study, published in the International Journal of Sport Nutrition and Exercise Metabolism, whey not only increased muscle more than casein (the protein found in cheese), but also contributed to loss of body fat.

But whey can do a lot more than help you build healthy muscles. It can help you build a healthy immune system and boost your metabolism, thereby helping to keep your mood upbeat and sunny. Simply put, its whey cool!

You can pick up whey at any health food store. Blend it into your favorite shakes or mix it into an eight-ounce glass of milk. You can also find lots of recipes online for other tasty beverages.

[Ed. Note: Jim LaValle is a licensed pharmacist, board certified clinical nutritionist, and doctor of naturopathic medicine, with more than 20 years of clinical experience in the field of natural therapeutics and functional medicine. He is a contributor to ETR's free natural health newsletter and the author of 13 books, including Cracking the Metabolic Code.]

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Glaucoma and Omega-3 Fatty Acids

Tuesday, March 25th, 2008

Over three million Americans have glaucoma, according to the Glaucoma Research Foundation. Although there is no cure for glaucoma – which causes blindness – a simple addition to your diet can help reduce the incidence of this disease.

Just add some omega-3 fatty acids to your meals.

We’ve mentioned the incredible health benefits of omega-3 fats in ETR before. For instance, they can help reduce the risk of diabetes, improve your cholesterol and triglycerides, reduce asthma and allergies, increase fertility and improve sexual function, fight cognitive decline, reduce wrinkles, improve skin tone, increase your overall energy, and much more. Now, research proves they can protect your eyes too.

Researchers at the University of Melbourne, Australia studied the association between dietary omega-3 fatty acid intake and glaucoma. They fed rats either an omega-3-sufficient or an omega-3-deficient diet from conception. The omega-3 diet contained safflower, flaxseed, and tuna oils, and the omega-3-deficient diet contained safflower oil only. Animals raised on the high-omega-3 diet had a decrease in intra-ocular pressure when they got older, meaning the tuna oil reduced their risk of developing glaucoma.

Get your omega-3 fix by eating e ggs, grass-fed beef and wild game, fatty fish, flaxseeds, and walnuts. You can also take a fish oil supplement.

[Ed. Note: Ray Sahelian, M.D., the author of Mind Boosters, is internationally recognized as a moderate voice in the evaluation of natural supplements. Visit Dr. Sahelian's website at www.RaySahelian.com , and read more of his articles about the supplements you should and shouldn't be taking at ETR's free natural health e-letter.]

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How to Handle Your Investors’ Money

Tuesday, March 25th, 2008

Issue #2312

  • WEALTHY: 3 money-handling basics every real estate investor should know (Alan Cowgill)
  • HEALTHY: Protect your eyes by eating right (Dr. Ray Sahelian)
  • WISE: Ovid on cash in hand

ALSO IN THIS ISSUE:

  • When and how to use a pen name (Michael Masterson)
  • If you’re not the intended recipient… (Suzanne Richardson)
  • It’s Fun to Know… about $1 coins
  • Add "sapid" to your vocabulary

(more…)

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How to Handle Your Investors’ Money for Fast, Profitable Real Estate Deals – Without Bank Hassles

Tuesday, March 25th, 2008

Many banks and other lenders have overreacted to the sub-prime mortgage scare. As a result, it’s tougher than ever for people to get conventional loans. Even investors with spotless credit have to face new roadblocks that can ruin a great real estate opportunity.

Over the years, I’ve learned that it pays to become your own bank by tapping into the potentially unlimited funds offered by private lenders. Not only can you bypass credit checks and other delays that prevent you from getting the cash you need, you can also make bigger profits by getting the fastest jump on the best deals. At the same time, your private lenders get a better return for their investing dollar in less time than they could with, for example, bank CDs. It’s a winning situation for everyone – except the bankers who get cut out of the middle.

In my last article for ETR, I revealed how you can get private money lenders to trust you. Put those techniques into practice, and you should have potential lenders lining up to give you their cash. But once the money hits your hands, how do you handle it? Here are three basic guidelines.

Touching the Money

When people hear the kind of interest I pay, they sometimes get so excited about loaning me money that they want to hand me a big check right on the spot. This is not the way to do it. For your protection, and the protection of your private lender, that check should be sent to your attorney.

This is the procedure: Go over your disclosure document with the private lender. The disclosure statement spells out the full facts of the investment and your business. Once you have a meeting of the minds, have the private lender send the check to your attorney… to be used for the closing on a specific property. This way, you’ll have a nice, neat paper trail and a well-informed lender.

Co-Mingling Funds

Sometimes you will have two lenders who each have a small amount to loan. With the combined amount, you have enough for a particular property. But you cannot simply put the money together and let them share the first mortgage.

In this type of situation, give one lender the first mortgage. If you need additional funds, give another lender a second mortgage – after explaining that the first mortgage holds a stronger position.

However, if you’re willing to form a new business entity – such as an S-Corporation or LLC – it’s possible to put funds together from two or more private lenders. Laws and regulations vary from state to state, but all states have similar paperwork that needs to be filed.

When Do the Payments Start and End?

Proper handling of private funds doesn’t end when you buy a property. You also need to pay your lenders back in a professional way that encourages them to invest with you again.

The best way to structure payments is to start paying your lenders interest at the time of closing. So if, for example, you’re rehabbing a property, this means you have to make repairs and get the place lease-optioned as quickly as possible so it is producing income to cover the interest payments you’ll be making.

I continue paying interest to my lenders as long as their money is in a property. When the property sells, they get a check at closing for their principal and interest.

