While the GNMAs don't look like they grow much they have a reasonable return ~4.5% and no loss of capital - not bad for this market.
Still I'm no pro - so if you're worried talk to a pro and see what alternatives are available but right now 5% with capital preserved through the crash I wish I was all in GNMAs. Sigh.
I know what you are saying, and I am certainly not complaining about the past. I am worried about our financial system going forward and what impact that might have on bonds in general and housing related issues in particular. Safety is why I moved from the Total Stock Market Index, and safety and capital preservation are still my main concerns. I am seriously putting cash in my safe deposit box.