May 29, 2020 Newsletter

Dear Friends,

Tangents: Happy Friday!

Parisians, annoyed at government restrictions, have adopted a rebellious new drinking tradition: the apérue, in which revelers gather on the city’s streets (or rues) to enjoy pre-dinner drinks. –The New York Times.

On May 29, 1953, Mount Everest was conquered as Edmund Hillary of New Zealand and Sherpa Tenzing Norgay of Nepal became the first climbers to reach the summit.  Go to article »

                                                                                                                                         Farvardin Daliri
Coronavirus lockdown presented the perfect opportunity for Farvardin Daliri to complete his magnum opus: a 15-foot-tall replica of a laughing kookaburra, a beloved Australian bird. Mr. Daliri, an Iranian-born 65-year-old who moved to Australia in the 1980s, built it in his yard in Brisbane.
The body includes fiberglass, steel mesh, bamboo, ceramic and plenty of hot glue, and a sound system inside emits the bird’s distinctive cackling laugh. The entire sculpture is registered as a boat trailer.
He said he just wanted to cheer people up. “If a bird can laugh, why not me?” he said. –The New York Times.
PHOTOS OF THE DAY

Cloud iridescence, an optical phenomenon where light is diffracted through water droplets, is pictured at the edge of clouds before a summer thunderstorm over Bangkok, Thailand.
CREDIT: ALEX OGLE/AFP VIA GETTY IMAGES

A genius artist and designer has created a series of stunning fairy sculptures out of metal wire. Engineer and designer Robin Wight, 59, from Oakamoor, Staffs, UK, was twisting an old piece of wire up in early 2010. Robin realised metal wire was a good material to model with, and began creating simple human figures out of it. Robin said: “The initial new result was very crude and certainly would not win any prizes, but as proof of concept for wire as a material to work with, I was hooked!” Robin was then inspired by a photo that he had recently taken in a local wood, and which shows the light streaming through the trees forming a fairy figure. He began using wire to create stunning fairy sculptures, which he installed in his garden and in fields and woods close to his property, often using rotating pedestals.
CREDIT: CATERS NEWS AGENCY  

