Are you concerned about the future of your money? Today, retiring people have a growing worry that they may “outlive their money” thanks to the new Government policies bringing massive change so quickly. Most people agree such high levels of spending, borrowing and new taxes will have a major impact on future costs, rising inflation and the value of the U.S. dollar.

But what can YOU do? I have five important insights and actions that every investor needs to know about to secure your money and your future for the times ahead.

I’m offering a free tele-seminar on Saturday, July 18th at 12:00 pm (noon) Pacific time that you won’t want to miss. We have very limited space available—limited to just the first 250 people. I already know from talking with many people about this topic, the spots will go quickly. If you want to hear it, you’ll need to register soon to reserve your seat by clicking here.

Here are the 5 investor actions you’ll learn about:

1. How you should organize your affairs to minimize your tax impact — with the coming end of the Bush tax cuts.
2. What to look for to properly manage your retirement assets — you’ll need more personal responsibility because you won’t be able to rely on the Government.
3. Why and how to invest outside the U.S. and the U.S. dollar.
4. How to use opportunities in commodities to your advantage.
5. Will there be a U.S. currency crisis in the future? and what you can do about it — the future value of the dollar, Fed policies and how you can prepare.

We’re limited to just 250 lines for this call and we’ll have to end registration when it is full. We expect a sold-out call.

To register for Saturday’s free tele-seminar click here now.

You’ll be glad you did!

With environmentalists protesting that global warming threatens the planet, interest in nuclear energy and other non-carbon based fuel is on the rise. Although alternate energy sources such as solar and wind seem safer and trendier, neither of those technologies is capable of replacing coal or natural gas in the foreseeable future.

Despite the current recession, energy demand remains reasonably strong. Global electricity consumption is expected to double in the next 25 years. With a projected fossil fuel shortage to meet such long-term demand, experts believe that nearly 50 new nuclear plants will be constructed around the world by 2020. More than half of those are expected to be in the emerging markets of China, India and Russia.

Countries such as France already have 80% of their energy supplied by nuclear power. In addition, one of the biggest advantages of nuclear reactors is that once these plants are completed, they usually operate for decades and provide a steady revenue stream. So how do you profit from this surge in the sector? Well, there is a way to “go nuclear.”

The Market Vectors Nuclear Energy ETF (NLR) is a fund designed to give investors exposure to public companies in the nuclear energy sector. The fund normally invests at least 80% of total assets in equity securities of U.S. and foreign companies primarily engaged in the nuclear energy business.

As solar and wind energy still are years away from developing a sustainable and cheap product, all signs point towards going nuclear. With the massive surge in the construction of nuclear plants around the world, this sector is a must for any investor watch list.

Now, fast-forward some 250 years since the publication of Candide, and let’s put a little twist on the theme of the best of all possible worlds. You see, when it comes to the very real economic fears of both inflation and deflation, what we could be looking at is the worst of all possible worlds.

On the inflation side of the coin, we are staring at the very real possibility of higher commodity prices as world demand for agriculture, metals, oil and other necessities of industrial civilization continue growing. Plus, with the Federal Reserve and the Obama Administration intent on printing and spending our way out of a the financial crisis, the value of the U.S. dollar vs. rival foreign currencies is bound to be headed south. Taken together, these two factors mean commodity price inflation.

On the flipside of the coin, we also are staring at the very real possibility of wage deflation in the U.S. Because of the huge supply of willing and capable labor around the globe, corporations are finding it advantageous to outsource much of their labor needs. And because of the lack of an intense regulatory and unionized environment such as we have here in the U.S., companies are increasingly opting to go with cheaper foreign labor.

I call this a “wage arbitrage,” which simply means that companies are going to outsource more and more of their labor and production costs to countries where that cost is much lower than it otherwise would be in the U.S. This could cause a lack of demand in the already beaten-up U.S. employment market, and that reduced demand will likely cause wage deflation here in the U.S. Think about it this way; why would a company want to employ a U.S. worker for the equivalent of $20 per hour when they can get the same job done outside the U.S. for the equivalent of $2 per hour.

Commodity price inflation due to burgeoning world demand, and wage deflation in the U.S. due to an increased supply of unemployed and underemployed workers—this is indeed the worst of all possible worlds.

Let’s just hope the political class recognizes this ugly possibility before its too late.

