November 29,

Dear Friends,

Tangents:
November 29, 1989: Czechoslovakia ends Communist rule.

1990: The U.N. Security Council voted 12-2 to authorize military action if Iraq did not withdraw its troops from Kuwait and release all foreign hostages by Jan. 15, 1991.  Go to article »
2021: Jack Dorsey announces he is stepping down as CEO of Twitter, to be replaced by Parag Agrawal (who was later fired by Elon Musk).  In March 2006, Dorsey sent the first Tweet that read, “just settin up my twttr.”

C.S. Lewis, b. 1878.

Merriam-Webster announces word of the year:  The online dictionary chose this word after searches for the term increased a staggering 1,740% in recent months.

Nicole Kidman stuns Broadway crowd with generous bid during auction.  Broadway theater goers were astonished by actress Nicole Kidman’s large auction bid for Hugh Jackman’s hat from “The Music Man.”

You can improve your memory by eating these foods, study says: Antioxidants found in certain vegetables, fruits, tea and wine (yes, wine!) may slow your rate of memory loss, a new study finds.

Tomb aligned with winter solstice sunrise excavated in Egypt: Archaeologists have unearthed an unfinished, 3,800-year-old ancient Egyptian tomb with a chapel perfectly aligned with the sunrise on the winter solstice. Archaeologists say that this might be the oldest known tomb in Egypt that is aligned with the winter solstice.  The tomb, near modern-day Aswan, was built during Egypt’s 12th dynasty, part of a time period sometimes called the “Middle Kingdom” in which Egypt thrived.  Full Story: Live Science (11/29)

Meet a medieval woman named ‘Tora’ who lived 800 years ago in Norway: A life-size 3D model of a grinning old woman holding a walking stick looks like a contemporary elder on a stroll through her neighborhood.
In reality, this woman lived nearly 800 years ago in Norway, and the model is a sculpted life-sized reconstruction based on her skeleton.  Full Story: Live Science (11/29)
PHOTOS OF THE DAY

Hawaii, US
Lava flows from Mokuaweoweo Crater down the north-east rift of Mauna Loa, the world’s largest active volcano, which has erupted for the first time since 1984
Photograph: Bruce Omori/Paradise Helicopters/EPA

Srinagar, Kashmir
A man steers a boat across Dal Lake in Indian-administered Kashmir amid a thick blanket of fog
Photograph: Tauseef Mustafa/AFP/Getty Images