I ask them if they want to loan their money on another property. Nearly all will say yes, and their interest payments start again at the next closing table. So they earn interest while the money is loaned – from purchase to sale.

I pay a minimum of 90 days’ interest on all private money real estate loans – even if I wholesale the property and have the lender’s money for less than 90 days. I just want to be fair.

The lesson here is to avoid the temptation to grab those checks and cash them. Run a professional operation, have your business rules in place, and follow them. You’ll be much better off in the long run.

[Ed Note: Alan Cowgill has bought or sold more than 200 investment properties using funds from private investors rather than banks or hard-money lenders. His Private Lending Made Easy training program is the only one on the market dedicated to private money. To learn more about how you can grow your wealth with private funds, click here.

This April at ETR's Profits in Paradise Wealth Building Summit, Alan will reveal how he created his own "private bank" of over $2,000,000 in ready capital. Get the details here.]

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Dear ETR: “What are your dos and don’ts when it comes to using a pen name?”

Tuesday, March 25th, 2008

"Michael, what are your dos and don’ts when it comes to using a pen name? I am publishing a book under a pen name. I do not care to register my book with a copyright, because then you have to list your real name.

"I would like to get a mail address for the pen name, but it looks like I need to file a DBA (’Doing Business As’) under that name first – and then it’d only take a quick computer search for someone to find out who I am. Do you have any suggestions for someone who wants to remain anonymous?"

- Michael V.

Pooler, GA

Dear Michael,

There are many good reasons to use a pen name.

1. You don’t like your name or believe it might hurt sales… or simply like some other name better.

In admiration of the pen name used by steamboat captain Isaiah Sellers, Samuel Clemens began using "Mark Twain" as his own. Says Twain in Life on the Mississippi, "I was a fresh new journalist, and needed a nom de guerre; so I confiscated the ancient mariner’s discarded one, and have done my best to make it remain what it was in his hands."

2. You are a successful person in one area and are writing a book in another.

You want to maintain the distinction. (Romance writer Nora Roberts writes erotic thrillers under the pen name J.D. Robb. Science fiction author Robert Heinlein used pen names when writing outside the sci-fi genre.)

3. You don’t want fans phoning you or coming by your house.

Joe Klein, author of Primary Colors, used a pen name to avoid publicity and being publicly linked with the book.

4. You are writing a series of books or a column that is meant to last longer than your involvement.

Ann Landers, Abigail Van Buren ("Dear Abby"), and Prudence ("Dear Prudence") have been pseudonyms for many different writers.

When I began writing business advice in 1999, I used a pen name for all of those reasons. I was at the end of a very successful career as a private businessman and had no interest in becoming a best-selling business author. I had long ago learned that any amount of fame was a burden. More important, I had already started a career as a poet and short story writer using my given name, and I wanted to keep that separate.

My publishers liked the idea of my using a pen name because they were creating products (for AWAI and ETR) that were meant to springboard off me, my story, and my ideas. But the ultimate goal was for them to get much larger and go beyond me. If they tethered their businesses to me, it would be a big loss if and when I retired.

We considered using "Mr. X" for a while, but that seemed hokey. So Paul Hollingshead, one of the founders of AWAI, chose the name Michael Masterson. Everybody liked it, and we went with it – first with AWAI and then with ETR. When I began writing business books, we continued with the pseudonym because we had already established a considerable base of potential book buyers using that brand.

Those are the benefits of using a pen name. There are no negatives, really, except that some readers – ignorant of how common pseudonyms and pen names are in business – may foolishly conclude that you are trying to hide something. You can avoid that minor problem best by ignoring it.

To publish a book, you need a legal business name, and that business name needs to be on the copyright page. You don’t need to list your real name. Look at business books on your bookshelf and you will see what I mean. If you use a legal business name as the copyright holder (i.e., the publisher), there is no reason for a DBA.

Here’s what Matt Turner, Agora’s top legal counsel, has to say on the subject:

"If you prefer not to use your real name on your writing – for whatever reason – no problem. Simply set up a legal entity. Using a legal entity (like an LLC) is easy – and the filing documents do not require you to reveal the owner(s). A person does have to sign as ‘incorporator,’ but that person does not have to be you. It can be an attorney who is privileged not to reveal the owner. Then you write your book and the copyright is in the LLC’s name. And if anyone steals your book, you can still sue them via the entity. There you have it."

- Michael Masterson

[Ed. Note: Send your questions to AskETR@ETRFeedback.com. Include your full name, your hometown and state, and the ETR team may answer you in an upcoming issue.]

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It’s Fun to Know: About $1 Coins

Tuesday, March 25th, 2008

Why is the government so eager to issue $1 coins… despite the indifference of the general public? Well, the average $1 bill circulates for 21 months and then must be replaced, while a coin can last 30 years or more. And although the $1 coin costs three times more to produce, government accountants contend that switching away from $1 bills completely could save the government $50 million a year.

(Source: Wired )

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Getting E-Mails by Mistake

Tuesday, March 25th, 2008

"Here’s the article we discussed," said the e-mail. It was from a writer I know. But I wracked my brain and couldn’t remember discussing an article with her… ever.

Fortunately, I figured out that she was probably trying to reach another editor we both know. So I passed her article on. Problem solved.

Getting e-mails by mistake happens to me about four or five times a year. I’ve never gotten any that were particularly interesting, but I’ve heard some juicy stories…

There was the boss who got an e-mail from an employee… who was venting about the boss’s bad management tactics.

There was the guy who got raunchy pictures of a bachelor party he didn’t attend… pictures the sender mistakenly sent to his entire e-mail list.

