We just witnessed a slowdown in economic growth, and recently we saw second-quarter GDP revised downward. No doubt you have seen the downbeat news on the housing front, as overall sales and home prices are ounce again headed south. No doubt you’ve been talking to friends who are worried about the falling value of their stock portfolios, and about the direction our country is headed. And there is likely no doubt that you have your own concerns about what to do with your investment nest egg.

Well, I have good news for you! In my opinion, the world is NOT coming to an end. America will not slip back into a recession anytime soon, and a big Congressional victory by conservatives in November could set us up for a fantastic buying opportunity—if you know where to invest your money.

Throughout most of this year, I have been warning investors about the risks of owning mutual funds and about the mindless strategy of buy and hold that most stockbrokers and advisors constantly advocate. Throughout most of 2010, the best strategy has been a high cash position combined with a healthy dose of patience. Now, however, my research is pointing to opportunity.

Taking advantage of this opportunity is easy. All you have to do is join me for an informative teleseminar on Saturday, September 11, at 12:00 p.m. Pacific Time. I’m calling this seminar “The Next Big Opportunity: High Yield.”

As the title suggests, we believe there is a HUGE opportunity coming for investors seeking high-yield investments. High-yield investing comes with its own set of risks and rewards, and we’ll be focusing on these risks and rewards in this teleseminar. If you’re an investor who wants to increase the income generated from your assets, then you’ll want to join me on Saturday, September 11, at noon Pacific Time.

During this one-hour teleseminar, I will share with you these key points:

• How to build a high-yield portfolio fit for these chaotic economic times
• Which high-yield securities are appropriate for your portfolio
• How you can plan for, and protect yourself from, the bubble now forming in bonds
• How stocks are likely to perform in a slow-growth economy

In addition, you’ll also receive my complete High-Yield Watch List.

Our previous teleseminars have been very popular with radio show listeners, newsletter subscribers and Fabian Wealth Strategies clients. For this seminar we have room for just 800 attendees. This event is absolutely FREE if you attend on Saturday, September 11, at 12 p.m. Pacific Time. There will be a nominal change for listening to the replay of this event, so make sure you register for the live event by right now by clicking here.

Germany may be the country in Europe where the economic news is the most encouraging. The country notched an unexpected surge in GDP that helped to give a much-needed boost to the struggling eurozone. With Germany serving as the economic engine, the combined second-quarter 2010 GDP of the 16 countries that use the euro jumped an average of 1%, compared to the first quarter of 2010, and 1.7% versus the second quarter of 2009. The gains mark the fastest economic growth for the eurozone in four years.

One way to take advantage of the economic gains in Germany is to invest in the iShares MSCI Germany Index Fund (EWG). This fund seeks to provide investment results that correspond to the price and yield performance, before fees and expenses, of the publicly traded securities in the German market, as measured by the MSCI Germany Index. The index itself seeks to measure the results of the German equity market. It is a capitalization-weighted index that aims to capture 85% of the publicly available market capitalization. When market conditions improve, EWG likely will benefit nicely due to Germany’s economic gains.

In addition, the fund is well diversified through its holdings in a wide array of companies and sectors. Its top ten corporate holdings, as of July 30, are: Siemens AG-REG, 10.62%; E On AG, 7.11%; BASF SE, 7.1%; Allianz SE-REG, 7.02%; Daimler AG, 6.43%; Bayer AG, 6.29%; Deutsche Bank AG-REG, 5.11%; Deutsche Telekom AG-REG, 5.07%; SAP AG, 4.5%; and RWE AG, 3.89%. EWG’s five biggest sector holdings, also as of July 30, are: financials, 19.36%; industrials, 15.63%; consumer discretionary, 14.83%; materials, 13.66%; and utilities, 11.31%.

Rising GDP growth, consumer confidence and business confidence in Germany are upbeat signs. Increased demand from around the world for German products helped its economy to grow 2.2% in the second quarter — marking the fastest quarterly rate since the country’s reunification in 1990. That growth rate beat expectations by almost an entire percentage point.

One concern is whether Germany’s current economic growth is sustainable. Certain economists think that Germany’s economy has been fueled by temporary factors such as a rebound in construction. Although construction gains may continue through year-end 2010, they may fade a bit in 2011.

One way to do this is to take note of key times in the political cycle to see when, generally, markets have reacted most favorably. When I did this recently a clear correlation practically jumped up and bit me in the nose.

