Coffee Cans

Circling back to negative interest rates and HSAs, a reader says…

“If this happens you need to stop all deposits to HSAs and interest bearing accounts. Stuff those coffee cans in your backyard full to the brim.”

And another opinion on the best way to handle an HSA:

“Many are focused on the interest-bearing aspect of the HSA only. Choose an HSA administrator that offers great investment options and a number of other services to help manage and maximize the benefit of the HSA, including the triple-tax savings.

“Bend HSA is the first to use AI to hunt out additional tax savings and qualified expenses along with great investment options.”

Triple-tax savings? Tantalizing.

As for what to do with your savings accounts, etc. should the Fed decide negative interest is the way to go, what’s your plans for your cash (aside from coffee cans, that is)?

Your Rundown for Wednesday, Dec. 11, 2019:

Trade War Bluster…

So far this year, the technology sector is up about 40%, easily outperforming the 25% gain for the S&P 500 index — which, by the way, is the third-best annual return of the past 20 years.

To a certain extent, gains mirror investors’ sentiment that the trade war’s sturm und drang has amounted to a tempest in a teacup.

“Smaller” tech — for example — chip maker and trade-vulnerable AMD has more than doubled this year, making it the best-performing S&P 500 stock this year. Close behind is semiconductor equipment manufacturer Lam Research that’s up over 90% in 2019.

And Big Tech’s been impressive, too — we’ve already beat the drum for Microsoft that’s up almost 50% this year. Then there’s other heavy hitters…

  • Apple is up 69%… and reached a record-high last week
  • Facebook, up 54%
  • Alphabet (Google) is up 28.5%, setting its own record Monday
  • Amazon — not quite as impressive — but still up 16.5%

In favor of Big Tech stocks, Jeb Breece of Spears Abacus says: “They are more economically resilient. A dollar of tech earnings seems like more of a sure bet than a dollar of Midwestern steel earnings.”

Well, yeah.

Market Rundown for Wednesday, Dec. 11, 2019

S&P 500 futures are up 3 points to 3,138.75.

Oil’s down 22 cents to $59.02 for a barrel of WTI.

Gold adds $3.30 per ounce to $1,471.40.

Bitcoin is up $40.63 to $7,314.50.

Thanks for your feedback; be sure to write in.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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