November 25, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday.

On Nov. 25, 1986, the Iran-Contra affair erupted as President Reagan and Attorney General Edwin Meese revealed that profits from secret arms sales to Iran had been diverted to Nicaraguan rebels.  Go to article »

PHOTOS OF THE DAY

Selfoss, Iceland
People watch the northern lights from a farm in Arabær near Selfoss
Photograph: Owen Humphreys/PA

Nazaré, Portugal
Surfer Justine Dupont of France rides a wave at Praia do Norte
Photograph: Octávio Passos/Getty Images

Bali, Indonesia
A monkey makes use of a statue at the Sacred Monkey Forest sanctuary
Photograph: Anadolu Agency/Getty Images
Market Closes for November 25^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1835, Andrew Carnegie, the future steel king, was born in Dunfermline, Scotland. Carnegie came to the U.S. when he was 13 and went on to forge the steel industry that made America’s railroads, bridges and automobiles possible. He also established the public library system. In 1901 Carnegie became the world’s richest man, selling out to J.P. Morgan for $400 million; but by his death in 1919 he had given away $350 million.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the fourth day, climbing 0.2%, or 39.7 to 20,383.77 in Toronto.
The index advanced to the highest closing level since June 9.
Canadian Pacific Railway Ltd. contributed the most to the index gain, increasing 1.0%.
Transcontinental Inc. had the largest increase, rising 2.9%.
Today, 134 of 236 shares rose, while 95 fell; 9 of 11 sectors were higher, led by financials stocks.
Insights
* This year, the index fell 4%, heading for the worst year since 2018
* This month, the index rose 4.9%
* So far this week, the index rose 2%
* The index declined 5.7% in the past 52 weeks. The MSCI AC Americas Index lost 16% in the same period
* The S&P/TSX Composite is 8.2% below its 52-week high on April 5, 2022 and 14% above its low on Oct. 13, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.6 on a trailing basis and 12.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.24t
* 30-day price volatility fell to 14.91% compared with 15.39% in the previous session and the average of 20.42% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 18.2938| 0.3| 22/6
Utilities | 10.7304| 1.2| 16/0
Energy | 9.8737| 0.3| 19/15
Industrials | 7.3552| 0.3| 15/11
Consumer Staples | 5.2410| 0.6| 8/3
Real Estate | 4.4235| 0.9| 20/2
Communication Services | 3.5138| 0.4| 5/2
Consumer Discretionary | 2.4273| 0.3| 9/5
Health Care | 0.2022| 0.2| 3/3
Information Technology | -3.6333| -0.3| 8/6
Materials | -18.7405| -0.8| 9/42
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Canadian Pacific | 6.8500| 1.0| -35.4| 19.3
Enbridge | 6.1340| 0.8| -26.0| 13.2
TC Energy | 5.0160| 1.1| -56.9| 12.1
Suncor Energy | -4.0860| -0.9| 67.8| 49.7
Barrick Gold | -5.3630| -2.0| -50.7| -10.6
Shopify | -6.6170| -1.6| -45.7| -71.8
US
By John Viljoen
(Bloomberg) — US stocks ended Friday little changed as investors assessed prospects for less-aggressive central bank tightening and weighed China’s latest move to stimulate its economy.
The S&P 500 wavered for most of Friday’s shortened trading session.  
But its weekly gain of 1.5% took the index to the highest level since early September.
The Nasdaq 100 also eked out a gain for the week, despite dropping on Friday.
Treasury yields and the dollar rose on Friday.
“It’s a slow day with US market holiday,” said Marija Veitmane, senior multiasset strategist at State Street Global Markets. “We’re seeing a bit of profit taking and position adjustment post a strong risk rally last week.”
Sentiment was boosted this week after the Federal Reserve’s Nov. 1-2 meeting minutes showed most officials backing slowing the pace of interest-rate hikes. Since the Fed’s latest meeting, investors have parsed a bevy of economic data that somewhat eased inflation concerns, further strengthening the case for smaller rate hikes.
All eyes will be on the jobs report next week and on Fed Chair Jerome Powell and New York Fed President John Williams, who are among central bank officials scheduled to speak.
Both officials will make clear that a tight labor market and elevated services inflation will keep the Fed hiking for longer, strategists with TD Securities wrote in a note.
“As markets welcome the prospect of smaller hikes, we expect them to counter that by emphasizing the need to reach an appropriately higher terminal rate,” they said.
Trading on Monday will also hinge on Black Friday sales and further information on the virus outbreak in China, said Julian Emanuel, Evercore ISI’s chief equity and quantitative strategist.
China’s central bank on Friday cut the amount of cash lenders must hold in reserve for the second time this year, an escalation of support for an economy racked by surging Covid cases and a continued property downturn.
US-listed Chinese stocks fell and are set for their first weekly decline this month.
“How effective that will prove to be when cities are seeing restrictions and effective lockdowns reimposed is hard to say,” said Craig Erlam, senior market analyst at Oanda. “But combined with other measures to boost the property market and ease Covid curbs, the cut could be supportive over the medium term when growth remains highly uncertain.”
European Union diplomats, meanwhile, won’t meet on Friday or over the weekend to discuss the oil-price cap as divisions within the bloc remain entrenched, according to people familiar with the matter.
Oil suffered a third weekly loss. 
Some of the main moves in markets:
Stocks
* Futures on the S&P 500 were little changed as of 1 p.m. New York time
* Futures on the Dow Jones Industrial Average rose 0.4%
* The MSCI World index rose 0.4%
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%
* The euro was little changed at $1.0404
* The British pound fell 0.2% to $1.2093
* The Japanese yen fell 0.4% to 139.13 per dollar
Cryptocurrencies
* Bitcoin fell 0.3% to $16,501.34
* Ether fell 0.4% to $1,190.77
Bonds
* The yield on 10-year Treasuries was little changed at 3.70%
* Germany’s 10-year yield advanced 12 basis points to 1.97%
* Britain’s 10-year yield advanced eight basis points to 3.12%
Commodities
* West Texas Intermediate crude fell 1.4% to $76.83 a barrel
* Gold futures rose 0.4% to $1,767.70 an ounce
This story was produced with the assistance of Bloomberg Automation.

–With assistance from Brett Miller, Natalia Kniazhevich, Isabelle Lee and Vildana Hajric.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

One of the reasons why we crave love, and seek it so desperately, is that love is the only cure for loneliness, and shame, and sorrow.
But some feelings sink so deep into the heart that only loneliness can help you find them again.  Some truths about yourself are so
painful that only shame can help you live with them.  And some things are just so sad
that only your soul can do the crying for you. –Gregory David Roberts, b. 1952.

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