I found that during the first and/or second year after a presidential election, markets are most apt to make notable corrections, and according to the Stock Traders Almanac, “In the last eleven midterm election years, bear markets began or were in progress nine times.”

Interestingly, the data states that, “Since 1914 the Dow has gained 50% on average from its midterm election year low to its subsequent high in the following pre-election year.” This is the key statistic for us, as we now are very close to the midterm election year low.

I suspect that when we look back on 2010, we’ll view the current climate as an outstanding buying opportunity. In fact, if historical election cycle market data is any harbinger of the future, then 2011 could be one of the best years for stocks in a long time.

One way to invest in these emerging markets and to gain diversification at the same time is to buy an exchange-traded fund (ETF) that gives you exposure to a variety of countries through a single purchase. One such fund is the Claymore/Mellon Frontier Markets ETF (FRN). This fund seeks investment results that correspond generally to the performance, before fees and expenses, of an equity index called The Bank of New York Mellon New Frontier DR Index.

This ETF normally invests at least 80% of its total assets in American depositary receipts (ADRs) and global depositary receipts (GDRs) that comprise the index. The fund also seeks to invest at least 80% of its total assets in securities of issuers from so-called Frontier Market countries. Using a low-cost indexing investment approach, the ETF tries to replicate the performance of the Frontier Index, which consists of countries that are chosen based on an evaluation of their gross domestic product growth, per capita income growth, past and expected inflation rates, privatization of infrastructure and social inequalities.

The Claymore/Mellon Frontier Markets ETF is not as diversified as many international ETFs, so just be aware that it plays clear favorites among the countries and sectors that it tracks. The geographic weightings of the fund are somewhat concentrated on three countries: Chile, 31.31%; Egypt, 14.51%; and Colombia, 12.33% (as of June 30).

Those likely are not the countries where you or most investment advisers usually focus, but for that reason they offer a way to avoid moving in lock-step with other markets around the world. Such non-correlation is a good approach to reduce the risk in your investment portfolio. The fund’s sector concentration is led by financials, with 39.87%; utilities, 14.01%; energy, 13.67%; telecommunications services, 10.53%; and materials, 9.54% (also as of June 30).

We have carefully selected these funds as potential investment opportunities, however we urge you to do your own research and analysis to determine if they are suitable for your portfolio. At Fabian Wealth Strategies we take portfolio management very seriously. We specialize in actively managing income and growth oriented portfolios for our clients. In addition, we build strong relationships based on personal attention and service.

If you have any questions about the assets you own or strategies to increase your high yield exposure, call us right away at 800-391-1118 to schedule a free portfolio analysis.

Click here to download this special report.

According to an article in The Wall Street Journal aptly titled, “Big Investors Fear Deflation,” many prominent investors now are becoming concerned over the prospect of deflation and how it could take a bite out of investor wealth. The article specifically calls out PIMCO bond-fund manager Bill Gross, investment manager Jeremy Grantham and hedge-fund managers David Tepper and Alan Fournier as among the best-known investors preparing for a potential deflationary wave.

The article also points out that these investors are growing increasingly concerned that relatively weak economic data, along with a general consensus that global policy makers are unable to take further steps to stimulate their respective economies, will bring about a new deflationary future.

“Deflation isn’t just a topic of intellectual curiosity, it’s happening,” Bill Gross told The Wall Street Journal. I respect Mr. Gross’ opinion on just about every economic issue, even when I don’t agree with him. On the deflation issue, however, I find myself unable to object to his logic. That logic includes the citing of an annualized 0.1% decline over the past two years in the U.S. consumer-price index. This kind of aggregate price decline may not seem like much, but as Gross points out, “It’s an uncertain world that’s tipping toward deflation.”

Now, you may remember that after the 2008 financial crisis, many people feared a deflationary spiral would take hold of the global economy. That didn’t happen, of course, and part of the reason why is because governments around the globe infused the financial system with hordes of new capital. But like these investors in the article point out, how long are governments going to be able to prop up their respective economies before the whole house of cards come crashing down?

Before we go any further, I must say that I do not think we are on the precipice of disaster or on the verge of a deflationary meltdown in the global economy. If I truly thought that, then I wouldn’t own any stocks in any of my investment advisory services.

What I am saying is that there is a growing chorus of some very smart minds out there that have now become aware that deflation is no pie-in-the-sky abstraction or fear-mongering rant designed to scare you into a bunker. Rather, deflation is a potentially dangerous scenario, not just for global policymakers but for anyone who is trying to manage their serious money.