And there was the woman who got an invitation… to a party she wasn’t actually invited to.

When you get a sensitive e-mail that wasn’t meant for you, what do you do?

In an article for MSN, Miss Manners suggests that you make no mention of the specific incident. Merely send a note to the sender that says, "You might want to take me off your group listing – I have been receiving e-mails about matters you may not want me to know about."

Unless the sender keeps e-mailing you by mistake or the information is time-sensitive – like the article I got – you might just consider deleting the e-mail… and never mentioning it.

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Word to the Wise: Sapid

Tuesday, March 25th, 2008

Something that’s "sapid" (SAP-id) – from the Latin for "to taste" – has a strong, pleasant flavor.

Example (as used by David William Cheever in The Atlantic): "Chemistry can concentrate the sapid and odorous elements of the peach and the bitter almond into a transparent fluid."

[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]

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Making Your Own Headlines

Monday, March 24th, 2008

I can see it now. The first good week the market has, there will be a slew of headlines using the same words but making very different points. Version one: "The Market Is Turning Around!" Version two: "Is the Market Turning Around?" Which one is right?

It’s going to take more than a week for the market to turn around. So, right away, you’ll know that a market revival isn’t a done deal. After one good week, it’s very possible the market will head down again. That’s only bad if it goes down further than its previous low. If it doesn’t, that could be a sign that the market is recovering.

But before you jump back in, watch for it to go back up. If it goes higher than its previous high, that would be another good sign.

To make sure the market has indeed turned around, it should make higher lows and higher highs two more times. Now, in order to lock in your conclusion that the market has reversed directions, do a Google search for ISM (Institute for Supply Management). Find their latest readings for the manufacturing and service sectors. If they’re both over 50, it means both are expanding.

That’s all there is to it. It’s not right 100 percent of the time, but it’s 100 times more reliable than trying to make sense out of the latest hysterical/euphoric headlines.

[Ed. Note: ETR's Investment Director, Andrew Gordon, is the editor of INCOME, a monthly financial advisory service that uncovers income-generating stocks that promise safety (first and foremost), along with much-higher-than-average profit potential.]

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Building Strong Bones

Monday, March 24th, 2008

Early in my career, I attended a lot of nutrition research conferences. And it seemed like no seminar was complete without the requisite symposium on the role of soy protein in building better bones.

I was always skeptical of those claims – and now there’s a study that challenges them.

European researchers studied 237 early-post-menopausal women (average age of 53). For one year, the women consumed a soy product diet (providing 110 mg of isoflavones) or a control diet without soy products. The results showed that, contrary to popular belief, the soy isoflavones did not improve the women’s bone mineral density.

Instead of soy, I recommend good old-fashioned weight-bearing exercise to improve the strength of your bones. At the very least, every woman should have a daily walking program. In addition, women should perform at least two total-body resistance-training workouts per week.

Not only will this improve your bone mineral density, you will also get stronger. And strength and muscle mass can help reduce your risk of falling as you age.

[Ed. Note: Fitness expert Craig Ballantyne is the creator of the Turbulence Training for Fat Loss system. For a free online source of information, motivation, and social support to help you improve your health, lose weight, and get fit, sign up for ETR's free natural health e-letter.]

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A Life-Changing Early-Morning Routine

Monday, March 24th, 2008

Issue #2311

  • WEALTHY: A reliable indicator of a market revival (Andrew Gordon)
  • HEALTHY: Say goodbye to soy (Craig Ballantyne)
  • WISE: William Pitt on "early to rise"

ALSO IN THIS ISSUE:

  • The morning routine that changed my life (Michael Masterson)
  • Why Seth Godin isn’t impressed by great ideas
  • It’s Good to Know… about the HDTV rip-off (Charlie Byrne)

(more…)

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Word to the Wise: Penultimate

Monday, March 24th, 2008

"Penultimate" (pih-NUL-tuh-mit) – from the Latin for "almost final" – means "next to the last."

Example (as Michael used it today): "My penultimate task of the day is to review and return e-mails."

[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]

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It’s Good to Know: HDTV Rip-Off Update

Monday, March 24th, 2008

Just before the holidays, I wrote about avoiding paying $50 to $100 for "monster" cables when buying High-Definition TV gear. I said you could pay $25 and get the same quality.

Well, leave it to Amazon.com to "lower" the bar. They’re now offering a six-foot HDMI cable for the grand total of… $2.04. (You can get essentially the same cable from "monster" suppliers for just… 86 bucks!)

As of this writing, 417 customer reviews gave the Amazon product an average rating of 4.5 out of 5 stars.

[Ed Note: Charlie Byrne is Creative Director at Early to Rise. Sign up for e-mail delivery of his blog and get edgy and useful ideas on copywriting, marketing, and other category-defying posts.]

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Worth Quoting: Seth Godin on Ideas

Monday, March 24th, 2008

"Ideas are easy, doing stuff is hard….

"History is littered with inventors who had ‘great’ ideas but kept them quiet and then poorly executed them. And history is lit up with do-ers who took ideas that were floating around in the ether and actually made something happen. In fact, just about every successful venture is based on an unoriginal idea, beautifully executed."

(Source: Seth Godin’s blog)

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A Life-Changing Early-Morning Routine

Monday, March 24th, 2008

When it comes to personal productivity, we all have the chance to have good days or bad days.

Good days are those that leave you feeling good because you have accomplished your most important tasks. Bad days are those that leave you feeling bad because you have failed to do anything to advance your most important goals.

