November 11, 2022 Newsletter

Dear Friends,

Tangents:  Armistice Day.
On Nov. 11, 1918, fighting in World War I came to an end with the signing of an armistice between the Allies and Germany.  Go to article »

If people bring so much courage to the world the world has to kill them to break them, so of course it kills them.
The world breaks every one and afterward many are strong at the broken places. But those that will not break it kills.
It kills the very good and the very gentle and the very brave impartially. If you are none of these you can be sure
it will kill you too but there will be no special hurry.” ― Ernest Hemingway, A Farewell to Arms.

November 11, 1909: Construction of US Naby base begins at Pearl Harbour, Hawaii.
PHOTOS OF THE DAY

Staffordshire, UK
Lennon Sefton pays his respects after an Armistice Day service at the Armed Forces Memorial in the National Memorial Arboretum, Alrewas
Photograph: Jacob King/PA

London, UK
Chelsea pensioners and military veterans visit the Field of Remembrance at Westminster Abbey
Photograph: Henry Nicholls/Reuters

Sheffield, UK
Rev Canon Geoffrey Harbord Precentor takes a photograph of Peace Doves, a large installation created by the sculptor Peter Walker and composer David Harper on display in the cathedral
Photograph: Danny Lawson/PA
Market Closes for November 11^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1929, for much of the abbreviated three-hour trading day, investors breathed a sigh of relief as the market’s recent panic seemed to lift. Up until the last hour, volume was light and stocks held steady. Then a tidal wave of selling crashed onto the floor of the New York Stock Exchange, driving the Dow Jones Industrial Average to one of its worst days ever, losing 6.8%.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.6%, or 121.15 to 20,111.51 in Toronto.
The index advanced to the highest closing level since Aug. 25.
Today, energy stocks led the market higher, as 8 of 11 sectors gained; 170 of 236 shares rose, while 63 fell.
Shopify Inc. contributed the most to the index gain, increasing 7.6%. Converge Technology Solutions Corp. had the largest increase, rising 13.9%.
Insights
* This year, the index fell 5.2%, heading for the worst year since 2018
* So far this week, the index rose 3.4%, heading for the biggest advance since the week ended July 29
* The index declined 6.8% in the past 52 weeks. The MSCI AC Americas Index lost 15% in the same period
* The S&P/TSX Composite is 9.5% below its 52-week high on April 5, 2022 and 12.5% above its low on Oct. 13, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.3 on a trailing basis and 12.6 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$3.18t
* 30-day price volatility little changed to 22.32% compared with 22.32% in the previous session and the average of 22.47% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | 72.7100| 1.9| 37/1
Financials | 41.3962| 0.7| 23/6
Information Technology | 37.2400| 3.4| 11/3
Materials | 4.2258| 0.2| 33/16
Health Care | 3.7545| 4.4| 7/0
Consumer Discretionary | 3.3677| 0.5| 9/5
Communication Services | 1.8133| 0.2| 6/0
Real Estate | 0.0000| 3.8| 17/5
Consumer Staples | -5.3864| -0.7| 4/7
Utilities | -16.0847| -1.8| 6/10
Industrials | -29.3173| -1.1| 17/10
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | 30.1400| 7.6| 32.7| -69.9
Brookfield Asset Management | 24.5800| 4.2| 55.3| -18.8
Enbridge | 13.2400| 1.7| -33.4| 12.3
Algonquin Power | -13.6800| -19.3| 630.3| -32.5
Nutrien | -13.8800| -3.6| -8.6| 7.0
Canadian Pacific | -14.0200| -2.1| 37.5| 11.9
US
By Stephen Kirkland and Isabelle Lee
(Bloomberg) — US stocks gained surer footing after a choppy morning session, extending a rally sparked by a slowdown in inflation.
The dollar fell, declining for a fourth week.
The S&P 500 closed near session highs in the biggest weekly gain since June.
The tech-heavy Nasdaq 100 climbed more than 1.5%, notching its best week in two years.
Cash Treasury trading is closed for Veterans Day.
Elsewhere, China easing some Covid restrictions helped underpin risk sentiment Friday, with US-listed Chinese stocks rising along with commodities from oil to soybeans to precious metals.
Meanwhile, cryptocurrencies resumed a selloff amid FTX’s deepening woes with Sam Bankman-Fried’s crypto empire filing for bankruptcy.
While that news weighed on sentiment in early trading, investors downplayed contagion risks.
“From my vantage point, the real-world impact seems somewhat limited,” said Dan Suzuki, deputy chief investment officer at Richard Bernstein Advisors LLC. “It’s hard to imagine how it has a big impact on the overall economy. Crypto makes up a relatively small portion of financial markets, financial transaction, jobs, consumer spending, business spending, etc.”
US stocks soared the most since 2020 on Thursday after a better-than-forecast cooling in US inflation improved prospects of a dovish tilt by the Federal Reserve.
On Friday, the University of Michigan’s preliminary November survey showed US consumer inflation expectations increased in the short and long run while sentiment retreated.
Boston Fed President Susan Collins said that the risks of going too far have risen after a string of jumbo-sized rate hikes, but noted a smaller, more “deliberate” increase should not be confused with backing down from curbing price pressures.
“The moderation in the pace of inflation is a welcome development, while it is still far too early to declare the inflation threat over,” Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote. “We still think the Fed is likely to raise at least another 100 basis points in total before it pauses the rate hiking cycle.”
While markets reacted positively to the inflation print Thursday, Credit Suisse strategists led by Jonathan Golub said the rally was “out of sync with the size of the surprise.”
This, they note, follows a pattern of outsize responses to CPI prints, which has averaged 2.8% on the day in the past seven releases.
The dollar slumped more than 1% on Friday in the biggest weekly drop since the pandemic-fueled volatility in March 2020.
Bitcoin dropped as much as 8% to $16,376 and Ether fell as much as 9.2%.
FTX.com’s bankruptcy filing capped a swift reversal of fortune for the crypto exchange led by Bankman-Fried.
Summers Says FTX Meltdown Has ‘Whiffs’ of Enron-Like Scandal.
Pinduoduo Inc. and JD.com Inc. jumped in US trading amid growing optimism Beijing is on its way to ending the crippling Covid Zero policy.
China reduced the amount of time travelers and close contacts must spend in quarantine. 
Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.9% as of 4 p.m. New York time
* The Nasdaq 100 rose 1.8%
* The Dow Jones Industrial Average rose 0.1%
* The MSCI World index rose 1.9%
Currencies
* The Bloomberg Dollar Spot Index fell 1.3%
* The euro rose 1.4% to $1.0357
* The British pound rose 1.1% to $1.1845
* The Japanese yen rose 1.6% to 138.68 per dollar
Cryptocurrencies
* Bitcoin fell 6.7% to $16,606.42
* Ether fell 5.8% to $1,244.44
Bonds
* The yield on 10-year Treasuries was little changed at 3.81%
* Germany’s 10-year yield advanced 15 basis points to 2.16%
* Britain’s 10-year yield advanced seven basis points to 3.36%
Commodities
* West Texas Intermediate crude rose 2.9% to $88.94 a barrel
* Gold futures rose 1% to $1,770.50 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Georgina Mckay, Masaki Kondo, Tassia Sipahutar, Farah Elbahrawy, Srinivasan Sivabalan and Vildana Hajric.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

It could be worse,’ Passini said respectfully. “There is nothing worse than war.”
Defeat is worse.”
I do not believe it,” Passini said still respectfully. “What is defeat? You go home.”  ― Ernest Hemingway, 1899-1961, A Farewell to Arms.

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