So we're back to that old question of inflation versus deflation. If you think the economy will remain slow, you can reach for slightly higher yields today on medium-term government or highly-rated corporate bonds. But if you fear inflation, don't buy bonds with maturities longer than 5 years; You'll take a loss if you sell them before maturity.
A higher yield always offers a higher degree of risk. If you can't afford that risk, stick to short-term CDs or money market funds. That's The Savage Truth.
-- Reported by Terry Savage in Chicago.