January 21, 2020 Newsletter

Dear Friends,

Tangents:

January 21, 1976 – The supersonic Concorde jet was put into service by Britain and France. Go to article »

Oprah Winfrey in The Path Made Clear:
Some of the most meaningful experiences on The Oprah Winfrey Show happened when it was perfectly still, just a single person on the stage sharing a story so intimate you had to hold your breath just to hear it.

Years ago, I interviewed a grieving mother whose adult son had died after a long illness.  You could have heard a pin drop in the studio when she so beautifully told the story of their final moment together.  The mother had climbed into bed with her son.  She could barely hear him, but her head was on his chest.  As he took his last breath, he whispered, “Oh Mom, it is all so simple.  It’s so simple Mom.”  He then closed his eyes and died.
I got chills when I heard that.  I realized then, just as it resonates with me now:  We allow life to get so complicated  – when it’s really so very simple.
From that day forward I resolved to continually ask myself, How am I making things more difficult than they need to be?
Your answer to that same question is the next step in your path.
It’s that simple.
Imagine what lies just around the bend.
Can you see it?  I can.

PHOTOS OF THE DAY

A child runs towards a dust storm in Mullengudgery, New South Wales, Australia.

Dust storms have hit many parts of western New South Wales as a prolonged drought continues.
CREDIT: MARCIA MACMILLIAN/AFP/GETTY IMAGES

A man dressed as a clown is part of hundreds of climate protesters who are on a three-day-protest march from Landquart to Davos pass the city of Klosters, Switzerland.
CREDIT: AP PHOTO/MICHAEL PROBST

Horses and riders from the Bourton Vale Equestrian Centre take a dip in the icy cold waters of the River Eye at Lower Slaughter in the Cotswolds, Gloucestershire.
CREDIT: PAUL NICHOLLS

Market Closes for January 21^st, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1980, gold hit a record price of $850 per ounce. Gold dealers predicted that the price would hit $1,000 per ounce by July, and U.S. Secretary of the Treasury G. William Miller said, “At the moment, it doesn’t seem an appropriate time to sell our gold.” The next day, the gold price fell by $145. By 1985, it slumped to around $300.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.1 percent at 17,572.28 in Toronto. The move was the biggest since falling 0.2 percent on Jan. 3 and follows the previous session’s increase of 0.2 percent. Manulife Financial Corp. contributed the most to the index decline, decreasing 2.7 percent. Ballard Power Systems Inc. had the largest drop, falling 11.9 percent. Today, 122 of 234 shares fell, while 111 rose; 5 of 11 sectors were lower, led by financials stocks.
Insights
* This month, the index rose 3 percent
* The index advanced 14 percent in the past 52 weeks. The MSCI AC Americas Index gained 23 percent in the same period
* The S&P/TSX Composite is 0.3 percent below its 52-week high on Jan. 20, 2020 and 16.1 percent above its low on Jan. 23, 2019
* The S&P/TSX Composite is up 1.3 percent in the past 5 days and rose 2.7 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.9 on a trailing basis and 15.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.9 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.71t
* 30-day price volatility fell to 3.88 percent compared with 4.36 percent in the previous session and the average of 4.77 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -18.2429| -0.3| 10/17
Industrials | -17.5281| -0.9| 9/22
Energy | -12.4850| -0.4| 6/24
Health Care | -4.7503| -2.0| 2/8
Communication Services | -0.5307| -0.1| 2/6
Consumer Discretionary | 0.4615| 0.1| 10/7
Consumer Staples | 0.9442| 0.1| 9/2
Materials | 2.9129| 0.2| 23/25
Real Estate | 3.8768| 0.6| 20/5
Utilities | 7.9792| 0.9| 14/2
Information Technology | 12.2635| 1.2| 6/4

US
By Sarah Ponczek
(Bloomberg) — U.S. equities fell on reports that a deadly respiratory illness that originated in China had migrated to the U.S., spurring concern about the potential economic impact. Industrial and consumer shares were among the worst performers as the S&P 500 Index pulled back from a record. That followed retreats in Asia and Europe, with Hong Kong the hardest hit. Luxury stocks posted their biggest drop since October on worries the virus will disrupt spending during a key Chinese holiday period. Banks declined after UBS Group AG missed profitability targets; Boeing slumped on speculation its 737 Max jet wouldn’t be cleared to fly until mid-year. The risk-off mood helped support some traditional haven assets, and the yen and Treasuries advanced.

The emergence of the illness in China — and concerns it will now spread outside the country — stirred memories of the SARS outbreak 17 years ago for some market watchers, though it isn’t yet as serious. The developments provided an excuse for investors who bid up U.S. stocks to record highs last week to take a pause and assess the outlook for global growth and corporate profits as earnings season picks up. “History tells us that most of these situations can be contained,” said Sameer Samana, senior global market strategist for Wells Fargo Investment Institute. “What we would watch for is does it become a big enough issue that it actually starts to change consumer behavior?” Elsewhere, Germany’s DAX Index briefly surpassed the peak reached two years ago. The Stoxx Europe 600 Index posted a second day of losses. The Bank of Japan kept policy unchanged as expected, though raised its economic growth forecast for 2020. Crude held below $60 a barrel as ample global supplies offset the loss of exports from Libya. Here are some events to watch out for this week:
* Companies including IBM, Procter & Gamble and Hyundai will post results.
* Policy decisions are due from central banks in Canada, Indonesia and the euro zone.
* The World Economic Forum, the annual gathering of global leaders in politics, business and culture, is underway in Davos, Switzerland.

These are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.3% at the close of trading in New York.
* The Stoxx Europe 600 Index sank 0.1%.
* The MSCI Asia Pacific Index fell 1.2%.
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%.
* The euro slipped 0.1% to $1.1088.
* The British pound gained 0.3% to $1.3045.
* The Japanese yen climbed 0.3% to 109.81 per dollar.
Bonds
* The yield on 10-year Treasuries dipped five basis points to 1.77%.
* Germany’s 10-year yield fell three basis points to -0.25%.
* Britain’s 10-year yield fell two basis points to 0.63%.
Commodities
* West Texas Intermediate crude slumped 0.3% to $58.34 a barrel.
* Gold fell 0.1% to $1,558.62 an ounce.
–With assistance from Livia Yap, Eric Lam, Ranjeetha Pakiam, Cormac Mullen, Todd White, Sam Potter and Claire Ballentine.
Have  a great night.

Be magnificent!
As ever,

Carolann

Patience and perseverance have a magical effect
before which difficulties disappear and obstacles vanish.
                                                                  -John Quincy Adams, 1767-1848

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