The Great Wealth Transfer Issue #2:



  • The ONE thing I wish all my readers would do...
  • The biggest and most important undertaking of my career…
  • ​The single event that could mean bankruptcy for some and a shot at permanent wealth for others, in 2023 and beyond…. 
  • ​Why the world’s best-kept wealth secret has been hidden from you…
  • ​Why you may never buy stocks again after understanding these investment realities...
  • ​The newest member of Porter & Co. – a Wall Street legend…

Here’s what most investors don’t know…

The bond market is far bigger and more important than the stock market.

Not only is it the heart of Western civilization (yes, I’m serious), but it has several characteristics that make it far more lucrative than the stock market (and far safer)... if you know how to navigate it.

That’s why, as I have written before, if there were only one thing I could give to all of my readers, it would be an understanding of the advantages of investing in corporate bonds.

Because I believe if you truly understood the corporate bond market, you would never buy stocks again.

Tell me, where else can you potentially earn a double-digit annual income... along with triple-digit capital gains... with relatively low risk… 

And a legally binding investment contract that protects you, even in an economic crisis.

It simply does not exist anywhere except the corporate bond market (and even then, it only exists during very specific periods of time – like the one we’re entering now.)

Yet, most investors remain woefully ignorant.

Instead of getting rich slowly, with safe, legally protected assets… they choose to ignore my advice and swing for the fences in the vain hope of striking lucky on the next “10-bagger” stock or crypto.

Alas, there's no such thing as teaching. There is only learning. Those who choose to learn should continue. For everyone else, well as we discussed here... poverty is a choice, too.

However, if you want to choose wealth, today's issue of The Great Wealth Transfer will open your eyes to the remarkable benefits of the bond market… 

And why it is one of my favorite ways to grow my wealth, especially during recessions.

As you’re about to see, with bonds – and specifically, with distressed debt – you have an opportunity to chase much higher returns and still sleep soundly at night.

Of course, this begs the obvious question, if the bond market is so much bigger and better than the stock market… and safer… and a source of more consistent and higher returns…

Why don’t more investors invest in bonds?

For some, the answer is: They’re scared. Or lazy. Or both.

However, that’s not all there is to it... 

As you’ll discover today, for many investors this opportunity has been purposefully kept hidden from them by unscrupulous actors who don’t want you to know about it.

But first, let's talk about how bonds built Western civilization...


The bond market is the heart of Western civilization.

I know, that's a big claim. One you’ve likely never heard before. And I know most you won’t believe it. But let me make my case and maybe you’ll come around to my way of thinking…

First, the modern bond market traces its origins back to Martin Luther and the Protestant Reformation of 1550.

Luther thought there was nothing wrong with charging "fair" rates of interest. God whispered in his ear that 5% should be the standard. Calvin, meanwhile, apparently heard 6%.

Gold merchants, apparently didn't care what God thought and charged what the market would bear.

They created the basis of the modern financial markets over the next hundred years or so, beginning mostly with discounting receivables (bills). 

This is how the concept of the time value of money was developed.

Before this, charging interest on a loan was illegal in most Western countries. It was considered immoral and defined by the church as "usury."

Without access to capital and without capital markets, the West had suffered a tremendous decline for more than 1,000 years – your teachers called it the Middle Ages. 

But they probably never considered that the Renaissance, with its amazing scientific, artistic, and political progress – and then the Industrial Revolution that followed later – was funded and made possible by Europe's bond markets.

The conventions, rules, and traditions of the modern bond market were established by the greatest single bond issue of all time.

In 1752, the entire English national debt was refunded with a single bond issue that "consolidated" all of the previous bond issues.

These bonds, which were perpetual (they never matured), paid 3% at par and were known, for hundreds of years, as "Consols."

They paid interest, in gold, until the end of World War II, when the British government tricked its bondholders into accepting sterling (paper money).

The poor fools were then summarily wiped out over the next 30 years as Britain bankrupted itself by adopting socialism. 

It's truly amazing how 200 years of credit, wealth, and power can be so quickly squandered. But bad ideas have huge consequences.

