On the long side I think commodities are the place to be as well until the current fiscal problems are behind us which is going to take a long time. My concern with individual companies is that as the commodities rise their input costs may also rise negating the bonanza profits for many so the physical commodities do make sense.

I think in the long bonds although the fed is definitely trying to control them they really can only control the short rates. The market is going to dictate the long rates over time.

Right now the flow of funds show that the public is pulling money out of stocks and have been during this entire stock rally and putting most of it into "safe" long term bonds which have been in a 25 year bull market. This to me is signaling a top. The public is always wrong when the trend changes and I think they are about to get fleeced again. Long bonds will once again become certificates of confiscation. It will be volatile but in the high deficit money printing environment we are in long rates have no where to go but up.