February 14, 2020 Newsletter

Dear Friends,

Tangents: Happy Friday!

HAPPY VALENTINE’S DAY!

Valentine’s derives its significance for lovers from its association with the mating season of birds.  Chaucer refers to this in his Parliament of Fowls, c.1381:

For this was on seynt Volantynys day
For euery bryd comyth there to chese his make [match].

And Shakespeare, A Midsummer Night’s Dream, IV, I (1595) has:

Good morrow, friends, Saint Valentine is past;
Begin these wood-birds but to couple now?

Shakespeare wrote one  of the most beautiful love poems, a personal favorite of mine, with:

Sonnet CXVI
         -by William Shakespeare

Let me not to the marriage of true minds
Admit impediments. Love is not love
Which alters when it alteration finds,
Or bends with the remover to remove.
O no, it is an ever-fixed mark,
That looks on tempests and is never shaken;
It is the star to every wand’ring bark,
Whose worth’s unknown, although his height be taken.
Love’s not Time’s fool, though rosy lips and cheeks
Within his bending sickle’s compass come;
Love alters not with his brief hours and weeks,
But bears it out even to the edge of doom:
   If this be error and upon me proved,
   I never writ, nor no man ever loved.

St. Valentine was a priest of Rome who was imprisoned for succouring persecuted Christians.  He became a convert and, although he is supposed to have restored the sight of the gaoler’s blind daughter, he was clubbed to death, c.270.

His day is February 14^th, as is that of St. Valentine, bishop of Terni, who was martyred a few years later.  There are several other saints of this name.

The ancient custom of choosing Valentines has only accidental relation to either saint, being essentially a relic of the old Roman Lupercalia, or as already mentioned, from association with the mating season of birds.  It was marked by giving presents and nowadays by the sending of a card on which Cupids, transfixed hearts or similar amorous attributes are depicted.

-from CNN:
Here are ten of the most romantic paintings
Take your Valentine on a little virtual art tour!
 
On Feb. 14, 1929, the St. Valentine’s Day Massacre took place in a Chicago garage as seven rivals of Al Capone’s gang were gunned down. Go to article »

PHOTOS OF THE DAY

A new work of art on the side of a house on Marsh Lane, Barton Hill, Bristol, is thought to be by street artist Banksy.

The black and white stencil of a girl with a catapult and the paint splat, made of roses and plastic flowers, is in the style of Banksy, but has yet to be confirmed as being the work of the artist.
CREDIT: BEN BIRCHALL/PA WIRE

Snow covered Buachaille Etive Mor in Glencoe following several days of heavy snow which began with Storm Ciara. Further winter weather looks set to continue over the weekend when Scotland is expected to bear the brunt of Storm Dennis.
CREDIT: LESLEY MARTITN

Boats are reflected in the calm of Ullswater lake in Glenridding, Cumbria as the UK braces for more bad weather over the weekend.
CREDIT: ANDREW MCCAREN/LNP

Market Closes for February 14^th , 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1932, Governor William Comstock of Michigan, in a stunning weekend announcement, said he was shutting down every bank in the state to avert loan defaults and public panic. Henry Ford, who had already sunk more than $13 million of his own money into Detroit’s leading banks to keep them solvent, had refused to put up any more, and federal authorities refused to bail out the Detroit banks unless Mr. Ford agreed to “subordinate” his deposits by surrendering his rights to early withdrawal. The stalemate left Gov. Comstock no choice but to shut the banks down. Over the next five weeks, every other state in the union closed its banks too.
Canada
By Michael Bellusci and Bloomberg Automation
     (Bloomberg) — Canadian equities closed at a record high Friday, led by strong gains in the health care sector after earnings from Canopy Growth Corp. Oil rallied for a fourth day on signs the worst economic impacts of the deadly coronavirus outbreak have been accounted for, easing concern about free-falling demand for crude. The S&P/TSX Composite rose 0.2% at 17,848.36 in Toronto. Six of eleven sectors gained. The index climbed 1.1% for the week. Canadian Transport Minister Marc Garneau said he’s “deeply concerned” about the impact of nationwide protests that are crippling the country’s railways, but said the government is intent on resolving the situation by engaging with First Nations.
Commodities
* Western Canada Select crude oil traded at a $17 discount toWest Texas Intermediate prices
* Spot gold rose 0.5% to $1,583 an ounce
FX/Bonds
* The Canadian dollar rose 0.1% to C$1.3250 per U.S. dollar
* The 10-year government bond yield fell 3 basis point to 1.365%
Insights
* So far this week, the index rose 1.1%
* The S&P/TSX Composite is 0.1% below its 52-week high on Feb. 12

================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 20.0805| 0.3| 13/14
Energy | 10.4079| 0.4| 14/15
Health Care | 10.1594| 5.0| 9/1
Utilities | 7.2346| 0.8| 15/0
Real Estate | 3.8719| 0.6| 21/4
Consumer Staples | 1.8425| 0.3| 6/5
Consumer Discretionary | -1.1584| -0.2| 6/9
Industrials | -2.3506| -0.1| 15/16
Communication Services | -2.7442| -0.3| 2/6
Information Technology | -5.2336| -0.5| 3/7
Materials | -14.9443| -0.8| 15/31

