Right now, there’s more than $9.5 trillion in cash on the sidelines – or more than twice the amount of money currently invested in stock mutual funds, according to MoneyNet.inc and the U.S. Federal Reserve. Private equity firms alone are believed to hold as much as an additional $1.3 trillion.

Underground investor David Fessler, writing at Investment U, says the four best hedges against inflation are gold, inflation-adjusted Treasuries, energy stocks and commodities such as wheat, metals, cattle and fertilizer.

Inflation threats are right around the corner. Eric Fry of the Rude Awakening examines 6 ETFs and how to prepare for the “near-certain arrival of inflation.” He says now is the time to be wary of price increases and these ETFs act as an “insurance policy” to hedge against them.

There has not been a recession in history that was not followed by inflationary pressure, says Keith Fitz-Gerald. And the unprecedented government spending means this next wave of inflation could be painful. Keith says savvy investors protect themselves from the real enemy – and even turn a decent profit – with inflation-protected securities (TIPS) like the iShares Lehman TIP ETF (NYSE:TIP).

While the market panics about deflation, Eric Fry says forward-looking investors can profit by swimming against the tide. The Inflation-protected Treasury bond ETF (NYSE:TIP) has never been cheaper, meaning a great chance for gains as the government’s mega bailouts feed through to higher prices.

Oxford Club’s Alexander Green says making the switch from mutual funds to ETFs can save thousands in taxes and expenses. Changing funds now can also help psychologically, by locking this year’s huge losses in the past. Alex lists eight ETFs that can “help turn market lemons into lemonade.”