How investors can ride this QE wave of monetary stimulus The open-ended nature of the latest round offers the prospect of the rise without the fear of the imminent peak. Shares have tended to rise in an environment of rising inflation expectations until they reach 4pc or so. We are some way off that point yet. Rising inflation expectations will also increase investors" appetite for cheap real assets, the most obvious example of which is US property. The fact that the Fed is pouring money directly into mortgage-backed securities at a time when the US housing market has already turned the corner is a very bullish signal for the sector. US funds are the best way of playing this for a UK investor, although some companies on this side of the pond, such as building materials group Wolseley, could benefit too. Favouring the US market, my second strategy, is not just about backing a recovering housing market though. The Fed's move this week is a clear indication that it will do what it must to offset any tightening in tax and spend as the US belatedly addresses the fiscal cliff after the presidential election. Thirdly, investors should continue to favour income-generating investments. The whole point of QE is to suppress bond yields and to keep the real, inflation-adjusted cost of servicing government debt low, and preferably negative, for as many years as it takes to get the ship back on an even keel. This so-called "financial repression" endured for a decade or more after the Second World War and it was many years then before the chickens came home to roost in the form of 1970s stagflation. Sustainability of dividend is the key because there are plenty of high-yield "traps" waiting for the unwary investor, but there is no shortage of blue-chips offering reliably high and growing dividend streams. Fourth, I think there is more to go for with gold. After a disappointing year or so - even more so for gold producers, which have under-performed the metal itself - the response of the gold price to expectations for and the reality of more quantitative easing points to further strength. With no income stream, I don't really view gold as an investment but, as an insurance policy against dollar debasement and inflation, it is worth its place in anyone's portfolio. Finally, I think the inflationary endgame looks ever more likely as the Fed's determination to re-kindle growth hardens. Inflation-linked bonds are an obvious hedge and, within the equity market, I would look at shares in companies whose returns have a regulatory link with rising prices such as utilities and some infrastructure companies. Water stocks have under-performed index-linked bonds by a significant margin over the past couple of years. Investors" tendency to buy the rumour and sell the news might suggest that markets could consolidate after the announcements of the past couple of weeks. But I wouldn't count on it. Tom Stevenson is an investment director at Fidelity Worldwide Investment. The views expressed are his own. He tweets at @tomstevenson63