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Clearly, Not Everyone Is Getting Rich Off The Stock Market

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Well, the NY Fed was out today with its Quarterly Report on Household Debt and Credit for Q4 2017. Clearly, Americans are in a lot of debt. Take a look. Just a couple of quick hits from the report. Total U.S. household debt rose $193 billion in the 4th quarter, to a new all-time peak of $13.15 trillion. That's 17.9% above the most recent trough in Q2 2013. Broken down by segment, what do you suppose was the largest gain in percentage terms? Credit cards, with a 3.2% increase. In the picture above, the widening gap represented by the red arrows reflects the fact that non-housing debt is rising at a faster pace than housing debt. Here's what's troubling about that. Below is a picture of the stock market, as represented by the S&P 500 index, over that same period; from the most recent credit trough in Q2 2013 to the end of 2017. And thus, the title of this article. Over that period, the S&P 500 index rose by 75%; from roughly 1,600 to 2,800. Apparently, ho

Traveling In Italy - Manarola

One of my favorite destinations in Italy is the Cinque Terre. The phrase "Cinque Terre" literally means "five lands," and refers to 5 small towns (Riomaggiore, Manarola, Corniglia, Vernazza, and Monterosso al Mare) that hug the western coastline of Northern Italy.

If you are a fan of Rick Steves, you likely know that he feels many travelers make the mistake of viewing the Cinque Terre as an afterthought; descending on the region early one morning, blowing through all 5 towns and leaving the same evening. I agree with him that those who do so miss out on so much. I hope to share an overall post on the Cinque Terre at some future point. For this effort, however, I will focus on the town of Manarola.

Manarola is believed to be the oldest of the five villages, with the cornerstone of San Lorenzo church dating back to 1338. Ultimately, the name traces to "magna roea," which means "large wheel," a reference to the mill wheel in the town. My wife and I have visited the Cinque Terre twice, and Manarola has served as our home base on both occasions. I'm here to share just a few of the treasures that we have discovered.

Arriving in Manarola

To reach the Cinque Terre, you will take a high-speed train either to the town of Levanto from the north or La Spezia from the south. From there, you will use the local Cinque Terre train, which travels between all 5 towns, as well as Levanto and La Spezia. Follow these links for some helpful tips and the most recent timetable.

This, in itself, is a wonderful part of the adventure. Here's the train arriving at the station in Manarola, literally cut into the side of the hill with nothing but the clear blue sea beyond.


Where To Stay

My wife and I were so impressed with the place we chose to stay on our first visit to Manarola that we didn't even bother looking elsewhere as we planned our second trip. That place is Arpaiu.

Arpaiu, along with its sister location Vandiris, are run by Debora Cappelli. If you check out reviews on sites such as tripadvisor.com, you will find that, of the two, Arpaiu is the preferred location. Actually, the two are located very close to each other. If Arpaiu is full, Debora will likely offer you a spot in Vandiris.

Arpaiu is a converted home, which now features 4 rooms on 2 levels. The two rooms on the top floor are more or less mirror images of those on the bottom floor, but slightly more advantageous in terms of views and convenience (you don't have to schlep your bags up and down the stairs as you do with the rooms on the bottom floor). You may read of one small complaint with Zin Zin, the smaller of the two rooms on the bottom floor; namely that the stairwell heading up and down from the village runs right past the windows. However, you can simply adjust the shutters if you ever feel uncomfortable.

The pictures you see here are of Ziguela, the larger of the two rooms on the bottom floor.

A couple of caveats up front. First, Arpaiu is not a bed and breakfast. There are some some small snacks, as well as tea, provided in a beautiful lounge upstairs, but you will be on your own for breakfast each morning. I actually don't feel like that's a negative, but we'll discuss that in the next section, "where to eat." Second, as with many places in Manarola, you''re going to need to climb in some fashion to get there. It's either up 128 steps from the main street, or a more circuitous route involving a path.

However, as with many things in life, where there is work there is often reward. In the case or Arpaiu, that reward is location. You see, Arpaiu is right at the front of Manarola. As you look out the windows, there basically isn't much between you and the sea. Want to have a look?

OK, here is that upstairs lounge I was telling you about.


And, if you look out those windows on the left? Wow!


Finally, Debora speaks fluent English, helpful if your Italian is not exactly stellar. On top of that, she is very helpful. Of course, I would like to feel that we contributed to a good relationship by treating her with respect and proving to be good guests, but I will simply add that Debora went out of her way to help us with a couple of favors that greatly enhanced our experience in Cinque Terre.

Where To Eat

Here, I will share 3 favorites, as well as a brief note on one "hot" spot that did nothing for me.

Nessun Dorma Cinque Terre

Let's start with Nessun Dorma Cinque Terre. First, have a look back at the picture from the deck of Arpaiu featured just above. See that awning and those umbrellas about 1/3 of the way up the picture, on the right-hand side? That's Nessun Dorma Cinque Terre. Now, imagine the view were you to be sitting under one of those umbrellas. I promise, it does not disappoint.

