It also remains to be seen how much of the new stimulus will filter through to the prices of consumer goods and services comprising the CPI (as the most commonly accepted proxy for inflation) and the extent to which the value of the USD relative to other currencies will be affected.
For my part:
- I benefit by being a net borrower (the value of my outstanding mortgages is greater than the value of my cash and fixed income investments)
- I benefit because the cost of servicing my floating rate mortgages is expected to stay low for longer
- I benefit from the support given to the nominal value of my risk assets
- I lose because I am paid in USD
- I lose because most of my assets are denominated in HKD (which is pegged to the USD)
- I lose because I expect the nominal cost of the goods and services which I consume to rise