Local kayakers gathered before sunset for a memorial paddle out at Funkytown in Fountainstown, Co. Cork, Ireland. Surfing’s most hallowed ritual a ‘paddle out s usually to honour the life of a fallen surfer, but on this occasion it’s to remember all those who have passed during the present Coronavirus pandemic.
CREDIT: DAVID CREEDON/ALAMY LIVE NEWS
Market Closes for May 29th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day on 1946, with the stock market still euphoric over peace, the Dow Jones Industrial Average hits its immediate post-World War II high of 212.50. It’s a level it would not surpass again until April 12, 1950—nearly four years of chronic doldrums
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 0.5 percent, or 69.9 to 15,192.83 in Toronto. The move was the biggest since falling 0.8 percent on May 21.
Royal Bank of Canada contributed the most to the index decline, decreasing 2.2 percent. Canopy Growth Corp. had the
largest drop, falling 20.8 percent.
Today, 130 of 229 shares fell, while 96 rose; 5 of 11 sectors were lower, led by financials stocks.
Insights
* So far this week, the index rose 1.9 percent
* This month, the index rose 2.8 percent
* The index declined 5.8 percent in the past 52 weeks. The MSCI AC Americas Index gained 8 percent in the same period
* The S&P/TSX Composite is 15.5 percent below its 52-week high on Feb. 20, 2020 and 36 percent above its low on March 23, 2020
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.9 on a trailing basis and 24.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.5 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.31t
* 30-day price volatility fell to 22.93 percent compared with 24.59 percent in the previous session and the average of 33.77 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -92.4688| -2.1| 3/23
Health Care | -12.9674| -7.6| 1/9
Industrials | -3.7246| -0.2| 13/18
Real Estate | -3.3107| -0.7| 8/17
Utilities | -1.4312| -0.2| 6/10
Consumer Discretionary | 0.2221| 0.0| 6/8
Energy | 1.8659| 0.1| 8/22
Consumer Staples | 2.7072| 0.4| 9/2
Communication Services | 3.7844| 0.4| 4/3
Materials | 12.9018| 0.6| 29/17
Information Technology | 22.5223| 1.6| 9/1
US
By Vildana Hajric and Claire Ballentine
(Bloomberg) — Relentless investor optimism over prospects for an economic recovery continued to overwhelm everything else in markets, pushing stocks higher on a day Donald Trump escalated his war of words with China.
While the president blasted the Communist country for its actions on the pandemic and in Hong Kong, traders took some solace in the absence of new draconian economic restrictions.
“There was nothing on changing the trade deal or anything else with teeth. Looking into actions, might do something in the future, but markets won’t worry about that now,” said Dennis DeBusschere, a strategist at Evercore ISI. “He also stuck to script and hit many of the logical things people are upset with.”
The S&P 500 ended May on an up note as it capped a second monthly advance. Equities turned higher after Trump announced retaliation against China by withdrawing from the World Health Organization. He said his administration will look into eliminating policies that give Hong Kong preferential treatment.
The president did not institute sanctions on Chinese officials as was anticipated. Stocks gained 4.5% in May, buoyed by signs the economy is stirring after shutting down in April. But a flurry of negative headlines weighed on sentiment earlier in the day. U.S. consumer spending, which accounts for about two-thirds of the world’s largest economy, plunged a record 13.6% in April after the coronavirus pandemic halted purchases of all but the most essential goods and services.
Meanwhile, the president is escalating a confrontation with Twitter Inc. that threatens to damage social-media platform operators. Trump is also weighing in on political unrest in the Midwest, where protests against police violence have turned unruly. Chairman Jerome Powell said the Federal Reserve’s main  street lending program will start soon.
“I’m very cautious on my medium and even long-term outlook for the markets,” Kate Jaquet, a portfolio manager at Seafarer Capital Partners LLC, said on Bloomberg TV. “I perceive there to be a very large disconnect between stock-market valuations across the globe and underlying company fundamentals.”
The Stoxx 600 Index declined for the first time in five days, dragged lower by travel shares and automakers. The euro edged higher after the region’s inflation rate fell to the lowest in four years, adding to reasons for authorities to expand monetary stimulus. Iron ore surged past $100 a ton as supply woes in Brazil coincide with sustained, robust demand in top steel producer China. Crude oil rallied late and posted its biggest monthly advance on record.
These are some of the main market moves:
Stocks
*The S&P 500 Index gained 0.5% to 3,044.31 as of 4:03 p.m. New York time, the highest in more than 12 weeks.
*The Dow Jones Industrial Average dipped 0.1% to 25,383.11.
*The Nasdaq Composite Index gained 1.3% to 9,489.87, the highest in 14 weeks on the largest climb in more than a week.
*The MSCI All-Country World Index climbed 0.1% to 509.53, reaching the highest in 12 weeks on its fifth straight advance.
Currencies
*The Bloomberg Dollar Spot Index dipped 0.2% to 1,228.25, the lowest in 11 weeks.
*The euro gained 0.2% to $1.1102, the strongest in two months.
*The Japanese yen depreciated 0.2% to 107.82 per dollar, the weakest in six weeks.
Bonds
*The yield on two-year Treasuries sank one basis point to 0.16%, the lowest in two weeks on the biggest tumble in more than a week.
*The yield on 10-year Treasuries decreased four basis points to 0.65%, the lowest in two weeks on the largest tumble in more than a week.
*Britain’s 10-year yield declined three basis points to 0.184%, the biggest drop in more than a week.
*Germany’s 10-year yield decreased three basis points to -0.45%, the largest tumble in more than three weeks.
Commodities
*West Texas Intermediate crude increased 4.4% to $35.21 a barrel, the highest in more than 11 weeks on the biggest climb in more than a week.
*Gold strengthened 0.8% to $1,731.78 an ounce, the largest climb in more than two weeks.

Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

We are all broken.  That’s how the light gets in.
                   -Ernest Hemingway, 1899-1961

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