We’ve all heard this little common-sense gem, yet when it comes to investing, many people have a hard time telling the ducks from the swans. Nowhere is this case of mistaken identity more pronounced than when it comes to recognizing what most so-called “active” investment advisors are doing with their clients’ money.

The way I see it, most investment advisors claiming to be “active” managers are just buy-and-hold sheep in Armani clothing.

What do I mean by this? Well, I explain it all in detail in my new special report, The 7 Dirty Little Secrets of Asset Management.

This report shows you why so many common investment strategies that purport to be active management are basically just different twists on the same old worn out—and thanks to the recent bear market—now thoroughly discredited investment philosophy.

If you want to find out if your portfolio is being put in jeopardy by buy-and-hold pretenders, click here.

Shrewd investors fled to the safety of the Treasury market in 2008 as the equities incurred their biggest decline in 80 years. The need for the deficit-running U.S. government to issue Treasury bonds looms large for at least the next couple of years. The federal government’s expansive borrowing is destined to grow further as President Obama’s economic stimulus package is estimated to cost more than $2 trillion in 2009 alone.

The surging Treasury debt could fuel inflation as the U.S. government boosts the money supply by printing additional dollars. The current low bond yields do not offer investors any protection from inflation. Even if the economy begins to recover by late 2009, watch for interest rates to climb and the price of Treasury bonds to drop.

This has created an opportunity for Pacific Investment Management Company (PIMCO), a blue-chip bond giant with nearly $800 billion under management. During the last couple of decades, the firm has become a household name in fixed-income investing. The new PIMCO 1-3 Year U.S. Treasury Index Fund (TUZ) is an exchange-traded fund (ETF) that bears watching.

This ETF will compete directly with iShares Barclays 1-3 Year Treasury Bond (SHY), a well-established bond ETF.

PIMCO is a well-known name in fixed-income investing but you may want to hold off on buying Treasuries until the market stabilizes and the trading volume of TUZ rises. There is nothing wrong with keeping a high-cash position as the ramifications of the U.S. government’s borrowing unfold in the months to come.

Gov. Huckabee is a very gracious gentleman who is also an extremely well informed, quite well spoken and I must say a very entertaining guest.

In our interview, we discussed such topics as the mounting U.S. debt and what it means for the economy going forward. We also discussed the current national zeitgeist toward bigger and more invasive government, and what if anything can be done about it. Of particular interest to California residents will be Huckabee’s insights on the state’s budget mess, and more importantly, how we can get fix the current fiscal fiasco.

I highly recommend you spend a little of your free time and listen to my interview with Mike Huckabee. Afterward, I think you’ll agree it was time well spent.

To download the MP3 click here.

To listen in Windows Media click here.

Now because I want to be sure that you know all of the basics about these fabulous investment vehicles, I’ve decided to do a short video presentation explaining exactly how ETFs work, their history, and how they can be a huge benefit to your portfolio.

I believe that ETFs are the greatest wealth-building tools for your portfolio because of their diversity, low cost and transparency, and you owe it to yourself to make sure you know just how great ETFs can be.

To find out more about ETFs, and to watch my presentation, click here.

With both President Obama and his fellow Democrats who control Congress looking to fund clean energy initiatives, solar energy exchange-traded funds (ETFs) could start to shine.

Certain solar ETFs have been on a tear of late, and one reason why we’ve seen a surge in the sector is due to the recent announcment by the Chinese government that it intends to support the development of solar energy.

China’s plan would offer $2.94 per watt for solar photovoltaic installations of more than 50 kilowatts. That amount may not sound like much money, but it certainly adds up fast in a huge and still vastly underdeveloped country like China.

While solar stocks have been volatile this year, they could offer good opportunities for long-term investors if governments around the world fund development. But here’s a word of caution. Despite President Obama’s call for alternative energy initiatives and the Chinese government’s announcement of its support for solar energy, analysts are divided about whether investors have enough reason to bet on the trend. For example, critics of China’s announcement cited its lack of detail or a definitive timeline.

With the market as volatile as ever, it is uncertain which direction solar ETFs will go next. If the United States and China choose to fund alternative energy projects, then solar ETFs have a good chance of shining. But if the funding fails to heat up, the sector could be in for some cloudy days ahead.

My topic will be: ETF Strategies in a Difficult Market.