I know I am going to continue monitoring economic conditions so that I can identify any warning signs of a pending deflationary wave.

Companies in the consumer staples sector primarily are involved in the development and production of consumer products that cover food and drug retailing, beverages, food products, tobacco, household products and personal products. The fund’s top ten holdings, as of August 3, were: Procter & Gamble (PG), 15.53%; Wal-Mart Stores (WMT), 9.58%; Philip Morris (PM), 8.69%; Coca-Cola Co. (KO), 6.85%; PepsiCo (PEP), 4.79%; Kraft Foods (KFT), 4.59%; CVS Caremark (CVS), 4.23%; Altria Group (MO), 4.14%; Colgate-Palmolive (CL), 3.76%; and Walgreen Co. (WAG), 2.68%. These are the best known and most well-established consumer products companies in the world.

Unlike high-flying growth stocks that might make you feel like you’re on a roller-coaster ride, XLP tracks companies that tend to provide investors with fairly stable returns. The large size of the companies tracked by XLP does limit the prospects of the fund surging in value when the market turns bullish. However, the companies also should hold their share-prices reasonably well during a market pullback.

The old adage of investing in companies that sell products that people want and need fits this fund perfectly. You typically will continue to use soap, shampoo and toothpaste, regardless of economic conditions. Likewise, you’ll continue to eat and drink to ensure you survive until better times are here.

In sum, XLP is a fairly conservative equity investment that gives you the chance for capital appreciation, but it’s one that is less prone to big drops than most other stock funds. If you like excitement, XLP may not give it to you. But if you want to stay invested in equities and still sleep at night, XLP may be just what you are looking for right now.

The lemons I’m talking about here are underperforming mutual funds, funds that have earned a spot on the infamous Mutual Fund Lemon List, the list of the worst-performing mutual funds.  To be classified as a lemon, the fund must pass strict screening criteria: it must underperform its peer group average for the last 12 months, as well as for the last three and five year periods.

This quarter’s Lemon List includes 1,584 mutual funds totaling $715 billion in assets, and if one of the funds you own is on the list, you need to squeeze that lemon from your holdings.

To see the latest edition of the Lemon List, and to get your FREE update each quarter, just go to the Mutual Fund Lemon List website today.

Hey, all you have to lose is that sour taste in your portfolio.

Thailand is on my radar screen as a profitable market, particularly when so many others have pulled back this year. That’s why I am looking at the iShares MSCI Thailand Investable Market Index Fund (THD).  I like to use ETFs to invest in a specific country’s stock market to gain the advantages of diversification, reduced risk and low fees.  In the case of THD, this is an ETF that offers such an opportunity by seeking investment results that correspond to the price and yield performance, before fees and expenses, of the MSCI Thailand Investable Market Index. The index seeks to match the performance of the Thai equity market.

The fund is up 12.16% so far this year, an especially impressive performance when you consider that the Dow Jones Industrial Average has fallen 1.92% during the same time span. A key reason is that Thailand’s economy is growing much faster than in most other places around the world.

Indeed, Thailand’s Finance Ministry raised its 2010 forecast for economic growth to between 5% and 6% in June to mark the second such upward revision in the past three months. The government had projected 2010 gross domestic product growth of 4% last December and 5% during March. Rarely are any countries these days projecting increased economic growth but Thailand clearly is a most welcome exception. To keep the economy growing, the nation’s central bank has held interest rates at 1.25%, its lowest level since July 2004.

Thailand’s economic recovery is notable, since other countries, such as the United States, have pursued low interest-rate policies to spur economic growth but have failed to achieve the same results. Thailand is Southeast Asia’s largest economy — second only to Indonesia — and its economy expanded 12% during Q1, 2010 from the same quarter in 2009. Increased exports largely fueled the nation’s Q1 economic growth. To that end, the government raised its 2010 export growth forecast in late June to 22.5%, up from the 18% that it had projected in March.

Another plus is that Thailand’s economic freedom score of 64.1 is 1.1 points better than last year, as the country improved in five of the 10 categories used by the Heritage Foundation to assess economic freedom. Areas of improvement include freedom from corruption and investment freedom. Thailand’s economic freedom score ranked 10th out of 41 countries in the Asia–Pacific region, and its score is higher than the world and regional averages.

Although Thailand has endured political unrest, it boasts one of the world’s top equity performances so far this year.

Yet as a brilliant article in today’s Wall Street Journal points out, if you thought FinReg has no bearing on your money, then think again.

