November 14, 2022 Newsletter

Dear Friends,

Tangents: Happy Monday.

November 14, 1666: First blood transfusion.
King Charles, current British Monarch, b. 1948.
Claude Monet, artist, b. 1840
On Nov. 14, 1972, the Dow Jones Industrial Average closed above 1,000 for the first time, ending the day at 1,003.16.  Go to article »

Banksy unveils mural in Ukrainian town liberated from Russians.  People speculated that the mysterious street artist was in Ukraine. His mural in a liberated town confirms it.

Dolly Parton receives $100 million award from Jeff Bezos.  The country music legend received a massive grant from Bezos and his long time partner.

Long-lost wreckage from the Challenger spacecraft discovered near Bermuda Triangle: NASA has confirmed that debris found on the ocean floor off Florida’s Atlantic coast comes from the fallen space shuttle Challenger, which exploded on Jan. 28, 1986, killing all seven astronauts on board.  Divers discovered the 20-foot (6 meters) section of Challenger’s hull while searching for downed World War II-era aircraft as part of a History Channel documentary series, “The Bermuda Triangle: Into Cursed Waters.” Northwest of the Triangle, the filmmakers found a patch of seafloor containing modern-looking debris, partially covered in sand. Full Story: Live Science (11/11)

One of the oldest written sentences on record blasts hair and beard lice:  One of the oldest known sentences ever written was a plea against contracting lice, a new study has found.  Archaeologists made the hair-raising discovery several years after unearthing a hair comb, which they found in 2016 at an Israeli archaeological site called Tel Lachish, located south of Tel Aviv. The site was once a city inhabited by the Canaanites, who lived in what is now Syria between 3500 B.C. and 1150 B.C., during the Bronze Age. One of the oldest known sentences ever written was a plea against contracting lice, a new study has found. Full Story: Live Science (11/14)

The richest art auction season in history continues this week.
PHOTOS OF THE DAY

Gumushane, Turkey
An aerial view of forested areas with trees with yellow, brown and green-coloured leaves during the autumn season
Photograph: Hakan Burak Altunoz/Anadolu Agency/Getty Images

Prague, Czech Republic
Girls lead a gaggle of geese, backdropped by a banner against the war in Ukraine, during a St Martin’s Day procession next to the Charles Bridge in Prague. St Martin’s day marks the end of the harvest season and the start of winter.
Photograph: Vadim Ghirdă/AP

