August 17, 2022 Newsletter

Dear Friends,

Tangents:
August 17, 1945: English author George Orwell publishes Animal Farm, an anti-utopian satire that became a classic.  According to Orwell, Animal Farm reflects events leading up to the Russian Revolution of 1917 and then on into the Stalinist  era of the Soviet Union.
On Aug. 17, 1969, the Woodstock Music and Art Fair concluded near Bethel, N.Y.  Go to article »

Davy Crockett, frontiersman, b. 1786.
Mae West, actress, b. 1898.
Sean Penn, b. 1960.
Robert de Niro, b. 1943.

The world’s most breathtaking clifftop hotels.  If you love a good view, check out this photo gallery of breathtaking hotels perched on top of mountains and cliffs. 

Scientists plan to resurrect this animal from extinction with ancient DNA.  Never underestimate the power of science. This animal, which has been extinct since 1936, may live once again. 

Does drinking coffee help you live longer?  Americans drink an estimated 517 million cups of coffee every day, according to the National Coffee Association, making it the most popular beverage in the U.S. other than water.
Drinking coffee has been associated with a wide range of health benefits. But will it help you live longer?  Full Story: Live Science (8/14) 

Why is everything gray?

PHOTOS OF THE DAY

A recently exposed lakebed, with boats anchored near a bathtub ring of mineral deposits left by higher water levels, at the drought-stricken Elephant Butte reservoir. New Mexico’s largest reservoir is at 3.8% of its capacity in spite of recent monsoon rains in the state. Experts say the climate-crisis-fuelled mega-drought remains entrenched in the west
CREDIT: Mario Tama/Getty Images

People cross London Bridge during a heavy rainfall as the the British Meteorological Office has warned of widespread flash floods as thunderstorms are likely across the country.
CREDIT: Tolga Akmen/EPA

A hen harrier chick enjoys the summer sun. The bird was born amid a national trial to revive England’s hen harrier population. The Natural England scheme has hit a significant milestone by releasing a record 13 chicks into the wild
CREDIT: Natural England/PA