If you want to have a better life, you must fill it with good days. The best way to do that is to organize your day according to your personal priorities – doing the most important things first.

It’s easy to do. Yet most people don’t. Eighty percent of the people I know – and I’m including all the intelligent and hardworking people I work with – do exactly the opposite. They organize their days around urgencies and emergencies. Taking care of last-minute issues that should have been dealt with earlier. Or doing tasks that help other people achieve their goals while ignoring their own.

Doing first things first. It is a very simple discipline. Yet its transformative power is immense. It can change your life – literally overnight.

It changed my life. Several times, in fact.

I’ve used this amazing technique to write six books, produce a record, and script and direct a feature-length film. I used it again last year to write 350 poems – one a day, after I began on January 15. And I am using it this year to get that book of poems published and to write six other books (five business books under the Michael Masterson pen name, and a novel with my personal byline).

MaryEllen Tribby is using this technique right now to write her first book on marketing (which John Wiley & Sons will be publishing at the end of this year).

It is the single best technique I know for change. And it’s the fastest and easiest way to turn your life around if you are not happy with the way it’s been going so far.

Doing first things first. Is that what you do?

Here’s what I do:

  • I get up early – never after 6:30 a.m.
  • I get to work early – never later than 7:30 a.m.
  • I spend my first hour doing a task that advances my most important goal.
  • If I’m going strong, I spend the next hour doing the same thing. If not, I switch to a task that advances my second-most-important goal.
  • I spend my third hour on another priority.
  • Only after four hours of doing important work do I allow myself to deal with less important work and other people’s urgencies.

By the time most people start wandering into the office – between 8:30 and 9:00 – I’ve done at least an hour and sometimes two hours of work that is helping me achieve my important goals. Goals that correspond to my core values. Goals that will immensely improve my life.

That’s how to begin a very good day!

I do this five days a week. And on weekends, I find at least two more hours each day to devote to my top priority. In a year, this averages to about 600 hours. Six hundred hours may not sound like much, but it is.

Six hundred hours is 15 40-hour work weeks. That’s almost four working months! Think about it.

Here’s what you can accomplish in 600 hours:

  • Learn to speak a foreign language with moderate proficiency.
  • Become a reasonably skillful ballroom dancer, with a good command of the swing, the fox trot, the salsa, and the hustle.
  • Achieve a blue belt in Brazilian Jiu Jitsu or a brown or black belt in one of many other martial arts.
  • Develop a decent singing voice and feel comfortable singing at parties.
  • Write five 60,000-word books on a subject you know.
  • Write and edit two novels or 365 poems.
  • Write, direct, film, and edit a 30-minute movie.
  • Start a multimillion-dollar side business.

Do any of those things sound interesting to you?

Now let me show you how I organize my workdays to tie into my long-term goals. Here is the exact schedule I followed last Friday:

6:30: Woke. Dressed. Sprinted, walked, stretched, and meditated on the beach.

The first thing I do is sprint and stretch and meditate. This is the most important thing I can do (besides eating well) to ensure a long and happy life.

7:00: Showered. Changed. Went to my home office.

7:30: Revised two poems written last year.

8:00: Wrote a new poem.

8:30: Wrote 600 words of Sin, my current (and first-to-be-published novel).

9:30: Wrote 600 words of the marketing book I’m working on with MaryEllen.

10:30-11:30: Wrote an essay for ETR.

I devote four hours entirely to writing – which is one of my four top priorities. About half my writing time is spent on creative writing and about half on business writing. This reflects a balance that corresponds to my current goals.

11:45: Went to the office. Trained in Jiu Jitsu with Marcel. Showered. Changed.

Jiu Jitsu is a hobby for me. It strengthens me, expands my mind, humbles me, and invigorates me.

1:00: Met with my assistant. Assigned tasks to her.

1:30: Luncheon meeting with AS.

2:45: Met with MaryEllen and Charlie Byrne.

3:30: Did a phone interview for Ready, Fire, Aim.

4:00: Met with PP to discuss real estate holdings.

I don’t take any meetings until after my midday workout. (I’ve trained everyone I work with not to expect to be able to interrupt me in the morning.) Beginning at noon, my day takes a dramatic change: from a schedule devoted to my primary objectives to one that is devoted to others’ needs. Most of the meetings scheduled during the afternoon, for example, accommodate the wishes of others. They have time to see me each day, but it’s only after I have taken care of my own top priorities.

4:30: Returned phone calls to GP, DT, and LG.

I return phone calls in the late afternoon. It’s not a top priority for me. It’s as simple as that.

5:00: Wrote two ETR briefs and a blog entry.

If I have a spare half-hour during the afternoon, I devote it to an important but not urgent task… like writing things that don’t have to be done by a specific deadline.

5:45: Reviewed and returned e-mails.

My penultimate task of the day is to review and return e-mails. I used to do it twice a day. Now I do it only once.

6:15: Planned the next day.

This is the last task of my workday.

6:30: Had a fitness workout with JM.

Feeling good about accomplishing most of my priorities, I often reward myself with a second workout.

7:30: Got home for dinner on time!

None of what I’ve said so far should astound you. It’s all good common sense. It’s advice we’ve been giving you in ETR for years.

But it’s one thing to recognize a good technique and quite another thing to learn to use it. Most people who read this essay will think to themselves, "I should do that. I should wake up early and spend time working on my dream." They’ll think it, but they won’t do it. They may get into the office earlier, but when they do they’ll probably turn on their computer and read their e-mail.

People sometimes ask me if it’s really necessary to get up early. "I’m a night person," they say. "I get my best work done after dark."

