Putting the money on the balance sheet by itself does not affect prices, only the expectation that it will be spent - along with the expectation that even more

Putting the money on the balance sheet by itself does not affect prices, only the expectation that it will be spent - along with the expectation that even more money will be created. Now the question is, what will that money be spent on? It's not the stuff that's in the CPI, therefore the average consumer will not immediately lose purchasing power, at least for domestic goods. This is why we have seen massive asset price inflation but very little inflation in terms of CPI. It's politically convenient, people don't really notice it unless they want to buy a house. If they have a stock portfolio, they're happy about the paper profits. > If your nest egg is mostly in cash right now, what should you do? The following is not financial advice: If you're 100% cash, you should diversify. Asset prices are bound to stay inflated, the value of the dollar (and other currencies) in terms of assets is bound to go lower. You should look at rising stock prices within an economic crisis as an indicator of cash losing value. Also consider that pretty much all governments are now creating money, so there's no safe-haven currency. Could the market turn again, could you buy at a lower price yet? Absolutely. If that happens, are the governments going to create even more money to stop the slide? Most likely.