Once-in-a-generation sales

Investments in the bargain bin
Once-in-a-generation sales have sprung up in this crazed market.

Closed-end blue-chip stock funds
Closed-end funds and regular mutual funds both invest in a portfolio of stocks, bonds and other assets. The key difference: Closed-end funds are bought and sold like individual stocks on public exchanges. Historically, shares of the average closed-end fund have traded at a price around 5% below the actual value of the portfolio's underlying assets. Thanks to the vicious bear, though, closed-end large-cap stock funds are trading at discounts four times as large.
By Janice Revell, Money Magazine senior writer

Inflation-protected bonds
Real TIPS yields, which are shielded from inflation, are at a seven-year high. Fears of inflation have been replaced by fears of deflation. So demand for Treasury Inflation-Protected Securities, or TIPS, has collapsed. The result: Inflation-protected yields on TIPS are soaring. Five-year TIPS, in fact, are actually yielding 0.42 percent age points more than Treasuries. That means as long as inflation is not less than -- 0.42% in the coming years, you'll make more with TIPS. That's a good bet, given the enormous amount of cash Uncle Sam is pumping into the economy. An easy way to buy TIPS: iShares Lehman TIPS Bond (TIP), a Money 70 recommended ETF.

Pfizer
(ticker: PFE)This drug giant hasn't been immune to what ails the market. Its shares plunged almost 30% in the past year. The silver lining: Pfizer's dividend yield now stands at a hefty 8%, more than double the average of the S&P 500. Of course, when a stock's yield is that generous, the market often believes the dividend will be cut or the share price will continue to fall -- or both. But Pfizer has some strong defenses, says Banc of America Securities analyst Steven Lichtman. The firm boasts a solid balance sheet and sits on $26 billion in cash. And though its blockbuster drug Lipitor is slated to go off-patent in 2011, Lichtman believes earnings from Pfizer's other drugs will hold up well.

Triple-A-rated municipal bonds
Normally, yields on Treasuries and munis are about equal after you factor in taxes. Today muni yields are much higher. With taxes likely to rise, you'd expect demand for bonds issued by city, county and state governments to grow -- thanks to their tax-exempt status. Think again. Things have gotten so out of whack in this credit crisis that 10-year triple-A munis are yielding 4.14%. Assuming you're in the 28% bracket, that's like getting 5.75% on a Treasury. Yet 10-year Treasuries are yielding only 3.33%. True, munis can default. But even in a recession, the threat is not nearly enough to justify this differential, experts say. Go with a diversified Money 70 fund like Vanguard Intermediate Term Tax-Exempt (VWITX).

Eaton
(ticker: ETN) As Warren Buffett is fond of saying, the best time to be a buyer of equities is when everyone else is selling. Well, one stock that certainly meets Buffett's criterion of being unloved -- and that the Oracle has been loading up on -- is an industrial manufacturer you may not have heard of: Eaton Corp. Its price has plummeted more than 50% over the past year, and it's now trading at a price/earnings ratio of 6, compared with 12.4 for the S&P 500. According to a recent filing, Buffett's firm, Berkshire Hathaway, bought 3 million shares in the six months ended in September. Many pros think Eaton's recent sharp price decline makes the stock extremely attractive relative to the firm's earnings prospects. For example, Goldman Sachs analyst Terry Darling, who rates the stock a buy, expects Eaton's earnings to soften a bit in the next two years as the economy struggles. But he says the cheap stock price more than reflects that weakness.

Investment-grade corporate bonds
The spread between yields on corporate bonds and Treasuries has ballooned this year -- signaling a big buying opportunity in investment-grade corporates.The bonds of high-quality firms normally yield one to two points more than the going rate of U.S. Treasuries to compensate you for added risk. But Wall Street is so spooked that investment-grade bonds are now yielding more than 8% -- five points more than 10-year Treasuries. That's just too good to pass up, experts say. In fact, the prices on corporates have fallen so far that their yields currently "compensate for default rates worse than the Great Depression," according to Citigroup. A simple way to get onboard: Vanguard Short-Term Investment-Grade (VFSTX), a Money 70 fund.