Now, although it's far away to worry about inflation, the concensus is the huge stimulus will definitely cause inflation, sooner or later.
This June, I went back to China, what I saw was not what I expected. The house price already recover to near the historical peak, the beginning of 2008. Just 1 year, the people hope the house price will drop and they can own their house, but now they can only feel regret. But is it the real market? I don't think so. Also, another crazy thing, many many companies involve in real estate business, whatever their inital business, because it maybe the most lucrative industry in China. Everyone knows it's all about the performance of governers, all about GDP growth, that's why the house price is difficult to decline. I don't know whether it's still the timing to invest in house, but what I known is to let money work harder for us, don't just rest in bank account.
One article (The Love-Hate Relationship I have with Commodities) analyzed the commodities with inflation, the conclusion is interesting, "both Bears and Bulls end up liking this sector (energy, commodities)". If market recovers, the demand will go up; if market fails to recover, the huge capital injected will cause hyperinflation, only real stuffs worth. Anyway, I do believe oil price will go up, except the renewable energy is competitive enough. So let's invest some in commodities funds/stocks.
Will the inflation kill the market recovery? I don't know, but I tend to not believe in it, because people do know a lots from previous depressions.
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