May 31, 2019 Newsletter

Dear Friends,

Tangents:

May 31, 1911 – Shipping – Quebec-born shipbuilder Lord Pirrie launches his White Star liner RMS Titanic in Belfast; one of the largest vessels afloat, it will sink on its maiden voyage in April 1912. Belfast, Northern Ireland  Go to article »

It’s hard to believe that this is the last day of May – this year is marching on…To quote Walt Whitman, “The clock indicates the moment, but what does eternity indicate?”  Today is Walt Whitman’s birthday; he was born on May 31^st, 1818.

When Lilacs last in the Dooryard Bloom’d

                               -Walt Whitman (1865)

When lilacs last in the dooryard bloom’d,
And the great star early droop’d in the western sky in the night,
I mourn’d, and yet shall mourn with ever-returning spring.

Ever-returning spring, trinity sure to me you bring,
Lilac blooming perennial and drooping star in the west,
And thought of him I love.

O powerful western fallen star!
O shades of night—O moody, tearful night!
O great star disappear’d—O the black murk that hides the star!
O cruel hands that hold me powerless—O helpless soul of me!
O harsh surrounding cloud that will not free my soul.

In the dooryard fronting an old farm-house near the white-wash’d palings,
Stands the lilac-bush tall-growing with heart-shaped leaves of rich green,
With many a pointed blossom rising delicate, with the perfume strong I love,
With every leaf a miracle—and from this bush in the dooryard,
With delicate-color’d blossoms and heart-shaped leaves of rich green,
A sprig with its flower I break.

In the swamp in secluded recesses,
A shy and hidden bird is warbling a song.

Solitary the thrush,
The hermit withdrawn to himself, avoiding the settlements,
Sings by himself a song.

Song of the bleeding throat,
Death’s outlet song of life, (for well dear brother I know,
If thou wast not granted to sing thou would’st surely die.)

Over the breast of the spring, the land, amid cities,
Amid lanes and through old woods, where lately the violets peep’d from the ground, spotting the gray
debris,
Amid the grass in the fields each side of the lanes, passing the endless grass,
Passing the yellow-spear’d wheat, every grain from its shroud in the dark-brown fields uprisen,
Passing the apple-tree blows of white and pink in the orchards,
Carrying a corpse to where it shall rest in the grave,
Night and day journeys a coffin.

Coffin that passes through lanes and streets,
Through day and night with the great cloud darkening the land,
With the pomp of the inloop’d flags with the cities draped in black,
With the show of the States themselves as of crape-veil’d women standing,
With processions long and winding and the flambeaus of the night,
With the countless torches lit, with the silent sea of faces and the unbared heads,
With the waiting depot, the arriving coffin, and the sombre faces,
With dirges through the night, with the thousand voices rising strong and solemn,
With all the mournful voices of the dirges pour’d around the coffin,
The dim-lit churches and the shuddering organs—where amid these you journey,
With the tolling tolling bells’ perpetual clang,
Here, coffin that slowly passes,
I give you my sprig of lilac…

This poem was written in the summer of 1865 during a period of profound national mourning in the aftermath of the assassination of President Abraham Lincoln on April 14, 1865.
PICTURES OF THE DAY

The pack rides during the stage eighteen of the 102^nd Giro d’Italia -Tour of Italy – cycle race, 222 kms from Valdaora to Santa Maria Di Sala
CREDIT: LUK BENIES /AFP

The Garland nears completion during ‘Castleton Garland Day’ in Castleton, England. The first records of Garland day date back to the 1700’s and though it’s true origins are not fully understood it is believed to be an ancient fertility rite with Celtic connections. The celebration also incorporates more recent elements of ‘ Oak Apple Day’ which falls on May 229^th, and celebrates the restoration of the monarchy in 1660. The garland is a framework of cut flowers which is prepared on the day by villagers before being placed on the head of the ‘King’, and paraded around the town on horseback with his ‘Consort’, also on horseback, dressed in Stuart costume.
CREDIT: DAN KITWOOD/GETTY IMAGES

