Market Tips: How to Hedge Against Deflation

Global stocks remained in the red Tuesday, as did oil, on weakening demand and fears of a deep global recession. As inflation continues to ease, experts tell CNBC how to hedge against the risk of deflation.

Deflation Hedges: Defensive Industries

Amidst the increasing risk of deflation, the best investment strategy is to pick the top-line defensive industries. Jerry Lou, china strategist at Morgan Stanley tells CNBC the sectors that made the list.

Cash In on Debt

Besides being overweight on high quality investment-grade corporate bonds, Chew Soon Gek, CIO, Asia at Deutsche Bank Private Wealth Management also likes government bonds for safety. She talks strategy in this installment of "Protect Your Wealth".

Be Wary of Bear Market Rallies

It won't be a case of "buy-and-hold" in 2009, as there will likely be a number of bear market rallies this year, warns Geoff Lewis, head of investment services at JPMorgan Asset Management.

Look Out for "Policy-Induced Rallies"

Given that economical re-acceleration won't come till the second-half of 2009, Jerry Lou, China strategist at Morgan Stanley recommends investors to capitalize on Hong Kong's "policy-induced rallies".

Tough Year Ahead for Resources Sector

Warren Gilman, MD & head of Asia Pacific at CIBC World Markets, does not believe the turnaround for resources sector will happen in 2009. He speaks to CNBC about the tough times ahead.