I should have been more precise.
Although government spending can increase the velocity of money and therefore GDP as measured, it is a very, very lossy system that DISSIPATES accumulated wealth. Given the entire lack of real economic growth that we have seen, given the massive money supply increase from the QE rounds, and given the exponential increase in deficit spending, I stick to my opinion that it can't get much worse. It doesn't get much worse than exponential, because exponential is the precursor to system breakdown.
All sorts of market-types are today heralding the dawn of a new era, of corporate tax reform, of the removal of burdensome regulations, of more favorable trade agreements, etc., and all of a sudden there is an injection of "fundamental exuberance" into equity prices, based on the premise that Trump's policies will be "growth-oriented".
There is certainly some truth to that, and also some logic in rising equity prices--but issues remain, for instance the historic over-pricing of equities at the start point. And we haven't even seen the growth yet, meaning that they are relatively more overpriced today than they were yesterday.
If the Dow was projected to grow from a level of, say, 14k instead of 18.5k, the exuberance would have more of a foundation.
The problems are baked in, and have not yet gone away. It is still hugely a speculator's game rather than an investor's game.
Granted that a speculation at this time could pan out very well. I myself am tempted to get in even at these elevated levels, at least a little bit--but sort of like quantum conjugate attributes, US equities have to be related to something, or measured against something. There is nothing intrinsic about them.
Traditionally they are measured against the USD currency, but they could equally be measured against any other currency, metal, market, asset, etc. That's why and how you diversify and hedge, as you know. Cash as an asset class in the form of USD is still doing well, measured against many things, and there is still a lot of it "on the sidelines".