September 1, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.

On Sept. 1, 1939, World War II began as Nazi Germany invaded Poland.  Go to article »

Serena Williams marches on at US Open.  Williams is reminding the world why she just may be the greatest women’s tennis player of all time in what could be her final act. Tonight, she will step on the court with her sister Venus in doubles play.

This care home recruits babies to cheer up elderly residents.  Babies are being asked to visit this care home whenever they want — and they receive baby formula and diapers during their cheerful visits.

Dazzling pink diamond could fetch more than $21 million at auction.  At 11.15 carats, this rare gem is described as one of the world’s purest pink diamonds. 

The ‘world’s largest food fight’.  Thousands of people were covered in tomatoes after a massive food fight in the streets of Spain. Watch the video here.

‘Man of the hole,’ the last member of an uncontacted tribe, dies in the Amazon:  The last surviving member of a Brazilian Indigenous tribe that was uncontacted by the outside world has died, according to officials.
The man lived alone in the Brazilian Amazon rainforest for 26 years after his tribe was killed in a series of attacks by ranchers and miners that began in the 1970s, according to Survival International, a non-profit organization that works with Indigenous peoples to protect their land rights. Full Story: Live Science (9/1) 

Look into the eyes of a Stone Age woman in this incredibly lifelike facial reconstruction: You can view the virtually reconstructed face of a woman who lived about 5,700 years ago in what is now Malaysia, now that researchers have put a face to a person whose full identity remains a mystery.
A team of archaeologists from the Universiti Sains Malaysia (USM) discovered the skeleton, which they dubbed the “Penang woman,” during a 2017 dig at Guar Kepah, a Neolithic site located in Penang, in northwest Malaysia. It was one of 41 skeletons exhumed from the site over multiple excavations. Radiocarbon dating of shells found scattered around the woman’s remains revealed that she lived during the Neolithic, or New Stone Age, which spanned from 8,000 to 3,300 B.C. in the region.  Full Story: Live Science (9/1) 
PHOTOS OF THE DAY

Members of the Polish navy outside the Monument to the Defenders of Westerplatte, at the end of a ceremony marking the 83rd anniversary of the second world war’s outbreak in Westerplatte. The Battle of Westerplatte was the first clash between Polish and German troops during the German invasion of Poland on 1 September 1939
Photograph: Anadolu Agency/Getty Images

Serena Williams signs autographs for fans before her second-round match at the US Open
Photograph: Guerin Charles/ABACA/Re/xShutterstock

Pupils head to class on the first day of the new academic year
Photograph: Emmanuel Dunand/AFP/Getty Images

