The following market commentary was published earlier today by TheStreet's ETF Profits premium service.NEW YORK ( TheStreet) -- Investors would be remiss to believe that recent events are isolated incidents that will not have long-term implications for the U.S. markets or the economy. Even Fed Chair Ben Bernanke may miss the mark again, as he is discounting the higher cost of oil as a short-term situation. Nuclear power as a clean alternative to fossil fuel is being questioned since the catastrophic events in Japan appear to be spinning out of control at the Dai-ichi nuclear complex in Japan. Today there are congressional hearings about the safety of nuclear power plants. Should any country delay or reverse its energy policy, it would most likely create more demand for oil, which, in turn, would lead to even higher oil and gas prices.
On March 7, in the ETF Profits article, " The Contrarian Trade," I recommended investing in the iShares Barclay's 20+ Treasury Bond ( TLT). TLT still looks attractive for purchase today, after closing at $93.93. TLT invests strictly in U.S. Treasury bonds, while BND holds both corporate and government securities. TLT has a longer average maturity than BND and, therefore, has a higher yield of 4.2%. Place a stop on TLT at $88. The stock market looks like it could be in a correction mode, and the economy is facing strong headwinds that could slow its early-year momentum. Bonds could be a good alternative in this environment.