October 27, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.

October 27, 1904: The first underground New York City Subway line opens, later designated as the IRT Broadway–Seventh Avenue Line.  While London boasts the world’s oldest underground train network (opened in 1863) and Boston built the first subway in the United States in 1897, the New York City subway soon became the largest American system.
2005: Surgeons in France performed the world’s first partial face transplant on a woman who was mauled by a dog.  Go to article »
1787: Federalist Papers published.
Theodore Roosevelt, 26^th president, b. 1858.
Dylan Thomas, poet, b. 1914.
Sylvia Plath, poet, b.1932

Why haunted houses and horror movies make us happy.

Welcome to the age of cacio e pepe. (h/t Mike Nizza)

Blue jeans from the 1800s found in an abandoned mine shaft.

PHOTOS OF THE DAY

London, UK
Maya Renard, six, gives a poppy to the 98-year-old D-day veteran Bernard Morgan, whose story is among those featured on a wall of poppies, at the launch of the Royal British Legion’s 2022 poppy appeal
Photograph: Victoria Jones/PA

Sydney, Australia
Oleksii Kniazkov and Vladyslava Ihnatenko of the United Ukrainian Ballet perform during rehearsals of Swan Lake at the ICC Sydney theatre
Photograph: Don Arnold/WireImage
Skye high
‘A break in the weather looking down the Trotternish Ridge, Isle of Skye, from the Quiraing.’
Photograph: Mike Williamson
Market Closes for October 27, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
🐂 On this day in 1923, the greatest bull market of the 20th century began after the Dow Jones Industrial Average closed the day at 85.76. It lasted nearly 6 years and lifted stocks by 344.5% until the Dow hit 381.17. Then, beginning in 1929, the Great Crash pulled stocks down by 89%, erasing nearly all those gains.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the fifth day, climbing 0.4%, or 72.35 to 19,352.11 in Toronto.
The index advanced to the highest closing level since Oct. 4.
Today, information technology stocks led the market higher, as 6 of 11 sectors gained; 106 of 236 shares rose, while 126 fell.
Shopify Inc. contributed the most to the index gain and had the largest move, increasing 17.1%.
Insights
* This year, the index fell 8.8%, heading for the worst year since 2018
* This month, the index rose 4.9%, heading for the biggest advance since November 2020
* So far this week, the index rose 2.6%
* The index declined 7.6% in the past 52 weeks. The MSCI AC Americas Index lost 18% in the same period
* The S&P/TSX Composite is 12.9% below its 52-week high on April 5, 2022 and 8.3% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 4.2% in the past 5 days and rose 5.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.1 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$3.08t
* 30-day price volatility fell to 22.80% compared with 22.89% in the previous session and the average of 21.55% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | 54.1296| 5.3| 6/8
Financials | 29.2102| 0.5| 22/7
Energy | 5.0075| 0.1| 15/21
Communication Services | 4.4565| 0.5| 4/3
Utilities | 4.0357| 0.5| 13/3
Consumer Staples | 0.6347| 0.1| 4/6
Industrials | -0.1665| 0.0| 19/8
Consumer Discretionary | -0.3938| -0.1| 5/9
Health Care | -3.0238| -3.6| 0/7
Real Estate | -5.5575| -1.1| 9/13
Materials | -15.9689| -0.7| 9/41
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 55.2100| 17.1| 87.9| -73.5
TC Energy | 8.6380| 2.1| -33.9| 2.4
Enbridge | 7.2480| 1.0| -49.3| 7.2
Teck Resources | -7.9590| -5.1| 107.8| 27.4
Suncor Energy | -8.1710| -1.9| -18.4| 43.4
Canadian National | -8.3550| -1.2| 19.3| 3.0
US
By Isabelle Lee and Vildana Hajric
(Bloomberg) — Wall Street contended with another volatile session as investors mulled the Federal Reserve’s path of interest-rate hikes while assessing mixed economic data and a slew of earnings reports.
Amazon.com Inc. plunged after hours as its sales forecast trailed estimates.
Shares of Apple Inc. also fell post market despite largely beating expectations.
The S&P 500 closed lower, after swinging between gains and losses for most of the session
The Nasdaq 100 fell more than 1%. Lackluster earnings from several mega-cap firms this week dampened sentiment and underscored the impact of the Fed’s tightening regime.
Meta Platforms Inc. suffered its worst one-day drop since February on Thursday, triggered by burgeoning metaverse costs and a decline in revenue.
Markets were also mixed on US gross domestic product data.
The report showed the US economy rebounded after two quarterly contractions, which briefly assuaged concerns of an imminent recession.
But it also highlighted that consumer spending remains under pressure because of inflation.
Treasuries gained, with the 10-year yield pushing below 4% on speculation of a Fed pivot.
The dollar snapped a two-day drop.
The stock and currency markets digested the GDP data differently because it’s difficult to tell what the Fed is planning to do next, said Fiona Cincotta, senior financial markets analyst at City Index.
“The US dollar is reading into this that perhaps it’s going to keep the Fed on that hawkish path for longer,” Cincotta said by phone. “Whereas the stock market seems to be reading it completely differently, almost as if it’s expecting the Fed to be sort of moving toward that less hawkish stuff.”

Economists still expect the Fed to hike by three-quarters of a percentage point for the fourth time in a row when it meets next week.
But with recent data highlighting the effects of the Fed’s sharp rate hikes on the economy, investors expect the central bank to slow its pace of tightening after November’s meeting.
“It’s not about a pivot and cutting interest rates,” Alec Young, chief investment strategist at MAPsignals, said in an interview. “It’s just about the Fed becoming more data-dependent and acknowledging there’s already a lot of tightening in the pipeline from all the rate hikes they’ve put through so far.”
Earlier, the European Central Bank lifted its policy rate by 75 basis points — in line with expectations — and signaled more tightening ahead.
But ECB officials weren’t unanimous about the size of the interest-rate hike and sought to avoid giving a specific signal on their next move in December, according to people familiar with the matter.
Key events this week:
* Bank of Japan policy decision, Friday
* US personal income, personal spending, pending home sales, University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.6% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.9%
* The Dow Jones Industrial Average rose 0.6%
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 1.1% to $0.9971
* The British pound fell 0.4% to $1.1575
* The Japanese yen rose 0.1% to 146.20 per dollar
Cryptocurrencies
* Bitcoin fell 0.6% to $20,630.98
* Ether rose 0.6% to $1,562.65
Bonds
* The yield on 10-year Treasuries declined seven basis points to 3.93%
* Germany’s 10-year yield declined 15 basis points to 1.96%
* Britain’s 10-year yield declined 17 basis points to 3.40%
Commodities
* West Texas Intermediate crude rose 1.3% to $89.01 a barrel
* Gold futures fell 0.2% to $1,665.50 an ounce
–With assistance from Elaine Chen, Emily Graffeo and Peyton Forte.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Never give in – never, never, never, never, in nothing great or small, large or petty,
never give in except to convictions of honour and good sense.  Never yield to force;
never yield to the apparently overwhelming might of the enemy. -Winston Churchill, 1874-1965.

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