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Fast Money Portfolio

Rotation Underway

Fast Money Portfolio

As the CEO of Alberta Investment Management Corp., Leo de Bever is responsible for maintaining and growing over $70 billion in public sector employee pensions.

And although he's allocated the largest portion of his portfolio to bonds, in an interview on CNBC’s Fast Money he reveals that he thinks, “We're at the end of a 30-year bull market in bonds. It’s going to be more attractive to take risks in high quality stocks.”

That comment suggests a theme the Fast traders often talk about is getting underway – something called rotation or the reallocation of capital from the bond market into the stock market.

In this specific case, de Bever likes, “companies that have pricing power, that are defensive and have a good franchise. And (companies that) can increase prices in the face of inflation.”

Three specific names he recommends are Exxon, McDonald’s and IBM .

Taking that thesis a step further, if de Bever's changing attitudes toward stocks is indicative of changing attitudes among other big PMs, it would seem to confirm a thesis presented by famed market timer Doug Kass on April 25th.

“We may be seeing an important reallocation out of bonds and into stocks," Kass said at the time. "It could be very powerful."

In other words rotation could be a catalyst that drives the next leg higher.

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Trader disclosure: On Apr 30, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Tim Seymour is long FCX; Tim Seymour is long AAPL; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Guy Adami is long AGU; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM; Karen Finerman is long HPQ; Karen Finerman is long MSFT; Karen Finerman is short MDY; Karen Finerman is short IWM; Karen Finerman is short SPY; Jon Najarian is long GS; Jon Najarian is long INTC; Jon Najarian is long MDRX; Jon Najarian is long LQMT; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long CIGX; Jon Najarian is long DDMG; Jon Najarian is short PCLN STRADDLES; Josh Brown is long COP; Josh Brown is long XBI

For Scott Nations
Scott Nations is long MSFT
Scott Nations is long BAC
Scott Nations is long C
Scott Nations is long TIVO CALL OPTIONS
Scott Nations is long SPY

For Mark Schoenebaum
Neither ISI nor its affiliates beneficially own 1% or more of any class of common equity securities of the subject companies referenced in the Report. No person(s) responsible for preparing this Report or a member of his/her household serve as an officer, director or advisory board member of any of the subject companies. No person(s) preparing this report or a member of his/her household have a financial interest in the subject companies of this Report. At various times, the employees and owners of ISI, other than those preparing this Report, may transact in the securities discussed in this Report. Neither ISI nor its affiliates have any investment banking or market making operations. No person(s) preparing this research Report has received non-investment banking compensation form the subject company in the past 12 months. ISI does and seeks to do business with companies covered in this research Report and has received non-investment banking compensation in the past 12 months.

For Colin Gillin
Nothing to disclose with wires.