what assets do best during deflation 
investors can protect their portfolios by investing in assets that perform well even in times of deflation such defensive hedges include high quality bonds companies that produce essential consumer goods and cash the bottom linedeflation is the general decline in prices of goods and services which effectively increases the value of currency it s associated with a variety of causes including a contraction in the availability of money as well as increased productivity and advancements in technology historically it was seen by economists as an adverse phenomenon but a more diverse range of opinions exists today according to the pigou effect price deflation leads to increased employment and wealth stabilizing the economy 