"Sure you do," I think when I hear that.

I used to say the same thing. But I was wrong. And I think you will change your mind if you allow yourself to experience the natural, unbeatable advantage of doing your most important work when your body is fresh and strong.

Get up early. Get to work early. Do your important but not urgent tasks first.

[Ed. Note: Learn specific strategies for how to take action on all your business and personal goals with ETR's Total Success Achievement program. It's not too late to sign up and learn how to make your longest-held dreams come true. Click here to learn more.]

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Word to the Wise: Philter

Saturday, March 22nd, 2008

A "philter" (FIL-tur) is a love potion or charm. It is derived from the Greek for "to love."

Example (as used by Umberto Eco in Foucault’s Pendulum): "Some things you can feel coming. You don’t fall in love because you fall in love; you fall in love because of the need, desperate, to fall in love. When you feel that need, you have to watch your step; like having drunk a philter, the kind that makes you fall in love with the first thing you meet. It could be a duck-billed platypus."

[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]

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The Housing Bust Is Still Kicking

Saturday, March 22nd, 2008

The biggest drag on the stock market this year can be summed up in one word: Housing. Because home prices have dropped, banks have cut back lending. Which, in turn, is slowing down the economy. And though many gurus are trying to call a bottom in the housing market, they’re dead wrong. I continue to see home prices dropping.

Last year, you couldn’t find a decent condo in West Palm Beach, FL for less than $200,000. But for the past two months, I’ve been seeing them at drastically reduced prices. I’m talking about 2/2s for under $100,000. That’s a 50 percent price drop – far greater than the five percent drop government reports would have you believe.

And in South Florida, the market is still falling. This year, we’ll see a huge spike in foreclosures. As banks try to offload those foreclosed properties, neighborhood prices should drop even further. That means there’ll be a lot of opportunities here if you’re looking to buy a home in six months.

That also means housing won’t stop dragging the market down for some time. You can continue to expect a bear market in stocks, so stay away. Instead, buy the Ultra Short Dow Proshares ETF (DXD), which gives you a two percent return every time the Dow Jones drops one percent.

Buying this ETF is easy too. All you have to do is contact your broker (or get an online brokerage account) and follow their instructions.

[Ed. Note: Charles Delvalle is a contributing editor to ETR's Investor's Daily Edge newsletter, and a regular contributor to INCOME. INCOME lets you in on the safest high-dividend-paying companies, with the goal of providing you with a total return (dividends plus capital gains) of at least 14 percent per year.]

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It’s Fun to Know: Wisdom Teeth

Saturday, March 22nd, 2008

In the United States, third molars are popularly known as "wisdom teeth." Here is what they are called in other countries:

  • 20-year teeth in Turkey
  • Mind teeth in Romania
  • Love teeth in Korea
  • Unknown-to-parent teeth in Japan

(Source: National Geographic )

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How to Get Your Sweet Fix Without Sabotaging Your Health

Saturday, March 22nd, 2008

Issue #2310

  • WEALTHY: The housing bottom is here! Or is it? (Charles Delvalle)
  • HEALTHY: More energy, increased libido, improved memory, and much more? (Shane Ellison)
  • WISE: Dr. John Yudkin on sugar

ALSO IN THIS ISSUE:

  • Did ETR purposely mangle Ben Franklin’s maxim? (Michael Masterson)
  • Don’t be among those who misuse this word (Don Hauptman)
  • It’s Fun to Know… about wisdom teeth
  • Add "philter" to your vocabulary

(more…)

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The Language Perfectionist: A Comprise Winner

Saturday, March 22nd, 2008

Among the many misused words in the English language, one of the most common is surely comprise. Consider these examples, found via a quick Internet search:

  • "The social theorists who comprise what is today known as the ‘Frankfurt School’ have exerted an unprecedented influence…"
  • "What are the three main notes that comprise [Mariah Carey's] fragrance, M?"
  • "Florida is comprised of three main aquifers…"

In the above examples, the meaning of the word is reversed. The whole comprises the parts. The parts constitute (or compose or form or make up) the whole.

Here’s how to use comprise and constitute correctly: A baseball team comprises nine players. Nine players constitute a baseball team.

The meaning of the word comprise is contain, include, embrace. If you’re not sure you’re using comprise correctly, substitute embrace or include to see if the sentence still makes sense.

A similar test works for the passive tense. One would never say "is embraced of." Thus, the frequently used phrase "is comprised of" is always wrong.

Some years ago, I clipped an ad for a book on, ironically, effective writing. The ad claims that the book "covers the big picture of what comprises poor writing." Of course, the word should be constitutes.

[Ed Note: For more than three decades, Don Hauptman was a direct-response copywriter. He is author of the wordplay books Cruel and Unusual Puns and Acronymania, and is writing a new book that also blends language and humor.]

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How to Get Your Sweet Fix Without Sabotaging Your Health

Saturday, March 22nd, 2008

If you could make one simple change in your diet to help you melt fat, sleep better, and improve your memory … wouldn’t you do it? What if that same simple dietary change could increase your energy, conquer depression, save your eyesight, restore your mental alertness, get your bedroom energy rockin’, and increase your lifespan?  

This may sound too good to be true. But it’s not. And you don’t have to take drugs. Nor do you have to try some newfangled experimental supplements. Or stop eating. Or even give up the foods you love. 

It’s as simple as reducing the amount of sugar you eat.  

This is not a trick. I said you don’t have to give up the foods you love. And that includes sweets. You can actually give up sugar and keep your sweet tooth happy. This is the greatest health secret of all time. And I’m gonna teach you how to incorporate it into your life. 

