This article is part of a 20 article special report on "Metals, miners and money".

The case for gold and/or other commodities in large part rests on a forecast for higher inflation. With a contrary view, Bob Prechter -- well known as the leading practitioner of Elliott Wave theory -- offers his assessment for deflation. As such, his top investment idea within this scenario is not gold or oil -- but cash.

The editor of The Elliott Wave Theorist explains, "When the bull market in inflation is over, an unprecedented number of IOUs, stacked in an inverted pyramid, will collapse in value in a deflationary rush, and prices from stocks to commodities to goods and services will fall along with them.

"In 1998, we called for a huge bull market in oil that would carry to new all-time highs. That run is now in its final stages. Market psychology fits a major top, because short-term measures of optimism match all-time extremes.

"Investors everywhere have come to the conclusion that the world is running out of oil, despite the fact that the real price of oil (the oil to gold ratio) is lower than it was seven years ago.

"Today, oil is near the end of wave 5. But this is only part of the picture. The rise from 1998 is itself a fifth wave, so the entire advance from 1933 is also ending.

"The big plunge is under way," says Pete Kendall, co-editor of The Elliott Wave Financial Forecast and a leading proponent of a deflationary, bear market outlook.

He suggests, "A flight from risk has been seeping into the markets for some time. And it's accelerating now." Here's his bearish outlook on stock as well as his forecast for bonds and the U.S. dollar.

Kendall notes, "How quickly investors forget! Wasn't it really just a few weeks ago that KKR's Henry Kravis told a conference of investment bankers, 'The private equity world is in its golden era right now. The stars are aligned.'"

Indeed, Kendall adds, "At the time, we agreed that stars were aligning, but in a different way. We have been forecasting a new era that would crush the over-extended hedge funds and investment banks."

The notably bearish advisor states, "It's all part of the unfolding flight from financial risk. Most people still have almost no idea just how risky these markets are. They will find out in the weeks and months ahead."