{"id":40590,"date":"2016-12-31T05:15:43","date_gmt":"2016-12-31T13:15:43","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=40590"},"modified":"2017-01-02T23:14:04","modified_gmt":"2017-01-03T07:14:04","slug":"black-coffee-the-rum-and-coke-edition","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id40590-black-coffee-the-rum-and-coke-edition.html","title":{"rendered":"Black Coffee: The Rum and Coke Edition"},"content":{"rendered":"

\"\"<\/a>It’s time to sit back, relax and enjoy a little joe<\/em> …<\/p>\n

Welcome to another rousing edition of Black Coffee, your off-beat weekly round-up of what’s been going on in the world of money and personal finance.<\/p>\n

Happy New Year! I want to thank all you who regularly stop by this little ol’ blog every week to read my nutty ramblings. I hope 2017 is a very prosperous and healthy year for everyone.<\/p>\n

Anyway, due to the holiday, I have a very brief espresso edition of Black Coffee for you this week. I promise I’ll be back with a much fuller cup of joe in this space next week.<\/p>\n

So with that, let’s get right to it …<\/p>\n

Credits and Debits<\/strong><\/p>\n

Credit:<\/strong><\/span> US stocks ended the final trading day of the year slightly lower on Friday — but that didn’t stop the Dow from having its best calendar-year performance<\/a> since 2013; for the year it was up 13.4%. Hooray!<\/p>\n

Credit:<\/strong><\/span> The Dow’s strong finish is surprising considering it was down 10% on February 11th — but since then the Dow has gained more than 20%. In fact, only three of the 30 companies<\/a> that make up the index finished 2016 with an annual negative return: Nike (-18.7%), Coca-Cola (-3.5%) and Disney (-0.8%).<\/p>\n

Credit:<\/strong><\/span> Meanwhile, US consumer confidence climbed in December to the highest level in nearly 16 years<\/a>. Wow. Somebody pinch me. On second thought, somebody should probably pinch the entire country.<\/p>\n

Credit:<\/strong><\/span> It’s probably not a coincidence that consumer optimism spilled over<\/a> to business owners. True, only 26% of them expect better business conditions six months from now. Then again, economic sentiment hasn’t been that high since February 2011.<\/p>\n

Debit:<\/strong><\/span> By the way, who says optimism isn’t contagious? Heck … even President Obama and Congressional Democrats have been swept up in newfound enthusiasm — this week they’ll be meeting to discuss ways to save Obamacare from falling into the dust bin of history. Heh. No, really<\/a>.<\/p>\n

Debit:<\/strong><\/span> Of course, delusion isn’t limited to the politicians on Capitol Hill. Apparently, most<\/em> Americans have forgotten that they’re now deeper in debt<\/a> than they were before the financial crisis of 2008. You can bet that will change when the bills finally come due.<\/p>\n

Debit:<\/strong><\/span> It will be interesting to see how all of that debt will be paid too, considering that an astounding 94% of the new jobs<\/a> created during the past eight years was a part-time position. Ninety-four<\/em> percent. I know — but that’s great news for aspiring waiters, baristas, fry cooks and WalMart greeters.<\/p>\n

Debit:<\/strong><\/span> I guess when it comes to retiring debt, anybody short on cash can always try to follow Cuba’s lead — the Caribbean socialist paradise recently offered to settle its $270 million trading-debt with Czechoslovakia in rum instead of cash<\/a> or gold. Viva el Socialismo!<\/em><\/p>\n

Credit:<\/strong><\/span> Frankly, it’s easy to see why the Czechs declined. According to Bloomberg<\/a>: “The Czech Republic only imported $2 million worth of rum from Cuba last year. At that rate, it would take more than a century for Czechs to drink enough booze if it was used to pay off Cuba’s entire debt.”<\/em> Sheesh. And I thought we Americans were optimistic.<\/p>\n

By the Numbers<\/strong><\/p>\n

It’s hard to believe that 2017 is upon us. Here are some findings from an Associated Press poll on how Americans celebrated the New Year — and their thoughts about 2016:<\/p>\n

50%<\/strong><\/span><\/span> The share of Americans who spent New Year’s Eve at home.<\/p>\n

20%<\/strong><\/span><\/span> Americans who spent New Year’s Eve at the home of friends or family.<\/p>\n

10%<\/strong><\/span><\/span> Americans who brought in the New Year at a bar or restaurant.<\/p>\n

25%<\/strong><\/span><\/span> The share of people who said they didn’t celebrate the New Year at all.<\/p>\n

60%<\/strong><\/span><\/span> Percentage of people who watched the Times Square ball drop on television.<\/p>\n

18%<\/strong><\/span><\/span> The share of Americans who said 2016 was better than 2015.<\/p>\n

Source: Madison.com<\/a><\/em><\/p>\n

The Question of the Week<\/strong><\/p>\n

[poll id=\"144\"]<\/code><\/p>\n

Last Week’s Poll Results<\/strong><\/p>\n

Do you have a passport?<\/p>\n