Piedmont, Italy
Flag-wavers in medieval period costume perform at a parade at the castle of Grinzane Cavour, northern Italy, during the 23rd Alba White Truffle World auction
Photograph: Vincenzo Pinto/AFP/Getty Images
Market Closes for November 14^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
☕ Coffee was one of the hottest commodities earlier this year, but it has now gone cold, with prices declining more than 20% in the past month.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.9% at 19,921.81 in Toronto.
The move follows the previous session’s increase of 0.6%.
Brookfield Asset Management Inc. contributed the most to the index decline, decreasing 2.2%.
Algonquin Power & Utilities Corp. had the largest drop, falling 14.0%.
Today, 181 of 236 shares fell, while 50 rose; 10 of 11 sectors were lower, led by energy stocks.
Insights
* This year, the index fell 6.1%, heading for the worst year since 2018
* The index declined 8.5% in the past 52 weeks. The MSCI AC Americas Index lost 17% in the same period
* The S&P/TSX Composite is 10.3% below its 52-week high on April 5, 2022 and 11.5% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 1.9% in the past 5 days and rose 8.7% 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 12.5 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$3.2t
* 30-day price volatility fell to 21.69% compared with 22.32% in the previous session and the average of 22.45% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -68.4265| -1.8| 5/33
Financials | -39.0364| -0.6| 3/26
Information Technology | -23.1970| -2.0| 2/11
Utilities | -17.5100| -2.0| 2/14
Industrials | -10.9578| -0.4| 6/20
Real Estate | -10.5259| -2.1| 3/19
Consumer Discretionary | -10.0274| -1.4| 2/12
Consumer Staples | -6.4165| -0.8| 2/9
Materials | -5.9536| -0.3| 18/31
Health Care | -2.0211| -2.3| 1/5
Communication Services | 4.3857| 0.5| 6/1
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Brookfield Asset Management | -13.4700| -2.2| 63.8| -20.6
Shopify | -9.9650| -2.3| -6.6| -70.6
Canadian Natural Resources | -8.3550| -1.3| 4.9| 54.9
Ritchie Bros | 1.4270| 2.6| 26.2| -3.7
Rogers Communications| 2.2440| 1.6| 87.3| -3.0
Nutrien | 6.7160| 1.8| -25.3| 8.9
US
By Isabelle Lee
(Bloomberg) — US stocks ended a choppy session lower after two Federal Reserve officials highlighted the central bank’s resolve to be persistent until it brings inflation down meaningfully.
The S&P 500 was down 0.9%, snapping a two-day rally.
The tech-heavy Nasdaq 100 also fell. Treasury yields climbed, with the 10-year rate around 3.87%.
Fed Vice Chair Lael Brainard briefly buoyed sentiment after she said, during a Bloomberg event in Washington, that it would be appropriate “soon” for the central bank to slow its pace of interest-rate hikes.
However, she also emphasized that the Fed had “additional work to do” to bring inflation down, which kept some investors on the edge.
Brainard did not explicitly commit to a step-down to a half-point hike in December, nor did she elaborate what she meant by “soon.”
“I think Brainard’s comments underscore the uncertainty of the path forward and the data dependence of the Committee,” said Jake Schurmeier, portfolio manager at Harbor Capital Advisors.
“They don’t want a slower pace of rate hikes to be confused for less restrictive policy.”
Earlier, Fed Governor Christopher Waller’s hawkish comments wobbled markets as investors mulled whether the post-CPI euphoria was overblown.
Last week’s CPI-fueled rally, which propelled the S&P 500 to its best week since June, may be unsustainable, according to Christopher Smart, chief global strategist at Barings and head of the Barings Investment Institute.
“The bad news is that in an economic moment that remains so uncertain, the data is more likely than not to be messy and contradictory in the months ahead.
The pace of decline will be uneven,” he said. “Moreover, there’s still a long way to go to get to the Fed’s target of 2% average inflation.
That’s why Fed governors have been lining up to talk down any market euphoria that a real pivot is in sight.”
The cumulative impact of prior interest-rate hikes will also continue to weigh on economic growth and corporate profits, according to Mark Haefele, chief investment officer at UBS Global Wealth Management, who recommends that investors take a defensive position.
Meanwhile, Chinese stocks listed in the US extended their rally to a third day, after Joe Biden and Xi Jinping called for reduced tensions between the world’s two biggest economies during a meeting in Bali, Indonesia. 
Key events this week:
* Fed’s John Williams moderates panel, Monday
* China retail sales, industrial production, surveyed jobless, Tuesday
* Former US President Donald Trump plans to make an announcement, Tuesday
* US empire manufacturing, PPI, Tuesday
* US business inventories, cross-border investment, retail sales, industrial production, Wednesday
* Fed’s John Williams, Lael Brainard and SEC Chair Gary Gensler speak, Wednesday
* ECB President Christine Lagarde speaks, Wednesday
* Eurozone CPI, Thursday
* US housing starts, initial jobless claims, Thursday
* Fed’s Neel Kashkari, Loretta Mester speak, Thursday
* US Conference Board leading index, existing home sales, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.9% as of 4 p.m. New York time
* The Nasdaq 100 fell 1%
* The Dow Jones Industrial Average fell 0.6%
* The MSCI World index rose 1.8%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.1% to $1.0333
* The British pound fell 0.6% to $1.1758
* The Japanese yen fell 0.7% to 139.74 per dollar
Cryptocurrencies
* Bitcoin fell 0.7% to $16,246.64
* Ether fell 0.2% to $1,213.63
Bonds
* The yield on 10-year Treasuries advanced six basis points to 3.87%
* Germany’s 10-year yield declined one basis point to 2.15%
* Britain’s 10-year yield advanced one basis point to 3.37%
Commodities
* West Texas Intermediate crude fell 4.1% to $85.30 a barrel
* Gold futures rose 0.4% to $1,776.30 an ounce
This story was produced with the assistance of Bloomberg Automation.

–With assistance from Sujata Rao, Cecile Gutscher, Brett Miller and Vildana Hajric.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

One dog barks because it sees something; a hundred dogs bark because they heard the first dog bark. –Chinese Proverb.

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