In this most-excellent piece, written by reporter Eleanor Laise, you’ll find details on the myriad ways the new regulations could affect your investment accounts. Some of the ways the new legislation affects investors is positive, and others are negative.

For example, the legislation could make brokers more accountable to their clients, which is a good thing. However, the new FinRegs may put the kybosh on many financial instruments commonly found in 401(k)s, hedge funds and even regular margin accounts that are used at nearly every brokerage.

The bottom line here is that if you thought FinReg was solely about keeping tighter reins on the big financial horses, then you had better reevaluate that assessment. Even you, the little investor pony, will feel the reverberations from the nearly 800-pages of new regulations.

I strongly recommend you read this article, as it goes into great detail about just how extensive these new regulations really are.

Armed with this extensive information on virtually the entire ETF universe, you’ll be able to glean a really sharp picture of what sectors, countries and types of ETFs are currently outperforming their peers. Perusing this extensive list of ETFs should give you a real sense of what’s happening—not only in the domestic market, but all over the globe. The data is as of June 30, 2010.

Please enter your information below to download this valuable resource.

As you’ve likely noticed, things are not going well with the stock market. We saw stocks fall below their long-term moving average in May, an event that hasn’t happened since January 2008. The major indices now are firmly in negative territory for the year, and many investors are looking for new safety-first strategies to protect their wealth.

During this one-hour teleseminar, I will share with you these key points:

• A recap of the financial markets in the first half of 2010. What’s worked, and what hasn’t.
• How to read the price trends in the markets, and what they’re telling us.
• What investment themes I believe represent the best opportunities in the second half of 2010.
• A glimpse of my ETF watch list for the rest of the year.
• Most importantly – how to evaluate your current investment positions so that you don’t get hurt again.

All teleseminar registered participants will receive a valuable handout ahead of time outlining the key topics. To join me for this timely discussion on Saturday, July 10, please register today and make sure you reserve your place. This FREE, one-hour teleseminar will be limited to the first 800 registrants. Judging by our last three record-setting teleseminars, we will reach capacity quickly. Take advantage of this opportunity and reserve your spot today!

Sincerely,

Doug Fabian, President

Fabian Wealth Strategies

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Fabian Wealth Strategies, Inc. is a registered investment advisor with the U.S. Securities and Exchange Commission. Doug Fabian is a registered investment advisor representative. The information expressed in this seminar is for educational purposes only and should not be construed as a recommendation to buy, sell, or hold any specific security. Consider the risks, fees, and expenses before making any change to your investment portfolio.

There’s been a lot of speculation about what actually caused the flash crash and, to this day, nobody really knows for sure. I’ve heard all kinds of potential explanations, some more plausible than others. There was the so-called “fat finger” scenario, where it is said that traders in Procter & Gamble inadvertently placed a big sell order that caused the program trades to be triggered. This notion was later proven to be false.

Then we saw a report by the Securities and Exchange Commission that said the flash crash was caused by a confluence of economic events, market forces and trading-system functionality that led to a significant dislocation of liquidity. I think that conclusion is pretty obvious and less than insightful, to say the least. Other reports blame so-called high-frequency trading programs for the huge imbalance in trades. In my opinion, this is the most plausible culprit.

Unfortunately, a lot of people are blaming ETFs for the problems of the flash crash, and this is akin to blaming the victim for a criminal’s actions. Yes, it is true that many ETFs suffered from trading glitches and broken trades, but these were essentially the same problems that rocked individual stocks.

According to a report by Morningstar, about 20% of all ETFs were at least temporarily snarled in the trading glitches that took place that day. At some point on May 6, approximately 210 of the 980 funds in the ETF universe changed hands at prices more than 50% below their ultimate closing price, according to Morningstar. And while this is indeed a big problem, it is more of a market problem than an ETF-specific issue.

I think that the flash crash should be looked upon as a systemic problem with program and high-frequency trading, and not a problem with the trading vehicles at hand. You could say the market suffered a mild heart attack on May 6, and rather than trying to get at the root cause of the problem, some pundits would rather blame the victim, which in this case are ETFs and individual stocks.

I say it’s time to look at the high-frequency trading programs and perhaps other computerized trading programs — not the financial instruments being traded — for the real cause of the flash crash.

I think there is one huge reason why you should dump these funds, and that is the Fabian Plan recently issued an international equity sell signal. But I thought that I would reply to this article directly, and address some of the common misperceptions about why things are going to be okay with international equities going forward. So, here are my seven reasons why you should dump your international equity funds.

