Salient to Investors:

Kenneth Heebner at the CGM Focus Fund has bet 21 percent of his find on a decline in U.S. Treasuries as the growing US economy eventually prompts the Fed to boost interest rates. At the end of 2012, the fund was 29 percent invested in banks, 24 percent in homebuilders.

Heebner said the rebound in housing will translate into a strong financial position for consumers, boosting the US economy and prompting the Fed to end quantitative easing.

Nassim Taleb and Jim Rogers have recommended betting against Treasuries.

Stephen Stanley at Pierpont Securities said this is a good time to short treasuries if you have staying power – over a shorter time period, you are fighting the Fed.

Scott Minerd at Guggenheim Partners said QE compares to a similar program from 1942 until 1951 when the Fed vowed to take action should interest rates climb above 2.25 percent. Minerd said the Fed may be forced to keep rates low longer than anticipated, for fear of roiling markets and causing another credit crunch – possibly another 5 to 6 years of this so you could be short for many years before benefitting.

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