Before I tell you how, I want you to know just why you should give up sugar. 

It’s not just because of all the aforementioned benefits. It’s because sugar can have serious health consequences. 

Have you ever been plagued by hard-to-diagnose health problems? You know something is wrong, but your doctor can’t seem to figure out what’s causing them? You…

  • can’t lose weight, no matter how hard you exercise or diet
  • feel depressed, even though you’re typically a happy person
  • can’t get a solid night’s sleep
  • feel sluggish at work
  • lack mental focus
  • have lost your libido
  • suffer from rising blood pressure

Well, it’s not all in your head. It could be your sugar addiction.

My six-year-old can recite all the dangers of sucrose (table sugar) in a matter of two minutes. She can also warn you of the risks associated with those artificial sweeteners in pretty packets. And because she still likes to get her "sweet fix," she can tell you which natural sweeteners are best to use in tea, cookies, and cake. Not bad, considering that the self-appointed custodians of our health – physicians – are totally clueless about the sweetener epidemic that is sabotaging us.

If a first grader can master the problems with sugar and understand how to choose the right alternatives, you can too.

We all have the need to get a sweet fix. It’s part of our biological makeup. When consumed, sweets elicit a chemical cascade of events that lead to the triggering of feel-good receptors within the brain. If this happens repeatedly, an emotional bond between happiness and sugar is formed. We become fully dependent on sweets.

Sugar addiction is best illustrated by children who break down with temper tantrums if not given sugar, women who consume chocolate in times of stress, and men who suck down soda to make it through the "afternoon blues." In a study comparing the addictive properties of sweeteners, saccharin and sucrose proved more addictive than cocaine!

The irony is that your body doesn’t actually need any sugar. What you do need is glucose for energy. And you can obtain it from fruit and vegetables.

If left unchecked, an addiction to sweets spikes blood sugar and the fat-storing hormone insulin, disrupts satiety (causing users to overeat), and gives rise to age-accelerating molecules known as AGE products (advanced glycation end products). These aging molecules are responsible for causing wrinkles and age-related blindness, as well as premature heart attacks and stroke.

Over time, "sweetener addiction" leads to the hard-to-diagnose symptoms listed above, and a host of dreaded diseases like insulin resistance, heart disease, diabetes, and cancer. To avoid the sabotage, you must understand how to get your sweet fix without becoming addicted.

Years ago, people didn’t eat much sugar – as little as 10-15 pounds per year. And their health was much better for it. As time passed and sugar production became easier, people gave into their sweet cravings and began to overindulge. Today, the average consumption of sugar is a whopping 160 pounds! It’s suicide in slow motion. Sugar addicts eliminate 11-20 years from their lifespan.

Few people realize how much sugar they are putting into their body. They are simply giving into an addiction while slowly ruining their health. To judge whether or not you are at risk, read your food labels for one day and count how many grams of sugar you are eating. Insert that number into my People’s Chemist Death by Sugar Calculator. Watch as the graph calculates how many pounds of sugar you are stuffing into your mouth annually.

But that doesn’t mean you should replace sucrose with artificial sweeteners to get your sweet fix. Artificial sweeteners are nothing more than drugs in disguise. Splenda is a perfect example.

Splenda contains the drug sucralose. Invented in a pesticide lab, this chemical is 600 times sweeter than sugar. To make sucralose, chlorine is used. Chlorine has a split personality. It can be harmless or it can be life threatening. In combo with sodium, chlorine forms a harmless ionic bond to yield table salt. When used with carbon, the chlorine atom in sucralose forms a covalent bond. The end result is deadly organochlorine, known simply as RNFOC (a Really Nasty Form of Chlorine). Unlike ionic bonds, covalently bound chlorines are a big no-no for the human body. They yield insecticides, pesticides, and herbicides – not something you want in your sports drink or your child’s lunchbox.

Think aspartame (Equal, Nutrasweet) is safe? Think again. As an organic chemistry teaching assistant, I taught my students how to identify the active ingredients in soda using a technique known as TLC (Thin Layer Chromatography). The byproducts of sodas containing aspartame are all known poisons (that would slowly kill you): methanol, phenylalanine, and aspartic acid. I never saw my students with a diet soda after that.

Safe alternatives to artificial sweeteners are abundant: erythritol, stevia, agave, xylitol and luo han guo.

Choosing which natural sweetener to use depends on which one tastes best to you. Agave nectar usually wins. It stimulates taste buds exactly the same way sucrose does. But unlike common table sugar, very little of its active ingredient – inulin – is absorbed. Therefore, you are protected from the dangers of sugar addiction.

As a "nectar," agave is a bit harder to bake with. This is where erythritol wins.

All natural sweeteners are known to help control appetite, keep insulin and blood sugar low, and prevent the formation of AGE products. None of them are addicting, nor will they diminish your lifespan.

Getting your sweet fix doesn’t have to be deadly. If you learn to gauge your sugar intake with The People’s Chemist Death by Sugar Calculator and start using natural sweeteners, you won’t be plagued by hard-to-diagnose health problems. And you’ll have more years to enjoy life and those you love.

[Ed. Note: Shane Ellison (www.thepeopleschemist.com) is an author, organic chemist, and contributor to ETR's free natural health newsletter. He is an internationally recognized authority on therapeutic nutrition and the founder of The AM-PM Fat Loss Discovery package. Click here to learn more.]

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Learning About Charts

Friday, March 21st, 2008

The value investor argues that fundamental analysis is better. The trader argues that technical analysis is better. Which way is a novice investor to turn?