Market Closes for August 17^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1998, the Russian government devalued the ruble and declared a moratorium on paying its foreign debt, a de facto default that sent global bond markets crashing and triggered the ultimate collapse of the giant hedge fund Long-Term Capital Management.
Canada
By Ana Paula Barreto Pereira
(Bloomberg) — Canadian equities erased yesterday’s gains, led by losses in materials and technology, as investors sold risky stocks on fears of further rate hikes by central banks.
The S&P/TSX Composite fell 0.4% at 20,181.44 in Toronto Wednesday.
The move was the biggest in more than a week and follows the previous session’s increase of 0.4%.
Shopify Inc. contributed the most to the index decline, decreasing 5.3%.
Energy Fuels Inc/Canada had the largest percentage drop, falling 8.8%.
Today, 165 of 238 shares fell, while 70 rose; 7 of 11 sectors were lower, led by materials stocks.
Insights
* The index declined 0.9% in the past 52 weeks. The MSCI AC Americas Index lost 5.7% in the same period
* The S&P/TSX Composite is 9.1% below its 52-week high on April 5, 2022 and 11.1% above its low on July 14, 2022
* The S&P/TSX Composite is up 1.5% in the past 5 days and rose 9.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.6 on a trailing basis and 12.5 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$3.24t
* 30-day price volatility fell to 14.11% compared with 14.16% in the previous session and the average of 17.10% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | -41.4146| -1.8| 4/47
* Information Technology | -34.4370| -2.9| 2/12
* Financials | -11.8278| -0.2| 8/19
* Consumer Discretionary | -7.8123| -1.1| 1/11
* Real Estate | -5.1718| -0.9| 2/21
* Communication Services | -3.1679| -0.3| 1/6
* Health Care | -1.1639| -1.5| 2/5
* Consumer Staples | 0.7415| 0.1| 7/4
* Industrials | 1.7523| 0.1| 9/20
* Utilities | 3.1874| 0.3| 11/5
* Energy | 10.7806| 0.3| 23/15
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | -21.3100| -5.3| -7.1| -72.4
* TC Energy | -6.5540| -1.5| -49.7| 8.8
* Agnico Eagle Mines | -6.5280| -3.6| 26.9| -16.1
* Canadian Natural Resources | 5.0880| 0.9| 50.2| 31.7
* Canadian Pacific | 6.4040| 1.0| -9.6| 17.2
* Suncor Energy | 8.3710| 2.1| 3.2| 31.8
US
By Stephen Kirkland
(Bloomberg) — US stocks fell for the first time in four days as investors assessed the outlook for the path of interest-rate hikes after minutes from the Federal Reserve’s last meeting noted officials saw risks from tightening more than necessary.
The S&P 500 Index ended back at levels near the release of Fed minutes as the tech-heavy Nasdaq 100 resumed declines, dropping more than 1%.
Minutes of the July 26-27 meeting noted the need to eventually dial back the pace of rate hikes but also the desire to gauge how their monetary tightening was working toward curbing inflation.
In the bond market, two-year yields, the most sensitive to rate changes, trimmed most of their surge after the release.
Futures contracts lowered the odds of a 75-basis-point Fed boost next month to about 40%, compared with traders split between a hike of that size and a 50-basis-point increase before the minutes.
The dollar pared gains.
US stocks have rallied on signs of peaking inflation and an earnings-reporting season that saw four out of five companies meeting or beating estimates.
Yet, prospects of the Fed continuing to raise rates to cool inflation and tip the economy into a recession has weighed on sentiment.
Fed officials may offer fresh views on the outlook during their Aug. 25-27 retreat in Jackson Hole, Wyoming.
Earlier Wednesday, data showed retail sales stagnated last month on declines in auto purchases and gasoline prices, but other categories indicated resilient consumer spending.
Excluding gasoline and autos, sales rose a better-than-expected 0.7%.
In corporate news, Target Corp. fell as profit lagged behind Wall Street’s estimates, while Lowe’s Cos. gained after the home-improvement retailer reported earnings that beat estimates even as renovators wrestle with a slumping US housing market.
Cisco Systems Inc. gained in extended trading after the biggest maker of machines that run the internet and corporate computer networks, gave a bullish forecast for the quarter.
Juniper Networks Inc. followed Cisco higher.
“A correction from this level is very, very possible as earnings and margins deteriorate going into 2023,” Marco Pirondini, head of equities, US, and portfolio manager at Amundi US. “We expect the Fed to continue to increase rates, we expect the economy to slow down, possibly even enter a recession. The probability of a recession next year is higher than normal. So once you put all these things together, I think a more prudent approach is important.”
It’s been a choppy day for risk sentiment.
Earlier on Wednesday, stocks rose in Asia amid speculation that China may deploy more stimulus to shore up its ailing economy.
Some of those equity gains were surrendered when European trading opened and the focus turned to the Fed as well as UK inflation, which soared to double digits for the first time in four decades and spurred a global bond selloff.

Here are some key events to watch this week:
* Australia unemployment, Thursday
* U.S. existing home sales, initial jobless claims, Conference Board leading index, Thursday
* Fed’s Esther George, Neel Kashkari speak at separate events, Thursday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.7% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.2%
* The Dow Jones Industrial Average fell 0.5%
* The MSCI World index fell 0.6%
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%
* The euro was little changed at $1.0180
* The British pound fell 0.4% to $1.2051
* The Japanese yen fell 0.6% to 135.02 per dollar
Bonds
* The yield on 10-year Treasuries advanced nine basis points to 2.89%
* Germany’s 10-year yield advanced 11 basis points to 1.08%
* Britain’s 10-year yield advanced 16 basis points to 2.29%
Commodities
* West Texas Intermediate crude rose 1.4% to $87.71 a barrel
* Gold futures fell 0.6% to $1,779.70 an ounce
–With assistance from Brett Miller, Andreea Papuc, Tassia Sipahutar, Sunil Jagwani, Srinivasan Sivabalan, Peyton Forte, Elaine Chen and Vildana Hajric.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

It isn’t the mountains ahead to climb that wear you out; it’s the pebble in your shoe. -Muhammad Ali, 1942-2016.

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