Still... the 200 years or so that the British Crown paid, honestly and on time, set an important standard. 

Consols led to the development of more capital markets through Eastern Europe and, most important, America.

Founding father Alexander Hamilton copied the idea and funded our government with perpetual bonds that paid 6%. 

Later, the Populist president Andrew Jackson wisely paid off all of these debts. What a novel idea! 

Let's not discuss the track record of our recent presidents in this regard. They have issued bonds that we will never, ever be able to repay. You're welcome, kids and grandkids. Good luck.

The binary nature of bonds – they're either paid back in full or they default – was established by the British merchant class (known as "Whigs").

They were in favor of using the power of the central government (taxes) to fund their investments. 

As a result, they structured the Consol bonds to make sure they were always paid interest no matter what

As private bonds were issued, the same traditions held: 

Bond payments carried the force of law. There was no way for a bond issuer to pay back part of the note. They either paid in full or they were in "default."

For a long time, default meant not only losing your assets, but also going to prison if your assets didn't make your bondholders "whole." 

He who borrows what isn't hizzn, must pay it back or go to prison.

This binary nature is extremely important.

It means that bonds are NOTHING like stocks.

Managers must meet the terms of the bonds they've issued. They must pay interest. And they must pay principal.

Sometimes, they must even pay more than principal – with some bonds have a "convertible" feature that allows you to opt to be paid back in stock if the stock is worth more than the money owed.

The binary nature of bonds – perform or default – is the main reason I believe most investors are far better off in bonds than in stocks. 

Ask anyone who has worked closely with or has closely observed the inner workings of a public company's management team and I'm sure they will agree.

There's an almost endless variety of ways that corporate managers can screw over shareholders. 

For example, instead of paying dividends, they can buy back stock. This will certainly increase the value of their options, but it may or may not deliver value to shareholders.

They can use corporate assets to buy other companies, which may or may not be accretive to their own shareholders but will almost always lead to big bonuses and payouts for management.

Even the most ethical managers will, in some way, be swayed by the mismatch of incentives between managers and shareholders (owners).

Managers have a huge incentive to acquire larger and larger piles of assets. Doing so inevitably leads to more job security (more capital to manage), larger staffs, more power, and more prestige.

Thus, management teams will always seek to build larger and larger "fiefdoms," even when doing so hurts the shareholders by lowering growth rates, reducing returns on equity, and leveraging the balance sheet.

Despite this, most investors ignore bonds for stocks but…


In simple terms:

More upside potential with less risk.

You see, like stocks, corporate bonds allow you to invest in firms around the world. 

But there’s less risk associated with bonds because the payout of bonds is agreed upon, and the timetables are backed by law. 

Unlike stocks, however, bonds are binary. Meaning they either pay their debt obligations or they don’t. It’s a 1 or a 0 proposition, just like computer programming. 

This makes investing a fairly straightforward process.

However, the rules may be a little different than what you’re used to.

Because the terms of the bond are set, the daily price changes matter less for bondholders than they do for stockholders if the bond issuer pays interest and the principal. 

As soon as a company misses a payment, they are in default.

When a company defaults, the lenders can force the company into bankruptcy and liquidate its assets to pay shareholders. 

Debtholders are the first to be paid out whereas term loans are senior to bonds... bondholders know the terms of when they should be paid and how they’ll be compensated in cash flows (interest payments) along the way.

Shareholders assume they are entitled to a company’s profits, which is true. But it’s the bondholders that receive preferential treatment and are entitled to a company’s assets if they go out of business and are forced to liquidate.

If this sounds a little complicated, don’t worry. We’ll talk more about all this as we go, and soon it will be second nature for you.