Market Closes for September 1^st, 2022

International Markets  

Bonds  

Currencies  

Commodities  

Market Commentary:
On this day in 1862, the San Francisco Stock and Exchange Board was founded by 37 brokers to organize trading in silver and gold mining stocks—primarily based at the booming Comstock Lode in Virginia City, Nev.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities dropped for the fifth straight day as energy and materials stocks tumbled.
The S&P/TSX Composite fell 1%, or 188.09 to 19,142.72 in Toronto.
The index dropped to the lowest closing level since July 26.
Bank of Nova Scotia contributed the most to the index decline, decreasing 1.7%.
Energy Fuels Inc./Canada had the largest drop, falling 10.9%.
Today, 199 of 238 shares fell, while 39 rose; 8 of 11 sectors were lower, led by energy stocks.
Insights
* This year, the index fell 9.8%, heading for the worst year since 2018
* This quarter, the index rose 1.5%
* So far this week, the index fell 3.7%, heading for the biggest decline since the week ended June 17
* The index declined 7.5% in the past 52 weeks. The MSCI AC Americas Index lost 14% in the same period
* The S&P/TSX Composite is 13.8% below its 52-week high on April 5, 2022 and 5.4% above its low on July 14, 2022
* The S&P/TSX Composite is down 5.1% in the past 5 days and fell 2.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 12.9 on a trailing basis and 11.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.09t
* 30-day price volatility rose to 13.52% compared with 13.17% in the previous session and the average of 14.22% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -62.5494| -1.7| 1/37
Materials | -60.4986| -2.8| 3/48
Financials | -40.4354| -0.7| 3/26
Industrials | -17.3987| -0.7| 7/22
Information Technology | -15.8376| -1.5| 0/14
Real Estate | -8.0531| -1.6| 0/23
Health Care | -0.5860| -0.8| 1/6
Utilities | -0.3273| 0.0| 8/8
Consumer Discretionary | 0.0671| 0.0| 6/7
Communication Services | 0.5923| 0.1| 2/5
Consumer Staples | 16.9422| 2.1| 8/3
================================================================
| | |Volume VS| YTD|Index Points| | 20D AVG | Change Top Contributors | Move |% Change | (%) | (%)
================================================================
Bank of Nova Scotia | -10.2900| -1.7| 104.9| -20.3
Nutrien | -9.4590| -2.1| 17.3| 24.2
Canadian Natural Resources | -8.5910| -1.5| -50.8| 35.5
TFI International | 2.7450| 3.8| 9.2| -4.2
Turquoise Hill | 3.4240| 14.0| 441.7| 97.9
Couche-Tard | 13.0900| 4.1| 39.0| 10.9
US
By Emily Graffeo and Isabelle Lee
(Bloomberg) — A surprising late-day reversal took US stocks higher as investors await Friday’s jobs report to gauge how hawkish the Federal Reserve will be.
Recent data pointed to a resilient US economy, buoying sentiment later in the day.
The S&P 500 ended its losing streak on Thursday, after falling for most of the session.
The Nasdaq 100 finished the day flat.
Treasuries slumped amid a selloff that left the two-year yield at the highest in almost 15 years.
The dollar surged to a record high on speculation that latest data will force the central bank to raise rates by three-quarters of a percentage point at its meeting later this month.
Several Fed officials in recent days reiterated their promise to remain aggressive to control inflation, quashing any hopes of a dovish pivot investors had come to expect after July’s inflation reading.
A fresh batch of labor-market and manufacturing data this week also pointed to a resilient US economy, strengthening the central bank’s resolve.
But some investors positioned themselves to take advantage of recent market dislocations, bolstered by the positive data.
“We’re taking a more opportunistic tone when it comes to markets,” Ashish Shah at Goldman Sachs Asset Management said on Bloomberg TV. “There’s going to be a lot of back and forth through the data and you want to set yourself up to be investing because sitting in cash is really expensive right now.”
Still, stocks are entering a month that is often poor for returns, following losses in August.
The S&P 500 has averaged declines of 0.6% and 0.7% for August and September, respectively, over the past 25 years.
“Right now you have to be patient,” said Megan Horneman, chief investment officer at Verdence Capital Advisors. “I wouldn’t try and get in the middle of this kind of reset and re-pricing we’ve seen. The markets can move pretty violently.”
Risk assets had been under pressure after China put the megacity of Chengdu under lockdown, delivering a blow to economic growth.  Chengdu’s lockdown continues to ripple through the economy.
Factory slowdowns in Europe and Asia also reflect dwindling demand.
Investors are also assessing political risks as Russia’s invasion of Ukraine continues and tensions in Taiwan mount, with the latter shooting down a civilian drone after weeks of complaints about incursions by unmanned aerial vehicles from China. Russia is considering a plan to buy as much as $70 billion in yuan and other “friendly” currencies this year to slow the ruble’s surge, before shifting to a longer-term strategy of selling its holdings of the Chinese currency to fund investment.
“The Fed effect is now melding with other global factors such as China’s growth slowdown and Europe’s stagflation to create a more fraught global macro environment with higher rates and lower growth,” said Alvin Tan, strategist at RBC Capital Markets in Singapore. “It is this combination of hawkish central banks led by the Fed, China’s slowdown and Europe’s stagflation  that is now driving volatility across global markets.”
Here are some key events to watch this week:
* ECB Governing Council members due to speak at event Tuesday through Sept. 2
* US nonfarm payrolls, Friday
* UK leadership ballot closes Friday. Winner announced Sept. 5

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.3% as of 4 p.m. New York time
* The Nasdaq 100 was little changed
* The Dow Jones Industrial Average rose 0.5%
* The MSCI World index fell 0.6%
Currencies
* The Bloomberg Dollar Spot Index rose 0.7%
* The euro fell 1.1% to $0.9945
* The British pound fell 0.7% to $1.1541
* The Japanese yen fell 0.9% to 140.20 per dollar
Bonds
* The yield on 10-year Treasuries advanced seven basis points to 3.26%
* Germany’s 10-year yield advanced two basis points to 1.56%
* Britain’s 10-year yield advanced eight basis points to 2.88%
Commodities
* West Texas Intermediate crude fell 3.5% to $86.40 a barrel
* Gold futures fell 1.1% to $1,706.40 an ounce
–With assistance from Vildana Hajric, Abigail Moses and Elizabeth Stanton.
Have  a lovely evening.

Be magnificent!
As ever,

Carolann

We are what we repeatedly do.  Excellence, then, is not an act, but a habit. –Aristotle, 384 BCE-322 BCE.

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