Reply #8: In deflation rental prices decline also.

[Statistical]

Deflation is an equal opportunity killer. Declining house prices means no entrants in the market can undercut existing rental owners and you will see a slow decline in rents. Dividend paying stocks see selling prices and thus margins decline. Eventually the board needs to cut the dividend to hoard cash.

Deflation kills wealth. Only thing protected in deflation environment is cash and bonds. Bonds obviously subject to default risk. Bonds will rise in price (good for those who get in early) but rising prices on bonds means yields are crushed. Internest rates of cash hover at around 0%. So these two asset classes don't lose money but they don't make much either.