London, UK
A Christmas tree, an annual gift of gratitude from Norway for Britain’s help in the second world war, is erected in Trafalgar Square
Photograph: Guy Bell/Rex/Shutterstock
Market Closes for November 29^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1912, John Marks Templeton was born in Winchester, Tenn., to Vella Handly and Harvey Maxwell Templeton, a lawyer and cotton-gin operator. He went on to found the Templeton Growth Fund and invent the discipline of global investing.
Canada
Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.3% at 20,277.41 in Toronto.
The move follows the previous session’s decrease of 0.8%.
Cenovus Energy Inc. contributed the most to the index gain, increasing 4.7%.
Teck Resources Ltd. had the largest increase, rising 7.8%.
Today, 165 of 236 shares rose, while 66 fell; 5 of 11 sectors were higher, led by materials stocks.
Insights
* This year, the index fell 4.5%, heading for the worst year since 2018
* This month, the index rose 4.4%
* The index declined 4.1% in the past 52 weeks. The MSCI AC Americas Index lost 16% in the same period
* The S&P/TSX Composite is 8.7% below its 52-week high on April 5, 2022 and 13.5% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 0.3% in the past 5 days and rose 4.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of
13.5 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$3.22t
* 30-day price volatility fell to 14.87% compared with 15.14% in the previous session and the average of 19.50% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 69.2750| 3.0| 48/2
Energy | 7.6509| 0.2| 31/6
Real Estate | 4.6971| 0.9| 21/1
Financials | 2.6376| 0.0| 19/9
Health Care | 1.3566| 1.7| 6/1
Consumer Discretionary | -0.2619| 0.0| 8/6
Communication Services | -2.5465| -0.3| 3/4
Utilities | -5.7907| -0.7| 5/11
Information Technology | -6.0942| -0.5| 8/6
Industrials | -6.5406| -0.2| 12/13
Consumer Staples | -7.4455| -0.9| 4/7
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Cenovus Energy | 11.9700| 4.7| 5.1| 79.2
Teck Resources | 11.0600| 7.8| 26.7| 33.0
Nutrien | 9.6100| 2.4| -21.2| 16.6
Suncor Energy | -7.3170| -1.7| 29.0| 43.5
Bank of Nova Scotia| -14.7000| -2.5| 80.7| -22.2
TC Energy | -28.7000| -6.3| 184.9| 4.1
US
By Rita Nazareth
(Bloomberg) — Stocks pared most of their losses, with traders unwilling to make big bets ahead of Jerome Powell’s speech Wednesday.
Gains in energy and financial firms tempered a slide in big tech.
Amazon.com Inc., which is selling investment-grade debt, saw its shares slump.
Trading volume was below the average of the past month.
A gauge measuring the global yield curve inverted for the first time in at least two decades – signaling a recession.
Powell is expected to cement expectations the Fed will slow its pace of hikes next month — while reminding Americans that its fight against inflation will run into 2023.
Some policymakers stressed this week they will raise borrowing costs further, with one key official saying that he sees rates heading somewhat higher than he had forecast just a couple of months ago.
“The Fed has hiked enough — and quickly enough — to make recession a base-case scenario in our book,” said Lauren Goodwin, economist and portfolio strategist at New York Life Investments. “Volatility and risk premia are likely to remain elevated as long as the Fed is fighting inflation in a growth slowdown.”
Goodwin also noted that equity earnings don’t usually begin to drop until an economic recession starts.
That means equity market fundamentals “may still deteriorate,” she added.
Corporate America’s bloated margins are likely to start coming down in 2023 as certain expenses start to normalize, according to Goldman Sachs Group Inc.’s David Kostin.
The firm’s strategists, along those at other banks including Morgan Stanley have been saying they see a slowdown in earnings growth next year.
Alicia Levine at BNY Mellon Wealth Management says that even in a shallow recession, S&P 500 companies can still see earnings declines of 20%.
“There is still risk here in the end,” Levine told Bloomberg Television. “This is the transition year. Next year is, ‘OK, now your rates are higher, what does it mean for the real economy?’ And that I think we really have not priced in.”
The Fed’s actions, stubborn inflation, the war in Ukraine and the outlook for corporate earnings “make for a tough tale to tell for the stock market over the next 12 months,” said Kevin Philip, partner at Bel Air Investment Advisors.
Last week, institutional clients and hedge funds poured money into stocks, while retail clients sold off for a fifth straight week — with selling likely to continue through next month, according to Bank of America Corp. strategists led by
Jill Carey Hall.
Recent flow momentum along with lack of “capitulation-like outflows” signal that investors believe the market has already bottomed.
But BofA strategists say they see further downside risk ahead of a first half of 2023 bottom.
Several widely followed DeMark indicators, which try to anticipate momentum and long-term trend reversals, suggest the Cboe Volatility Index may be poised for a reversal.
History shows that the appearance of a “countdown 13” pattern has led to turns in the past, with a cluster of such signals occurring at the more-recent lows.
The so-called fear gauge last week fell to its lowest level since August as the S&P 500 advanced.
Meantime, former greenback bulls including JPMorgan Asset Management and Morgan Stanley say the era of dollar strength is ending as cooling prices spur markets to trim bets on further Fed tightening.
That may spell buying opportunities for the currencies of Europe, Japan and emerging markets.
Key events this week:
* EIA crude oil inventory report, Wednesday
* China PMI, Wednesday
* Fed Chair Jerome Powell speech, Wednesday
* Fed releases its Beige Book, Wednesday
* US wholesale inventories, GDP, Wednesday
* S&P Global PMIs, Thursday
* US construction spending, consumer income, initial jobless claims, ISM Manufacturing, Thursday
* BOJ’s Haruhiko Kuroda speaks, Thursday
* US unemployment, nonfarm payrolls, Friday
* ECB’s Christine Lagarde speaks, Friday
Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.2% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.7%
* The Dow Jones Industrial Average was little changed
* The MSCI World index was unchanged
Currencies
* The Bloomberg Dollar Spot Index fell 0.1%
* The euro fell 0.1% to $1.0326
* The British pound fell 0.1% to $1.1947
* The Japanese yen rose 0.1% to 138.79 per dollar
Cryptocurrencies
* Bitcoin rose 1.8% to $16,492.11
* Ether rose 4.3% to $1,222.22
Bonds
* The yield on 10-year Treasuries advanced seven basis points to 3.76%
* Germany’s 10-year yield declined seven basis points to 1.92%
* Britain’s 10-year yield declined three basis points to 3.10%
Commodities
* West Texas Intermediate crude rose 1.7% to $78.54 a barrel
* Gold futures rose 0.4% to $1,762.60 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Peyton Forte, Vildana Hajric and Garfield Reynolds.
Have a lovely evening everyone.

Be magnificent!
As ever,

Carolann

I look at a stonecutter hammering away at his rock perhaps a hundred times without as much as a crack showing in it.
Yet at the hundred and first blow it will split in two, and I know it was not that blow that did it,
but all that had gone before. -Jacob Riis, 1849-1914.

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