We’ve been in a thirty-year bull market for US Treasuries, says Matthew Collins. And near-zero yields mean little reward for the risk of potentially buying into a bubble. Matthew says investors would do better to put their capital in select high-grade corporate debt or gold.

Tax-free municipal bonds with historically high yields might look attractive to many investors. But Matthew Collins says the risk is still too high. Bloated and inefficient local governments are facing funding emergencies as revenues tumble and credit is squeezed. As the recession deepens in 2009, Matthew says muni bonds should be avoided.

Obama’s ever-growing stimulus package isn’t giving the markets a boost. Matthew Collins says the Fed’s zero-rate interest policy has created a liquidity trap, in which businesses and consumers prefer to hoard cash than make risky investments. That makes stimulating the economy very difficult, and dampens hopes of an ‘Obama rally’ in the near future.