In the long run, the fundamentals may be better. But when it comes to short-term trading, I base most of my decisions on technical analysis, and then use sentiment analysis as a secondary driver.

If you are not familiar with technical analysis, the chart below is a good learning tool.

This is a chart of the FXI, the iShares FTSE/Xinhua China 25 fund, an ETF designed to be a barometer for the Chinese stock market. China has been a hot topic for investors for several years now, and with the tremendous upswing in the FXI, you can see why. However, as you can also see, the FXI has been declining over the past four months. This downswing has caused a downward-sloped trend line to form, which runs counter to the upward-sloped long-term trend line.

So what do you do with a chart like this? You wait. Wait to see which way the stock breaks before making a move. When two opposing forces converge, the pressure on the stock tends to build. Once the stock moves outside of one of those trend lines, it tends to result in a huge move in the direction of the break.

[Ed. Note: Rick Pendergraft is a professional trader and market analyst. Rick teaches investors how to read chart patterns and how to take advantage of them in his new K.I.S.S. trading program. This program is a great way to earn and learn at the same time. Learn more here.]

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Travel Tip: Overseas Medical Care

Friday, March 21st, 2008

A midnight walk on the beach of a small Thai village was the perfect ending to my best friend’s first day on the Phi Phi Islands, a tropical archipelago in the Andaman Sea. But he probably should have opted out of the "fresh" pineapple smoothie offered by a beachside vendor before turning in for the night. By 2:00 a.m., he was at the clinic where he’d spend two days with severe food poisoning… and a few thousand dollars.

As my friend found out, getting injured or falling ill while traveling overseas can be more than just an inconvenience. Improper medical care, especially in undeveloped countries, can slow your recovery… and even lead to long-term health problems. Here are few tips to help you avoid this:

  • Check with your doctor for advice and vaccinations appropriate to the area you will be visiting.
  • Be up to date with your regular vaccinations before your trip.
  • Register with the local U.S. Embassy at your destination. You can do this at travel.state.gov.
  • Bring all the medication you take regularly, as well as a back-up supply.
  • Purchase travel health insurance. The policy you have at home probably won’t cover your medical care overseas (or an expensive evacuation if that becomes necessary).
  • Practice basic health and safety: Wear your seatbelt, wash hands thoroughly and often, and wear a helmet while riding a scooter or motorcycle.

(Source: CNN)

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What Older People Must Do to Preserve Their Strength

Friday, March 21st, 2008

Most people have not done enough strength training or built enough muscle mass to avoid falls as they get into their late 70s and early 80s. But there’s some good news from Tufts University.

Researchers studied the diets and blood and urine of 384 men and women with an average age of 65. The results showed that a higher intake of foods rich in potassium, such as bananas, oranges, spinach, and tomatoes, may favor the preservation of muscle mass in older people.

The best way to increase strength and muscle mass is with a total-body resistance-training program two to three times per week. But to preserve those hard-earned gains, follow up your workouts with a healthy diet that includes lots of fruits and vegetables.

[Ed. Note: Fitness expert Craig Ballantyne is the creator of the Turbulence Training for Fat Loss system. For a free online source of information, motivation, and social support to help you improve your health, lose weight, and get fit, sign up for ETR's free natural health e-letter.]

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Creating Your Site’s Personality to Turbo-Charge Sales

Friday, March 21st, 2008

Issue #2309

  • WEALTHY: A quick introduction to technical analysis (Rick Pendergraft)
  • HEALTHY: How your diet can keep your body strong (Craig Ballantyne)
  • WISE: Mae West on personality

ALSO IN THIS ISSUE:

  • Be honest – is your website boring? (Yanik Silver)
  • 6 ways to avoid medical problems while traveling (Jason Holland)
  • It’s Good to Know… about self-repairing material
  • Add "winsome" to your vocabulary

(more…)

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Creating Your Site’s Personality to Turbo-Charge Sales

Friday, March 21st, 2008

Most people’s websites are B-O-R-I-N-G! I’m talking zzzzzzzzz city! That’s no way to distinguish yourself in a competitive market. If you want people to remember your site and keep coming back to it again and again, it has to project a unique personality.

Two of my favorite examples: Demotivation.com and Despair.com. These sites are entertaining, against the grain – and loaded with personality.

For instance, Despair.com sells some of my favorite prints. And they are hilarious! For example, a print of the Great Pyramids has a caption that reads: "Achievement: You can do anything you set your mind to when you have vision, determination, and an endless supply of expendable labor."

Check out the site yourself for more. When you do, you’ll immediately notice that the same irreverent attitude runs through the whole thing – even to the way the buttons are labeled on the navigation bar. There’s a button for "spin," where you can view and sign up for audio and video podcasts. And instead of "customer service," there’s a button for "disservice."

Your website’s personality has to be plugged into every nook and cranny – and extend to your communications with customers and prospects. Here’s an excerpt from the way Despair.com does it with their order confirmation:

Thank you for your recent order from Despair Inc.

I’d like to personally welcome you to our growing body of

Dissatisfied Customers(tm), but to do so might evidence

some actual concern for service and protocol. This might

then lead to customer satisfaction, which would defeat

the purpose altogether. That is why you have received

this generic, form-generated email, written by some

nameless lackey in our marketing department.

Having established that any pretense of consideration

for *your* needs would be counter-productive to our

raison d’etre at Despair Inc., let us now ponder a

subject of greater interest to those among us who are

worthy of both of our collective attentions – that

person being me.

