Investors seeking to avoid the credit carnage have rushed to quality in a tidal wave unseen in a long, long time. A recent three-month T-bill sale was the largest amount offered since 1990. We were recently on a motorcycle trip through Montana, Idaho and Banff, Alberta. While we were in Canada, an Ontario institutional investor tried to place an order with one of the Big Five banks for Canada T-bills, and he was told that they weren't available. As this startled institutional investor pointed out, "I've been in this business for 28 years, and I've never heard of anything like that before."

Seasoned veteran fund manager Martin J. Whitman (Third Avenue Value) writes, "The vast majority of great financial fortunes built in this country, especially by Wall Streeters and corporate executives, were not built by people who took investment risks. Rather, the secret to building a great fortune is to avoid, as completely as possible, the taking of any investment risk."

Along with U.S. and international Treasuries, where have the safe harbors been, and what is the smart play looking ahead? Vanguard's head of active quantitative strategies Joel Dickson noted in The Wall Street Journal, "Mutual funds were insulated because, unlike hedge funds, they typically avoid being short or leveraged. Both moves, which are popular with hedge funds, can magnify the effect of bets."

Did you know Nestle (OTC: NSRGY) traces its origins back to 1867 when Henri Nestle created a "milk food" (baby formula) to save his neighbor's baby? Nestle's company was bought by Jules Monnerat in 1874, and the company has been making smart acquisitions ever since. The recent acquisition of Gerber Products seals Nestle's position as the world's largest producer of baby food.

Boeing (NYSE: BA) unveiled its 787 Dreamliner on July 8. The Dreamliner is the fastest-selling airplane ever, with more than 600 planes ordered so far. To put that in perspective, only 1,500 747s were sold over 39 years. Production on the 787 is sold out until 2013. And a competing aircraft is still years away. Boeing's astute decision to build a midsize aircraft when Airbus was planning a now-delayed 550-seat behemoth, catapulted the company into an enviable position. The 787 is in high demand, the company's main competitor is in shambles, and the threat of a serious competitor entering the market is a long shot. The Dreamliner has given Boeing a virtual monopoly in large-aircraft manufacturing for the foreseeable future.

For the first time in a long while, the quiet, family-run business of J.M. Smucker (NYSE: SJM) is available to you at a price that is not well above trend. I recently tried the low-sugar, organic strawberry jam. Taste is great, and in the taste bargain, you endure only 6 grams of carbs and 5 grams of sugar per serving and no sodium. I also like Smuckers USDA organic peanut butter, once again with minimal sugar. Two great products ideal for school kids' lunch boxes. What a nice mix. Conservative Smuckers has $200 million in cash and equivalents and only $392 million in debt. A dividend has been paid annually since 1949. The current P/E of 20 is reasonable in light of the company's 14%, five-year earnings growth.