John Hussman of The Hussman Funds Sees Value in Short and Mid Term Treasuries (SHY, IEI, IEF, HSTRX)

John Hussman of The Hussman Funds sees value in short and medium term US Treasuries. Mr. Hussman states "Presently, the yield curve is so steep and incipient inflation pressures are sufficiently weak that Treasuries shorter than about 10-years in maturity have reasonable (though not unusually attractive) yield characteristics."

He continues to believe that market weakness going forward should buoy treasury total returns into the high single digits. Individual investors can enter this trade easily through IShares short to intermediate treasury ETFs (NYSE: SHY, NYSE: IEI, and NYSE: IEF).

"While there is significant long-term risk of inflation several years out after credit problems are more fully exhausted, I continue to believe that near term inflation concerns are as misplaced as the economic recovery hopes that have prompted them."

Mr.Hussman also sold some precious metal shares recently on strength within his Hussman Total Return Fund (HSTRX).