Treasury bonds are still attractive and economist Gary Shilling calls them his best investment to date.

"Most investors despise Treasury bonds, and not just because they fervently believe that serious inflation and leaping yields are inevitable. As we discussed in The Age of Deleveraging, stockholders inherently hate them."
He added, "They say they don't understand Treasury bonds. But their quality has been unquestioned, at least until recently, and their prices rose promptly in 2011 after S&P downgraded them."