Whether you believe in the aggressive monetary and fiscal stimulus measures taken by the government, it's pretty clear that most policymakers are just trying to help. Yet, might their measures backfire? By intervening in the economy at a time when it's trying to adjust, the market is left wondering whether investments have hit the bottom or if the government has merely created a false floor, which will be broken through once its efforts subside. The Wall Street Journal says that the private sector is beginning to wonder what anything is worth:
That might sound like an utterance from the book of Ecclesiastes or the title of a freshman philosophy paper. But it is a valid question for any investor right now. Gauging the true worth of stocks, bonds and real estate is extremely difficult at a time when their prices are so heavily influenced by the actions, or perceived inaction, of governments and central banks.
Read the full story at the Wall Street Journal.
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