November 28, 2016 Newsletter

Dear Friends,

Tangents:

BRIGHT CROSSWALKS:
Artist Christo Guelov makes drivers and walkers alike more aware of crosswalks and makes Torrelodones, Spain, more beautiful with his project, Funnycross, for which he paints pedestrian crosswalks eye-catching shades of color.   You can see Guelov’s work at the artist’s website, www.christo-guelov.net.

Numbers of the day:
2 Trillion – Estimated number of galaxies in the universe according to a new study.  That’s 10 times the number previously thought.
51.3 Percentage of worldwide internet access accomplished via cell phones or tablet computers in October, putting mobile devices in the top slot for the first time.

On Nov. 28, 1943, President Roosevelt, British Prime Minister Winston Churchill and Soviet leader Josef Stalin met in Tehran during World War II.
PHOTOS OF THE DAY

Fishermen place bamboo where they will later place tree branches and food to catch fish in a river in Dhaka, Bangladesh, on Monday.Mohammad Ponir Hossain/Reuters

Strollers make their way through the morning fog across a landscape covered with frost near Cologne, Germany, on Monday. Federico Gambarini/dpa/AP

Snowmaker Jose Martinez checks the artificial snow-making machine at a ski resort in Verbier, Switzerland, on Monday. Denis Balibouse/Reuters
Market Closes for November 28^th, 2016

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks fell the most in two weeks, as energy companies are mired in a losing streak with talks among producers continuing ahead of the OPEC summit in Vienna this week.
     The S&P/TSX Composite Index fell 0.4 percent to 15,015.36 at 4 p.m. in Toronto, the most since Nov. 11. Trading volume in the Canadian equity benchmark was 11 percent lower than the 30- day average. The index remains up 15 percent in 2016, the top performer among developed markets tracked by Bloomberg.
     Energy producers led the index lower, falling 1.4 percent as a group for a third day of losses, the longest losing streak since Nov. 4. Seven of 11 industries in the S&P/TSX were lower. Canadian National Railway Co. and Canadian Pacific Railway Ltd. retreated as industrial stocks also declined.
     Medical marijuana producer Canopy Growth Corp. jumped 5.9 percent after agreeing to buy German pharmaceutical distributor MedCann GmbH Pharma and Nutraceuticals. The Canadian government, meanwhile, is preparing to review a task force report on recreational legalization.
     Among other moves:
* Raw-materials producers rose 1.8 percent as industrial metals extended their winning streak. The Bloomberg Industrial Metals sub-index posted its biggest five-day gain since 2011 as zinc touched the highest level in nine years.
* Teck Resources Ltd.,  slipped 0.5 percent. Teck is up in 2016 on rallies in metallurgical coal and zinc.
* Encana Corp. dropped 3.9 percent for a third day of losses after John Gerdes at KLR Group cut his rating for the stock to accumulate from buy.
US
By Julie Edde
     (Bloomberg) — U.S. stocks fell the most in four weeks as investors speculated that gains sparked by expectations for brisker economic growth under a new administration went too far too quickly.
     Financial shares that have paced a three-week surge since the election fell 1.4 percent Monday, after the value of American financial firms was inflated by more than $300 billion since Nov. 8. Consumer discretionary shares slipped after the start of the holiday sales season was lackluster. Utility stocks climbed 2 percent as a rout in bonds eased.
     The S&P 500 Index lost 0.5 percent to 2,201.82 at 4 p.m. in New York, halting a four-day advance that left the equity benchmark at a record. It had gained 3.4 percent since the U.S. presidential election on Nov. 8. The Dow Jones Industrial Average slipped 52.80 points to 19,099.34, while the Russell 2000 Index halted a 15-day surge that was the longest since 1996.
     “With S&P at new all-time highs there is too much hope for fiscal reflation priced into markets at least in the short- term,” said Ralf Zimmerman, an equity strategist at Bankhaus Lampe KG based in Dusseldorf, Germany. “Investors don’t know anything about the future stimulus and today’s futures declines are also triggered by fading hopes for a meaningful OPEC deal.”
     Equities had rallied while bonds plunged on speculation Donald Trump will be able to implement fiscal stimulus to jumpstart growth in the world’s largest economy. Investors will turn attention to U.S. jobs data due Friday for clues on the pace of future interest-rate increases, while OPEC nations continue to work toward a deal to curb production. A referendum Sunday in Italy also has cooled demand for riskier assets.
     “People are stepping back and saying the market is a little bit overbought, let’s sit back here and see if we get some follow through” said Matt Maley, an equity strategist at Miller Tabak & Co. LLC in New York. “The OPEC meeting is giving people a little bit of a reason to take a little bit of a breather.”
     Backward looking economic figures will have little impact on the likelihood of the December rate decision, as a hike is viewed with increasing certainty, though the data may indicate whether the Federal Reserve intends to implement additional increases next year. The probability of a rate hike in December has now reached 100 percent compared with 68 percent chance at the start of November.
     On Tuesday, third quarter GDP growth are released along with information on corporate-profits. Profits have declined in five of the last six quarters and are important as such to see an acceleration in business investment. As the end of the earnings season approaches, 19 companies are reporting this week with many retailers including Tiffany & Co. and Dollar General Corp.

Have a wonderful evening everyone.

Be magnificent!

Freedom is a  state of mind – not freedom from something.
Krishnamurti

As ever,
 

Carolann

Many live in the ivory tower called reality; they never venture on the
open sea of thought.
                                             -Francois Gautier, b. 1959

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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
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www.carolannsteinhoff.com