December 20, 2019 Newsletter

Dear Friends,

Tangents: Happy Friday!

1803 – The Louisiana Purchase was completed as the territory was formally transferred from France to the United States during ceremonies in New Orleans.
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We were this close to finding the seat of consciousness – from Bloomberg.

This weekend is the Northern Hemisphere’s winter solstice.
From The New York Times:
Some of us may grumble about the darkness (which hits the Southern Hemisphere in six months). But without such seasons, we might not be alive.

A winter solstice ceremony at Stonehenge in England last year.   Matt Cardy/Getty Images

Seasons occur because Earth, like most planets, does not spin perfectly upright. Its “axial tilt” is a jaunty 23.5 degrees. Uranus, by comparison, spins at 98 degrees.
Earth’s tilt helps moderate our solar exposure. The four seasons are comparatively mild and, thanks to our proximity to the sun, relatively brief.
Much of Uranus, by contrast, spends winters in permanent darkness and summers under constant sunlight. And those seasons last decades in Earth years.
“If there were creatures on Uranus — and I don’t think there are — seasonal affective disorder would be a lifetime thing,” Heidi Hammel, a planetary scientist, told The Times.

PHOTOS OF THE DAY

LED Hooper Daiquiri Dusk performs at a preview for Fire & Light: 2020 Visions held at the Helix, home of the Kelpies on January 1^st & 2^nd.

Fire & Light: 2020 Visions encourages visitors to embrace the adventure of a New Year with a walk through The Helix park towards the magical kelpies, interacting with an amazing array of performances and installations along the way.
CREDIT: ANDREW MILLIGAN/ PA WIRE

Performers take part in the “Passion of Macao, Heart of China” variety show in Macau ahead of the handover from Portugal to China.
CREDIT: ANTHONY WALLACE/AFP VIA GETTY IMAGES

A man takes a photo of frozen trees as a winter storm brings havoc to New Jersey as ice caused power outages and downed trees throughout the area in West Orange, New Jersey.
CREDIT: RICK LOOMIS/GETTY IMAGES

People enjoy a sunny day near Bosphorus in Istanbul, Turkey.
CREDIT: TOLGA BOZOGLU/EPA-EFE/REX

