June 23, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.
1868: Typewriter patented.
1979: Supertramp’s “Breakfast in America” becomes No. 1 album in the US featuring “Take the Long Way Home”  Great album! C’mon you little fighter… Go to article »
2016: The United Kingdom votes in a referendum to withdraw from the European Union, with 51.9 % supporting Britain’s exit (“Brexit”) and 48.1% opposing the move; it marked the first time a country had decided to leave the organization.

Westminster Dog Show: The winning pooch.  This adorable dog named Trumpet was crowned the Best in Show winner at the prestigious competition. Give him all the treats!

Eagle appears to clutch baby hawk for dinner, then decides to adopt it.  A baby hawk went from being dinner… to family. Watch the moment caught on eagle cam.

A third ‘My Big Fat Greek Wedding’ movie is finally in production.  The anticipation is real! Who remembers when the original film came out in 2002? Can you believe that was 20 years ago?

Kraft Macaroni and Cheese is changing its name.  After 85 years, the household staple announced it will embrace a shorter name and refreshed logo.

The World’s Top 3 Most Livable Cities 2022 (Economist Intelligence Unit, EIU)

1. Vienna, Austria
2. Copenhagen, Denmark
3. Zurich, Switzerland

PHOTOS OF THE DAY

A man rides his donkey through colourful fields filled with flowers
CREDIT: Ozkan Bilgin/Anadolu Agency/Getty

A young girl observes a couple dressed as flowerpots on day two of the festival at Worthy Farm
CREDIT: Dave J Hogan/Getty

A man goes paddleboarding in La Concha bay
CREDIT: Javier Etxezarreta/EPA

Market Closes for June 23^rd, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1912, Alan Mathison Turing, one of the greatest pioneers of modern computing and artificial intelligence, was born in the Paddington district of London, England.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 1.5%, or 286.92 to 18,717.12 in Toronto.
The index dropped to the lowest closing level in at least a year.
Today, energy stocks led the market lower, as 4 of 11 sectors lost; 137 of 239 shares fell, while 101 rose.
Toronto-Dominion Bank contributed the most to the index decline, decreasing 3.3%.
Athabasca Oil Corp. had the largest drop, falling 12.5%.
Insights
* In the past year, the index had a similar or greater loss 13 times. The next day, it declined nine times for an average 0.7% and advanced four times for an average 0.3%
* This quarter, the index fell 14%, heading for the biggest decline since the first quarter of 2020
* This month, the index fell 9.7%
* So far this week, the index fell 1.1%
* The index declined 7.2% in the past 52 weeks. The MSCI AC Americas Index lost 13% in the same period
* The S&P/TSX Composite is at its 52-week low and 15.7% below its high on April 5, 2022
* The S&P/TSX Composite is down 1.5% in the past 5 days and fell 7.3% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.6 on a trailing basis and 11.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.05t
* 30-day price volatility rose to 20.35% compared with 19.99% in the previous session and the average of 20.45% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | -145.1661| -4.2| 2/36
* Materials | -119.9318| -5.0| 5/47
* Financials | -103.7562| -1.7| 8/21
* Industrials | -1.7881| -0.1| 13/16
* Consumer Discretionary| 3.0774| 0.5| 8/5
* Communication Services| 3.2651| 0.3| 3/3
* Real Estate | 3.6848| 0.7| 16/7
* Health Care | 3.7087| 5.1| 6/1
* Consumer Staples | 9.4084| 1.2| 11/0
* Utilities | 14.0429| 1.5| 16/0
* Information Technology| 46.5418| 4.6| 13/1
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* TD Bank | -35.4300| -3.3| 29.5| -13.4
* Nutrien | -34.7900| -8.2| 4.4| 7.8
* Suncor Energy | -28.0200| -6.3| 22.8| 35.0
* Constellation Software | 5.9900| 2.4| -31.5| -19.9
* Brookfield Asset Management | 13.2700| 2.3| -36.8| -24.6
* Shopify | 26.3500| 7.6| -7.7| -72.9
US
By Isabelle Lee and Enrique Roces Gonzalez
(Bloomberg) — US stocks rose and Treasuries rallied as weaker-than-forecast data and a renewed hawkish tone from Federal Reserve officials ratcheted up worries the economy is headed for a recession.
The S&P 500 resumed gains on Thursday, ending the day up nearly 1%.
The tech-heavy Nasdaq 100 also rose.
Treasury yields declined, with the 10-year yield hovering around 3.08%.
Commodities from oil to copper and wheat remained under pressure as signs of waning demand mounted.
Data on Thursday did little to boost sentiment about a global economy battered by a flurry of central bank rate increases.
Jobless claims hovered near a five-week high, while manufacturing and services activity in the US cooled in June, lagging estimates and adding to worries the Fed’s efforts to fight inflation will upend growth.
Federal Reserve Chair Jerome Powell said in testimony to the US House that his commitment to bring down price increases is “unconditional,” a characterization he made at last week’s Fed meeting but one he omitted before lawmakers Wednesday.
Fed Governor Michelle Bowman also said she supports raising interest rates by 75 basis points again in July, followed by a few more half-point hikes.
“With Chairman Powell finally acknowledging that while a soft landing is possible, however difficult, and that the Fed’s commitment towards curtailing inflation may lead the economy into a recession, the market is wavering between a growth scare and an all out recession,” Quincy Krosby, chief equity strategist at LPL Financial, said in a note.
The S&P 500 had risen more than 2% Tuesday on speculation after back-to-back weekly routs of more than 5% each had reset valuations in line with the Fed’s policy moves.
Volatility remains elevated across assets, though, as economists debate whether the world’s largest economy is robust enough to withstand a Fed that looks poised to raise rates at least 50 basis points each at its next three meetings.
“The problem is, if the Fed does pivot earlier than people thought it’ll only be because the economy is a lot weaker than people thought and the stock market is a lot lower than people thought,” said Matt Maley, chief market strategist at Miller Tabak + Co. “So people need to be careful about looking for a Fed pivot early. If the Fed pivots early it will be because we’re in really rough shape, and that’s not bullish.”
Traders are now starting to price out any action on rates beyond the December meeting with latest data showing an additional 175 basis points of hikes priced before that meeting.

The dollar was little changed.
Powell, on Thursday, said that US debt is on an “unsustainable path” which could be a concern for the dollar over the long term.
Bitcoin climbed back above $20,000.
A digital dollar should be backed by the government, according to Powell, who rejected the idea of a private stable coin during his testimony.  
What to watch this week:
* US University of Michigan consumer sentiment, Friday
* RBA’s Lowe speaks on panel, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.5%
* The Dow Jones Industrial Average rose 0.6%
* The MSCI World index fell 0.5%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro fell 0.4% to $1.0529
* The British pound was unchanged at $1.2266
* The Japanese yen rose 1% to 134.93 per dollar
Bonds
* The yield on 10-year Treasuries declined seven basis points to 3.08%
* Germany’s 10-year yield declined 21 basis points to 1.43%
* Britain’s 10-year yield declined 18 basis points to 2.32%
Commodities
* West Texas Intermediate crude fell 2% to $104.06 a barrel
* Gold futures fell 0.6% to $1,828 an ounce
–With assistance from Peyton Forte and Vildana Hajric.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Never doubt that a small group of thoughtful, committed citizens can change the world. 
Indeed, it is the only thing that ever has. –Margaret Mead, 1901-1978.

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