December 29,2022 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.

1890: Massacre at Wounded Knee.
On Dec. 29, 1940, during World War II, Germany began dropping incendiary bombs on London.  Go to article » 

2006: The UK settles its Anglo-American loan, post-WWII loan debt.

Pablo Casals, cellist, b. 1876.
Grigori Rasputin, b. 1916.
Marianne Faithful, b. 1946.
Jude Law, b. 1972.

These three robot sisters could be the friendly face of AI: Say hello to humanoid figures Sophia, Grace and Desdemona.

Even with increasingly digital lives, there’s a lot of interest in analog. Throwback tech fascinates us. Are we secretly yearning for the good old days?

The USGS mapped the sea floor off Cape Ann, Massachusetts.

Ten bonkers Pele goals.

RIP, Pele.
Photos of the Day

London, UK
Luke Jerram’s artwork Museum of the Moon is on show in the Old Royal Naval College’s Painted Hall in Greenwich. It is a Nasa imagery-based artwork depicting a lunar scene, displayed against the hall’s baroque interior
Photograph: Rasid Necati/Anadolu Agency/Getty

Ile Saint-Paul, French Southern and Antarctic Lands
Saint Paul Island in the southern Indian Ocean is an important breeding site for seabirds. A scientific research cabin on the island is used for short scientific or ecological campaigns, but there is no permanent population. It’s a volcanic island, triangular in shape, and measures about 5km at its widest point
Photograph: Patrick Hertzog/AFP/Getty

