The Law of Accelerated Returns…

You’ll recall that the S&P 500 returned 261%, and the dividend-paying companies in the S&P 500 returned 500%.

Companies that increased their dividends for no less than 10 years running, though, returned 1,171%!

I’ll strategically recommend buying these companies right before their ex-dividend date hits, too, which guarantees that we’ll pocket the next dividend payout.

From there, we made absolutely certain of the directional movement of the stocks we’ll be buying. Because search analytics from Google and other social media platforms will tell us whether a stock is heading up or down with an 87.6% degree of certainty.

You may be asking yourself…

“Has the performance of the portfolio we’re about to see… a portfolio based solely on the third law alone ever been tested?”

Great question!

The answer is yes.

The annual rate of return on such a portfolio is 41%.

Extraordinary by every definition of the word, right?

Businessweek concluded that it…

“Would’ve outperformed all but the world’s greatest stock pickers over an eight-year stretch ending in 2011.”

Forbes said it would’ve…

“Handily trounced the market.”

MIT said…

“This work is bound to attract interest. And taken at face value, it could be hugely influential.”

Many of my readers are perfectly content to (safely) earn 41% a year.

I suspect you would be, too. But that still only equates to 3.4% per month.

Our sole ambition here is to earn a 13% yield on stocks, every month. No exceptions.

Earning 3.4% per month only grows the principal on an average retirement account by $36,419 on Valentine’s Day.

However, accelerating the total yield to 13% every month grows it by $177,378.

Big difference!

Again, I’m ready to grow the average retirement account by…

What we need is one more law.

One more unbreakable law, that is.

A law that accelerates time, without fail.

A law that speeds up the process.

A law that compresses six months down to four weeks…

Four weeks down to five days…

Five days down to 20 hours…

I call it the law of accelerated returns.

The law can be stated as follows…

If you’re a shareholder of a stock with a high likelihood of moving higher… the market lets you “lock in” the (higher) future price today.

Say we own shares of agriculture giant, Caterpillar (CAT). And we bought just ahead of its ex-dividend date.

Well, we’re entitled to the next dividend payout, even if we sell our shares in a few days for a quick profit.

Better yet, Caterpillar has raised its dividend for more than 10 years running, which infinitely increases the likelihood of capital gains.

Let’s also say that the social media grid, including the “Twitterverse” and Google, is going ballistic with positive chatter.

Perhaps Caterpillar just launched a brand-new fertilizer dispenser. Or there’s rumors swirling around that an insider just made a huge purchase.

Well, that’s significant! Because now we know, with an 87.6% degree of certainty, that Caterpillar is about to blast higher.

With Law #4, the law of accelerated returns, we can lock-in Caterpillar’s higher (future) stock price today. As in, right now!

During my tenure at one of the largest brokerages on Wall Street, marching orders to execute Law #4 came directly from the top brass.

“Lock and load!” the analysts used to say when the directive hit our inbox. And it always happened just ahead of earnings season.

Why? Because the Wall Street bluebloods, like Goldman Sachs and Morgan Stanley, love to make the earnings reports look pretty.

The law of accelerated returns is their ultimate window-dressing tool. It’s an opportunity to earn the safest lightning-quick gains you’ve ever witnessed. Safe enough to use in an everyday retirement account, according to the IRS.

For example, this very minute, Morgan Stanley has 32 million shares of Facebook sitting in its house account.

If the firm wanted to put some extra lipstick on its next quarterly earnings report, all it’d have to do is execute Law #4 on its Facebook shares.

What I mean is this…

Morgan Stanley can essentially “lock-in” the (higher) future price on its Facebook shares anytime it wants to, and realize the gain immediately.

No waiting around for the stock to move higher.

The gain hits the books that same day.

What’s the tradeoff for accepting Law #4′s generous gift?

It’s simple, really. Morgan Stanley must agree to surrender all of the additional upside on its Facebook shares above the “lock-in” price.

Facebook presently trades for $45.

If Morgan Stanley “locks-in” a future price of $50, it would score a safe, lightning-quick profit. But if Facebook shares keep marching to as high as, say… $100, the firm wouldn’t see a penny of the higher move.

The moment shares hit the “lock-in” price, they automatically disappear from your account.

Pretty ingenious, right?

“Lock and load!”

I’ll pocket the accelerated gains all day long! Someone else can carry the risk of owning the shares.

Those who had the insight to accelerate their dividends in such a fashion last month as I outlined, well…

They would’ve earned a 15.09% yield, and increased the balance on an average retirement account by $24,739 in 30 days.

What I love best about Law #4, though, is that it also gives us a bit of a downside cushion.

Should a stock that I recommend ever decline, however unlikely, shares would have to fall substantially below the purchase price before we’d ever actually lose money.

The Wall Street Journal says that the law of accelerated returns can…

“Generate income and juice returns in any market.”

And there you have it…

A 13% yield on stocks ever single month, forever.

We can do it over… And over… And over…

As many times as our heart desires….

All the way to $464,919 by the Fourth of July.

But don’t thank me!

Thank the laws of the market.

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