Short-term government bonds may also do well, such as the iShares Barclays 1-3 Year Treasury (NYSEArca: SHY).

Don Dion for The Street says that deflation is not a strategy and should not be approached as one. The best strategy for most investors is to hold a diversified portfolio of assets. Within that diversified portfolio, small changes in allocations and holdings can make a big difference.

If your risk appetite is healthy, he suggests short funds such as the ProShares Short S&P 500 (NYSEArca: SH) or the ProShares Short MSCI EAFE  (NYSEArca: EFZ). If the economy is recovering in a deflationary period, a dividend fund such as the WisdomTree Dividend Top 100 (NYSEArca: DTN) may do well.

For more stories about deflation, visit our deflation category.

Tisha Guerrero contributed to this article.