One-month-old Miska the Tengmalm’s owlet explores the shop at Scottish Owl Centre, Polkemment Country Park, West Lothian.
CREDIT: SWNS
Market Closes for May 31^st , 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Michael Bellusci
     (Bloomberg) — Canadian stocks posted a weekly drop, extending losses after U.S. President Donald Trump opened a new front in his trade wars, threatening to place escalating tariffs on Mexico and jeopardizing a new North American trade agreement.
     The S&P/TSX Composite Index fell 0.3% on Friday, pushing its weekly loss to 1.2%. The automotive industry is bearing the brunt of trade-war crossfire again, and shares of Magna International Inc., which has 32 facilities and more than 29,000 employees in Mexico fell on Friday. The Horizons Marijuana Life Sciences Index ETF fell 3.4 percent, extending its drop for a fourth straight session.
     Gold climbed amid trade tensions, while oil posted its worst May performance in seven years. On the marijuana front, Illinois lawmakers voted to legalize recreational pot, becoming the 11th U.S. state to decriminalize the drug.
In other moves:
Stocks
* Curaleaf Holdings Inc. dropped 10.6% after 1Q results
* Trulieve Cannabis Corp. fell 6.7% 
* Encana Corp lost 4.4% 
* Martinrea International Inc. fell 4% 
* Yamana Gold Inc. gained 7.9% as gold miners outperformed 
Ratings
* PCLO CN: PharmaCielo Rated New Speculative Buy at Cormark Securities 
* CG CN: Centerra Gold Upgraded to Outperform at Raymond James; PT C$10
Commodities
* Western Canada Select crude oil traded at a $16.50 discount to WTI
* Gold gained 1.4% to $1,310.60 an ounce
FX/Bonds
* The Canadian dollar fell 0.1% to C$1.3518 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.489%
US
By Jeremy Herron and Vildana Hajric
     (Bloomberg) — U.S. stocks extended a weekly loss to the worst since Christmas, while Treasuries rallied a fourth day as the Trump administration’s trade spats intensified. Oil tumbled.
     The S&P 500 also capped its worst month of the year, bringing its May decline past 6.5% after President Donald Trump threatened to place escalating tariffs on Mexico. The Dow Jones Industrial average careened to a sixth weekly loss, the longest slump since 2011. The Mexican peso tumbled more than 2%, while the yen jumped.
     Among the main trade-related moves: Carmakers in the S&P 500 plunged 3.8%, with General Motors off 4.3%.  Kansas City Southern sank 4.5%, most since October 2018The Mexican peso fell 2.4%, and the yen jumped 1.1%.  Costco Wholesale lost 2.9%, pacing a rout in food retailers.  Whirlpool slid 4.1% to lead appliance makers lower. West Texas Intermediate crude plunged 5.9%
     The 10-year Treasury yield was poised for the biggest weekly slide since 2014 as traders fully priced in two rate cuts for the year amid angst over the threat of a recession. The credit market’s fear gauges moved by the most in almost three weeks to show the riskiest high-grade and junk bond markets since January.
     “When you get a piece of bad news, you take a breath and you try to understand is it as bad as it seems. This one seems pretty bad,” Steve Chiavarone, a portfolio manager with Federated Investors, said in an interview at Bloomberg’s New York headquarters. “There’s just a level of unpredictability that was introduced last night that I don’t think is helpful to the markets.”
     The latest move by the self-described Tariff Man would put 5% American duties on all Mexican imports on June 10, rising to 25% in October unless Mexico halts “illegal migrants” heading to the U.S. Evidence emerged Friday that economic growth is holding up when a crucial measure of U.S. inflation watched by the Federal Reserve picked up in April for the first time this year and Americans’ spending and incomes topped forecasts.
     Trump’s Mexico declaration and a Bloomberg report that China is planning to restrict rare-earths exports leave markets set for a turbulent end to what’s been a rough month for global stocks. Treasuries have benefited from haven demand, with yields on 10-year notes down to 2.15% Friday compared with 2.50% at the start of the month.
     Elsewhere, gold climbed to a two-week high while oil slumped to less than $54 a barrel in New York amid concerns about global demand.
These are the main moves in markets:
Stocks
* The S&P 500 Index sank 1.3% at 4 p.m. in New York. 
* The Dow average lost 1.4% and the Nasdaq 100 slid 1.5%.
* The Stoxx Europe 600 Index dropped 0.8% to the lowest in 15 weeks.
* The MSCI Emerging Market Index gained 0.3%.
Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro advanced 0.4% to $1.1169, the first advance in a week.
* The Japanese yen jumped 1.1% to 108.48 per dollar.
* The offshore yuan declined 0.1% to 6.93 per dollar.
Bonds
* The yield on 10-year Treasuries decreased eight basis points to 2.14%, capping the biggest weekly decline since December 2014.
* The yield on two-year Treasuries declined 13 basis points to 1.93%.
* Germany’s 10-year yield fell two basis points to -0.20%, the lowest on record.
* Japan’s 10-year yield declined two basis points to -0.094%, the lowest in almost three years.
Commodities
* West Texas Intermediate crude decreased 5.9% to $53.26 a barrel, the lowest since February.
* Gold gained 1.3% to $1,304.81 an ounce, the highest in seven weeks.
–With assistance from Adam Haigh, John Ainger and Yakob Peterseil.

Have  a wonderful weekend.

Be magnificent!
As ever,

Carolann

In any moment of decision, the best thing you can do is the right thing.  The worst thing you can do is nothing.

                                                                      -Theodore Roosevelt,  1858-1919

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