Lisa Hess, a Forbes contributor, recommended repositioning portfolios to take advantage of new world of rising oil prices, rising inflation, and uncertain monetary policy. Stocks and Bonds do poorly, according to Hess, because bond prices go down as inflation forces up interest rates and stocks go down as companies have a hard time keeping selling prices ahead of rising inputs.

What to do:

1. Short U.S. Treasurys

a. UltraShort Lehman 20+ Year Treasury (TBT)- bets against long maturities

b. UltraShort Lehman 7-10 Year Treasury (PST)- bets against shorter term maturities

2. Invest in companies that profit from rising demand of commodities

a. Titan International

- makes huge tires for agricultural machinery

b. Hemisphere GPS

- manufacturer of GPS and steering systems for tractors

- devices improve productivity

- trades at 38x but earnings could double each of next few years

- widespread adoption of GPS for large scale farming is inevitable

c. American Commercial Lines

- barge manufacturer

- operates barges moving grain,