HSAPAY's week 20 of 40 Baby Prep Plan
May 22, 2023 9:52 pm
Welcome back ,
Here's HSAPAY's weekly update for May 21st, 2023 that'll help you and your growing family navigate the complexities of utilizing and investing in your HSA.
The escalating cost of healthcare is a concern for individuals across all age groups. Failure to properly utilize Health Savings Accounts (HSAs) can result in a significant penalty of up to 20%. However, investing in genetic testing through an HSA can be a wise decision. In the financial world, the ongoing debate over the debt ceiling has led to modest losses in the stock market. Despite this, there are still ways to profit from a potential government debt default. Yelp may also surprise investors with its success this year, while Chevron offers a low P/E ratio and attractive yield. For those interested in Palantir stock, there are three particularly active options bets to consider. Meanwhile, crude oil prices have followed the trend of declining stock prices. U.S. Steel, on the other hand, has secured $240 million in financing to support the Big River 2 project. In light of current events, investing in UK equities may be a wise decision.
HSA Weekly Roundup
- Health Expense are threatening all Generations!
- TLDR is 20% penalty if you use your HSA incorrectly
- Buying genetic tests with your HSA, is wise!
Macro Minute & Precious Metals
- Stocks Post Modest Losses as Debt Ceiling Talks Hit an Impasse
- 3 Ways to Profit From a Government Debt Default
- Crude Prices Fall Back as They Follow Stock Prices Lower
- U.S. Steel Closes on $240 Million Financing to Support Big River 2
3-6 Month HSA Investment Return Entries
- Palantir Stock: Your 3 Best Unusually Active Options Bets
- 3 reasons to buy UK equities here and now
- Goldman Sachs Says Small-Cap Stocks Are Attractively Valued at Current Levels; Here Are 2 Names the Banking Giant Likes (Stem & Xometry)
Health Expense are threatening all Generations!
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 Younger investors tell pollsters they plan to invest more, but research shows they're actually tapping investments and savings to pay for everyday expenses. If you are in this scenario ask your HR about an HDHP with an HSA to see how to better | ||
1:50 PM Β· May 18, 2023 | ||
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TLDR is 20% penalty if you use your HSA incorrectly
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 Can I finally buy the new Tesla Truck with my HSA?If you are asking this question that's not how an HSA works!! Your HSA is yours for the rest of your life, all while gaining interest, you can even pass it on to beneficiaries. Don't get penalized 20% for withdrawing before 65 and spending on non-healthcare-related expenses. | ||
10:15 AM Β· May 1, 2023 | ||
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Buying genetic tests with your HSA, is wise!
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 FLASH SALE! 40% off 23andMe! Get the 23andMe Health + Ancestry Service test kit, regularly $199 USD, for just $119 USD plus FREE SHIPPING | ||
3:38 AM Β· Apr 15, 2023 | ||
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Stocks Post Modest Losses as Debt Ceiling Talks Hit an Impasse
The S&P 500 Index ($SPX) (SPY) and Nasdaq 100 Index ($IUXX) (QQQ) took a tumble on Friday, closing down -0.14% and -0.23% respectively. Even the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.33%. π These losses came after debt-limit negotiations hit a snag, with Republican negotiators walking out of talks. House Speaker McCarthy said the talks were at a "pause."
ο»Ώπ The market had initially moved higher in the morning, with the S&P 500 and Nasdaq 100 reaching 9-month and 1-year highs respectively. But optimism soon turned to disappointment as lawmakers struggled to reach a deal to raise the debt ceiling. π©
3 Ways to Profit From a Government Debt Default
A possible default by the U.S. government on its debt would have BIG π± consequences everywhere! Here are some of the things we might see:
π³ U.S. creditworthiness could be damaged, making it harder and more expensive for the government to borrow in the future. This could lead to credit rating downgrades and affect investor confidence, too.
Borrowing costs could also go up, since investors would want higher yields on Treasury bonds to make up for the risk. That could mean higher interest rates for loans, like mortgages, car loans, and business loans. π«
Crude Prices Fall Back as They Follow Stock Prices Lower
π’οΈ Friday's closing bell saw June WTI crude oil (CLM23) take a dip of -0.31 (-0.43%) while June RBOB gasoline (RBM23) closed on a high note, up +0.78 (+0.30%).
