December 9, 2016 Newsletter

Dear Friends,

Tangents:

We had our annual office Christmas party last night which began with dinner prepared by Rob Cassels, executive  Chef at Saveur restaurant.  We tried the five course tasting menu and we all raved about it last night as it unfolded and today as we remembered how wonderful it was.  Cassels is an incredible chef and if you haven’t been to Saveur yet – you must plan a visit.  Chef Cassels worked for a while in Charlie Trotter’s kitchen from where he surely derives some of his culinary talent.  Gary and I went to Trotter’s famous restaurant in Chicago after it was awarded two Michelin stars in 2010.   It was an amazing experience!  It received two Michelin stars the following year as well  in 2011.  In 2013, Trotter deservedly was inducted into the Culinary Hall of Fame.  Unfortunately, he died prematurely later that year at only 54 years of age.  Fortunately, he published many cook books during his life and I use them all the time.  You can probably still order them on Amazon too.

STREET VIEW
In Hanoi, Vietnam, street vendors carry goods from flowers to bananas on their bicycles.  Photographer Loes Heerink captured images of these vendors from a bird’s-eye view and presents an intriguing portrait of everyday life in Vietnam.  Find her series at http://loesheerink.com.
PHOTOS OF THE DAY

The Eiffel Tower and the Tour Montparnasse emerge from the haze in a photo taken from an airplane window on Thursday, as Paris suffers a pollution spike. Milos Krivokapic/AP

Japan’s H-IIB rocket with a capsule called Kounotori, or stork, lifts off at the Tanegashima Space Center in Tanegashima, southern Japan on Friday evening. The Japanese capsule contains nearly 5 tons of food, water and other supplies, including new lithium-ion batteries for the International Space Station’s solar power system. Ryosuke Uematsu/Kyodo News/AP

Snow falls around the Space Needle on Thursday in Seattle. Grant Hindsley/seattlepi.com/AP
Market Closes for December 9^th, 2016

