Bonds

Consumer prices are climbing at a 4.1 percent clip right now. And investors who believe that number badly underestimates the true rate of inflation (as I do), should be starting to do more selling than buying of bonds. (Don't worry. If you're interested in buying rather than selling, I'll show you how in a moment.)

This is the self-regulating mechanism of the market. As investors sell, the price of bonds goes down - just as selling pressure pushes the price of stocks down.

And as bond prices go down, their yields go up. As yields rise and become more attractive, buyers are once again drawn into the bond market.