June 14, 2022 Newsletter

Dear Friends,

Tangents: Watch for the strawberry supermoon which rises tonight.
Strawberry supermoon of June rises Tuesday. What to expect.

On June 14, 1982, Argentine forces surrendered to British troops on the disputed Falkland Islands.  Go to article »

America’s most outstanding restaurant is….Calling all foodies! These outstanding restaurants earned prestigious James Beard Awards at the annual ceremony on Monday. 
 
Physicists link two time crystals in seemingly impossible experiment:  Physicists have created a system of two connected time crystals, which are strange quantum systems that are stuck in an endless loop to which the normal laws of thermodynamics do not apply. By connecting two time crystals together, the physicists hope to use the technology to eventually build a new kind of quantum computer.  “It is a rare privilege to explore a completely novel phase of matter,” Samuli Autti, the lead scientist on the project from Lancaster University in the United Kingdom, told Live Science in an email.
Full Story: Live Science (6/14) 

Silver coin featuring famous Viking king unearthed in Hungary:  A metal detectorist has discovered a small silver coin marked with the name of a famous Viking king. However, it was unearthed not in Scandinavia, but in southern Hungary, where it was lost almost 1,000 years ago.   The find has baffled archaeologists, who have struggled to explain how the coin might have ended up there — it’s even possible that it arrived with the traveling court of a medieval Hungarian king.  Full Story: Live Science (6/12) 

Google AI ‘is sentient,’ software engineer claims before being suspended:  A senior software engineer at Google was suspended on Monday (June 13) after sharing transcripts of a conversation with an artificial intelligence (AI) that he claimed to be “sentient,” according to media reports. The engineer, 41-year-old Blake Lemoine, was put on paid leave for breaching Google’s confidentiality policy.
“Google might call this sharing proprietary property. I call it sharing a discussion that I had with one of my coworkers,” Lemoine tweeted on Saturday (June 11) when sharing the transcript of his conversation with the AI he had been working with since 2021.  Full Story: Live Science (6/13) 

This country is expected to attract the most millionaires this year. 
PHOTOS OF THE DAY

A house falls into the swollen Yellowstone River during flooding in Montana
CREDIT: Angie Lilly/Reuters

A woman in a hat adorned with butterflies attends day one of Royal Ascot
CREDIT: David Davies/PA

Jeff Koons’ sculpture Balloon Monkey (Magenta), 2006-13, with an estimate of £6m-£10m, is placed on display in St James’s Square before being sold by Christie’s to raise funds for humanitarian aid for Ukraine
CREDIT: Yui Mok/PA

Market Closes for June 14^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1949, the Dow Jones Industrial Average finished the day at 161.86, up 0.26 points, as the longest bull market of all time began. Stocks went up nearly non-stop for the entire decade of the 1950s, finally peaking Dec. 13, 1961, at 734.91, a 355% gain (or roughly 13% annually).
Canada
By Stefanie Marotta
(Bloomberg) — Canadian stocks fell for the fifth straight session, marking the longest losing streak in one month, as telecommunications and utilities stocks led losses amid escalating concerns over interest rate hikes.
The S&P/TSX Composite fell 1%, or 194.04 to 19,548.51 in Toronto.
The index dropped to the lowest closing level in at least a year.
Today, energy stocks led the market lower, as 9 of 11 sectors lost. Enbridge Inc. contributed the most to the index decline, decreasing 1.9%.
Bombardier Inc. had the largest drop, falling 18.2%.
Insights
* This quarter, the index fell 11%, heading for the biggest decline since the first quarter of 2020
* The index declined 3% in the past 52 weeks. The MSCI AC Americas Index lost 14% in the same period
* The S&P/TSX Composite is at its 52-week low and 12% below its high on April 5, 2022
* The S&P/TSX Composite is down 6.6% in the past 5 days and fell 2.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15.2 on a trailing basis and 12 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.16t
* 30-day price volatility fell to 20.60% compared with 20.79% in the previous session and the average of 20.40% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | -67.1797| -1.7| 2/29
* Financials | -41.2929| -0.7| 7/21
* Communication Services | -25.4136| -2.6| 1/6
* Utilities | -23.1189| -2.3| 1/15
* Information Technology | -14.5574| -1.5| 7/9
* Materials | -12.1687| -0.5| 9/42
* Real Estate | -6.6304| -1.3| 2/21
* Consumer Discretionary | -0.4393| -0.1| 6/8
* Health Care | -0.2515| -0.3| 4/4
* Consumer Staples | 0.3409| 0.0| 3/8
* Industrials | 1.9389| 0.1| 14/16
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Enbridge | -15.3200| -1.9| -24.1| 12.6
* TD Bank | -12.0400| -1.1| 71.7| -7.9
* Barrick Gold | -8.8080| -2.8| 26.3| 4.8
* Canadian Pacific | 4.7300| 0.8| 8.6| -2.5
* Canadian National | 6.5530| 1.1| -41.6| -9.6
* Nutrien | 16.6400| 4.0| 1.3| 18.8

