September 15,2022 Newsletter

Dear Friends,

Tangents: Happy Friday eve.
September 15, 1997: google.com is registered as a domain name.
“We do lots of stuff.  The only way you are going to heave success is to have lots of failures first.” -Sergey Brin, Co-founder of Google.

September 15, 2008: Lehman Brothers Holdings Inc. filed for bankruptcy protection – the largest in U.S. history.  Go to article »

$100 million: That’s the annual profits of Patagonia, the private company that sells outdoor apparel and equipment. On Wednesday, Patagonia’s founder announced he is transferring ownership of the company into two entities that will ensure 98% of the company’s annual profits will be used to combat climate change.

Patagonia’s owner has cut out the middle man between profit and charity. — Matt Levine.

Global warming may end San Francisco’s fog.

Climate ‘points of no return’ may be much closer than we thought: Climate tipping points — the “points of no return” past which key components of Earth’s climate will begin to irreversibly break down — could be triggered by much lower temperatures than scientists previously thought, with some tipping points potentially already reached. There are also many more potential tipping points than scientists previously identified, according to a new study.
In climatology, a tipping point is defined as a rise in global temperature past which a localized climate system, or “tipping element” — such as the Amazon rainforest or the Greenland ice sheet — starts to irreversibly decline. Once a tipping point has been reached, that tipping element will experience runaway effects that essentially doom it forever, even if global temperatures retreat below the tipping point. Full Story: Live Science (9/15)

Early-medieval woman was buried with a rare item: a metal folding chair:  Coins, weaponry, jewels and other valuables are often found in the ancient burials of prominent people, but archaeologists recently discovered a truly rare grave good: a metal folding chair.  Constructed of an iron frame, the medieval chair measures approximately 28 by 18 inches (70 by 45 centimeters) when folded and was found by a team of archaeologists from the Bavarian State Office for Monument Protection (BLfD) last month in Endsee, a village in southeastern Germany.  Full Story: Live Science (9/15)

A new study reveals how air pollution can foster lung and other cancers. — Lisa Jarvis.

Should you take a multivitamin?  The answer is yes, according to a new study. Taking a daily multivitamin may improve cognition in older adults, especially those with a history of cardiovascular disease.

Ranking the world’s best business schools.
PHOTOS OF THE DAY

Ohio Democrat Joyce Beatty poses next to the unveiled official portrait of the late congressman Elijah Cummings during a ceremony on Capitol Hill
Photograph: José Luis Magaña/AP

A mother poses for photographs with her daughter in a cosmos flower field
Photograph: Kim Hong-Ji/Reuters

