January 3rd, 2023 Newsletter

Dear Friends,

Tangents:
Happy New Year!
I wish you and your families a wonderful year ahead filled with love, laughter and happiness.  And hopefully…. there will finally be peace in the world.

The most anticipated Broadway shows opening in 2023.  Broadway fans, here are some of the highly anticipated musicals and plays premiering this year. (Spoiler alert: “Back to the Future: The Musical” may unleash a wave ’80s nostalgia.)

Egypt recovers heavy ‘Green Sarcophagus’ from the US.  A sarcophagus was smuggled from Egypt a few years ago, officials said. After a lengthy investigation, US authorities have returned the precious piece.

Celine Dion’s exclusion from ‘Greatest Singers List’ sparks outrage.  Near, far, wherever you are, there’s anger over Celine Dion not being included on Rolling Stone’s list of the 200 greatest singers of all time.

Georgia realtor receives invitation to play in the Masters by mistake.  This man received a package holding the most prestigious letter in golf. Unfortunately, it was sent to the wrong person.

PHOTOS OF THE DAY:

Glenshee, Scotland
A skier in Meall Odhar and Glas Maol in the southern Cairngorms
Photograph: Murdo MacLeod/The Guardian

Whitley Bay, UK
Sunrise at St Mary’s Lighthouse on the north-east coast of England
Photograph: Owen Humphreys/PA

Pasadena, US
The Taipei first girls high school marching band perform at the 134th rose parade in California
Photograph: Michael Owen Baker/AP
Market Closes for January 3^rd, 2023

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On Jan 3, 1977, Apple Computer Corp. is incorporated by Steve Jobs and Steve Wozniak. Now known as Apple, Inc., it is the only company that currently holds a $2 trillion market value.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.3% at 19,443.77 in Toronto.
The move follows the previous session’s decrease of 0.5%.
Shopify Inc. contributed the most to the index gain, increasing 3.8%. Equinox Gold Corp. had the largest increase, rising 10.2%.
Today, 168 of 236 shares rose, while 65 fell; 10 of 11 sectors were higher, led by materials stocks.
Insights
* The index declined 8.4% in the past 52 weeks. The MSCI AC Americas Index lost 21% in the same period
* The S&P/TSX Composite is 12.5% below its 52-week high on April 5, 2022 and 8.8% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 0.5% in the past 5 days and fell 5.1% 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 12.3 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$3.13t
* 30-day price volatility fell to 12.90% compared with 12.96% in the previous session and the average of 14.15% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 50.5317| 2.2| 43/7
Financials | 28.7646| 0.5| 23/5
Industrials | 27.6365| 1.1| 21/4
Information Technology| 22.7934| 2.1| 13/1
Utilities | 16.2650| 1.9| 16/0
Consumer Discretionary| 9.3468| 1.3| 9/6
Consumer Staples | 7.7223| 0.9| 11/0
Communication Services| 7.1780| 0.8| 4/2
Real Estate | 5.0136| 1.0| 21/2
Health Care | 1.1045| 1.6| 4/2
Energy | -117.5165| -3.4| 3/36
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | 14.6200| 3.8| -5.1| 3.8
Barrick Gold | 14.1500| 5.0| -45.1| 5.0
Canadian Pacific | 9.0540| 1.4| -28.6| 1.4
Cenovus Energy | -12.6000| -5.0| 4.2| -5.0
Suncor Energy | -15.5500| -3.9| 15.4| -3.9
Canadian Natural Resources | -29.8100| -5.2| 0.0| -5.2
US
By Vildana Hajric and Isabelle Lee
(Bloomberg) — US stocks declined on Tuesday as Tesla Inc. and Apple Inc. highlighted slowing demand, stoking concern about what lies ahead for growth stocks and the US economy as the Federal Reserve gears up to keep raising interest rates.
Treasuries advanced and the dollar climbed the most in nearly three weeks.
The S&P 500 and the Nasdaq 100 ended the first trading session of 2023 in the red, but came off session lows as the closing bell rang.
Apple’s decline, as concerns about iPhone supply mount, pushed the firm’s market value below $2 trillion.
The firm has told suppliers to make fewer components for some of its products because of withering demand.
Tesla fell after fourth-quarter deliveries missed estimates, despite the firm offering incentives in key markets.
Treasury yields declined across the curve, with the 10-year rate around 3.78% after touching 3.72% earlier.
Oil fell the most since November as mild winter temperatures in several parts of the world assuaged fears of an energy crisis.
Investors, still on the edge after their wagers about the Fed’s path missed the mark in 2022, expect a volatile year of trading as uncertainty about the US economy persists.
Fed policy will dictate how stocks and bonds perform this year, with some traders already seeking opportunities resulting from risk assets getting sold off.
Recession concerns lingered, with former New York Fed President William Dudley saying that an imminent slowdown won’t be severe while investors continue to mull the impact the central bank’s tightening will have on the economy. Investors will be paying attention to the jobs report this week, as softening in the labor market remains the Fed’s focus.
“What worries the markets going into the year is how deep the recession is likely to be,” Sam Stovall, chief investment strategist at CFRA, said on Bloomberg Television. “I think very few people believe we will miss a recession altogether, especially when we have such an inverted yield curve and now are expected to fall into an earnings recession.”
Stovall says that after a down year, investors would be better off gravitating toward the worst performing sectors because their stocks have likely been battered and many may be priced to go out of business.
“But if they don’t, they are the ones that have the greatest upside potential,” he said. “When the market mood does swing, that is where the opportunity will be in terms of the vacuum of valuations.”
Meanwhile, stocks in China and Europe closed Tuesday’s session higher as signs that Covid infections may have peaked in some of China’s biggest cities buoyed sentiment.
The Stoxx Europe 600 Index and the Hang Seng Index notched gains of more than 1% each.
However, China’s economy may not get the “outsized boost” people are expecting, Matt Maley, chief market strategist at Miller Tabak + Co., wrote in a note.
Chris Senyek of Wolfe Research also isn’t bullish about China’s reopening.
“In our view, there’s still a massive amount of uncertainty there, and whenever growth does begin to re-accelerate, inflation headwinds are more likely than not to offset global growth tailwinds,” he said in a note. 
The main markets moves are:
Stocks
* The S&P 500 fell 0.4% 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 rose 0.2%
Currencies
* The Bloomberg Dollar Spot Index rose 0.7%
* The euro fell 1.1% to $1.0552
* The British pound fell 0.6% to $1.1973
* The Japanese yen fell 0.1% to 130.98 per dollar
Cryptocurrencies
* Bitcoin fell 0.6% to $16,654.68
* Ether fell 0.7% to $1,210.4
Bonds
* The yield on 10-year Treasuries declined nine basis points to 3.78%
* Germany’s 10-year yield declined six basis points to 2.39%
* Britain’s 10-year yield declined two basis points to 3.65%
Commodities
* West Texas Intermediate crude fell 3.8% to $77.20 a barrel
* Gold futures rose 1% to $1,843.70 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Namitha Jagadeesh.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

We live in the present, we dream of the future, but we learn eternal truths from the past. -Chiang Kai-shek, 1887-1975.

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