Thanks everyone for their comments. Many of you are in disbelief or disagreement that there's no or little risk of inflation with all of this money printed out of thin air. I picked up the latest issue of The Economist magazine and year to year consumer prices have increased for most countries. A few things to clarify:
-Most people take a good chunk out of their pay cheque to pay for their house and car. While you may pay a little more at the grocery store, you'll see that you will save a lot more if you bought a house or car today vs a year or two ago. Your purchasing power has increased if you're in the market for a car or house.
-Inflation is the result of supply not meeting demand. This could happen when demand grows too fast or when supply falls too fast. The latter case is more applicable to the current situation as businesses are still cutting back.
The key is, if we currently have excess capacity in the economy that will ease inflation risk.
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Taking the demand and supply aside, I think many people are losing their confidence in USD. At the end of the day, sentiment can affect the market. I think it is always a good idea to have part of the investment to hedge the inflation risk.