March 12, 2018 Newsletter

Dear Friends,

Tangents:
1938    The “Anschluss” took place as German troops entered Austria. Adolf Hitler annexed his homeland the following day.

Jack Kerouac, writer, b. 1922

In a conversation with the writer John Clellon Holmes, Jack Kerouac coined the term ‘Beat Generation” to describe the “beatness” or “weariness” with  the world of his post-war generation.  As a young man,  he criss-crossed the country, studying Buddhism, working at odd jobs, and staying with his friends Allen Ginsberg and William S. Burroughs.  Eventually he wrote On the Road, the book that catapulted him into reluctant fame in 1957.  Other books followed, including The Dharma Bums and Big Sur.  By the time he died of alcoholism in 1969, Kerouac had left his mark on American literary history with his spontaneous prose style, and he continues to inspire legions of young people to live life on their own terms.

… the only people for me are the mad ones, the ones who are mad to live, mad to talk, and to be saved, desirous of everything a the same time, the ones who never yawn or say a commonplace thing, but burn, burn, burn, like fabulous yellow roman candles exploding like spiders across the stars and in the middle you see the blue center-light pop and everybody goes “Awww!” -from On the Road.
PHOTOS OF THE DAY

The world’s first robot jockey is unveiled by BetBright in celebration of the Cheltenham Festival, which kicks off on Tuesday. Made from lightweight steel, the prototype robot is capable of riding a horse, jumping fences and can also communicate with humans, offering a glimpse into the potential future of sport.
Credit: The Telegraph

Cyclists during the 53^rd Tirreno-Adriatico 2018, Stage 5- a 178km stage from Castelraimondo to Filottrano, in Filottrano, Italy.
Credit: The Telegraph

