THE WEEK ON WALL STREET
Stocks notched a solid gain last week as upbeat comments from the Fed helped stocks snap their four-week losing streak.
The S & P’s 500 Index rose 0.51 percent, while the Nasdaq Composite Index picked up 0.17 percent. The Dow Jones Industrial Average led, gaining 1.20 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 0.75 percent.
A Solid Week
Stocks opened the week higher despite weaker-than-expected retail sales. On Tuesday, stocks pulled back on disappointing economic data and renewed Middle East tensions.
Stocks roared higher Wednesday as investors looked forward to the Federal Reserve’s meeting. As widely expected, the Fed kept rates steady, but Fed Chair Powell’s comments buoyed investors’ spirits.
Stocks dipped Thursday and opened lower Friday, but investors showed some confidence by pushing prices higher into Friday’s close.
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.
During the late 1830s, it was a favorite practice among younger, educated circles to misspell words intentionally, then abbreviate them and use them as slang when talking to one another. Just as teenagers today have their own slang based on distortions of common words, such as “kewl” for “cool” or “DZ” for “these,” the “in crowd” of the 1830s had a whole host of slang terms they abbreviated. Popular abbreviations included “KY” for “No use” (“know yuse”), “KG” for “No go” (“Know go”), and “OW” for all right (“oll wright”).
Of all the abbreviations used during that time, OK was propelled into the limelight when it was printed in the Boston Morning Post as part of a joke. Its popularity exploded when it was picked up by contemporary politicians. When the incumbent president Martin Van Buren was up for reelection, his Democratic supporters organized a band of thugs to influence voters. This group was formally called the “O.K. Club,” which referred both to Van Buren’s nickname “Old Kinderhook” (based on his hometown of Kinderhook, New York), and to the term recently made popular in the papers. At the same time, the opposing Whig Party made use of “OK” to denigrate Van Buren’s political mentor Andrew Jackson. According to the Whigs, Jackson invented the abbreviation “OK” to cover up his own misspelling of “all correct.”
The man responsible for unraveling the mystery behind “OK” was an American linguist named Allen Walker Read. An English professor at Columbia University, Read dispelled a host of erroneous theories on the origins of “OK,” ranging from the name of a popular Army biscuit (Orrin Kendall) to the name of a Haitian port famed for its rum (Aux Cayes) to the signature of a Choctaw chief named Old Keokuk. Whatever its origins, “OK” has become one of the most ubiquitous terms in the world, and certainly one of America’s greatest lingual exports.
MARKET MINUTE
The Fed Stays Positive
Amid all the market turbulence of late, the Fed was a steadying influence.
At his post-meeting press conference, Fed Chair Powell stressed that the economy remained strong and suggested that any impact from tariffs on inflation would be short-term.
But the primary reason investors cheered came down to this: most Fed officials still penciled in two interest rate cuts for this year. In late January, Powell said the central bank was in no hurry to adjust its policy stance, which unsettled the markets.
FINANCIAL STRATEGY OF THE WEEK
Medicare Advantage 101
Medicare Advantage, sometimes known as “Part C,” is something of a catch-all choice for those who are ready to sign up for Medicare. Medicare Advantage plans are offered by private insurers in conjunction with the Medicare program, and can provide you with additional health insurance coverage.
What’s in them?
In addition to signing up for Medicare Part A (hospital stays) and Part B (medical coverage), Medicare Advantage plans offer their subscribers extra features. This frequently, but not always, includes the Medicare Part D prescription drug plan.
In some cases, Medicare Advantage plans offer coverage for areas not normally offered within regular Medicare plans. This can include dental, hearing, and vision insurance.
What are the rules?
Medicare pays for a fixed amount of your health care to the company offering your Medicare Advantage (MA) plan. Beyond that, each MA plan requires different out-of-pocket fees. Those fees can vary from plan to plan.
Depending on your plan, you may have different rules you need to follow when seeking a medical referral to get treatment from a specialist or if you are seeking non-urgent care (even from health care providers within the plan).
It’s also important to remember that rules, requirements, and features may change from year to year. It will be important to make sure that those changes line up with any treatment that you need.
What about my prescriptions?
While most MA plans offer Part D coverage for prescription drugs, some don’t. One example would be for Medicare Medical Savings Account plans. In cases where the plan can’t or chooses not to offer prescription drug coverage, you may have the ability to join a separate Medicare Prescription Drug Plan, depending on the type of plan you enroll in.
You will likely have a number of questions and concerns as you examine your options for Medicare Advantage plans. Discuss these with a trusted financial professional who can help you make choices that may best fit your lifestyle.