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks rose for a sixth day, the longest stretch of gains since March, as big banks continued their record rally and energy producers climbed with crude.
     The S&P/TSX Composite Index added 0.1 percent to 15,312.20, the highest level since May 2015. The benchmark gauge has risen almost 18 percent in 2016, the top performer among developed markets tracked by Bloomberg, ahead of No. 2 market Norway’s 15 percent advance.
     A gauge of Canada’s largest lenders rose 0.7 percent, gaining for a fourth straight day toward a record high. The gauge has advanced 20 percent this year. Canadian Western Bank and Bank of Nova Scotia have been among the top performers, each gaining at least 34 percent. Canadian Western operates primarily in oil-rich western Canada.
     Financial services stocks overall are up 20 percent this year. Raw-materials producers are the top industry among 11 in the S&P/TSX with a 39 percent advance, followed by a 30 percent gain in energy shares, driven by rebounding gold and crude prices in 2016. Teck Resources Ltd., Canada’s largest diversified mining company, is up six-fold on a resurgence in commodities from metallurgical coal to zinc.
In other moves:
* Energy producers rose 0.4 percent Friday, resuming their advance after a two-day slide as oil sold for more than $51 a barrel in New York; Saudi Arabia was said to have informed its customers it will stand by its commitment to cut production as OPEC meets with non-members to discuss output reductions
* Internet network company Sandvine Corp. sank 11 percent to the lowest level since July after reporting preliminary fourth- quarter sales short of estimates due to weakness in cable market
* Retailer Sears Canada Inc. lost 2.1 percent as third-quarter comparable sales tumbled 7.1 percent while revenue also retreated from year-ago levels
US
By Joseph Ciolli
     (Bloomberg) — Gains in consumer staples stocks, health- care companies and tech firms sent U.S. equities higher for a sixth day as the S&P 500 Index, Dow Jones Industrial Average and Russell 2000 Index all closed at records Friday.
     The S&P 500 climbed 0.6 percent to 2,259.53 at 4 p.m. in New York, posting its biggest weekly gain since the presidential election in November, while the Dow added 142 points to 19,756.85. Global equities rose as crude oil gained for a second straight day ahead of an OPEC meeting in Vienna on Saturday where production cuts are expected to be discussed.
* VIX decreases 7.4 percent; biggest weekly decline since the U.S. presidential election outcome
* Officials at the Federal Reserve are set to announce a decision on interest rates on Dec. 14. Traders are pricing in a 100 percent chance they’ll raise borrowing costs, compared with 68 percent odds at the start of November.
* The European Central Bank’s decision Thursday to expand its quantitative-easing program at a reduced monthly pace is giving global equities a boost, as it continues to depress borrowing costs for companies. The ECB expanded its stimulus program to exceed 2 trillion euros by the end of 2017, saying that it can step up or prolong purchases if necessary.
      (Bloomberg) — The S&P 500 extended its rally to the longest since June 2014 as benchmark indexes added to all-time highs, with health-care shares and consumer staples taking a turn pacing gains. Oil powered above $51 a barrel on signs producers are following through with agreed production cuts.
     The post-election rally in American equities plowed ahead even as the Federal Reserve looks certain to raise interest rates next week. Makers of household products led gains Friday after lagging behind for much of the post-election rally that’s added more than $1 trillion to the value of U.S. equities. Bank shares pushed gains in the past month to 18 percent.U.S. crude rose before OPEC meets in Vienna with non-member representatives. The dollar headed toward an 18-month high, supported by wagers on higher rates.
      Speculation that Donald Trump’s policies will boost the economy enough to withstand the effects of higher interest rates lifted consumer confidence to the most in almost two years. At the same time, the European Central Bank’s pledge to expand its limits on asset purchases to include shorter-dated securities is expected to drive down borrowing costs for banks even though the central bank has announced it will curtail monthly additions after March, and is being interpreted as a buy signal in many quarters of the financial markets.
     Stocks
* The S&P 500 rose 0.4 percent to 2,255.31 at 4 p.m. in New York, to cap a 3 percent rally in the week. The gauge closed at a record and is up 5.3 percent since the Nov. 8 election.
* The Dow Jones Industrial Average jumped 131.61 points to a record 19,746.42, concluding a weekly gain of 3 percent. Goldman Sachs Group Inc. pushed its gain since the Nov. 8 election to 33 percent.
* The Stoxx Europe 600 Index climbed 1 percent, for its best week since January 2015. Drugmakers, media and real estate companies were the best performers.
* Emerging-market equities fell 0.3 percent to pare a weekly gain to 2.7 percent, the most since September.

     Commodities
* West Texas Intermediate crude advanced 1.3 percent to settle at $51.50 a barrel, the highest close since Monday.
* Saudi Arabia was said to have informed its customers it will stand by its commitment to cut production before OPEC meets with producers from outside the group to discuss reductions.
* Gold futures closed at the lowest level since February as the Federal Reserve gears up to raise rates. The metal lost 0.9 percent to settle at $1,161.90 an ounce.
* Copper and zinc both gained.

 
     Currencies
* The dollar advanced 0.6 percent to $1.0557 per euro, having jumped 1.3 percent on Thursday.
* The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, rose 0.5 percent to finish the week higher.* Investors see a 100 percent probability of an increase in U.S. interest rates on Dec. 14, according to pricing in federal funds futures contracts.

Bonds
* U.K. government bonds slid, with the 10-year gilt yield jumping three basis points to 1.41 percent after the Bank of England said U.K. consumers’ inflation expectations jumped to the highest in more than two years.
* Treasuries with a similar due date extended their fifth weekly drop, with the yield rising nine basis points in the period to 2.47 percent.

Have a wonderful weekend everyone.

Be magnificent!

Fear comes from the selfish idea
of cutting one’s self off from the universe.
Swami Vivekananda

As ever,

Carolann

Failure will never overtake me if my determination
to succeed is strong enough.
                          -Og Mandino, 1923-1996                   

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
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com