Kyiv, Ukraine
Residents take shelter inside a metro station during an air raid alert. Russian missiles targeted cities across Ukraine in the early hours of 29 December
Photograph: Oleg Petrasyuk/EPA-EFE/Shutterstock
Market Closes for December 29^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Time is your friend; impulse is your enemy. -Jack Bogle, 1929-2019.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 1% at 19,485.89 in Toronto.
The move was the biggest since rising 1.4% on Dec. 21 and follows the previous session’s decrease of 1.1%.
Shopify Inc. contributed the most to the index gain, increasing 7.1%.
Lightspeed Commerce Inc. had the largest increase, rising 12.2%.
Today, 191 of 236 shares rose, while 43 fell; all sectors were higher, led by financials stocks.
Insights
* This year, the index fell 8.2%, poised for the worst year  since 2018
* This quarter, the index rose 5.6%
* This month, the index fell 4.7%
* So far this week, the index was little changed
* The index declined 8.7% in the past 52 weeks. The MSCI AC Americas Index lost 20% in the same period
* The S&P/TSX Composite is 12.3% below its 52-week high on April 5, 2022 and 9% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 0.9% in the past 5 days and fell 3.9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 12.9 on a trailing basis and 12.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.12t
* 30-day price volatility rose to 12.92% compared with 12.44% in the previous session and the average of 14.34% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 75.5900| 1.3| 28/1
Information Technology | 38.9145| 3.6| 13/1
Energy | 28.3930| 0.8| 35/4
Industrials | 22.8019| 0.9| 24/2
Communication Services | 9.3728| 1.0| 6/0
Utilities | 8.8953| 1.0| 16/0
Real Estate | 8.3064| 1.7| 22/1
Consumer Discretionary | 5.4595| 0.8| 10/5
Consumer Staples | 1.9635| 0.2| 5/6
Health Care | 1.9001| 2.8| 6/1
Materials | 0.1799| 0.0| 26/22
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 25.9600| 7.1| -35.5| -72.7
TD Bank | 12.2800| 1.1| 76.8| -8.7
Brookfield Corp | 11.1400| 2.7| -53.4| -29.9
Teck Resources | -1.6120| -1.0| -38.9| 42.8
Loblaw | -1.7390| -1.4| -64.2| 16.0
Dollarama | -1.7850| -1.1| -62.4| 26.3
US
By Stephen Kirkland
(Bloomberg) — US stocks rose in a broad-based rally and Treasury yields fell as data allayed fears of a supercharged jobs market that would support a more aggressive policy path.
A gauge of the dollar fell.
The S&P 500 notched their biggest one-day gain this month, albeit in thin holiday trading, to claw back all of the losses suffered in the previous two days.
The tech-heavy Nasdaq 100 outperformed, with Tesla Inc. climbing more than 8% and tech giants including Apple Inc. Amazon.com Inc. and Microsoft Corp. also among the biggest gainers.
Asian technology stocks rose earlier amid signs China is easing a regulatory crackdown.
Yields on 10-year Treasuries fell six basis points, halting a week-long, 20-basis-point climb that weighed on risk sentiment.
The dollar fell against all of its Group-of-10 peers.
Investors took solace in US jobs data that failed to reveal unwanted surprises, while underscoring the resilience of the labor market in the face of the Federal Reserve’s aggressive monetary tightening.
Initial unemployment claims rose slightly to 225,000, in line with expectations, in the week ended Dec. 24.
Continuing claims rose to 1.7 million in the week ended Dec. 17, the most since early February.
The rally is a ray of light as a dismal year for stocks and bonds draws to a close.
Global equities have lost a fifth of their value in 2022, the largest decline since 2008 on an annual basis, with tech bearing the brunt of the selloff.
An index of global bonds has slumped 16% amid sticky inflation and rising
interest rates.
Read more: From Meta to Coinbase: The Stocks That Torched
Traders in 2022
“I’m actually not so afraid of tech,” Sylvia Jablonski, CEO and CIO at Defiance ETFs, said on Bloomberg TV. “I do think you’re going to see a recovery later in the year in a lot of these stocks and I think that investors are a little bit too
afraid of them right now. They’re going to miss out on a rebound opportunity in the next let’s say 6-9 months.”
Risk sentiment also got a boost earlier after Italy said it didn’t find any new concerning Covid-19 mutations in the recent arrivals from China.
Concerns over risks from the spread of Covid sparked a selloff on Wednesday after health officials there found almost half of the passengers on two flights to Milan tested positive.
The US and Italy on Wednesday joined an increasing number of nations requiring Covid tests for travelers from China.
More market commentary:
* Tom Essaye, a former Merrill Lynch trader who founded The Sevens Report newsletter:
** “Markets enter 2023 at important transition points. One path is paved with continued disinflation, resilient earnings, moderating growth, a balanced labor market, and higher stock and bond prices. The other path is paved with sticky inflation, slowing growth, a continued tight labor market and lower stock and bond prices. Data points at the start of the year will offer important clues as to which path the markets are taking.”
* Chris Gaffney, president of world markets at TIAA Bank:
** “Going into the new year, I think investors are going to be focusing on the same things we were focusing on this year and that’s where the central banks are going to take interest rates, and are the inflation numbers going to force them to continue to be very aggressive with the rate hikes or will we see the cooling off that is expected and therefore will we see the markets rebound because the Fed takes a less aggressive stance.  Another focus going into the New Year is China, China with the reopening.”
* Craig Erlam, a senior market analyst at Oanda Europe Ltd.:
** “Investors are going into 2023 with a cautious mindset, prepared for more rate hikes, and expecting recessions around the globe. And then there’s China and its u-turn on Covid prevention. It’s been quite the shift from fighting every case to living with the virus and that creates enormous uncertainty for the start of the year.”
Elsewhere in markets, oil extended losses after US data showed a rise in crude stockpiles and concerns mounted that a rapid surge of infections in China would slow demand in one of the world’s top oil importers. 

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.7% as of 4 p.m. New York time
* The Nasdaq 100 rose 2.5%
* The Dow Jones Industrial Average rose 1.1%
* The MSCI World index rose 1.2%
Currencies
* The Bloomberg Dollar Spot Index fell 0.5%
* The euro rose 0.5% to $1.0670
* The British pound rose 0.4% to $1.2067
* The Japanese yen rose 1.1% to 133.02 per dollar
Cryptocurrencies
* Bitcoin rose 0.5% to $16,594.69
* Ether rose 0.8% to $1,195.85
Bonds
* The yield on 10-year Treasuries declined six basis points to 3.83%
* Germany’s 10-year yield declined six basis points to 2.44%
* Britain’s 10-year yield was little changed at 3.66%
Commodities
* West Texas Intermediate crude fell 0.5% to $78.60 a barrel
* Gold futures rose 0.3% to $1,821.70 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson, Peyton Forte and Vildana Hajric.
Have a lovely evening.

Be magnificent!
As ever,

Carolann
To one who has faith, no explanation is necessary.  To one without faith, no explanation is possible -Thomas Aquinas, 1225-1274.

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