Market Closes for December 20^th, 2019  

International Markets

Bonds

Currencies

Commodities

Market Commentary:
European government bond yields rallied after Sweden’s exit from negative interest rates prompted speculation the Nordic country’s experience may deter other central banks from dropping borrowing costs below zero. The yield on 10-year German bunds rose to minus 0.224% on Thursday, from minus 0.2470% on Wednesday. The rates on Swedish, Greek and Italian bonds also climbed.
Canada
By Aoyon Ashraf and Bloomberg Automation
(Bloomberg) — Canadian equities rose to an all-time high ahead of next week’s Christmas holidays, led by technology stocks. The S&P/TSX Composite rose for the sixth day in seven, climbing 0.3% to 17,118.93 in Toronto. Enbridge Inc. contributed the most index points to the gain, increasing 1.1% after the company submitted to regulators its plan for long-term contracts for its giant Mainline crude pipeline system. BlackBerry Ltd. had the largest percentage increase, rising 12%, after its third quarter adjusted EPS beat analyst estimates. Meanwhile, Canada’s retail sales unexpectedly fell in October, declining for the first time in four months as consumers bought fewer motor vehicles and parts. Canadian retailers sold 1.2% fewer goods in October, the biggest monthly drop this year, Statistics Canada said Friday in Ottawa. That missed the median forecast in a Bloomberg survey for a 0.5% gain. Excluding motor vehicles, retail sales dipped 0.5%, also missing the median forecast.
Commodities
* Western Canada Select crude oil traded at a $21.75 discount to WTI
* Spot gold price fell slightly to $1,478.16 an ounce
FX/Bonds
* The Canadian dollar fell 0.2% to C$1.3155 per U.S. dollar
* The 10-year government bond yield fell 2.7 basis points to 1.616%
Insights
* This week, the index rose 0.7%, heading for the biggest advance since the week ended Nov. 15
* This quarter, the index rose 2.8%
* This month, the index rose 0.5%
* This year, the index rose 20%, heading for the best year in at least 10 years
* The index advanced 21% in the past 52 weeks. The MSCI AC Americas Index gained 30% in the same period
* The S&P/TSX Composite is 0.3% below its 52-week high on Dec. 20, 2019 and 24% above its low on Dec. 24, 2018
US
By Todd White and Vildana Hajric
(Bloomberg) — U.S. equities finished the week at a record high as investors counted down to the holiday break. The dollar and 10-year Treasuries gained. The S&P 500 Index had its biggest weekly gain since September and was on pace to gain 28% this year. The benchmark hit a new peak Friday, led by technology and health-care shares, while the Stoxx Europe 600 also reached all-time high. The Treasury yield curve remained near its steepest in more than a year, underscoring how recession worries have receded. “If the economy is not rolling over and going into a recession ditch, and tame core consumer inflation is low at 1.6%, you can bet your bottom dollar the Federal Reserve is going to keep enough punch in the punch bowl to make sure that 2020 is going to be a super year for stocks,” said Chris Rupkey, chief financial economist for MUFG Union Bank. Equity trading in the U.S. spiked as the session drew to a close as major indexes rebalanced and options and futures on indexes and stocks expired in what’s known as quadruple witching.
Investors have largely been in a holding pattern this week, buffeted by conflicting macro winds. President Donald Trump’s impeachment has morphed into a standoff, yet U.S. lawmakers managed to pass spending bills Thursday to avoid a partial government shutdown. The signing of a first-phase U.S.-China trade deal was set for January. And while the logjam in U.K. politics is over, the prospect of a messy break from the European Union is back on the agenda. The pound saw its worst weekly decline in more than two years amid concern that Prime Minister Boris Johnson and EU negotiators will struggle to agree a trade deal next year. The euro also weakened. India’s longer-dated bonds jumped after the central bank unveiled plans to mount something akin to the U.S. Operation Twist, which may help spur credit growth. Shares rose in Hong Kong and Seoul but fell in Tokyo, Shanghai and Sydney. Oil and gold slipped.
These are the main moves in markets:
Stocks
*The S&P 500 Index increased 0.5% to 3,221.22 as of 4:12 p.m. New York time, the highest on record.
*The Dow Jones Industrial Average advanced 0.3% to 28,455.09, the highest on record.
*The Stoxx Europe 600 Index jumped 0.8% to 418.40, the highest on record.
*The MSCI Emerging Market Index gained 0.1% to 1,107.46.
*The MSCI World Index of developed countries climbed 0.4% to
*2,349.30, the highest on record.
Currencies
*The Bloomberg Dollar Spot Index increased 0.2% to 1,197.49, the highest in more than a week on the biggest climb in almost four weeks.
*The British pound declined 0.1% to $1.3005, the weakest in more than two weeks.
*The euro decreased 0.4% to $1.1076, the weakest in more than a week on the biggest dip in more than six weeks.
*The Japanese yen weakened 0.1% to 109.47 per dollar.
Bonds
*The yield on 10-year Treasuries decreased less than one basis point to 1.92%, the first retreat in a week.
*The yield on two-year Treasuries gained less than one basis point to 1.63%, the highest in a week.
*Germany’s 10-year yield decreased two basis points to -0.25%.
*Britain’s 10-year yield dipped two basis points to 0.782%.
Commodities
*West Texas Intermediate crude declined 1.4% to $61.22 a barrel, the biggest drop in almost three weeks.
*Gold weakened 0.1% to $1,478.04 an ounce, the largest fall in a week.
–With assistance from Christopher Anstey and Nancy Moran.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

Know thyself.
                  -Inscribed on the temple of Apollo at Delphi;
                   Plato ascribes the saying to the Seven Wise Men

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