In his latest Forbes column, David Dreman says investors should be preparing now for major inflation.

“Several years back I recommended not to follow the dash out of stocks into Treasurys,” Dreman writes. “The greatest risk to investors today is not stock volatility but rapidly rising inflation. Whether inflation begins to shoot up this year or is still a few years out, it will reappear with unexpected ferocity.”

Dreman says the huge money-printing and quantitative easing policies of the Federal Reserve — and President Obama’s “nonstarter” of a deficit-reduction plan — are paving the way for inflation, which will severely hurt bondholders. “Investors who leaped out of stocks into the safety of Treasurys in recent years are likely to have jumped from the frying pan into the fire,” he says. “Back in 2009 was the time to move from Treasurys to stocks. Those who didn’t missed a major chance to recoup much of their capital. It’s still not too late to protect the rest by sharply cutting back on all but very short-term Treasurys and moving carefully back into high-quality contrarian stocks.”

Dreman also says he expects the world markets to bounce back quickly from the tragedy in Japan, and he recommends putting some money into Japanese equities.