😦 Inflation to return?

and FedEx misses

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Good morning investors! Investors are having a good time as eyes are now set on Bitcoin ETF.

Today we cover:

  • Prices to go higher again? 🪘 

  • FedEx fails and falls. 🚐 

  • Health insurance. 👨‍⚕️

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📊 Economy and News 

Inflation to go higher AGAIN….?

The world is facing another challenge, which could disrupt supply chains and force oil prices to go up, especially in the US.

Why? Yemen’s Houthi militants have started to attack commercial ships forcing oil giant BP and four of the world’s biggest container shipping companies to pause transit through the Red Sea, which means they also have to avoid the crucial Suez Canal.

The route is so important that the US joined hands with nine other countries to launch a naval mission to protect commercial shipping in the Red Sea.

Why is this important? About 15% of global trade — and 30% of container trade — passes through the waterway connecting the Red Sea to the Mediterranean Sea.

The situation is forcing delays and ships to take other routes, which are longer and costlier. This excessive cost will result in higher prices and, thus higher inflation.

Global hits:

Also check: The government wants to regulate the use of AI with the help of a new bill that intends to levy penalties on businesses for using deepfakes or other artificial intelligence tools to illegally manipulate markets or to engage in securities fraud.

In 2024 what would help you reach your goals easier?

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📈 Stocks

S&P 500 4,768.37 (+0.59%)
DJIA 37,557.92 (+0.68%)
NASDAQ 16,811.86 (+0.49%)
BRENT CRUDE 79.44 (+0.09%)
* Prices as of Dec 20th, 12:20 AM UTC

FedEx misses and how

FedEx cut its full-year revenue forecast and reported quarterly profit that fell far short of analysts’ targets. The company saw a growth in profit, yet it fell below expectations. As a result, the stock was down 9.79% after the bell trading at $252.55 a share. 😢 

The numbers: Excluding items, FedEx Corporation reported adjusted earnings of $1.01 billion or $3.99 per share for the period. In addition, revenue fell about 3% YoY to $22.2 billion.

Analysts on average had expected the company to earn $4.20 per share.

Challenges: Investors should remain cautious because the company expects to face some challenges in 2024, including reduced demand. As a result, FedEx has lowered guidance.

Management expects full-year revenue to fall in low single-digits YoY, lower than the previous outlook.

The company, however, is focused on making things right. It plans to reduce expenses and downsize operations.

Plans: The outlook seems bearish but the company has some big plans, including buybacks. It intends to repurchase shares worth $1 billion (if goes below a specific point) of common stock during fiscal year 2024.

Also check: Tesla gets a new challenge as competitor Nio gets $2.2 billion investment from Abu Dhabi’s CYVN.

Reminder: You might be eligible to receive about $30 from Apple for payouts in the infamous $25 million settlement.

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💵 Personal Finance

Health insurance

Health insurance, also known as medical insurance, should be included in your financial plan. In fact, based on your location, it might be mandatory to have some form of medical insurance.

Health insurance protects in case of medical emergencies by covering eligible procedures, including surgery, hospitalization costs, health checkups, and more. Furthermore, it offers tax rebates.

This becomes even more important as you grow older as you’re more likely to fall sick and need medical assistance in your later years. Getting insurance can provide the much needed padding and ensure you can remain mentally and physically fit.

Health insurance costs anywhere from $100 to $2,000 based on your location and the perks included. Sadly, about 20% of Americans have no medical insurance. The number is lower in developing economies. This is a concern because high medical bills are a leading cause of bankruptcy in the US:

  • About 17% of adults in the country with healthcare debt lose their homes or declare bankruptcy because of it.

  • Around 66.5% of bankruptcies are linked to medical expenses.

Health insurance can be a great way to protect your future and reduce the risk of going bankrupt.

Here are some tips on how you can save money on health insurance:

  • First, understand what factors influence costs. Your age, location, lifestyle, and insurance type are a few of the things that can impact rates.

  • Use tax credits to lower premiums. For example, individuals who use the Health Insurance Marketplace may be eligible for an advanced premium tax credit (APTC) that depends on their income and household size.

  • See if you qualify for low-cost or free health insurance through Medicaid or the Children’s Health Insurance Program (CHIP). Requirements change from state to state and depend on factors such as your income and household size.

  • Be smart when filing taxes and deduct premiums. However, there’s a catch – you can only deduct medical expenses you paid above 7.5% of your adjusted gross income (AGI). 

  • The premium is directly linked to the deductible. You can reduce the monthly premium by going for a high deductible.

  • Choose a health savings account (HSA) to set aside funds for eligible health-related costs. We must mention that HSA funds cannot be used for health insurance premiums, but they can be applied toward covering your deductible, coinsurance, copayments, and other qualifying medical expenses.

  • If you're looking to cut down on monthly premium costs, contemplate opting for a catastrophic health insurance policy. These plans are accessible to individuals under 30 or those over 30 who meet the criteria for a hardship or affordability exemption. However, remember that these have very low premiums but extremely high deductibles. The annual deductible this year stands at $9,100 for individuals and $18,200 for families.

Want more? Check this (old but still useful) video:

💰 Be a Better Investor

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