After the outrages of 9/11/01 and the ongoing terror-related incidents since, with threats of further surprises in reprisal for the military efforts in Afghanistan, our nation seeks more safety. In investing, as in the world overall, however, greater security usually comes with a price. In both instances, we must assess whether or not the price is too high for the benefits of increased stability.
One could, for example, put all his or her investment dollars into federally insured money market funds or bank certificates of deposit. But, with an after-tax real yield (also after inflation) likely to be a negative number, the price here might be greater than one should reasonably pay, except for very short-term financial goals.
One might purchase top quality large companies' shares, to participate in the growth of their huge business franchises, unlikely to go under in even the greatest storm. But, even at today's prices, most such well established corporations are selling for significantly higher than their long-term valuations, based on such fundamental ratios as price-to-earnings or price-to-book. The performance of such shares, bought at these levels, has often been disappointing.
Or one could carefully research the major businesses, looking for a combination of bargain pricing and security. Nothing wrong with this strategy. It has much to recommend it. However, not everyone has the time, interest, skill, resources, or inclination for the task.