March 2nd, 2020 Newsletter

Dear Friends,

Tangents:  
R.I. P. JACK Welch.

March 2, 1904: Theodore Geisel, “Dr. Seuss,” writer, was born.
During his career, which spanned 60 years, as an illustrator and writer of children’s books, he filled the hearts and minds of generations of readers with joy, solace, and pure pleasure.  His characters like Horton and Nerkle and Humpf-Humpf-a-Dumpfer stick around in our heads forever; the memory of their stories read to us by parents or grandparents, or enjoyed in wonderful solitude, mark our childhood innocence and delight. 
 In 1937, Dr. Seuss’ first attempt at a child’s book – And to Think I Saw it on Mulberry Street – met rejection after rejection.  Finally, it was published and critics began to take notice.  But it was when Houghton Mifflin and Random House challenged Geisl to write a reading primer that wasn’t the usual boring, “See Dick run” kind of book, that he moved into our collective consciousness.  His answer to that challenge was the Cat in the Hat.  Handsome, kind and mischievous, Ted Geisl died on September 24, 1991, and left us an entire universe of whimsical creatures dedicated to our happiness.
www.seussville.com.

Unless someone like you cares a whole awful lot, nothing is going to get better.
It’s not. -Dr. Seuss.

Fisherman breaks state record with monster 37-pound lake trout 
This is every tall fishing tale come to life. -CNN
Extra dog days. Australian summers are now 31 days longer and winters 23 days shorter than in the 1950s, new research says, which means more extreme heat and less time for controlled burns to prevent bushfires. –Bloomberg.
PHOTOS OF THE DAY

Employees of the Paris Opera and the Comedie Francaise demonstrate against the pension reform, Paris, France
CREDIT: STEPHANE DE SAKUTIN/AFP
Enthusiasts take part in an attempt to set Russia’s record for the most number of people dousing themselves with icy water, to mark the end of calendar winter, in Krasnoyarsk, Russia
CREDUT: REUTERS
Richard Sikyna of Slovakia makes a jump as a rainbow forms behind in the MX2 race during the 2020 FIM MXGP World Championships in Winchester, England
CREDIT: JULIAN FINNEY/GETTY IMAGES EUROPE
Market Closes for March 2^nd, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
In most admired companies, key priorities are team work, customer focus, fair treatment of employees, initiative, and innovation.  In average companies the top priorities are minimizing risk, respecting the chain of command, supporting the boss, and making budget. -Bruce Pfau, Fortune.
Canada
By Michael Bellusci and Bloomberg Automation
(Bloomberg) — Canadian stocks snapped a six-day losing streak on Monday as investors gained confidence that stewards of the world’s largest economies would act in concert to offset any impact from the spreading coronavirus.
The S&P/TSX Composite rose 1.8% to 16,553.26 in Toronto. It was the biggest gain since December 2018. All eleven main industry groups rose, with communication services and utilities among the leaders.
Investors are betting the Bank of Canada will cut at least 25 basis points from its benchmark interest rate on Wednesday, swaps trading shows, with some betting on a 50 basis-point reduction.
Meanwhile, oil advanced the most in five months amid expectations central banks will move to prop up financial markets and OPEC will curb supplies in response to the virus- driven demand shock.
Commodities
* Western Canada Select crude oil traded at a $13.70 discount to West Texas Intermediate prices
* Spot gold added 0.7% to $1,595.95 an ounce
FX/Bonds
* The Canadian dollar strengthened 0.6% to C$1.3334 per U.S. dollar
* The 10-year government bond yield fell 2.7 basis points to 1.105%

================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 76.8050| 1.5| 22/4
Communication Services | 35.8014| 4.0| 7/1
Materials | 35.0275| 2.0| 38/9
Industrials | 34.1057| 1.9| 29/1
Utilities | 27.9630| 3.3| 16/0
Information Technology | 25.9816| 2.5| 8/2
Energy | 20.2429| 0.8| 20/10
Real Estate | 16.7488| 2.8| 22/3
Consumer Discretionary | 7.7961| 1.2| 12/5
Consumer Staples | 7.5012| 1.2| 10/1
Health Care | 2.2140| 1.2| 6/3
US
By Randall Jensen and Vildana Hajric
(Bloomberg) — U.S. stocks surged the most in fourteen months as investors gained confidence that stewards of the world’s largest economies would act in concert to offset any impact from the spreading coronavirus.
The S&P 500 rallied 4.6% after news that Group of Seven finance ministers and central bankers will hold a teleconference Tuesday to discuss how to respond to the outbreak. Tech shares led the rebound after seven straight days of declines for the benchmark index, with monetary policy makers from Japan to England joining the Federal Reserve in promising to take action to support their economies if needed.
Ten-year Treasury yields pared an early slide to trade little changed, while 30-year rates rose. Oil rallied on expectations that the OPEC+ alliance will deepen output cuts.
The stock gains provided hope for investors after last week’s nearly unprecedented rout, even as the S&P 500 Index traded more than 10% below the record it reached just two weeks ago. The coronavirus has already done severe economic damage — with the OECD warning that growth will sink to levels not seen in more than a decade — but investors are betting that policy makers will take decisive action to limit the pain.
“Markets are already looking beyond the first half, looking toward the second half to see whether or not we get a recovery in demand,” said Anik Sen, global head of equities at PineBridge Investments, which has about $101 billion in assets under management. “We’re finding stocks at much more reasonable levels than they have been.”
The global death toll from the virus has surpassed 3,000. U.S. cases climbed over the weekend, with the first infections appearing in New York City, Brussels and Berlin, while cases jumped in hot spots of Italy, Iran and South Korea. Positive tests in Italy jumped by more than 500 to 1,694 on Sunday with 41 deaths. Lombardy, the region that includes the financial capital of Milan, accounted for almost 1,000 cases.
Here are some key events coming up:
* The Reserve Bank of Australia sets policy on Tuesday.
* U.S. citizens in states including California and Texas will vote on “Super Tuesday” for a Democratic candidate to run against President Donald Trump in November’s election.
* The Bank of Canada has a rate decision on Wednesday.
* OPEC ministers gather in Vienna on March 5-6.

These are the main moves in markets:
Stocks
* The S&P 500 Index rose 4.6% as of 3:38 p.m. New York time.
* The Dow Jones Industrial Average gained 5.1%.
* The Nasdaq 100 Index advanced 4.9%.
* The Stoxx Europe 600 Index rose 0.1%.
* The MSCI Asia Pacific Index climbed 0.8%.
Currencies
* The Bloomberg Dollar Spot Index fell 0.4%.
* The euro increased 1.3% to $1.1163.
* The British pound slid 0.3% to $1.2782.
* The Japanese yen was little changed at 107.90 per dollar.
Bonds
* The yield on 10-year Treasuries was little changed at 1.15%.
* The yield on two-year Treasuries dipped one basis point to 0.90%.
* Germany’s 10-year yield fell two basis points to -0.63%.
Commodities
* West Texas Intermediate crude jumped 5.3% to $47.13 a barrel.
* Gold rose 0.5% to $1,593.64 an ounce.

–With assistance from Todd White, Claire Ballentine and Sam Potter.
Have a great night.

Be magnificent!

As ever,

Carolann

Mediocrity knows nothing higher than itself, but talent instantly recognizes genius.
                                                                -Sir Arthur Conan Doyle, 1859-1930

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
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com