• How to generate income from Exchange-Traded funds
• How to build a portfolio of ETFs around an investment theme
• How to use inverse and leveraged ETFs ro your advantage and when to avoid them

Click here for event details and information on how to register.

I look forward to seeing you there!

But just how bad is the situation?

Social Security is a pay-as-you-go system, which simply means that the government takes your money and gives it to current recipients of Social Security benefits. The government, in effect, guarantees that it will confiscate (via taxation) money from one block of people (workers) and give it to another block of people (retirees).

Does this type of investment architecture sound familiar to you? If you are reminded of the Bernie Madoff Ponzi scheme, then you and I are on the same page. In essence, the Social Security system is basically just a very big version of a Ponzi scheme, and as long as the numbers work out everything should be okay.

But what if they don’t work out?

In the 1950s, the Social Security system’s worker-to-beneficiary ratio was approximately 16.5-to-1. However, now that the average lifespan has increased, the worker to beneficiary ratio has dropped to 3.1-to-1. Within the next two decades that ratio is expected to drop to 2.1-to-1.

I think you can see that in order to keep its Ponzi scheme going, there will either have to be more revenue raised—i.e., an increase in the Social Security tax—or a decrease in Social Security benefits, or a combination of both.

So I ask you this, why would you trust your retirement to a government-sanctioned, Madoff-style investment scheme?

The way I see it, the only person you can trust to look after your retirement is you, and that means it’s imperative that you take responsibility for stewarding every dollar you make.

Don’t let your retirement be determined by a Ponzi scheme. If you need help managing your retirement assets, why not consider active management of your income generating assets? At Fabian Wealth Strategies we have designed an income portfolio to help you preserve capital and generate the retirement income you need to live the life you deserve.

For more on how you can start maximizing your retirement efforts, click here.

Please click to download this valuable resource.

Best of luck in your investing endeavors.

For Q1 2009, the Mutual Fund Lemon List contains 2,335 mutual funds totaling $718 billion in assets! Now 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.

Incredibly, out of this quarter’s universe of 2,335 lemon funds, over 30% (a total of 730) actually had negative annualized returns over the past 10 years. Even historical stalwarts like Fidelity Magellan (FMAGX) and Fidelity Growth & Income (FGRIX) failed to outperform the S&P 500 (SPY) over the past 10 years.

It’s becoming increasingly clear to me that investors need to wake up to the reality that many mutual funds just can’t perform as well as those exchange-traded funds (ETFs) with the same investment objective. Sadly, the result is that many investors are losing money that they really cannot afford to lose.

The following table shows examples of how much you could have saved if you invested $100,000 over the past five years in ETF equivalents instead of these 10 Lemon List laggards. (click table to view larger)

As you can see, there really is no reason to continue investing in under-performing mutual funds. To find out if you own a lemon fund, simply go to www.MutualFundLemonList.com for my complete Q1 Lemon List.

As the economy starts to recover, the price of steel could climb along with demand from fast-developing countries like China and India. Indeed, a shift in market sentiment in favor of steel already may be occurring. A sharp rise in demand for the metal during the last month may be a signal that the time has arrived to consider investing in a steel exchange-traded fund (ETF). However, the decision is not an easy one. The investment case for steel is not nearly as sturdy as the metal itself.

Here’s a brief assessment of the current situation to help you make your choice. Commodities have been trending upward since last summer when the sector took a big hit. Of course, no sector escaped the sharp teeth of the ferocious bear market back then.

Downturns in the housing and automotive industries — both big users of steel — caused the demand for the metal to weaken almost overnight. Steel companies cut production drastically last year as prices slumped from their record highs of mid-2008. As a result, Market Vectors Steel ETF (SLX) dropped 67% last year.

However, the steel market may have finally bottomed out. A big reason is China’s increasing demand for steel. The country accounts for 35% of global steel demand and its government recently injected $585 billion in stimulus money into its domestic economy. As the world’s largest user of steel, China may help to lead the sector to a recovery. Indeed, China’s loan and infrastructure investments are rising 27% annually. Credit Suisse analysts took notice and recently boosted their investment rating on steel to “overweight.” China’s rising demand for the metal caused SLX to jump nearly 50% since the March 9 rally.

