In its nearly 250-year history, the U.S. has experienced more periods of inflation than deflation. The last big period of deflation occurred during The Great Depression.

There was another smaller period during the Great Financial Crisis. Both coincided with a recession. During a recession and deflation, people lose their jobs, demand drops, and with it, prices.

But for those who are able to hang on to their jobs and have investments, what should they look at for some of the best investments during a deflationary period? In this article, we'll explain how deflation works and offer a few strategies for defending against it.