Please feel free to critique my personal Investment Strategy. Tear it to shreds if you want, I am looking for well thought out responses.
So far the Federal Govt, has spent hundreds of billions of dollars in the various "save the economy" efforts. Undoubtedly, hundreds of billions more will be committed and spent. When its all said and done we are talking TRILLIONS of dollars. New money is being printed and circulated in a very rapid manner.
So......What is the outcome? What unintended consequences will result? I would assume we are laying the foundation for some serious future inflation. The only way (that I can conceive) the Federal government dealing with the enormous (and getting bigger by the day) deficits, is to essentially encourage inflation at some future point. (not right now of course, dealing with the criis at hand is all the focus)
My theory is that in the next 5-10 years we will see inflation if not officially encouraged, then maybe less vigorously fought. I believe that those who carry debt, (especially cheap debt like that which is readily available today) will benefit from inflationary consequences. For selfish reason's I hope this is right, as I am a buy and hold Real Estate investor, and I have a bunch of low, fixed rate mortgages, that I believe the combination of time and inflation will really benefit.
I looked forward to your comments.