[…]

If any of the information shown below is inaccurate,

please notify us immediately using our new Troubled Ticketing

system.

We will rectify your error immediately, and on some occasions,

without snickering.

It is the least we can do, which, as a matter of policy,

is the most we can do.

I love it!

Now you might be thinking that you’d repel some customers with this type of treatment. You’re right. And that’s a good thing. You don’t want to be plain vanilla. Go ahead and polarize your prospects/customers to either love you or hate you. There’s no money to be made in the middle. Look at Howard Stern. Some people absolutely love him and pay Sirius radio a monthly subscription fee just to listen to their "god." And a lot of other people tune in to hear what Howard says… just so they can hate him more.

But okay. Maybe this isn’t your style. Here’s another example of what I’m talking about.

CaliforniaTortilla.com is a local Mexican eatery that’s been expanding like crazy. They used to have two locations back when I included them in my "Million Dollar E-mails" e-book in 2001. Now they’ve blossomed into 20+ locations – in no small part, I think, to the fun personality of the restaurant and its website.

Take a look at this from their "About Us" page:

OUR FUN

  • We’ve got over 75 different hot sauces that’ll blow your head off!
  • We’ve got spunky cashiers!
  • We’ve got the Monday Night Mystery Price Burrito Wheel!
  • We’ve got Pop Tart Day!
  • We’ve got Freeze Pop Day! (Which is just like Pop Tart Day without the toasting option.)
  • We’ve got Yappy Hour for dogs! (Again, no toasting option.)
  • We’ve got Taco Talk — the burrito newsletter read by tens of people nationwide!

California Tortilla does a good job of bribing you to join their "prestigious" mailing list by offering a FREE taco. If you go to the site, notice the wording for "groovy" promotions and "secret" discounts. And see how their personality shines through in this excerpt from their newsletter:

Taco Talk

4000 DAYS AND COUNTING!

California Tortilla has been open 4000 days. Isn’t that amazing? And while I’m not really sure that that’s any sort of a milestone, it does give me something to write about in Taco Talk – which, if the truth be known, is my sole goal in life. (By my calculation, I’ve written over 600 articles about burritos. And as you so painfully know, there aren’t 600 things to say about burritos. That’s why I make almost everything up.)

Anyway, it’s been a great adventure and I’d like to take this opportunity to share with you the highs and lows of those first 4000 days:

Day 1: California Tortilla opens. Nobody cares but us — and our relatives who eat for free.

Day 56: Bert Weiss from Mix 107.3 eats at California Tortilla. He loudly proclaims he hates the food. I run in the bathroom and cry.

Day 57: One of our neighbors suggests we turn the restaurant into a Chinese Buffet. We tell him we think that’s a good idea and then secretly plot his demise.

Day 92: Our first review comes out and it’s glowing. Three people read it.

Day 217: We buy an automatic tomato slicer. Angels sing in celebration.

Day 329: Ray Romano eats at California Tortilla. He tells me about a television show he’s working on called "Everybody Loves Raymond"; I tell him not to get his hopes up. (I wish I were making this up.)

Day 492: An employee picks up something off the floor without us asking him to.

Day 633: We get napkin holders that are actually the same size as the napkins.

Day 756: We open on Sundays. At the exact same moment all our employees become churchgoers.

Day 1243: We start serving breakfast.

Day 1244: We stop serving breakfast.

Day 1702: The police write us a Cease and Desist letter demanding that we remove a customer from the Taco Talk fax list. Back down to 11.

Pam, who is one of the owners, makes the California Tortilla newsletter personal as well as extremely entertaining. You can tell this is not your typical restaurant or faceless mega-corporation.

On my own sites and in my communications with customers/subscribers, I try hard to keep my personality at the forefront. I talk about my son Zak and my wife Missy and other personal things. Plus, anytime I go on a really great trip, I post some pictures or a video of the experience. (Check out InternetLifestyle.com/blog/ for a recap of where I’ve been lately.)

When customers/subscribers watch my videos or read my blog, they get a sense of who I am (a bit goofy, a bit adventurous). And that makes them feel like they "know" me even if we’ve never met.

If you have trouble coming up with "personality" for your website, here are some tips:

  1. Be yourself – and don’t be afraid to give people details of your life.
  2. Don’t try to hide the real you behind a plastic veneer of professionalism.
  3. Ask yourself how you can demonstrate that you’re the opposite of a big, faceless corporate bureaucracy.

People want to do business with REAL people. So show them you are real, and more sales will be headed your way.

[Ed. Note: Yanik Silver, an expert on creating money-making websites, reveals one of the most profitable "hidden" Internet income opportunities around in the Secrets of Easy Internet Money series. And make sure you check out his new book, Moonlighting on the Internet: 5 World-Class Experts Reveal Proven Ways to Make an Extra Paycheck Online Each Month.]

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It’s Good to Know: Self-Repairing Material

Friday, March 21st, 2008

French scientists have created artificial rubber that, when cut in two, can join itself together again. Within an hour of being cut, the rubber’s as good as new. The self-healing is possible because of alterations at the molecular level made by the scientists. Possible applications include self-repairing seals on pipe fittings and children’s toys.

(Source: BBC)

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Word to the Wise: Winsome

Friday, March 21st, 2008

"Winsome" (WIN-sum) – from the Old English for "joy" – means cheerful or light-hearted.

Example (as used in The New York Times): "Willard R. Espy… had such a winsome way with words, such an elegant ear for rhyme, and such a sure sense of the absurd that he once began a poem with the words ‘I do not roister with an oyster.’"

[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]

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