Reason 1) The U.S. dollar is in a strong uptrend vs. the euro and other rival currencies. If the euro continues flailing, the flight of capital out of the eurozone will continue pounding stocks, and by extension your international equity funds.

Reason 2) Europe is cutting spending, and her economies are floundering in a no-growth soup of their own making. One reason why stocks in Europe are falling is due to a coming recession precipitated by the painful debt situation in Greece, Portugal and Spain. Simply put, the age of austerity is coming to all of Europe.

Reason 3) Europe has a huge debt problem. They have too many social programs, and they’ve made too many fiscal promises. Somewhere in Europe there is going to be a massive debt default, and/or the servicing of existing debt will become such a burden that economic growth becomes virtually non-existent.

Reason 4) Mutual fund managers stay fully invested in down markets (they have to by charter), and that means they cannot manage risk. This holds true for international fund managers, who are essentially obligated to go down with the ship regardless of market conditions.

Reason 5) Nearly every major broad-based international mutual fund now trades well below its respective long-term moving average. The Dow Jones World Stock Index also trades below its 200-day moving average, meaning that continue risk is high, and a new international bear market is on the precipice of becoming reality.

Reason 6) The slowing in the eurozone nations could begin threatening global economic growth, and it could even cause a double-dip recession. China has already voiced concerns that its largest trading region is slowing rapidly, and this could be the economic “contagion” that many investors and economist fear.

Reason 7) Europe is raising taxes. From Greece to the UK, eurozone governments are trying to raise revenues in order to salvage their social programs and to service their debt. What’s really scary is that Europe could be a proxy for the U.S. in years to come.

These are just my top seven reasons why you should dump international equity funds, but the list is by no means complete. Suffice it to say I am an international equity fund bear right now, so please don’t fall for the rosy proclamations in the financial press.

The worst is yet to come for Europe, and that means there will likely be much more pain in international stocks going forward.

If you’d like to find out more about the Fabian Plan and how it generates buy and sell signals that have beat the market for over three decades, then I invite you to click on my latest presentation.

I think that you will find this information to be both timely and helpful in managing your portfolio over the rest of 2010. At Fabian Wealth Strategies our number one goal is to help you protect and grow the assets you have worked so to hard to accumulate.

If you would like to meet with me for a free second opinion on your assets, please call our offices at 800-391-1118 to setup a consultation.

Sincerely,

Doug Fabian
President, Fabian Wealth Strategies &
Host, Doug Fabian’s Wealth Strategies Radio Show

September 1976: Dick Fabian self-publishes the book, “How To Be Your Own Investment Counselor.” This was the first (and in my opinion, still the best) primer on the trend-following approach that formed the basis for the current Fabian Plan. After experiencing the devastating bear market of 1973-74, Dick knew investors needed a better way to manage their serious money. Dick demonstrated that with a simple, easy-to-understand plan for beating the markets, investors really could build serious wealth with only minimal time and effort expended on their investments.

April 1977: Motivated by the overwhelmingly positive response to his book, Dick teamed up with his wife Marie Fabian to launch the Telephone Switch Newsletter right from their dining room table. The basic purpose of the newsletter was to report and to monitor the results of the buy and sell signals generated by the plan laid out in his book. In his original newsletter, Dick included funds such as Fidelity Magellan and 44 Wall Street. He reported on the prices of these funds and the major market indices for the previous 39 weeks. He also produced charts of these indices by hand.

September 1979: Doug Fabian joined the newsletter as a mutual fund analyst.

July 1981: The Telephone Switch Newsletter issued a bear-market sell signal. The sell followed subscriber profits of 40% during the preceding 14-month buy cycle. The bear market that followed registered a drop of 27% in the Dow Industrials. This plunge was the first bear market that Fabian subscribers would avoid. At that time, money funds were paying a whopping 18% annually — accompanied by a nationwide inflation rate of 20%.

September 1982: Dick issued a new bull market buy call that generated returns of 45% in the next 15 months.

June 1985: A buy signal was issued for the newly created International Plan. This buy signal lasted more than two years and produced gains in excess of 140% in international funds. At that time, the U.S. dollar was in a major bear market that provided a strong tailwind to international investments. This uptrend in international markets ended with the 1987 stock market crash.

