May 5, 2022 Newsletter

Dear Friends,

Tangents: CINCO DE MAYO
On May 5, 1961, astronaut Alan B. Shepard Jr. became America’s first space traveler as he made a 15-minute suborbital flight in a capsule launched from Cape Canaveral, Fla.  Go to article »

2021: US President Joe Biden announces the US will support temporarily lifting patent protection on COVID-19 vaccines with he WHO, siding after holding our against international efforts to bolster production and allowing drugmakers globally access amid concerns about vaccine access in developing nations.

Karl Marx, communist, b. 1818,
Soren Kierkegaard, philosopher, b. 1813.

Oligarchs are desperately moving their mega-yachts around the world.

Behold, a 2,000-year-old postcard.

A key ocean current is at its weakest in 1,000 years.

This story has everything: Tinder, a crypto scam, murder.
PHOTOS OF THE DAY

A 1911 tiny copy of the Bible is displayed at Leeds city library. The replica of a so-called Chained Bible is not much bigger than a £1 coin but contains both testaments printed on 876 gossamer-thin India paper pages, which can only be read with a magnifying glass. Librarians are unsure as to its origins as it only resurfaced when the library decided to do a comprehensive survey during lockdown closures
CREDIT: Danny Lawson/PA

A brood of goslings follow their mother on the lake in Sefton park
CREDIT: Peter Byrne/PA

Pallbearers from the 2nd Battalion, Royal Regiment of Scotland carry the coffin of Pte William Johnston, of the 7th Battalion, Royal Scots Fusiliers, during a reburial service at Loos British cemetery. An engraving on a spoon found alongside Johnston, a soldier in the first world war, enabled the Commonwealth War Graves Commission and the Ministry of Defence Joint Casualty and Compassionate Centre to identify his remains
CREDIT: Virginia Mayo/AP

Market Closes for May 5^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary
On this day in 1850, the National Bank of Belgium was founded as a public limited-liability company. Its shares are still publicly traded—making it one of the world’s only central banks you can own a piece of.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities tumbled in their biggest drop in five months amid a broad sell-off in North American markets.
The technology sector plunged to a two-year low as Shopify tumbled after reporting worse-than-expected earnings and a softer outlook for the year. The S&P/TSX Composite fell 2.3% at 20,696.17 in Toronto.
Today, financials stocks led the market lower, as all sectors lost; 223 of 239 shares fell, while 15 rose.
Shopify Inc. contributed the most to the index decline and had the largest move, decreasing 14.3%.
Insights
* In the past year, the index had a similar or greater loss once
* So far this week, the index fell 0.3%
* The index advanced 7.2% in the past 52 weeks. The MSCI AC Americas Index lost 2% in the same period
* The S&P/TSX Composite is 6.8% below its 52-week high on April 5, 2022 and 8.6% above its low on May 13, 2021
* The S&P/TSX Composite is down 2% in the past 5 days and fell 5.6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.9 on a trailing basis and 13 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.8% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.38t
* 30-day price volatility rose to 15.92% compared with 14.48% in the previous session and the average of 12.09% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -123.4560| -1.9| 0/28
* Information Technology| -99.8251| -8.1| 0/16
* Materials | -85.3086| -3.0| 0/52
* Industrials | -64.4349| -2.7| 3/27
* Energy | -47.1988| -1.2| 2/32
* Consumer Discretionary| -21.3462| -3.1| 1/12
* Consumer Staples | -16.5011| -2.0| 2/9
* Real Estate | -12.6013| -2.2| 0/23
* Communication Services| -8.2416| -0.8| 1/6
* Health Care | -7.3509| -6.0| 0/8
* Utilities | -2.5351| -0.3| 6/10
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | -69.4900| -14.3| 62.8| -69.6
* Brookfield Asset Management | -29.1100| -4.4| 20.4| -17.3
* Royal Bank of Canada | -22.2800| -1.7| -16.7| -2.9
* Cenovus Energy | 1.4730| 0.7| 50.1| 66.8
* Fortis | 2.1220| 1.1| -0.8| 1.0
* Tourmaline Oil | 3.1730| 2.1| 97.4| 83.3