However, there still is reason why you may want nerves of steel to invest in this metal. Despite China’s strong demand for steel, many analysts fear that higher Chinese export subsidies may undercut global prices. In fact, outside of China, worldwide steel output is down 37% from last year.

If you ask me, there is much riding on the export and spending decisions of the Chinese government. When conventional market forces are circumvented by government policies, predicting which direction an investment will go becomes more difficult. Personally, I am holding back on investing in this sector right now.

If, however, you are convinced that Chinese demand for steel will drive both production and prices up, then a long position in SLX gives you a chance to profit. If you prefer to wait and see what China actually does, holding off on investing in SLX might give you a more restful night’s sleep.

This governmental intervention in the economy was ostensibly done to ratchet us out of recession (at least that’s what the White House, the Treasury Department and the Federal Reserve tell us). But what the government’s actions are more likely to do is to cause a huge amount of monetary inflation down the road, as the rising cost of food and energy prices will eventually hit consumers worldwide like an uppercut from Iron Mike Tyson.

Now I say eventually, because so far we haven’t seen the huge spike in the goods and services you’d expect as a result of monetary expansion and the Keynesian influx of government “stimulus” in the economy.

And while I do think that inflation is a pernicious beast lurking about the financial forest, what I think is the more immediate threat to investor wealth is deflation. Now when I say deflation, I need to be a little more specific.

First off, I am not talking solely about deflation in terms of falling asset values. Certainly, the sharp decline in real estate values along with the decline in stock values is one form of deflation, but the real long-term menace of deflation has more to do with the term’s wider, macro-economic connotations.

According to Investorwords.com, the definition of Deflation is, “a decline in general price levels, often caused by a reduction in the supply of money or credit.”

The key concept here is a reduction in the supply of credit.

If deflation is caused by a lack of willingness to lend money due to circumstances such as the current credit crunch, bad things could be in store for the economy. Given that money is the lifeblood of any economic system, a lack of supply, i.e., a lack of the willingness to lend, could mean a deepening of the recession.

The evidence for deflation occurring on a global basis is already present. According to one of my favorite financial bloggers, Mike “Mish” Shedlock of Mish’s Global Economic Trend Analysis, deflation went global long ago.

Mish points out that in March, wholesale prices in both Japan and Germany have fallen sharply. In Japan, wholesale prices fell at their fastest pace in nearly seven years. In Germany, wholesale prices witnessed the biggest year-on-year decline since January 1987.

In China, the Consumer Price Index (CPI) and the Producer Price Index (PPI) are now in negative territory for the year, a clear indication that asset prices in one of the world’s largest economies have been hit hard by deflation.

Here in the United States, we’ve seen a similar phenomenon. The Consumer Price Index actually increased 0.2% in March, but over the last year the CPI has decreased 0.4%. This is the first 12-month decline in the CPI since August 1955!

As I mentioned earlier, many of my managed clients are afraid that inflation will eat away at their wealth. But what I think they should be more worried about—at least for now—is deflation.

I know the concept of deflation is more difficult to understand than inflation, and it’s also more difficult to feel. I mean you know what inflation is. You feel it right at the gas pump, cash register or whenever you buy something. Everything just gets more expensive, and for sure, this is not good.

What I think is worse though is that during deflationary periods, you see the areas where you keep your real wealth, i.e., your investment portfolio, your home and other valuable assets, decrease in value. This decrease in value of your true wealth reservoirs is why I think deflation is the bigger boogey man to fear right now than inflation.

Well, there are several healthcare exchange-traded funds (ETFs) that may be able to help soothe queasy stomachs. The healthcare sector has been growing rapidly in the last decade, with the industry’s portion of the national economy doubling to nearly 16% of gross domestic product (GDP). Coupled with the Obama administration plans to inject $634 billion into the sector during the next 10 years, now may be a good time to examine the industry’s outlook.

Healthcare historically is somewhat recession-proof. People who get sick need treatments – period. It doesn’t matter if the economy is weak. For those who have an appetite for risk, the healthcare industry offers many opportunities for investment.

Now keep in mind that the performance of health-care funds can fluctuate widely. While healthcare ETFs such as iShares S&P Global Healthcare (IXJ), Vanguard Health Care ETF (VHT) and WisdomTree International Health Care Sector Fund (DBR) fell more than 20% in 2008, they all beat the Dow, which lost 33%. However, Healthcare Select Sector SPDR (XLV) had the worst performance of them all with a 56% reversal. With the market starting to head upward, healthcare is one of the sectors that could soar.