October 1987: A sell signal on Oct. 15 warned subscribers to move into the safety of the money funds. Four days later, the market experienced its biggest, single-day decline ever. Fabian followers walked away with gains of 23% in calendar year 1987. The Telephone Switch Newsletter was one of five publications to have predicted the decline, according to news reports of The Wall Street Journal. Of course, we did not predict anything. We simply stuck to our disciplined investment approach and followed the rules of the Fabian Plan.

August 1990: The Fabian Plan issued a new sell signal, as Kuwait was invaded by neighboring Iraq. This geopolitical event instigated a global stock market bear that would end only after an American-led coalition of 80 countries booted Saddam Hussein out of Kuwait. We were only out of the market for three months before issuing a new buy signal that led to a 34% gain during the next 18 months.

January 1995: After a year in which the Federal Reserve raised interest rates four times and when most economists were predicting a recession, the Fabian Plan identified a new uptrend that kicked off a bull market run in the late 1990s. During the next five years, the Fabian Plan produced annual gains of more than 20%, led by the technology stock boom and the proliferation of more than 10,000 mutual funds.

April 2000: The Fabian Plan issued a new sell signal for stocks as the NASDAQ market began to fall. A decline of more then 70% ensued during the next three years.

January 4, 2008: The Fabian Plan issued a new sell signal for stocks well before the bear market selling of 2008 intensified. This call put subscribers into the safety and security of the money market. While most investors tossed and turned at night, subscribers to this service slept like babies.

I could go on and on here, but I think I’ve made our point. You see, the Fabian Plan isn’t some here-today, gone-tomorrow gimmick. The Fabian Plan has worked for longer than many stock brokers out there have been alive. And, with a strong adherence to tradition and a constant attempt to learn from the past, we’re going to continue making great calls for you for another three decades.

No doubt you’ve been following the news of late in Europe. The continent is facing a crisis in terms of its debt, currency and financial stability. The Euro has fallen over 10% so far this year, while short-term interest rates in some countries have risen to over 20%. Countries such as Spain, Greece, and Portugal have all had their credit ratings cut and face debt ridden economies.

I’ve been forecasting for months that the problems in Europe would spill over into U.S. investor portfolios and that is what’s happening right now.

Five key points you’ll learn in this seminar are:

• How does the crisis in Europe affect your stocks and mutual funds and what should you do now?
• What will be the next big move in interest rates and our economy?
• What fixed-income investments should be avoided right now?
• What are the right fixed-income strategies for the current market environment?
• My outlook for the U.S. stock market and equity markets around the world.

Due to the enormous demand for our teleseminar series and the expanded resources required to provide this premium content, the one-time cost to download this one hour audio recording and 6-page handout is $9.95.

To download the seminar please click here.

Please note: The MP3 audio file and PDF of the handout will be immediately available for download after purchasing the content. Links to the files are delivered electronically to you via email. An MP3 or Windows Media Player is required to listen to the audio. Adobe Acrobat Reader is required to open the handout. This content is not affiliated with any of Doug Fabian’s newsletters or trading services.

No doubt you’ve been following the news of late in Europe. The continent is facing a crisis in terms of its debt, currency and financial stability. The Euro has fallen over 10% so far this year, while short-term interest rates in some countries have risen to over 20%. Countries such as Spain, Greece, and Portugal have all had their credit ratings cut and face debt ridden economies.

Trepidation rising: While watching the reports from the media, many investors are thinking…

• How does this affect my investment portfolio?
• What does this mean for the US economy?
• What about our debt problems and lack of confidence in our own government?

I’ve been forecasting for months that the problems in Europe would spill over into U.S. investor portfolios and that is what’s happening right now.

Five key points you’ll learn in this seminar are:

• How does the crisis in Europe affect your stocks and mutual funds and what should you do now?
• What will be the next big move in interest rates and our economy?
• What fixed-income investments should be avoided right now?
• What are the right fixed-income strategies for the current market environment?
• My outlook for the U.S. stock market and equity markets around the world.

All conference call registered participants will receive a valuable handout ahead of time that outlines these key topics. To join me for this timely discussion on May 15th, please register today to reserve your place. This FREE, one-hour teleconference will be limited to the first 800 registered. Judging by our last two record-setting teleconferences, we will reach capacity quickly. Take advantage of this opportunity and reserve your spot today.

I made this report available for free, because I believe most fixed-income investors are using the wrong investment vehicles to achieve their goals. Many people still are using expensive mutual funds and/or individual bonds to generate a steady income stream, but in my opinion the best tools for generating income are low-cost exchange-traded funds (ETFs).

