An effective hedge depends on leverage. After all, it makes little sense to invest large wads of cash to stave off comparatively modest losses.

Why the bond bears are in trouble.

Clearly, the S&P 500 SPDR Trust (SPY) performed remarkably well in 2014. For improved risk-adjusted rewards, it could easily have been paired with Vanguard Total Bond.

Apple is becoming one of the most shareholder-friendly companies around when judged by the amount of money it returns to shareholders. Peter George Psaras discusses Apple's free cash flow yield and whether or not it is attractive.

Last week, board members of the Federal Reserve signaled that they may begin hiking overnight lending rates as early as 2015. A majority of analysts believe that the message is in line with an anticipated acceleration of U.S. economic growth and a more robust expansion.

I continue to believe the bull market in bonds is over and these will trade lover over the coming years, however small rallies within that downtrend will appear from time to time. Should this continue to bounce off the 2009 highs, which has now become resistance, this could bounce into the $111-115 range before it's next major sell-off begins.