I am not yet convinced that the healthcare sector is an elixir for anybody’s ailing portfolio. Although the Obama administration is championing a plan to expand the government’s role in providing healthcare, it is unclear to me and probably many others what truly is affordable for a country that is running massive deficits. Plans that sound great in concept sometimes lose support when their actual long-term cost becomes clear.

Regulatory changes and policy shifts certainly could change the entire landscape of the pharmaceutical industry as we know it. For example, there has been a period of remarkable instability in the prices of drug manufacturers since President Obama took office.

With the changing political landscape and doubts about the potential profitability of new pharmaceuticals under development, the industry’s future remains uncertain. As a result, patience is required for anyone who wants to invest in this sector.

If you are cautious—and I certainly hope you are—waiting for the right time to get into the market might be a good way of mitigating risk. If the healthcare and pharmaceutical sectors look enticing to you, then a long position in one these ETFs just might be what the doctor ordered.

Now a few months ago, I purchased a new home. To facilitate this purchase, I had to get a jumbo mortgage. I needed the loan in December, and that meant that I had to put in my loan application last November. As you probably remember, this was at the very height of the mortgage and banking crisis.

As you might imagine, getting a jumbo mortgage through during the worse financial crisis since the Great Depression was anything but easy. In fact, this was one of the most difficult business transactions I have ever been a party to.

Thankfully, I had a real professional on my team helping guide me through the entire process. His name is Josh Lewis, and he’s been a close personal friend as well as a sponsor of my radio show for many years.

I know many listeners, and many Alert readers, have used Josh’s expertise to get mortgage loans done for them. With Josh’s help, even complex jumbo loans like mine can get done in a fast and efficient manner.

If you’re in the market for a home refinance, a jumbo loan or virtually any other type of real estate loan, then I strongly recommend contacting Josh Lewis.

You can find Josh via his website, www.joshlewis.net, you can call him at (888) 944-5674 ext. 1.

Do yourself a favor and put a true professional on your real estate team.

HOW your money is being managed going forward will be critically important to avoid repeating the same mistakes of the recent past.

No matter where you are invested, you owe it to yourself to make the best decision possible. Click on my photo below to watch a brief video on the 5 Keys to Your Investment Success. Now more than ever, you need to determine if your advisor is prepared and your assets are positioned for the difficult road ahead.

If you find yourself holding a bull market portfolio in the midst of the worst bear market since the Great Depression, then Fabian Wealth Strategies can help.

At Fabian Wealth Strategies we have our clients defensively positioned for the difficult times ahead. If you have a portfolio valued at $250,000 or more and would like a second opinion on how to handle this bear market, call us at (800) 391-1118 or visit us at www.fabianwealth.com.

Now you’ve probably heard about the many tax “tea parties” being held today throughout our nation. I’ve read that there were going to be well over 1,500 tax protests held around the country, with at least one taking place in all 50 states.

Where I live in Orange County, California, I’ve heard there will be over 50 separate local tax protests. Honestly, I can’t say that I blame anyone for feeling the need to protest the high tax burden imposed by not just the federal government, but also by state and local governments.

The fact is that the total tax burden American’s face each year is just way too overbearing, and with the new presidential administration’s philosophy clearly on the side of more federal spending that tax burden isn’t likely to go down for at least another four years.

Depending on where you are on the economic scale, the combination of state, local and federal taxes can add up to well over 50% or more of your annual income. This means that you effectively work only six months of the year for yourself, and the other six months you are basically relegated to the servitude of the collective.

I know that may sound extreme, but I really don’t think a rational person can look at it any other way.

Fortunately, there are steps you can take to help reduce your overall tax burden. First off, you have to make sure you are spending the time, energy and money that it takes to keep your overall tax liability to a minimum.

One way to do this is to meet with your CPA or tax professional on a regular basis. I make it a point to meet with my CPA four times a year. By doing this I can plan for my tax liability well in advance of April 15, and I can also make sure I have the investment vehicles and proper deductions in place that help ameliorate my overall tax liability.

Yes, this process involves some of your time and some of your money. But believe me, it is well worth it. You see, as long as our tax code remains ever bloated and ultra complicated, having a tax professional on your financial team is just an absolute must.

