Lowly T-Bills Are Suddenly Sexy. Yes, Treasury Bills!

If a long, ugly recession is in fact going to happen later this year, many investors will want to shift some additional money into cash. There’s good news: In July, yields on many cash-like investments, which means they're virtually risk-free and liquid, started soaring.

The best play right now may be short-term US Treasury bills, or T-bills, which have been touted by the likes of Warren Buffett and Bill Gross. They're government bonds that mature in a year or less and are auctioned off periodically by the Department of Treasury. You can buy them directly at TreasuryDirect.gov, through a bank or broker, or you can invest in them more broadly using an ETF, such as the iShares Short Treasury Bond ETF.