The battle between inflation and deflation is the most important thing for investors to watch right now, says Adam Lass. Fears of falling prices are rife in Washington today. But the inflation cycle will come around again soon, especially with all the new money being pumped into the economy by the Fed. Adam says that’s why investors should buy the PowerShares DB US Dollar Index Bearish ETF (NYSE:UDN).

There’s a fine line between a stimulated economy and a destroyed currency, says Adam Lass. And the world’s central bankers are in a race to the bottom. Japan’s latest rate cut has given the US dollar a short-term lift versus the yen. But the greenback will soon plummet again. Adam says investors should take up a short dollar/long gold position for 20-30% gains in the coming months.

Whether you agree with them or not, the bailout programs will keep on coming. Keith Fitz-Gerald looks at the key impact these will have on the dollar, commodities and global stocks. He says we could be in line for a market rebound by mid-2009, and suggests six ways to prepare your portfolio now.

Keith Fitz-Gerald gives us a simple-yet-effective portfolio strategy for the current market environment. He says two essential components of any portfolio are dividind-paying stocks and specialized inverse etf funds.

TheStreet.com reports that the top 10 performing exchange-traded funds in October were all inverse ETFs. These funds move in the opposite direction to the indexes they track. And some double the size of the movement.

The PowerShares DB Crude Oil Double Short ETN led the way with 66.6% gains in October, as crude oil prices continued to slide.

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Governments and central banks around the world are engaged in a fierce battle with asset price deflation. As Byon King says,  “It’s like Napoleon’s retreat from Moscow. There’s no relief from the suffering.”

Eric Roseman says the Fed will eventually triumph over deflation with by a massive expansion of credit.

In the meantime, he recommends a defensive portfolio weighting: 50% cash, 10% gold, and 20% in reverse ETFs, such as Short Dow30 ProShares (AMEX:DOG) or Short S&P500 ProShares (AMEX:SH).