... why reduce debt? Nothing is better for devaluing your debt as inflation. It makes it worthless. The question is whether there will be a significant inflation at all. I doubt it, since lot of assets were burned recently in the market drop so there is actually missing liquidity. US could easily face the problem of deflation rather then inflation in the near future.
A well balanced portfolio of your investments is the best what you can do in long term. It is hard (if impossible) to time the markets. A well balanced portfolio generally means: 60% equity, 30% bonds, 10% alternatives (including gold).