If that is the case, it is time to sell equities.
Market is a forward moving mechanism. If it starts to believe that there will be no QE3, funds will withdraw their risk trades and significantly raise cash.
Recent sell off in treasury seems overdone. Now I think treasury can rally when Bill gets out of the way. People are also too optimistic about the corporate earnings moving forward, however high energy cost will simply kill it. Investing in US is also overblown, remember that many US corporations earning come from oversea. When oversea markets start to tumble, how these US multinational not to get hurt?
Time to sell stocks.