Now even if you feel no pangs when it comes to paying taxes, think of the situation this way. You owe it to yourself and your loved ones to protect yourselves from fiscal mismanagement. You wouldn’t just throw your money away in any other walk of life, so why do it when it comes to paying Uncle Sam.

The fact is that the more successful you are in life, the more pounds of flesh the government extracts from you.

I wish I had better news for you on this April 15, but the reality is that the more you make the more you pay. This reality dictates that you do everything you can to reduce your tax burden, and therein lays the value of a good tax professional.

Oh, and for those of you taking part in a local tax tea party, well, know that you have a sympathetic ear right here with me.

With both President Obama and his fellow Democrats who control Congress looking to fund clean energy initiatives, solar energy exchange-traded funds (ETFs) could start to shine. Right now, solar ETFs are trading at a fraction of their 52-week highs, yet in the last week of March, the performance of solar ETFs brightened.

Certain solar ETFs soared 20% to 50% over a very short period. The sector’s surge followed an announcement that the Chinese government intends to support the development of solar energy. China’s plan would offer $2.94 per watt for solar photovoltaic installations of more than 50 kilowatts. That amount may not sound like much money, but it certainly adds up fast in a huge and still vastly underdeveloped country like China.

The spurt in solar ETF prices is reflected in the chart below that compares the Market Vectors Solar Energy (KWT) and the Claymore/MAC Global Solar Energy (TAN) to the S&P 500. Both of these ETFs were beaten down in February, but they have soared nearly 50% since the market rally started on March 9. Part of the reason both of these ETFs shot up so quickly is that they are heavily weighted in China, with more than 20% of their holdings in Chinese companies.

While solar stocks have been volatile this year, they still could offer good opportunities for long-term investors if governments around the world fund development. But here’s a word of caution. Despite President Obama’s call for alternative energy initiatives and the Chinese government’s announcement of its support for solar energy, analysts are divided about whether investors have enough reason to bet on the trend. For example, critics of China’s announcement cited its lack of detail or a definitive timeline.

With the market as volatile as ever, it is uncertain which direction solar ETFs will go next. If the United States and China choose to fund alternative energy projects, then solar ETFs have a good chance of shining. But if the funding fails to heat up, the sector could be in for some cloudy days ahead.

Bear market funds use various strategies to profit, although the chosen method usually is through short positions. Certain exchange-traded funds (ETFs) now are beginning to use derivatives and options to replicate the inverse of market indexes instead of simply shorting them.

In 2008, several bear market funds — shorting all kinds of stock exchanges — performed well. They rose while the global markets slumped. However, history shows that bear market funds have been long-term laggards. While bear market funds are not permanent fixtures in most portfolios, since the stock market tends to rise over time — they are a great way to seek short-term gains in a sagging market.

Depending on the ETF you choose, for every 1% dip in the market, you can turn a profit of 1%, or even 2% if you use a leveraged position. Now, let me introduce you to a handful of bear market funds.

The ProShares Short S&P 500 (SH), which shorts the S&P 500, was up 39.21% last year. More aggressive investors bought the twice-leveraged UltraShort S&P 500 ProShares (SDS), which returned 61.36% in 2008.

For investors interested in international bear market funds, ProShares Short MSCI EAFE (EFZ) shorts European, Australasian and Far Eastern markets. This ETF had a one-year return of 38.90%. Risk-taking investors may be interested in the twice leveraged ProShares UltraShort MSCI EAFE (EFU), which had a 51.92% one-year return.

While bear market funds are a great way to profit during market slumps, beware of bear market rallies such as the one we’ve had recently. SH and EFZ both are down more than 20% since the rally started on March 9. As leveraged funds, SDS and EFU each dropped nearly 40% in the last month.

The market’s extreme volatility and uncertainty during the last month leaves an open question about how to play the rally. For those investors who think the rally will extend further into the year, a long position might be a good idea. Investors who think that the rally is going to fizzle may decide that a short position is best.

And while I feel that the money market is the safest, most liquid place to park your serious money during this time of market flux, I do think there are several safe alternatives to your run of the mill money market fund.

