{"id":68403,"date":"2021-08-28T02:15:43","date_gmt":"2021-08-28T09:15:43","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=68403"},"modified":"2024-01-27T11:21:31","modified_gmt":"2024-01-27T19:21:31","slug":"black-coffee-28-aug-2021","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id68403-black-coffee-28-aug-2021.html","title":{"rendered":"Black Coffee: A Junk Food Economy"},"content":{"rendered":"

\"\"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

I hope everybody had a wonderful week. And with that, let’s get right to this week’s commentary, shall we?<\/p>\n

Americans need to worry about the value of their currency as much as they worry about the value of their investments.<\/em><\/p><\/blockquote>\n

— Ray Dalio<\/strong><\/p>\n

Believe it or not, Twinkies have an expiration date. Someday very soon, life’s little Twinkie gauge is going to go empty.<\/em><\/p><\/blockquote>\n

— Zombieland<\/em><\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? The S&P 500 has rallied 100%<\/a> from its March 2020 COVID low of 2237. In fact, it took the market just 354 trading days to get there, which makes that the fastest bull-market doubling since World War II — as it should. Not only is inflation tame, but we’re also in the middle of a historic economic boom that was unleashed after small businesses across America were forced out of business by government officials.<\/p>\n

Credit:<\/strong><\/span> Considering that, on a historical basis, bull markets typically take a minimum of several years<\/a> to double from previous bottoms, this stock market rally has been impressive. But as financial analyst Lance Roberts points out, “the rally from the pandemic lows is less about the ‘economic recovery’ and more about $120 billion a month of Fed liquidity.” No surprise there. See for yourself:<\/p>\n

\"\"<\/a><\/p>\n

Credit:<\/strong><\/span> For the record, there have been about 160 trading days in 2021 and on Friday the S&P registered its 52nd all-time daily high this year<\/a>. Incredible. But as macro analyst Matthew Piepenburg points out, although the stock market continues to soar, “(US) consumer confidence recently saw the seventh greatest collapse<\/a> in history<\/strong><\/em> — (so) who needs capitalism when central bank money printers determine prices?” Good point. In fact, I’d say it’s as useless as a parrot with a cell phone. Oh, wait …<\/p>\n