US
By Elena Popina and Vildana Hajric
(Bloomberg) — Nothing has been able to stop the streak of records in U.S. stocks. During a week when the coronavirus threatened to become a pandemic that thwarts global growth, the S&P 500 Index advanced four out of five days, posting three records along the way. Investors found comfort in solid economic data, better-than-expected earnings reports and a signal that the Federal Reserve stands ready to act if needed. The benchmark for American equities jumped 1.6% in the week, ending at an all-time high. All 11 groups advanced, led by companies that pay high dividends as bond yields remained persistently low. Nvidia Inc. had its best week since 2017 after fourth-quarter results beat expectations. U.S. markets are closed Monday for a holiday. While uncertainty about the deadly virus that’s put China’s economy in a halt remained high, Fed Chairman Jerome Powell said the central bank is monitoring the fallout from the pandemic. Adding to investor optimism data showing retail sales strengthened for a fourth consecutive month, putting consumers on track to support further economic growth.
“What we’re seeing here with the new highs in the market is optimism that coronavirus will not hit global GDP perhaps as much as initially expected,” said Jeff Zipper managing director at U.S. Bank Private Wealth Management, which has about $181 billion in assets under management. “Then you have earnings coming in better-than-expected. And then you have a Fed on the  sidelines which has helped the market.” Economic data Friday showed retail sales rose in January for a fourth straight month as cheaper prices at the gas pump encouraged Americans to spend on other goods, underscoring steady consumer spending. Next week, Walmart Inc. is set to give investors an insight into the state of the consumer. Machinery giant Deere & Co. is also set to issue an update on its quarterly results. Oil rose above $52 a barrel in New York, and the dollar kept close to its level versus a basket of peers. Gold gained and the yen held steady. The Stoxx Europe 600 Index closed lower Friday but was also up for the week. The euro steadied near a 2017 low after data showed the region’s economy grew a scant 0.1% in the fourth quarter, matching forecasts. Major Asian equity markets climbed except for those in Tokyo and Mumbai.
“As virus concerns continue to linger, and presumably will be a focal point in the near future, U.S. retail health is largely immune from the virus, so we likely won’t see any impacton this data, especially this early,” said Mike Loewengart, vice president of investment strategy at E-Trade Financial. “What’s really important for investors to remember is that fundamentals are strong and our economy still continues to grow – debunking expectations of 2020 stagnation, at least for now.” While Beijing reported a smaller increase in virus cases in the epicenter of Hubei versus the previous day, they were still more than before counting methodology was changed. That’s clouded the picture of the outbreak in a week that’s seen Chinese airlines put workers on leave and firms such as drug maker AstraZeneca Plc warn of a tougher outlook because of the disease. Nonetheless, investors anticipate a possible V-shaped economic recovery from the virus, even as the effects continue to be felt. Nearly 86,000 domestic and international flights in and out of China were canceled from Jan. 23 to Feb. 11. That’s 34% of scheduled services. Hubei reported almost 5,000 new cases, a day after confirming nearly 15,000. The death toll in China was at 1,380, lower by more than 100 to account for some double-counting. The World Health Organization has said the surge in diagnoses didn’t necessarily indicate a spike in infections.
These are the main moves in markets:
Stocks
*The S&P 500 Index gained 0.2% to 3,380.16 as of 4 p.m. New York time, the highest on record.
*The Stoxx Europe 600 Index decreased 0.1% to 430.52.
*The MSCI Asia Pacific Index dipped 0.1% to 170.41.
*The MSCI Emerging Market Index was little changed at 1,105.94.
Currencies
*The Bloomberg Dollar Spot Index was little changed at 1,206.92.
*The euro was little changed at $1.0838, the weakest in almost three years.
*The British pound was little changed at $1.3048, hitting the strongest in almost two weeks with its fifth consecutive advance.
*The offshore yuan weakened 0.1% to 6.9926 per dollar.
*The Japanese yen was little changed at 109.78 per dollar.
Bonds
*The yield on 10-year Treasuries declined three basis points to 1.59%.
*The yield on two-year Treasuries fell one basis point to 1.43%.
*Germany’s 10-year yield decreased two basis points to -0.40%.
*Britain’s 10-year yield fell two basis points to 0.628%, the largest fall in a week.
Commodities
*West Texas Intermediate crude gained 1.3% to $52.06 a barrel, the highest in two weeks.
*Gold strengthened 0.4% to $1,582.74 an ounce, the highest in almost two weeks.
*LME copper climbed 0.5% to $5,790 per metric ton, the highest in almost three weeks.

Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann

Of all forms of  caution, caution in love is perhaps the most fatal to true happiness.
                                                                         -Bertrand Russell, 1872-1970
                                                                    The Conquest of Happiness, 1930

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
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www.carolannsteinhoff.com