Nor, as it turns out, does the food. Prices are reasonable, the food and drinks are great, and the service is pretty good. Be warned, this place gets busy. So get busy yourself, staking out your spot.

Il Porticciolo

Next, let's talk about Il Porticciolo.

Il Porticciolo is one of the culinary landmarks of Manarola. Like so many other things, it has changed over the years due to the relentless path of "progress." On our first visit, it was still run by "Mama," who stood dutifully by the front door beckoning you in. It was a little more casual then, with locals making their way into the back room to eat, for a fixed price, from a buffet-like table of whatever had been prepared that evening. The pesto? I thought it was about the best I had ever tasted.

Ten years later, the sons run it, and tourists occupy that back room as well. It's lost a tiny bit of the "homey" feeling, and you don't get free biscotti and Sciacchetrรก (the local dessert wine) at the end of your meal, as we did on our first trip. But, for my money, it's still one of the best dining experiences you will find in Manarola. And that pesto? Still, for my money, the best in town.

Bar Enrica

For my third recommendation, I'd like to feature Bar Enrica. It proved to be my favorite spot in the morning, and the reason I didn't miss the lack of breakfast service at Arpaiu.

Starting from Il Porticciolo, you will find Bar Enrica down towards the waterfront and on the opposite side of the street. In the mornings, you will find the same lady behind the counter whom you would have met 10 years ago. If you only visit once, you may conclude that she doesn't have the most sparkling personality. But if you happen to be staying in the area and return multiple times, you may find she recognizes and warms to you, particularly if you make the effort to speak a few words of Italian. Setting all of this aside for a minute, take a look at the picture. She makes a marvelous Cappucino. And the pastries? Off the charts as well. That's a pear tart and marmalade-filled croissant you're looking at.

And the bill for all this goodness? Have a look. Yep, a grand total of €7.20, or roughly $8.00 depending on the exchange rate when you visit. As you may have figured out, this doubles as an investment blog, and I have previously written about a few of the things that irritate me at Starbucks. In part, it is experiences like this that contribute to this dissatisfaction. None of the pastries in Bar Enrica are frozen and reheated, that's for sure!

Just a couple of final notes on Bar Enrica before I leave you. If you get there first thing in the morning, at 8:00 a.m., you're going to find several locals there, including fishermen just back from the morning catch. It makes for an enjoyable environment. Finally, in the evening, they also have some of the best gelato in town. In total, then, it could end up being the spot where you both begin and end your day in Manarola.

A Disappointment

OK, this is the section that's going to be a bit controversial. The disappointing experience I will share has to do with Trattoria Dal Billy. Now, let me be clear, this is one of the hottest, if not the hottest, spot in town. And I don't think anything I write here will change that, nor do I intend it to. At the same time, I will share an honest view.

Trattoria Dal Billy is at the top of the hill. As such, it commands one of the best views in Manarola. It is very popular, and you will likely want to make a reservation if you don't want to endure a long wait.

The day my wife and I went, the weather happened to be uncharacteristically bad for almost mid-May. The rain poured and it was very blustery. We were seated on the outside deck, and the staff spent the better part of the evening trying to adjust the various screens just to keep the rain off the diners. I will admit, that dampened the ambiance. That part, though, I can allow, because it is somewhat beyond anyone's control.

However, the main server was, in my view, very flippant about the experience. Sort of: "Oh well, there's nothing we can do about it. Remember, you're extremely fortunate to even be sitting here." I guess the bottom line is that I didn't feel they were at all professional. On top of that, though, both my wife and I agreed that we felt the food at Il Porticciolo was better, in particular the pesto. Had we had another evening left on our visit, the choice was clear to us as to where we would have spent it. For us, Trattoria Dal Billy was way overrated.

If you visit, and get a chance to try both, drop your thoughts in the comments section. Whether you agree or disagree, I'd love to get your take.

I Love Pretty Pictures -- Do You?

In conclusion, I will leave you with this. If you are fortunate enough to be in Manarola in the evening and the weather is nice, you will find people lined up along the promontory of the walkway in front of the town, just below Nessun Dorma Cinque Terre. You will find them with their DSLRs and their tripods, lined up to capture an incredible evening photograph of this stunning town.

There are two basic time frames to capture absolutely stunning pictures. The first is just as the sun is going down in the western sky, casting a beautiful yellow-orange glow on the town. 


The second is roughly 45 minutes to an hour later (you'll definitely need a tripod and a long exposure for this one).


And that, dear readers, is where I will leave you. For those of you who have been to Manarola, I'd love it if you would take a minute to share a couple of thoughts about your experience. If you haven't, and have a question you would like to ask, I'd be happy to answer to the best of my ability.

Mille grazie!









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