A woman walks along the seaside at dawn on a beach in the Basque Country in northern Spain
Photograph: Javier Etxezarreta/EPA
Market Closes for September 15, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1890, Baring Brothers, one of England’s leading investment banks, disclosed that loans to the likes of Argentina and Chile had gone bad and that the firm would go bust unless the Bank of England came to its aid. The bank stepped in, rounding up a rescue syndicate of other investment banks and assumed £28.5 million worth of Barings’ liabilities.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.8% at 19,560.16 in Toronto.
The move follows the previous session’s increase of 0.4%.
Today, energy stocks led the market lower, as 9 of 11 sectors lost; 176 of 237 shares fell, while 59 rose.
Nutrien Ltd. contributed the most to the index decline, decreasing 2.7%.
Energy Fuels Inc/Canada had the largest drop, falling 6.5%.
Insights
* This year, the index fell 7.8%, heading for the worst year since 2018
* This quarter, the index rose 3.7%
* So far this week, the index fell 1.1%
* The index declined 5.5% in the past 52 weeks. The MSCI AC Americas Index lost 14% in the same period
* The S&P/TSX Composite is 11.9% below its 52-week high on April 5, 2022 and 7.7% above its low on July 14, 2022
* The S&P/TSX Composite is up 0.8% in the past 5 days and fell 3.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.2 on a trailing basis and 12.1 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$3.15t
* 30-day price volatility rose to 14.96% compared with 14.73% in the previous session and the average of 13.59% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -71.1906| -1.9| 2/36
Materials | -59.7303| -2.7| 2/48
Industrials | -16.5739| -0.7| 7/21
Utilities | -14.5731| -1.4| 4/12
Consumer Staples | -8.0174| -1.0| 4/7
Consumer Discretionary | -6.9293| -1.0| 1/12
Information Technology | -2.4261| -0.2| 5/9
Real Estate | -0.7468| -0.1| 9/13
Health Care | -0.2446| -0.3| 4/3
Communication Services | 6.4470| 0.7| 4/3
Financials | 8.0001| 0.1| 17/12
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Nutrien | -12.2000| -2.7| -1.5| 23.6
Suncor Energy | -11.2100| -2.7| -61.2| 30.3
Brookfield Asset Management | -9.1650| -1.4| 29.6| -15.5
Bank of Montreal | 4.3050| 0.7| 14.9| -6.1
TD Bank | 5.0160| 0.5| 6.3| -9.2
RBC | 9.0830| 0.7| -9.9| -4.7
US
By Stephen Kirkland
(Bloomberg) — US stocks fell and Treasury yields climbed after the latest batch of economic data did little to dial back expectations for the Federal Reserve’s next move.
The S&P 500 extended declines to close at the lowest level since July 18. It ended just above 3,900, a level that has become a battle line for bulls and bears in recent months, acting as a support in mid-May and then keeping a lid on
advances briefly in June and July.
The tech-heavy Nasdaq 100 underperformed major indexes Thursday, with growth related stocks under pressure.
Adobe Inc. tumbled after agreeing to buy software design startup Figma Inc. in a deal valued at about $20 billion.
Treasury yields rose across the board, with the policy-sensitive two-year rate up as much as eight basis points at 3.87%, the highest since 2007 after the latest data painted a mixed picture for the economy.
Swaps traders are currently pricing in a 75 basis-point hike when the Fed meets next week, with some wagers appearing for a full-point move.
Bets ratcheted higher after a hot consumer inflation reading Tuesday, which also sparked the biggest selloff in stocks in two years.
“Data in hand mean the Fed is most likely to raise the fed funds target three-quarters of a percent at its decision next week,” said Bill Adams, chief economist at Comerica Bank. “A hike of a full percentage point is the month’s dark horse candidate.”
Traders expect the Fed fund rate to peak at close to 4.5% next year, from the current range of 2.25% and 2.5% and Ray Dalio said a rise to about that level could sink stock prices around 20% based on the present value discount effect.
The continued rise in rate-sensitive Treasuries deepened the curve inversion, a harbinger for a looming recession.
The curve from five to 30 years inverted by as much as 20 basis points in US trading Thursday, a day after the two- to 30-year spread also became the most negative in more than two decades.
Mortgage rates in the US topped 6% for the first time in nearly 14 years.
Data Thursday showed applications for US unemployment insurance fell for a fifth straight week, suggesting demand for workers remains healthy.
Retail sales indicated spending on goods is moderating.
Other data showed factory production rose slightly in August while total industrial production, including mining and utilities, fell.
University of Michigan data Friday will be parsed for clues on inflation expectations.
“This is a market waiting for the next catalyst,” Fiona Cincotta, senior financial markets analyst at City Index, said by phone. “What we saw in the selloff on Tuesday is the repricing of expectations of the Fed. Until we really hear from
the Fed we are not going to get a very clear direction.”
The offshore yuan weakened past 7 per dollar for the first time since July 2020.
The yen traded around 143.4 per dollar, away from just under the closely-watched 145 level Wednesday on signs the Bank of Japan was preparing an intervention.
Oil fell after the Department of Energy said its plan to restock US emergency oil reserves doesn’t include a trigger price and deliveries likely won’t happen until after fiscal year 2023.
Natural gas futures sold off in US trading after railroads and unions reached a tentative deal to avert a strike that threatened to disrupt domestic coal deliveries.
Gold fell to the lowest since April 2020 amid expectations of more aggressive interest-rate hikes by the Fed.

Here are some key events to watch this week:
* China home sales, retail sales, industrial production, fixed assets, surveyed jobless rate, Friday
* Euro area CPI, Friday
* University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.1% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.7%
* The Dow Jones Industrial Average fell 0.6%
* The MSCI World index fell 1%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro rose 0.2% to $0.9996
* The British pound fell 0.6% to $1.1470
* The Japanese yen fell 0.3% to 143.45 per dollar
Bonds
* The yield on 10-year Treasuries advanced five basis points to 3.45%
* Germany’s 10-year yield advanced five basis points to 1.77%
* Britain’s 10-year yield advanced three basis points to 3.17%
Commodities
* West Texas Intermediate crude fell 3.7% to $85.20 a barrel
* Gold futures fell 2.2% to $1,672.10 an ounce
–With assistance from Matthew Burgess, Michael Msika, Abigail Moses, Robert Brand, Peyton Forte, Isabelle Lee and Lu Wang.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

Truth alone will endure; all the rest will be swept away before the tide of time. –Mahatma Gandhi, 1869-1948.

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