To help you identify the best income ETFs out there, I decided to compile a watch list—and to make it available to my listeners. Now, I’ve taken this offer one step further and I’m making this top 10 income ETF list available to you, the Alert reader, absolutely free.

Unfortunately, the current low interest rate environment has prompted many fixed-income investors to take on more risk than they should, precisely at the wrong time. Most investors have forgotten that fixed-income investments can and do go down significantly, especially during periods of credit distress.

At Fabian Wealth Strategies, we specialize in actively managing fixed-income exchange-traded fund portfolios for our clients. We build portfolios that deliver monthly yield with the protection of a sell discipline on all positions. In addition, we have the capability to own funds that take advantage of a volatile interest rate environment.

Do you want help to assess your fixed-income portfolio’s current position in the market ahead? If you have any questions about the assets you own or strategies to increase your fixed-income exposure, call us right away at 800-391-1118 to schedule a free portfolio analysis.

This offer is available for goal-oriented investors with more than $250,000 in their investment portfolios. Please be prepared to discuss and/or fax us your latest portfolio statements so we can know exactly what holdings you currently own. We look forward to working with you to achieve success in 2010.

NOTE: Fabian Wealth Strategies is a SEC registered investment adviser.

Keep in mind that when the 50-day and 200-day moving averages that I track fall well below current equity prices, stocks typically pull back – just as they did yesterday when the Dow Jones Industrial Average closed at its lowest level since April 7. However, such market retreats offer a chance to profit if you make the right trades.

If you think airlines will recover from the recent market turbulence and fly to new heights, the Claymore/NYSE Arca Airline ETF (FAA) may be the right fund for you. The FAA ETF is designed to mirror the performance of the NYSE Arca Global Airline Index, which tracks the largest and most liquid common stocks and American Depository Receipts (ADRs) of airline companies that are traded on the exchanges in developed markets. The index holds shares in 25 companies from 14 countries, with market capitalizations ranging from $750 million to more than $9 billion.

News of a merger between United (UAUA), Continental (CAL) and U.S. Airways (LCC) has helped fuel anticipation that FAA could be on its way up. Even a merger between United and Continental on their own could mean upside, if the airlines consolidate resources to boost revenues and margins.

I am not currently recommending FAA, but I am watching it closely for key technical signs that could cause me to book a flight on this airline ETF.

Today, Standard & Poor’s downgraded Spain’s long-term credit rating by one notch to double-A. The agency also gave a negative outlook on the EU nation, saying that Spain is likely to experience an extended period of subdued economic growth that will put pressure on the country’s federal budget and its ability to repay debt.

On Tuesday, Greece and Portugal were downgraded two notches each. In the case of Greece, that nation’s debt rating was downgraded to junk status. Portugal isn’t quite as bad as Greece, but that country also is having a woeful time managing its budget in the face of the current economic climate.

The debt problems in Greece, Portugal and Spain aren’t isolated cases, and I suspect we could see a lot more debt downgrades in Europe before this deluge is over. The thing that worries me about this situation is that the spend and borrow policies that pushed these countries into their current predicament are actually being followed to a large degree here in the United States.

We saw what kind of havoc these downgrades wreaked on stocks around the globe in Tuesday’s trade, and just think what could happen to global equities if the United States goes the same way as these three PIIGS nations. I shutter to even think about it, yet my reason forces me to keep this possibility on my list of future threats to investor wealth.

If our government keeps playing the big spend and borrow game for too much longer, we could begin to resemble Greece—without the ouzo, the Mediterranean Sea and the Parthenon.

I’ve read a lot of news stories and commentary on the Goldman affair, and frankly, I don’t really think anyone has a good sense of what actually took place. The S.E.C. is convinced Goldman misled customers, and Goldman insists it didn’t. I don’t know which party will come out victorious here, but one thing for certain is that the real loser will likely be you, the investor.

I say this because every time the government tries to curb market activity via new rules aimed to protect investors, they create a disincentive for banks and other firms to take risks. Now, I am not saying that securities laws proposed by regulators are all bad, far from it. But what I am saying is that many times, the proposed solutions to problems—such as the Obama administration’s push for financial reform—end up hurting those it’s ostensibly designed to protect.

I hope for all of our sakes that any reaction and/or regulations born out of the Goldman affair are measured, and targeted. Sadly, I fear that the politicians in power will take a much more shotgun-like, punitive approach to the situation.

