Davos updates and Trump sillyness

Funny updates from Davos ( factual ) : Trump now saying the US economy is "booming" :-) . Well, lets examine this. He himself said under Obama GDP was "lousy" and "stagnant". Obama left US with 2.2% . Latest GDP estimate, 2.3% . Seriously folks, we go from lousy to booming on 0.1% !! . We should be reminded, more often than not, these estimates are revised down, as a fact, they often are too optimistic. Even if they over called this 0.1% ( a perfectly reasonable scenario, very conservative actually ) . its basically saying under Trump, the US economy in measurable Terms has gone,,,,,, NOWHERE.. Ok, lets be clear, I am NOT denying for one minute the ferocious nature of the rally, and unstoppable momentum. However, what I am saying is, looking at the FACTS, this is a rally based almost entirely on sentiment and momentum, with a small part ( the earlier part of the rally ) on Tax reduction. So, its going up, but I stick to my view, it is simply not justified.

Factor in also, every month we get closer to the peak of the negative demographic effect, not just US, but many parts of Europe too. And, of course, by far the biggest debt we have ever seen. ( actually I suspect the real reason we see the central banks globally goosing the markets to cope with this ) . What makes timing things tricky is I never expected supposedly reputable institutions like the FED to lie to everyone. Lets NOT forget, they were clear, last October, no more Bond buying, but since then they have done nothing BUT by bonds because they know that market has tried to collapse several times. Their balance sheet has increased and they have no intention of changing that. . Also, they only ever increase rates at a token 0.25% to try and retain credibility, the smallest they can get away with. None of these things would be happening in a truly strong economy, they know it and so do we. It has not, and does not look like, stopping the rally. Michael Bloomberg also does not know why! Case closed I think ..