US
By Rita Nazareth
(Bloomberg) — Volatility continued to grip financial markets on concern the Federal Reserve’s aggressive stance to fight stubbornly high inflation will throw the world’s largest economy into a recession.
After facing several twists and turns, the S&P 500 closed down for a fifth straight day — its longest losing streak since January.
The technology-heavy Nasdaq 100 climbed as Oracle Corp.’s forecast suggested the effort to move customers to the cloud is gaining momentum. Economic bellwether FedEx Corp. soared the most in almost 36 years after boosting its dividend.
Traders remained cautious ahead of the Fed’s decision Wednesday and have now almost fully priced in a 75-basis-point hike, the biggest since 1994.
Treasuries extended their worst rout in decades, with two-year yields hitting a level last seen in 2007.
In just three days, those short-term rates have increased more than 60 basis points.
A closely watched part of the US curve inverted briefly, signaling concerns that restrictive policy may take a bigger toll on the economy.
The dollar rallied, the Japanese yen sank to a 24-year low, while the pound slid to its lowest since March 2020.

“The volatility today is a testament to the uncertainty going into the FOMC meeting as well as concerns about the impact such an aggressive ramp of tightening could have the economy,” said Seema Shah, chief global strategist at Principal Global Investors, referring to the Federal Open Market Committee. “The 75-basis-point possibility was a far-flung risk this time last week, so market participants are having to quickly revisit Fed, economy and market forecasts.”
Investor fears of stagflation are at the highest since the 2008 financial crisis, while global growth optimism has tumbled to a record low, according to Bank of America Corp.’s monthly fund manager survey. Global profit expectations also dropped to 2008 levels, with BofA strategists noting that prior troughs in earnings expectations occurred during other major Wall Street crises, such as the Lehman Brothers bankruptcy and the bursting of the dot-com bubble.
More Comments:
* “There will be an elevated level of volatility,” wrote Jim Caron, portfolio manager and chief fixed-income strategist at Morgan Stanley Investment Management. “While the Fed’s primary goal is to reduce wage inflation, this may instead deflate asset prices.”
* “This is one of those environments where it is getting rougher,” said Jason Pride, chief investment officer of private wealth at Glenmede. “In our index, we’re seeing some nascent, but I would argue, not fully-throated signs of oversold conditions. So it’s flashing like this weird and somewhat inconvenient weak buy signal — as opposed to like some sort of really strong oversold capitulation, high-conviction buy
signal.”
* “New money should be patient money as investment psychology has shifted to the negative side,” said George Ball, chairman of Sanders Morris Harris. “It’s better to miss the bottom of a market and buy on the way up than to guess where the exact bottom is.”
* “Fed rate hikes and global central bank tightening will bring about slower growth,” wrote Dennis DeBusschere, the founder of 22V Research. “The question is how fast growth needs to slow to generate a policy-friendly inflation trend. Slower growth that doesn’t trigger a sharp recession, should lead to both lower 10-year yields and a lower equity risk premium. Under that backdrop, there is a good amount of upside to equities.”
Hedge funds tracked by Goldman Sachs Group Inc. offloaded US equities for a seventh straight day Monday, with the dollar amount of selling over the last two sessions exploding to levels not seen since
the firm’s prime broker began tracking the data in April 2008.
It’s the fourth bear market for the S&P 500 over the past two decades. 
While the Covid-19-fueled slump of 2020 was followed by a rapid recovery, other bear markets took much longer to bounce back.
The gauge fell 51% from peak to trough from 2000 to 2002, and by 58% during the global financial crisis.
In both of those cases, it took more than 1,000 trading days to claw back the losses.
Elsewhere, US natural gas futures plummeted and European prices surged after the operator of a key Texas export terminal said it may take three months to partially restart the facility following a fire last week.
What to watch this week:
* FOMC rate decision, Chair Jerome Powell briefing, US business inventories, empire manufacturing, retail sales, Wednesday.
* ECB President Christine Lagarde due to speak, Wednesday.
* Bank of England rate decision, Thursday.
* US housing starts, initial jobless claims, Thursday.
* Bank of Japan policy decision, Friday.
* Eurozone CPI, Friday.
* US Conference Board leading index, industrial production, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.4% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.2%
* The Dow Jones Industrial Average fell 0.5%
* The MSCI World index fell 0.7%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro was little changed at $1.0415
* The British pound fell 1.2% to $1.1987
* The Japanese yen fell 0.6% to 135.20 per dollar
Bonds
* The yield on 10-year Treasuries advanced 11 basis points to 3.47%
* Germany’s 10-year yield advanced 13 basis points to 1.76%
* Britain’s 10-year yield advanced six basis points to 2.59%
Commodities
* West Texas Intermediate crude fell 2.1% to $118.34 a barrel
* Gold futures fell 1.3% to $1,808.60 an ounce
–With assistance from Andreea Papuc, Robert Brand, Vildana Hajric and Isabelle Lee.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Integrity is not a conditional word.  It doesn’t blow in the wind or change with the weather. 
It is your inner image of yourself, and if you look in there and see a man who won’t cheat,
then you know he never will. –John D. MacDonald, 1916-1896.

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