Yep asset prices tend to rise when the system is flooded with new money!
But the problem for the stimulators and printers is that the price of everything rises (US crude back above $90) which limits the chances of any real terms growth. The inflation then impacts disposable incomes and we're back where we started (except with bigger debts and devalued currencies).
There is now an acceptance with in the mainstream media that the solution is to get banks lending again. Madness. There is no demand for more debt from people and companies. There is also an acceptance that deflation is an evil - also madness (the price of consumer electronics has been falling for years but it didn't stop people buying).
The solution is for indebted countries (and their populations) to live within their means... but that would mean less borrowing and smaller bonuses for bankers (and that's why it won't happen).
We hit the limits of credit expansion (which is why the credit crunch happened). The road we're now on is increasing the chances of the end game being hyperinflation imho. Get prepared!!!
Like Rothschild said, “Buy when there’s blood on the streets.” The thing to do to prepare for hyperinflation would be to invest in a diversified hard-metal basket before the event—no equities, no ETF’s, no derivatives. If and when hyperinflation happens, and things get bad (and I mean really bad), take that hard-metal basket and—right in the teeth of the crisis—buy residential property, as well as equities in long-lasting industries; mining, pharma and chemicals especially, but no value-added companies, like tech, aerospace or industrials. The reason is, at the peak of hyperinflation, the most valuable assets will be dirt-cheap—especially equities—especially real estate.
I disagree with the above slightly in that you can now invest in EFTs that hold metals in physical form (e.g. PHAU, PHAG). Good insurance in case the worst does happen.
