Stimulus Issues, the Economic Forum, and the case of Israel

Yesterday has started with the markets full of confidence that stimulus are adopted. But the day has ended with a less positive tone. A number of Republicans have said that Biden's proposal is too generous and that one should be more modest: there is a black hole in the US budget, as well as the rapidly growing national debt.

However, it is too early to make any conclusions and the market sentiments will obviously change more than once.

The pandemic continues to be a permanent threat, which does not allow investors to relax completely, even if they would like to. The total number of cases in the world has exceeded 100 million and the voices that all these coronaviruses are nonsense and fictions are not heard at all. This is understandable. Even if Israel, having vaccinated 40% (!) of the population, is forced to declare a third lockdown, since the pandemic is once again spinning out of control. What can be said about other countries.

It will be quite interesting today to get acquainted with the updated forecasts from the IMF about the future of the world economy.

By the way, about the world economy. Yesterday there was a virtual world economic forum - a kind of Davos on-line. However, it did not bring any sensational discoveries, so by and large it has changed nothing.