Samsung announced that it expects its first quarter operating profit to reach 4.3 trillion won, up from 590 billion won for the same time a year ago, due largely to rising prices for computer chips. Samsung is the world’s largest manufacturer of computer chips and flat-panel screens, as well as the second-largest producer of cell phones. Samsung’s momentum likely will continue for the next two quarters, one industry analyst predicted.

I am not convinced that the current bullish market conditions will last that long, but it is clear that the biggest holding in EWY looks to have a brisk tailwind in the form of rising computer chip prices to propel it forward during the next quarter. The Samsung announcement certainly caught my attention, since the company’s semiconductor business that builds its computer chips actually lost money during the first quarter last year.

With a population of around 49 million — about the size of Italy — South Korea is an electronics and information technology leader. South Korean companies such as Samsung are known for cutting-edge technology, trendy mobile phones and flat-screen TVs. The country now ranks as the world’s 10th-largest economy, and its per capita annual income grew from US$87 in 1962 to US$24,800 today.

One way for investors to gain exposure to emerging markets is through the iShares JPMorgan USD Emerging Markets Bond Fund (EMB), a fixed-income fund that seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the JPMorgan EMBI Global Core Index. EMB is a U.S. dollar-dominated, emerging markets debt benchmark that tracks the total return of actively traded external debt instruments in emerging market countries.

So far, EMB is reflecting a positive trend for debt instruments in emerging markets. The fund, which began in December 2007, rose an impressive 27.2% in 2009, after a rough 2008. It had total net assets of $1.27 billion and 12.3-million shares outstanding, as of March 29, 2010.

EMB invests in debt instruments from 26 emerging market countries. The fund’s top five holdings as of March 29, 2010, were: Russia (7.5% coupon, 3/31/2030 maturity, Baa1/BBB ratings), 9.16%; the Philippines, (7.75% coupon, 1/14/2031 maturity, Ba3/BB- ratings), 4.43%; Turkey (7.25% coupon, 3/15/2015 maturity, Ba3/BB), 4.35%; Brazil (8% coupon, 1/15/2018 maturity, Baa3/BBB-), 4.08%; and Turkey (6.88% coupon, 3/17/2036, Ba3/BB), 3.79%.

Those countries are expected to have higher economic growth rates in 2010 than advanced economies, according to a recent International Monetary Fund (IMF) forecast. While the advanced economies are expected to grow just 0.6% this year, the following growth rates are eyed for Russia, 1.5%; Brazil, 2.5%; Turkey, 1.5%; Mexico, 3.0%; and the Philippines, 1.6%.

Other economic-growth forecasts are more aggressive than the IMF projections. The European Bank for Reconstruction and Development (EBRD) forecasts economic growth for Russia of 3.9% this year. In Latin America, the Central Bank of Brazil projects economic growth for its country of 5.0%, and the Central Bank of Mexico is predicting 3.9% growth in its nation this year.

A prolonged period of low U.S. interest rates and indications from the Fed that interest rates will stay low for some time are reasons to consider heightened yields abroad. Meanwhile, U.S. government debt is rising quickly and it will grow further once the effects of the new health-care program take hold. If you share my concerns about the U.S. government’s profligate spending, you may be enticed by the attractive yields of foreign bonds, specifically in emerging markets. Such bonds are not risk-free by any means, but they offer a significantly higher return to compensate you for the potential loss of principal on your investment.

Emerging markets certainly can be risky, so I advise you to monitor your investments closely and to stick to your stop losses.

Now, you may have already thought that your broker or advisor was a fiduciary, which means just means they are required by law required to act in your best financial interest. Well, if you thought that, you’d be wrong. Most brokers and financial advisors are not bound by a fiduciary responsibility to protect your money.

The only kinds of advisors that are bound by fiduciary rules are registered investment advisers, or RIAs, and certified financial planners.

My firm, Fabian Wealth Strategies, is a registered investment adviser that knows and respects the fiduciary relationship we have with our clients. In fact, the requirement that we steward your money with the utmost caution and care fits eminently well with our personal charter to preserve and protect your capital.

I don’t think Sen. Dodd’s proposal to make all brokers and financial advisors fiduciaries will end up in the final version of financial regulatory reform. The Wall Street lobby is too powerful to let that happen. You see, the big brokerage firms really don’t want to be responsible for your money the way a RIA firm is.

I’ll leave it up to you to judge which type of advisory relationship you’d prefer, but let’s just say I know the one I prefer, and that’s the fiduciary responsibility of the RIA.

NOTE: Fabian Wealth Strategies is a SEC registered investment adviser.