However, hopes were lifted with the S&P 500 reaching a 9-month high but talks of a "pause" in debt-ceiling negotiations brought prices back down. Luckily, active U.S. oil rigs fell to an 11-month low, giving crude prices a bit of a boost.
π The outlook for stronger U.S. fuel demand is looking up with AAA forecasting a rise in travel for Memorial Day weekend. As many as 42.3 million Americans are expected to travel 50 miles or more from home forcing prices up
U.S. Steel Closes on $240 Million Financing to Support Big River 2
Pittsburgh's top steelmaker πͺπΌ, United States Steel Corporation (U.S. Steel), just closed a $240 million financing deal to support the construction of their flat rolled steelmaking facility, Big River 2, in Osceola, Arkansas.
This new facility is going to be the most advanced steelmaking plant in North America, with two electric arc furnaces capable of producing around three million tons of steel per year! π§π·ββοΈ
What's even better is that the Arkansas Development Finance Authority environmental improvement revenue bonds used to finance this project carry a green bond designation. π±π This is a huge step forward for the steelmaking industry and the environment. π―
Hereβs Why Yelp (YELP) Could Be a Surprising Hit This Year
π Yelp's stock was all over the place before they announced their earnings report! At one point, it was above $33, but then it dipped down to $27.29 the day before the big reveal.
But don't worry, patient stakeholders still got a 21% return so far this year, and over the past month, Yelp gained over 13%! π
Speaking of earnings, Yelp's first quarter results for 2023 were π₯ they had net revenue of $312.44 million (up 12.9% YoY) and adjusted EBITDA of $54.03 million (up 12.3% YoY). Plus, their net cash from operating activities jumped up too!
Chevron Stock Is Off Since Its Q1 Earnings, But Its 3.92% Yield and Low P/E Make It Attractive
π»Chevron (CVX) stock has slid down 8.6% since its Q1 earnings release at the end of Aprilπ. As of Thursday, May 18, CVX stock was at $154.01, down from $168.58 on April 28, when Q1 earnings came out.
However, the drop has also raised its dividend yield to 3.92% and reduced its P/E multiple to just 11xπ€. That has made it even more attractive to value investors. Moreover, there are ways to enhance the investor's income by shorting out-of-the-money calls and puts.
Palantir Stock: Your 3 Best Unusually Active Options Bets
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What kind of wild ride did Palantir Technologies (PLTR) options take on Thursday? π₯΅ There were SO many options being traded, with at least six having a π volume-to-open interest ratio higher than 10x.
A total of 38 options were unusually active, which is defined as having a Vol/OI ratio greater than 1.25x. π€ Investors were definitely hungry for PLTR options, with a volume of 1.14 million, nearly 5x its 30-day average.
π Is it because Cathie Wood is buying more stock or because of the healthy earnings report from May?
3 reasons to buy UK equities here and now
It seems like investors haven't been giving much love to UK equities lately π, probably because they haven't been trading much higher than their post-pandemic levels.
Meanwhile, the US stock market has been soaring thanks to the government's fiscal and monetary support. But don't get too comfortable, because it looks like US equities might be slowing down in 2023 π³.
The Dow Jones index has only gone up 0.61% this year. So, where should investors turn their attention to? π€ How about Japan? π―π΅ Its economy is growing and the weak currency is attracting foreign investors π to the local stock market. Check out my latest article on the topic! π°β₯οΈ
Goldman Sachs Says Small-Cap Stocks Are Attractively Valued at Current Levels; Here Are 2 Names the Banking Giant Likes (Stem & Xometry)
Stem! They're a global leader when it comes to clean energy. Stem uses AI to optimize solutions in renewable power and energy storage π, two very important areas in the clean energy industry. They've got a super product line that includes solar power installations, energy storage systems, electric vehicle charging points, and even a combo of all of these!
Xometry is a small cap company that uses AI to make on-demand parts and manufacturing a breeze! They've taken the idea of just-in-time inventory and made it even smarter with their own tech. π€ Now, customers can source parts and assemblies exactly when and how they need them. The results for 1Q23, announced on May 10th, were π₯! Xometry smashed expectations with revenue of $105.3 million (up 26% YoY) and an EPS figure that was 3 cents better than expected.
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
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Enjoy,
Frank
