Why the Stock Market Could Go MUCH Higher From Here

To understand why the stock market does what it does, you need to think like a money manager. A very specific type of money manager...

That's because individual investors don't have much influence on stock prices. Nor do professional speculators or hedge funds.

So what is the strongest force driving stock prices?

The answer: institutional investors.

Institutional investors are the blue whales of the investing world. The rest of us are plankton, comparatively speaking.

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The Only Safe Way to Double... or Even Triple... Your Income

If you live in the US, you're getting paid interest of less than 1% per year on your CD.

Bonds are yielding next to nothing. And dividend stocks are starting to look like a crowded play.

But there is a safe source of high yields available to you. It's a strategy called "covered call writing."

This strategy allows you to earn extra income on your dividend-paying stocks by collecting a steady stream of payments in the options market.

This may sound like a confusing – even a risky – way to boost your income. It isn't. You can use this strategy to double... or even triple... your regular dividend income over and over again without adding risk to your portfolio.

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Rick Rule: Why I Am Still a Gold Bug

I think that one of the things you have to look at in the gold market is that we are changing the nature of ownership, from institutional momentum holders who are leveraged, which is a long way of saying "weak hands," to physical individual buyers on a global basis, which is a different way of saying "strong hands." So one of the things that happened in the gold smackdown is that gold did what many things do in bear markets: It went from weak hands to strong hands.

– Resource investor Rick Rule, Sprott Group

Here's a chart you should be aware of. It signals lower, not higher, gold prices in the near future.


View Larger Chart

What you're looking at is a six-month chart of daily price movements of spot gold. After regaining about half of its losses following the mid-April "mini crash," the gold price is rolling over.

Read more: Rick Rule: Why I Am Still a Gold Bug

These Forces Are Working Hard to Turn out the Lights in America

Imagine you need money, but the banks are closed and the ATMs are empty. Your credit card is frozen. You need gas for your car, but all the gas stations are shuttered.

Imagine you need food too, but the grocery store shelves are bare and the doors are barred.

Now imagine someone in your family has a medical emergency, but all the police, firefighters and EMTs are hunkered down in their own homes… protecting their own families.

How far away are we from this scenario? Ask victims of Hurricane Katrina or Superstorm Sandy. The answer is 72 hours. Three days. That's all that stands between you and chaos.

What I want you to do now is imagine the scale of Katrina spread across your entire time zone or even the whole country. Now imagine it lasting a week, two weeks or more. Are you prepared?

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