Are Aurizon Holdings Ltd and AusNet Services the best stocks for volatile times?

Aurizon Holdings Ltd (ASX:AZJ) and AusNet Services (ASX:AST) have proven popular for investors seeking safe haven assets.

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Wednesday saw the return of volatility to the Australian share market with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) tanking a full 1%.

The fall bucked Wall Street's lead which saw both the Dow Jones and the S&P 500 notch up new all-time highs.

Exactly what sent local investors scrambling for cover wasn't clear but after a prolonged period of low volatility, the falls experienced in September and again on Wednesday are likely to become more common place.

Leading the decliners in the benchmark S&P/ASX 200 index were junior iron ore producers who were sold off heavily, however, many industrial stocks fared poorly too.

Myer Holdings Ltd (ASX: MYR) closed over 7% lower after the listed department store retailer reported quarterly sales which failed to impress the market.

Computershare also declined, dropping 5% after the leading global registries business held its Annual General Meeting (AGM). At the AGM management provided guidance that it expects earnings per share to be around 5% higher in FY 2014 and commented that the operating environment has softened and presumably was weaker than they had been expecting.

Investors weren't piling into the blue-chips either. All the major banks lost ground too.

Bucking the trend on Wednesday were a handful of stocks which found buying support.

These stocks perhaps give some clue as to where investors are heading in an attempt to bulk-up their portfolios to withstand further downside volatility.

Gold miners enjoyed support and are perhaps starting to regain their defensive status. Northern Star Resources Ltd (ASX: NST) and Regis Resources Limited (ASX: RRL) were the top two performers in the index with gains of 5% and 4.1% respectively.

Meanwhile, infrastructure assets also found favour with investors. Aurizon Holdings Ltd (ASX: AZJ) and AusNet Services (ASX: AST) were amongst the leading gainers. In volatile times, just as investors view gold as a safe haven they also view physical assets, particularly regulated asset bases with recurring revenue streams as another defensive investment destination.

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article. The Motley Fool owns shares in Computershare.

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