Meantime, here’s a quick rundown of the differences between stocks and bonds. You can refer back to this at any point:

  • Represent buying the equity of a company, carrying ownership interest.
  • There is no guaranteed return, but the upside is unlimited.
  • Downside is limited to size of the investment.
  • Highly liquid (lots of buyers and sellers).
  • Stocks are only entitled to excess profits, so returns are unknown.
  • Are traded on stock exchanges (I.e., the NYSE, NASDAQ).
  • Owners get voting rights.
  • There is no guaranteed return, but the upside is unlimited.
  • Concrete debt instruments backed by a promise to pay back the initial amount of money loaned with interest.
  • The return is guaranteed (as long as the company avoids bankruptcy), but upside is limited.
  • Downside is limited to the size of the investment, but bondholders have a legal claim to company’s assets and are above stockholders in the debt stack – Bondholders get paid out first.
  • Less liquid (due to fewer market participants).
  • All bondholders get the same deal (i.e. interest rate and maturity date).
  • ·Are traded over the counter (OTC)
  • · Bondholders are first in line to receive a company’s assets if they go bankrupt. 


Despite the clear advantages of bonds over stocks, most investors don’t even considered investing in them.

Why? For some it’s laziness and fear of the unknown.

However, there’s more to it than that. The truth is, the traditional financial system has absolutely zero interest in educating you about bonds, especially distressed bonds.

Brokerage firms do almost nothing to educate their clients about the bond market. Instead, financial-services companies revolve around selling stocks to their clients and trading stocks for their clients.

Why do you think it is that if you call your broker and ask to buy a stock, you can do so in seconds... but if you call your broker and ask to buy a bond, you will immediately be discouraged?

Perhaps it's because the wealth-management business doesn't exist to make its clients rich. It exists because its clients are rich, at least when they first walk in the door.

Think about it… why have you seen thousands of advertisements urging you to buy stocks, but never a single advertisement - ever - urging you to buy corporate bonds?

Is it perhaps because brokerages and financial advisors know they can fleece you for more money by forcing you buying and selling equities? 

I’ll leave that for you to decide.

Now, while your broker and financial advisor won’t tell you about the benefits of the bond market, here at Porter & Co. we’re on a mission to teach you all the inner workings…

Which brings me to our big announcement…


As you may have gathered by now, bonds, specifically distressed corporate bonds… are a passion project for Porter. 

He’s been fixated on identifying distressed debt opportunities for close to two decades.

For example, in the fallout of the 2008 crisis, Porter and his team recommended around 50 different distressed bond opportunities… 40 of which were profitable.

That’s an 80% win-rate during one of the worst economic crises ever. And these winners were double and triple digit, including:

96% on First Industrial, 772% on Rite Aid, 70% on LifePoint, 75% on Ferro Corporation, 97% on First Industrial, 48% on Freescale, 52% on International Lease Finance, 129% on Western Refining, 67% on NextEra, 55% on Global Industries, 72% on Sears, 54% on Janus Capital, and 43% on Lucent. 

The average gain – including winners and losers – was 38%.

And the biggest gain was a colossal 772% over about five years.

But this time, Porter is going even bigger…

In preparation for the implosion of the U.S. corporate debt bubble – and what Porter believes will be one of the greatest wealth building opportunities in over a decade – he has recruited the world’s most knowledgeable expert on distressed investing to join us at Porter & Co.

You’ll meet him soon. His name is Martin Fridson.

There’s nobody better suited to help you take advantage of what we’re calling “The Greatest Legal Transfer of Wealth in History.''

Over a 25-year span with brokerage firms including Salomon Brothers, Morgan Stanley, and Merrill Lynch, Martin became known for his innovative work in credit analysis and investment strategy…

Martin has served as president of the Fixed Income Analysts Society, governor of the Association for Investment Management and Research (now CFA Institute), and director of the New York Society of Security Analysts.

In 2000, Martin became the youngest person ever inducted into the Fixed Income Analysts Society Hall of Fame. 

He’s also the author of six modern financial classics and editor of many more – with his latest, The Little Book of Picking Top Stocks, scheduled for publication in 2023.

Martin is a perfect fit with Porter & Co. 

He’s a Wall Street rebel and an absolute legend, and we are proud to introduce him as our new Director of Distressed Investing Research.

And in our next issue, we’ll reveal how Porter and Martin will help you navigate what could be the greatest debt crisis of all time… and why for some investors it could be the wealth building opportunity of a lifetime.

In the meantime, we’d love to hear from you via our Mailbag or at


Porter & Co. 













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