THE WEEK ON WALL STREET
Another volatile week unfolded as rapid developments in the Middle East and public comments from leaders on the conflict see-sawed markets, leaving investors struggling to keep up with updates. The S&P 500 Index lost 1.89 percent, while the Nasdaq Composite Index fell 2.07 percent. The Dow Jones Industrial Average declined 2.11 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, dropped 2.01 percent.
FACT OF THE WEEK
On March 23, 1839, the initials “O.K.” are first published in The Boston Morning Post. Meant as an abbreviation for “oll korrect,” a popular slang misspelling of “all correct” at the time, OK steadily made its way into the everyday speech of Americans.
MARKET MINUTE
Under Pressure
An unexpectedly warm wholesale inflation reading and the Fed’s decision to hold interest rates steady contributed to pressure on stock prices. Stocks continued their slide on Thursday, albeit at a slower pace, as optimism that the Strait of Hormuz would reopen soon began to wane. However, markets managed to curb losses in a late-day relief rally. Stocks opened lower on the final trading day of the week but stabilized midday. However, after Iran declared force majeure on all foreign-owned oilfields later in the session, stocks came under pressure again as the week closed out.
Fed’s Dot Plot
The Federal Reserve held the Fed funds rate steady at the current 3.5 to 3.75 percent target range. In his press conference, Fed Chair Powell said inflation wasn’t declining as much as policymakers had hoped or projected. The Fed’s “dot plot” (voting members’ medium- to long-term projections on GDP, inflation, and employment) suggests that an adjustment to rates before year-end may still be on the table.
FINANCIAL STRATEGY OF THE WEEK
Retiree Health Care Coverage Overseas
According to the AARP, an estimated 44% of Americans over the age of 50 expect to travel internationally in 2025. Overseas travel may be one of the more popular aspirations in retirement, but it does beg an important question: Will your health insurance coverage travel with you?
Medicare Coverage Outside the U.S. Is Limited
In most cases, Medicare will not cover costs for health care or supplies obtained outside the U.S. (including its territories), except in three situations:
- You are in the U.S. when a medical emergency arises and a foreign hospital is closer than a U.S. one.
- You are traveling through Canada on a direct route between Alaska and another state when an emergency arises.
- You live in the U.S., and a foreign hospital is closer to your home than a U.S. one, regardless of whether it's an emergency.
Medigap Coverage May Travel with You
Medigap is supplemental insurance sold by private insurance companies, which is designed to fill in the "gaps" of Medicare coverage. If you own a Medigap policy, plans C through J, as well as M and N, offer travel emergency coverage. It has a $250 deductible with a $50,000 lifetime maximum. It will pay for 80% of emergency care and applies only during the first 60 days of the trip.
No Medigap?
Travelers who do not have Medigap coverage, but have health insurance coverage through private plans, such as Medicare Advantage, should check their plan to determine coverage while traveling.
If you do not have coverage when traveling overseas, policies may be purchased that will cover medical expenses incurred outside the U.S., including evacuations.