WEEKEND INVESTOR --- Where to Invest in an Era of Risk
It is time for investors to rethink safety.</br></br>Until May 22, when Federal Reserve Chairman Ben Bernanke told Congress that the central bank might start scaling back its massive bond-buying program this year, investors could find shelter from market drops via bonds or stocks that pay high dividends and are less volatile. But since then, it is these same "safe" investments that are being punished the most.</br></br>The beauty of assets traditionally perceived as "safe" -- or, more correctly, defensive -- was that, while they didn't gain as much as risky assets in boom periods, they offered investors some protection in times of turmoil.</br></br>This past month's roller-coaster ride has offered a preview of how the next few years might be different.</br></br>Since Mr. Bernanke's May statements, the yields of most kinds of bonds have shot up, sending prices off a cliff. The yield of the 10-year Treasury stood at 2.49% on Friday, up 1.1 percentage point since the 52-week low of 1.4% in July 2012, though down about 0.1 point from its June 25 high.