"This means that the so-called break even rate between the two is a measly 0.17% annually (2.40% - 2.23% = 0.17%). Spreads are normally more than 2% points.

"Where this matters is that if inflation averages just 3% a year for the next ten years, TIPS stand to return 5.25% (2.25% + 3% inflation = 5.25%) making them a far better investment choice than regular treasuries of similar maturity as long as inflation is not less than -0.17%.

"And the odds that inflation dropping that low for such an extended period of time are not very likely given the surreal amount of cash Team Bernanke is dropping from their helicopter lately.

"Nuveen Quality Income Muni Fund (NYSE: NQU) invests in Federally backed municipal bonds. Under 'normal'market conditions, yields on munis and treasuries are about the same once you take tax consequences into consideration.

"Lately, muni yields are much higher. In fact, NQU offers a juicy 6.40% yield, which makes Treasuries pale in comparison.

"Admittedly, there is the possibility that some munis could fail in a recession, but everything we know from history suggests this risk is being overblown right now particularly with Uncle Sam acting as a risk taker of last resort.

"We also believe that iShares iBoxx $ Liquid High-Yield Bond Fund (NYSE: HYG) could appreciate significantly. As earnings deteriorate further, the Fed is getting ready for the financial equivalent of a shootout at the OK Corral.

"At the same time, it continues to assume the role of risk taker of last resort, which could dramatically lower the default risks presently priced into high yield corporate debt.

"There are no guarantees, of course, but at the present time spreads remain so far out of whack that even the smallest of 'mean reversions' could translate into big gains.

"If we're right and the Fed is successful with the biggest financial gamble in its history, spreads between high yield debt and US treasuries may narrow considerably in the months ahead, which means gains for iShares iBoxx $ Liquid High-Yield Bond Fund.

"The ETF is also paying a healthy 12.03% monthly which means we're also going to achieve a solid month income that helps us build up an even thicker layer of financial armor to stave off financial headaches that will cause others to reach for the aspirin bottle."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.