US
By Rita Nazareth
(Bloomberg) — The stock surge that followed the Federal Reserve decision proved short lived ahead of Friday’s jobs report, with traders worried that officials could struggle to fight inflation amid the threat of a recession.
Just a day after notching the biggest rally in two years, the S&P 500 tumbled, with more than 95% of its companies moving lower.
The Nasdaq 100 suffered one of its sharpest U-turns ever.
The tech benchmark plunged about 5%, wiping out its post-Fed gains.
A selloff in long-end Treasuries pushed the 10-year yield above 3%. The dollar climbed.
Doubts that policy makers can arrest runaway prices rocked markets, with the prospect of stagflation unsettling investors.
By pushing back on a jumbo-hike of 75 basis points in June, Fed Chair Jerome Powell beat back traders’ most-aggressive predictions.
However, it’s still a bumpy road ahead, with pivotal economic data and global developments that could seed doubts about the central bank’s approach.
Friday’s jobs reading is expected to show solid payroll growth and wages holding at exceptionally high levels — remaining an enduring source of inflationary pressures. 
Comments:
* “I expected some selloff, but the great puking that’s happening, I didn’t expect,” said Kim Forrest, founder and chief investment officer at Bokeh Capital Partners. “Is this capitulation? I remember what capitulation feels like — this
kind of feels like capitulation, when everything, even the good names, are getting barfed out.”
* “It’s going to be incredibly difficult for the Fed to normalize interest rates without having a negative impact on growth and earnings,” said Paul Nolte, portfolio manager at Kingsview Investment Management. “So stock prices are too high if we’re going to see a flattening or a decline in earnings per share.”
* “Make no mistake, the Fed is in the early stages of what we believe will be a very aggressive tightening cycle,” wrote Win Thin, global head of currency strategy at Brown Brothers Harriman.
The swing higher in longer-dated yields certainly matters for the broader economic picture as they influence borrowing costs.
Mortgage rates in the U.S. resumed their upward jump, reaching the highest level since August 2009.
Separate data Thursday showed that productivity dropped in the first quarter by the most since 1947 as the economy shrank, while labor costs surged and illustrated an extremely tight job market.

Corporate Highlights:
* Shares of e-commerce companies from Etsy Inc. to Shopify Inc. tumbled after weaker-than-expected quarterly earnings and forecasts deepened concern that the pace of online shopping has slowed.
* eBay Inc. gave a lackluster sales and profit outlook for the current quarter, accelerating its decline from the peaks reached when shoppers were stuck at home during the pandemic.
* Elon Musk has secured about $7.1 billion of new financing commitments, including from billionaire Larry Ellison, a Saudi Prince, and Sequoia Capital, to help fund his proposed $44 billion takeover of Twitter Inc.
Elsewhere, the pound slumped as investors looked past the Bank of England’s rate increase and turned their focus on forecasts for a recession in 2023.
BOE Governor Andrew Bailey said the U.K. economy is already slowing because of a squeeze on consumer spending power, and that will help reduce inflation next year.

Key events this week:
* U.S. April jobs report, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 3.6% as of 4 p.m. New York time
* The Nasdaq 100 fell 5.1%
* The Dow Jones Industrial Average fell 3.1%
* The MSCI World index fell 2.6%
Currencies
* The Bloomberg Dollar Spot Index rose 0.9%
* The euro fell 0.7% to $1.0548
* The British pound fell 2.1% to $1.2366
* The Japanese yen fell 0.7% to 130.04 per dollar
Bonds
* The yield on 10-year Treasuries advanced nine basis points to 3.03%
* Germany’s 10-year yield advanced seven basis points to 1.04%
* Britain’s 10-year yield was little changed at 1.96%
Commodities
* West Texas Intermediate crude rose 0.4% to $108.29 a barrel
* Gold futures rose 0.5% to $1,877.90 an ounce
–With assistance from Andreea Papuc, Cecile Gutscher, Denitsa Tsekova, John Viljoen, Vildana Hajric, Isabelle Lee and Peyton Forte.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Change is the law of life.  And those who look only to the past or the present are certain to miss the future. –John F. Kennedy, 1917-1963.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com