Marty Burns who plays Saint Patrick is brought to shore past Downpatrick cathedral as the re-enactment of Saint Patrick’s first landing in Ireland takes place at Inch Abbey in Downpatrick, Northern Island.
Credit: The Telegraph
Market Closes for March 12th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks gained for a third day to the highest since Feb. 27 as Prime Minister Justin Trudeau said he’s “very confident” in a positive Nafta outcome. The loonie weakened slightly, down 0.2 percent, as commodities are pressured by higher U.S. sovereign yields ahead of U.S. Treasury auctions Monday and Tuesday.
     The S&P/TSX Composite Index gained 27 points, or 0.2 percent, to 15,604.79 at market close in Toronto. All sectors except financials and consumer discretionary gained; materials, energy and health-care companies gained most.
     Over twenty insiders have added to positions in over 15 Canadian energy stocks in a span of five trading days for E&Ps, oil services, pipelines, and utilities, Canaccord’s sales desk said.
     Health care names climbed 2.4 percent as Canopy Growth Corp. rose almost 5 percent after reports last week that the world’s largest cannabis producer by market value is among bidders for Spanish firm Alcaliber SA.
     In other moves:
                         Stocks
* Valeant Pharmaceuticals gained 2.6 percent to the highest since Feb. 28 as it planned $1.25 billion of bonds to fund debt buybacks
* MAG Silver Corp. climbed by as much as 7.7 percent, the most intraday since Nov. 8
* Paramount Resources Ltd. extended losses, falling 3.9 percent after reporting a loss per share for the fourth quarter that was wider than the average analyst estimate on Thursday
* Barrick Gold Corp. gained 2.6 percent after RBC Capital Markets upgraded the stock to outperform
* Peyto Exploration fell as much as 3.6 percent as BMO downgraded the stock, seeing limited upside over the net two years amid weak Canadian gas prices
                         Commodities
* Western Canada Select crude oil traded at a $25.50 discount to WTI
* Gold barely gained, rising less than 0.1 percent to $1,324.40 an ounce
                          FX/Bonds
* The Canadian dollar weakened 0.2 percent to C$1.28353
* The Canada 10-year government bond yield fell 3bps to 2.24 percent
US
By Sarah Ponczek
     (Bloomberg) — U.S. stocks finished the day lower as uncertainty over the prospect of tariffs undid some of the market’s recent job-driven advances and investors looked forward to Tuesday’s U.S. inflation report. Treasuries increased, while the dollar and most commodities fell.
     The S&P 500 Index rallied 3.5 percent last week, with the biggest gains coming after a labor market report underscored economic strength that gave fresh impetus to the nine-year-old bull market in global equities. But U.S. President Donald Trump put markets on edge after he raised the prospect of a full- fledged trade war. With data due from China this week as well as readings on U.S. inflation and retail sales, investors will be looking for more reasons to keep the party going.
     “With earnings season wrapped up, tax reform launched, and steel and aluminum tariffs to take effect soon, investors will have plenty to ponder,” John Stoltzfus, the chief investment strategist of Oppenheimer & Co., wrote in a note to clients Monday. “We believe patience, fortitude and an eye for opportunities that could present themselves as interest rates work through the process of normalization, trade negotiations garner attention and equity markets respond to it all, could prove rewarding.”
     The Dow Jones Industrial Average and the S&P 500 finished lower Monday, while the tech-heavy Nasdaq 100 kept its head above water. The Stoxx Europe 600 Index is on its longest winning streak since October, while gauges from Tokyo to Sydney jumped.
     The yen strengthened as political clouds gathered around Japan’s Finance Ministry, run by a stalwart ally of Prime Minister Shinzo Abe. Finance Minister Taro Aso is under pressure after his ministry altered documents tied to a controversial land sale. Aso has been Abe’s deputy since he took office in December 2012, and is seen as a key backer of the Abenomics program, part of which focuses on weakening the yen to boost the nation’s exports.
     Bitcoin fell for the fifth straight weekday and West Texas crude moved lower after last week’s advance. Emerging-market stocks surged.
     Here are some of the key things happening this week:
* China data on industrial production, retail sales and fixed- asset investment all out on Wednesday are likely to point to slower growth, according to Bloomberg Economics forecasts.
* Key indicators for the Fed dominate the economic agenda in the coming week. Headline inflation may have edged up to 2.2 percent in February from 2.1 percent, though consensus before Tuesday’s report is for core inflation to remain at 1.8 percent.
* The U.S. Treasury will sell $21 billion of 10-year notes and
$13 billion 30-year bonds at March 12-13 auctions, plus $28 billion of three-year notes, the most since 2014. Last month’s auction of those maturities drew lackluster demand.
* Prices and factory output are focal points in the euro area. Friday’s second inflation report for February may touch 1.2% from 1.1% the previous month.
* Also this week, Germany’s Angela Merkel is inaugurated to a fourth term, EU27 government officials discuss the European Union’s Brexit position, and U.K. Chancellor of the Exchequer Philip Hammond issues his spring statement.
     And these are the main moves in markets:
                           Stocks
* The S&P 500 Index fell 0.1 percent as of 4 p.m. New York time, the biggest decline in over a week.
* The Stoxx Europe 600 Index rose 0.3 percent, its sixth consecutive advance.
* The U.K.’s FTSE 100 Index declined 0.1 percent.
* The MSCI Emerging Market Index gained 1.3 percent to the highest in more than five weeks.
                           Currencies
* The Bloomberg Dollar Spot Index fell 0.3 percent.
* The euro increased 0.3 percent to $1.234.
* The British pound gained 0.4 percent to $1.391.
* The Japanese yen rose 0.4 percent to 106.35 per dollar, the largest advance in more than a week.
                           Bonds
* The yield on 10-year Treasuries declined two basis points to 2.86 percent.
* Germany’s 10-year yield fell two basis points to 0.63 percent.
* Britain’s 10-year yield increased less than one basis point to 1.494 percent.
                           Commodities
* West Texas Intermediate crude decreased 1.1 percent to $61.36 a barrel.
* Gold rose less than 0.05 percent to $1,323.97 an ounce.
* The Bloomberg Commodity Index declined 0.3 percent.
–With assistance from Adam Haigh and Samuel Potter.

Have a wonderful evening!

Be magnificent!

As ever,

Carolann

To achieve greatness, two things are needed: a plan, and not quite enough time.
                                                               -Leonard Bernstein, 1918-1990

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
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