February 20, 2020 Newsletter

Dear Friends, 
 
Tangents:
On Feb. 20, 1962, astronaut John Glenn became the first American to orbit Earth as he flew aboard the Friendship 7 Mercury capsule. Go to article »

             RISKS
To laugh is to risk appearing a fool,
To weep is to risk appearing sentimental.
To reach out to another is to risk involvement,
To expose feelings is to risk exposing your true self.
To place your ideas and dreams before a crowd is to risk their loss.
To love is to risk not being loved in return,
To live is to risk dying,
To hope is to risk despair,
To try is to risk failure.
But risks must be taken because the greatest hazard in life is to risk nothing.
The person who risks nothing, does nothing, has nothing, is nothing.
He may avoid suffering and sorrow,
But he cannot learn, feel, change, grow or live.
Chained by his servitude he is a slave who has forfeited all freedom.
Only a person who risks is free.
                                                           ― Leo F. Buscaglia

Samsung’s Z Flip tempts iPhone users. But will they switch? –Bloomberg.

Woman plays violin during brain surgery to preserve the skill. (h/t Scott Kominers) –Bloomberg.
 
PHOTOS OF THE DAY

A herd of red deer snakes over a snowy mountain in Glenshee, Cairngorms National Park, Scotland.
CREDIT: EUAN CHERRY

Josh Scott, 13, gets some air on his scooter at the Malmesbury Skate Festival.

The annual event sees the inside of Malmesbury’s 12^th Centruy former Benedictine Abbey being turned into a skate park for the week during school half term.
CREDIT: STEPHEN SHEPHERD/LNP
 
Market Closes for February 20^th , 2020 
 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1852, a locomotive of the Michigan Southern railroad puffed into Chicago, connecting the breadbasket of the world directly with the Eastern U.S. for the first time. Instead of more than two weeks by horse, coach and canal boat, it would take just two days by rail to travel from New York City to Chicago. Goods, money and people were able to flow between the two booming cities faster than anyone had ever imagined.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the fourth day, climbing 0.1 percent, or 18.7 to 17,944.06 in Toronto. Nutrien Ltd. contributed the most to the index gain, increasing 3.3 percent. Northview Apartment Real Estate Investment Trust had the largest increase, rising 12.8 percent. Today, 124 of 231 shares rose, while 101 fell; 8 of 11 sectors were higher, led by financials stocks.
Insights
* So far this week, the index rose 0.5 percent
* This month, the index rose 3.6 percent
* The index advanced 12 percent in the past 52 weeks. The MSCI AC Americas Index gained 20 percent in the same period
* The S&P/TSX Composite is 0.1 percent below its 52-week high on Feb. 20, 2020 and 12.9 percent above its low on March 8, 2019
* The S&P/TSX Composite is up 0.6 percent in the past 5 days and rose 2 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.1 on a trailing basis and 16.1 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$2.73t
* 30-day price volatility fell to 6.48 percent compared with 6.53 percent in the previous session and the average of 5.51 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 21.9005| 0.4| 18/6
Real Estate | 5.2804| 0.8| 20/5
Energy | 4.9919| 0.2| 21/9
Consumer Discretionary | 2.4558| 0.3| 9/7
Materials | 2.0616| 0.1| 20/26
Industrials | 1.3514| 0.1| 12/18
Utilities | 0.5841| 0.1| 10/6
Health Care | 0.2720| 0.1| 5/5
Consumer Staples | -1.8906| -0.3| 4/6
Information Technology | -7.6201| -0.7| 4/6
Communication Services | -10.6949| -1.1| 1/7

US
By Vildana Hajric and Claire Ballentine
(Bloomberg) — U.S. equities slumped on concern that the coronavirus that originated in China will take a heavy toll on corporate earnings. The dollar jumped and gold climbed to a seven-year high as investors sought havens. Microsoft Corp., Apple Inc. and other big tech names led losses after Japan reported two deaths and South Korea confirmed its first fatality from the disease amid a report the illness was spreading in Beijing. ViacomCBS Inc. tumbled after sales missed estimates, while Morgan Stanley dropped after agreeing to buy E*Trade Financial Corp. for $13 billion. The S&P 500 Index pared the worst of its decline in the afternoon amid gains for automakers and real-estate companies. The yen extended its fall toward 112 per dollar amid disappointing economic news and early positioning before the fiscal year-end next month. Treasuries rallied. Sentiment turned negative Thursday, a day after equities reached record highs, as the infection that originated in China continues to expand beyond the mainland.
     Earnings misses are adding to the gloom, alongside fresh warnings on the pathogen’s impact from A.P. Moller-Maersk A/S, the world’s largest container shipping firm, and Air France-KLM. Goldman Sachs Group Inc.’s chief equity strategist said a near-term correction for the stock market is looking more probable. “It could be some larger players hedging against downside risk of the coronavirus spreading,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. “That, on top of the Goldman call that a correction is more likely, has people on edge.” Elsewhere, subpar results from AXA SA and Telefonica SA
weighed on European equity gauges. Asia stocks traded mixed. Oil gained in New York.
Here are some key events coming up:
* Earnings season rolls on, with results from Deere & Co. set for Friday.
* Euro-area PMI and inflation data are also due Friday.
* Group of 20 finance ministers and central bank chiefs are due to meet Feb. 22-23 in Riyadh, Saudi Arabia, and are expected to discuss efforts to support growth amid the coronavirus threat.

These are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.4% at the close of trading in New York.
* The Stoxx Europe 600 Index fell 0.9%.
* The MSCI Asia Pacific Index sank 0.7%.
Currencies
* The Bloomberg Dollar Spot Index jumped 0.5%.
* The euro slipped 0.2% to $1.0787.
* The Japanese yen weakened 0.6% to 112.08 per dollar.
Bonds
* The yield on 10-year Treasuries sank five basis points to 1.52%.
* Germany’s 10-year yield declined three basis points to -0.45%.
* Britain’s 10-year yield dipped two basis points to 0.57%.
Commodities
* West Texas Intermediate crude gained 0.9% to $53.78 a barrel.
* Gold strengthened 0.5% to $1,619.80 an ounce.

–With assistance from Cormac Mullen, Adam Haigh, Todd White and Yakob Peterseil.

Have a great night.
 
Be magnificent!
As ever,
 
Carolann
 
Don’t fritter away your time.  Create, act, take a place wherever you are and be somebody.
                                                      -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