In today's Digest, I'd like to give you something that will literally change your life. I say "literally" because when I discovered this secret, it changed my life forever. And yes, I will really give you this secret. No purchase required. No strings. It's yours.

 

What's the secret? A simple way to routinely double your money, while being paid high annual yields, through investment vehicles that are guaranteed by law. Rather than tell you about them, let me show you a real example that came across my desk a couple weeks back...

 

On July 28, I received a secret code from one of my best, most experienced analysts. I can't reprint the entire code here (it really is a secret), but it goes something like this: 390064A.

 

Using that code I could accept an investment offer that would more than double my money between now and December 15, 2012. If I used it, the code would convey $1,000 to me on December 2012. To use the code, I had to spend $450. That implied a 122% return in less than 18 months. And that's not all...

 

This deal also contained a biannual interest payment of $67.50, meaning that over the next several months, I'd also receive nearly $130 in interest. On a $450 investment, that's a 28% yield, boosting my total return to 150%. And unlike any stock you might buy or real estate deal you might do, both the $1,000 payment and the interest payments are legal obligations. There is no question about whether or not I would receive the money. Law guarantees it.

 

Those are the actual terms of this deal. It was a real deal – one offered to in-the-know investors all over the world. I could have easily put millions of dollars into that particular deal, simply by picking up the phone and giving the code to my broker. Don't worry... I'm going to explain a lot more about how these deals work and how you can get into them easily.

 

But before I get to the details, I want to ask you a simple question: Assuming that what I'm telling you is the whole truth, assuming you too could use a code like that to make an investment that pays a roughly 12% annual yield and will more than double your money in less than 18 months... and assuming this return really is guaranteed by law... why would anyone ever invest in anything else?

 

I mean, if you can find a few of these things every year, you'd never invest in anything else, would you?

 

About three years ago, I decided to make an enormous effort to publish information about these kinds of deals and to educate individual investors about the outrageous opportunity in these kinds of contracts. I've spent nearly $1 million simply trying to get the word out to people. And I've completely failed. Almost none of our subscribers are investing in these deals.

 

Meanwhile, they're making up more and more of my own account. I don't know any other way to safely make this much money. I'm left scratching my head, wondering why more people aren't interested in making enormous capital gains (doubling your money isn't unusual) and great income (yields of more than 10%) – all with a vehicle that's a legal obligation.

 

So I thought I'd try just one more time to explain it to you. I've even gone to the expense of making a new video about these deals and our newsletter that covers them. But before we get to all that, let me just give you a few more simple facts, explain how these things really work, and show you why they are so safe.

 

The secret code I was talking about is called a "CUSIP" on Wall Street. It's simply a code that identifies one particular investment contract, also known as a "bond." Don't let all the jargon trip you up. All you need to know is that a company (in this case, grocery store giant A&P) is promising to repay investors $1,000, plus interest, on December 15, 2012. As of two weeks ago, you could have purchased that obligation from another investor for only $450.

 

It's really that simple. This promise to pay is a legal obligation. The company can't decide not to pay you back. It can't decide to lower your interest payments. It must pay you in full.

 

The legal obligation aspect of these kinds of investment contracts (aka bonds) is what really sets them apart from stocks, real estate deals, or options. That's why they are so good for small investors to own. I mean, what more do you need to know? The company must, by law, pay you the full amount of money you're owed under the terms of the contract.

 

Now, there is one catch. If the company goes bankrupt, you're unlikely to be paid back 100% of what you're owed. This risk is why so many people are afraid to buy bonds. But the fear of bankruptcy is blown far out of proportion to the actual risk. And even in the event of a bankruptcy, you're still likely to get your initial money back if you've bought the contract at a significant discount from par ($1,000).

 

Let me show you what I mean...

 

The A&P bond I described above was originally sold to investors at around $1,000 per bond. It originally yielded around 6.75%. But the company's grocery stores have been losing money, and investors are worried the company might go bankrupt. As a result, investors began selling these bonds steadily lower until they reached $450 last week.

 

At that price, they are a great investment. The lower the price goes, the higher the potential return. You always get paid back $1,000. You always get paid interest. The price you pay for the bond determines the size of your returns.

 

The lower the price you pay, the more money you make.

 

And here's the real trick to understanding corporate bonds... The lower the price, the lower the risk, too. You see, in the unlikely event of bankruptcy, the company's creditors (that includes the bondholders) end up owning all of the company's assets, which are typically sold. The creditors then split up the proceeds. As a bondholder, you're legally entitled to a share of this cash, which typically works out to about $0.40-$0.50 on the dollar. When you buy a corporate bond for less than half of par – less than $500 per bond – you're unlikely to lose a cent, even in the worst case.

 

The dynamics of corporate bonds are extraordinary. As they get cheaper, they get both safer to buy and more lucrative to own. That's an extraordinary combination. But for whatever reason, most investors seem completely unable to grasp this concept. Don't be one of those investors.

 

Study the corporate bond market. Picking up even one or two of these deals each year can make you a fortune – without putting even a single penny truly at risk.

 

How safe are bonds? It might surprise you to learn I doubled my money buying GM bonds. Yes, I was the analyst who predicted the company's bankruptcy. But once the stock was trading for less than $1 and bankruptcy was certain, you could have bought GM bonds for around $0.15 on the dollar. I estimated the bondholders' recovery would be at least $0.50 on the dollar, enough to make 233% on my money.

 

True, I didn't count on OBAMA! giving half the company to the union, which certainly reduced the recovery amounts I was expecting. But the bonds I bought for pennies are now trading close to $0.40 on the dollar. They are certainly worth a lot more than I paid for them.

 

That's the big advantage of buying bonds: They are almost always worth something. If you've bought at the right price, it's very, very difficult to lose any money.

 

If I could do one thing for every single reader, it would be to give them the confidence and the knowledge to buy just one corporate bond trading at a discount. Just one.

 

I promise, once you've made money in the bond market, you'll never go back to buying stocks. You can easily make more money in bonds, with less volatility and less risk.

 

Just take one look at the model portfolio in our bond-centric newsletter, True Income. It has 20 open positions. Of those, 12 (more than half the portfolio) are up 10% or more. And many of the gains are huge: 215% on a Rite Aid bond, 74% on Sears bonds, 81% on a Freescale bond. Even more important, not a single recommendation is down 10% or more.

 

Is it really this easy? Can you just buy any corporate bond that's trading at a discount from par and make easy money? No, probably not. Like anything else, it takes knowledge and experience to make smart investments in corporate bonds.

 

That's why I hired Mike Williams, who is a certified financial analyst (CFA), and who has been a professional bond investor since 1972 (the year I was born). You're not going to find a better, more professional bond analyst anywhere. He's the best, as his track record proves. And he's recorded a video presentation to tell you more about how he does what he does. Click here to check it out.

 

Whether you subscribe to our bond letter or not, be sure to buy a bond at some point this year. It will change your life, literally. In fact, I bet most people who follow that advice will stop buying stocks altogether.

 

Regards,

 

Porter Stansberry