Good morning investors! Yesterday was a mixed day as investors still aren’t sure of the future.

Today we cover:

• IMF expects more global growth.

• Gold to hit $3,000?

• Rate cuts in danger.

📊 Economy and News 

IMF upgrades global growth forecast

The International Monetary Fund revised its global growth forecast slightly upward on Tuesday, citing the economy's "surprisingly resilient" performance.

The IMF now anticipates global growth of 3.2% in 2024, a modest increase of 0.1 percentage point from its previous January forecast.

According to the IMF's chief economist, Pierre-Olivier Gourinchas, these findings indicate that the global economy is on track for a soft landing, although several downside risks persist.

Global hits:

• China’s economy grew 5.3% in the first quarter, beating expectations.

• Baidu says its ChatGPT-like Ernie bot exceeds 200 million users.

• Lagarde says ECB will cut rates soon, barring any major surprises; notes ‘extremely attentive’ to oil.

Reminder: Fed Chair Jerome Powell said the U.S. economy has not seen inflation come back to the central bank’s goal, pointing to the further unlikelihood that interest rate cuts are in the offing anytime soon.

📈 Stocks

S&P 500 5,051.41 (+%)(
DJIA 37,798.97 (+0.17%)
NASDAQ 17,713.66 (+0.039%)
BRENT CRUDE 90.02 (-0.09%)
* Prices as of Apr 17th, 12:20 AM UTC

No rate cuts?

Fed Chair Jerome Powell said the U.S. economy has not seen inflation come back to the central bank’s goal, pointing to the further unlikelihood that interest rate cuts are in the offing anytime soon.

Stocks seesawed after Powell’s comments, closing mixed Tuesday.

Interest rates are presently at their highest level in 23 years following the Federal Reserve's implementation of an aggressive rate-hiking strategy two years ago. Although inflation has significantly decreased from its peak in the summer of 2022, recent reports indicate ongoing price pressures in services and housing.

Some earnings: UnitedHealth Group exceeded expectations with its latest financial report. The company reported adjusted earnings per share of $7.16, surpassing the expected $6.61. Additionally, its adjusted revenues of $100.08 billion exceeded estimates by approximately 1%.

Johnson & Johnson's adjusted earnings per share of $2.71 exceeded expectations of $2.64. However, its revenue fell slightly short of expectations. On a positive note, the company raised its quarterly dividend by 4.20%, continuing its streak of 62 consecutive years of dividend increases. 💵

🔐 Crypto

Bitcoin $63,858 (-0.044%)
Ethereum $3,091 (-0.54%)
Total market cap $2.31t (-0.09%)
* Prices as of Apr 17th, 12:20 AM UTC

Bitcoin is divided

Geopolitical events and the search for an investment hedge led some traders to say bitcoin could surge in the coming months, despite a recent 10% weekly drop in its value.

The correlation between bitcoin and traditional market assets remains high, but some investors see the cryptocurrency as a viable hedge and investment option, with expectations its price could reach $120,000 in the coming months.

However, some investors are bearish.

Most notable of these is Markus Thielen, founder of 10x Research, best known for predicting BTC’s bottom in November 2022 and the recent pre-halving surge to record highs.

The man has turned bearish on risk assets, including technology stocks and cryptocurrencies.

💵 Personal Finance

How to use health savings accounts to pay insurance premiums

Health savings accounts (HSAs) come with several tax advantages. Most people use them to cover medical emergencies, but they are best used to cover insurance premiums.

Let’s dig more:

What’s included?

According to the IRS, costs that generally qualify for the medical and dental expenses tax deduction are included such as:

• Costs to receive artificial limbs

• Birth control pills

• Lead-based paint removal

• Fees for attending medical conferences

But, insurance premiums do not qualify. 😔 

So, why are we asking you to use health savings accounts to pay insurance premiums? Because it is possible thanks to some exceptions:

Medicare premiums

Medicare premiums for people age 65 and older do qualify, including:

• Premiums for hospital insurance

• Premiums for medical insurance

• Premiums for drug coverage

However, premiums for Medicare supplemental health policies are not included.

Surprise: You do not have to pay your premiums directly with an HSA to enjoy the benefit. You will have the option to use other means to pay and then reimburse yourself with your HSA later. You will, however, need to keep all records.

Reminder: Medicare premiums for a spouse or a dependent only qualify if the HSA owner is 65 or older.

Health-care continuation coverage premiums

Premiums for health-care continuation coverage such as COBRA do qualify.

COBRA is for people who have no health benefits due to situations such as job loss or divorce. It offers good benefits but at a very high price.

How high? COBRA requires individuals to cover the full premium, which goes up to 102% of the cost of the plan.

Premiums when unemployed

You can use HSAs to pay health premiums if you are unemployed. Examples include health plans purchased over an Affordable Care Act marketplace or COBRA.

Long-term health premiums

Individuals who require long-term care can use HSAs to cover relevant insurance premiums. There, however, are some limitations based on age:

• Age 40 or under — up to $450

• Age 41 to 50 — $850

• Age 51 to 60 — $1,690

• Age 61 to 70 — $4,510

• Age 71 or over—$5,640

These figures are updated every year, check the official website for the latest amounts.

Still not sure about HSAs? Check this video:

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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