One of my favorite money market alternatives is the iShares Barclays 1-3 Year Treasury Bond (SHY). This investment seeks results that correspond generally to the price and yield performance of the short-term sector of the U.S. Treasury market as defined by the Barclays Capital 1-3 Year U.S. Treasury index.

The current yield on SHY is 2.05% as of April 8, 2009, so if you are looking for a good place to get a little more yield than your money market account, check out SHY.

In addition to SHY, there are two other cash alternatives that are worthy of checking out. They are the WisdomTree U.S. Current Income Fund (USY), a fund yielding 0.35%, and the PowerShares VRDO Tax-Free Weekly (PVI), which has a current yield of 1.64%. Both of these decent cash alternatives, although they pale in comparison to SHY in terms of yield.

So, if you are looking to take a little of your money and put it into cash alternatives, here are three solid candidates.

If you’re managing your own money, are you getting the results you think you should?

Or, is your money being managed by a stockbroker or investment advisor who insists
you “buy and hold” stocks even while Wall Street—and your portfolio—get savaged by
a malicious bear?

Now more than ever, individual investors need expert guidance and continuous “eyes
on” monitoring of all of their positions, not just occasionally, but every trading day. The
simple fact is that in today’s market environment, you’ve got to have an experienced
ally on your team if you want to successfully navigate these treacherous market seas.

At Fabian Wealth Strategies, we believe that innovation is at the forefront of each
client’s success.

Click here to learn more about how Fabian Wealth Strategies can help you manage your assets according to your goals in a simpler, easier and more cost-efficient way than ever before.

One reason is continuing risk that further economic fallout is ahead. The Congressional Budget Office (CBO) reported March 20 that deteriorating economic conditions will cause the federal deficit to soar past $1.8 trillion this year and leave the nation in a deeper financial hole than the White House had previously estimated. The nonpartisan CBO predicted that the administration’s agenda would produce deficits averaging nearly $1 trillion a year for the next decade — $2.3 trillion more than the president predicted when he proposed his spending plan in February. Folks, that’s a really big hole.

Bank stocks may have been even more volatile than the topsy-turvy market lately. The Financial Select Sector SPDR (XLF), an ETF that tracks the financial stocks in the S&P 500, rose 6.3 % Tuesday to recover from Monday’s drop of more than 8%.

But let’s not get carried away by the modicum of good news.

The Federal Reserve’s March 18 announcement that it plans to buy more mortgage securities and $300 billion in longer-term Treasuries during the next six months might have been just a short-term catalyst for the market. The next piece of good news for banks could come this Thursday when bankers find out if the Financial Accounting Standards Board approves giving auditors more flexibility in valuing illiquid mortgage assets that may have a long-term value and strong cash flow.

A few years ago, financial stocks such as Merrill Lynch, Goldman Sachs and JP Morgan, among others, rose strongly. Bankers and Wall Street traders in 2005-06 received big bonuses and global markets soared. Unfortunately, the subprime foundation of this boom began showing cracks in 2007. By 2008, the shaky structure collapsed and dragged the financial sector down with it.

The Financial Select SPDR (XLF) was one of the most beaten down ETFs last year, when it lost 54.91%, compared to the 36.68% drop of the S&P SPDR (SPY). Investors who shorted financials through UltraShort Financials ProShares (SKF) would have gained 3.61% in 2008.

The real question is whether the rally is sustainable. Citigroup and Bank of America reporting profits for the first two months of 2009 started the rally in the financial sector, with XLF rising 39% since March 6. It is important to remember that the rapid resurgence in financial sector stocks also stems from their extremely oversold condition last year. Citigroup and Bank of America each absorbed more than a 90% drop in share price in the last 52 weeks. Yesterday, Citigroup jumped 9.5% and Bank of America zoomed 13.1%.

Although I am trying to stay positive this year, I still see challenges for the financial sector. There will still be billions of dollars worth of toxic assets that will have to be written off, making year-end results for financials hard to forecast.

Personally, I am not sure about the longevity of the latest rally. While Citigroup and Bank of America notched unexpected profits for the first two months this year, I am not convinced both companies will be profitable at the end of the year. If you believe that we are simply in the midst of a bear market rally and that the financial sector is going to be rocked further by the credit crunch, shorting the index might be profitable. On the other hand, if you believe that this is the beginning of the rebound for the beaten-down financial sector, going long may let you pick up shares at very cheap prices.

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