June 16, 2020 Newsletter

Dear Friends,

Tangents:
On June 16, 1933, President Roosevelt opened his New Deal recovery program, signing bank, rail, and industry bills and initiating farm aid. Go to article »

Here’s the real reason we procrastinate. –Bloomberg.

There could be 36 communicating intelligent civilizations in our galaxy
Show yourself, civilizations! We could use a friend. -CNN
PHOTOS OF THE DAY

Stunning photographs show the different techniques used by fishermen and fisherwoman in a shallow river in Garbeta in the Medinipur district in West Bengal, India. The women use wooden triangular shaped baskets while the men cast five metre nets out in a wide circle. After working all day they divide the fish up equally and sell them at the local market.
CREDIT: SAURABH SIROHIYA/SOLENT NEWS

A great tit pecks a caterpillar with its beak in Niedereschach Germany.
CREDIT: SILAS STEIN/DPA VIA AP

The Global Rainbow, a large scale outdoor laser projection created by Puerto Rican artist Yvette Mattern, is projected into the night sky to mark Gay Pride Parade Day, which was cancelled due to the COVID-19 novel coronavirus pandemic, in Sao Paulo, Brazil, on June
CREDIT: NELSON ALIMEIDA/ AFP VIA GETTY IMAGES
Market Closes for June 16th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1934, William F. Sharpe was born in Boston. He went on to develop many of the principles of modern finance, including the capital asset pricing model (which implies that broad diversification and index funds offer the best blend of risk and return), beta (a measure of volatility) and the Sharpe ratio (which compares risk and reward). Mr. Sharpe shared the 1990 Nobel Prize in economics.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian equity markets rose for a third day along with U.S. stocks as optimism over a recovering U.S. economy overrode concern that coronavirus cases are growing from Texas to China.
The S&P/TSX Composite index rose 1% in Toronto, bringing the three-day gain to 3.1%. Health care, energy and financials were the best performing stocks, while materials were the worst performing sector.
Foreign investors mopped up the flood of new issuance by Canadian governments and companies, a sign the nation continues to be viewed as a safe haven. Investors from outside the country bought a net C$49 billion ($36 billion) of Canadian securities in April, the largest monthly purchases from abroad on record, Statistics Canada reported Tuesday.
Bank of Canada Governor Tiff Macklem said the bank will continue purchasing Canadian government bonds until the economic recovery is well underway, sticking to a promise by his predecessor, Stephen Poloz.
Commodities
* Western Canada Select crude oil traded at a $8.50 discount to West Texas Intermediate
* Spot gold was slightly up at $1,726.75 an ounce
FX/Bonds
* The Canadian dollar strengthened 0.1% to C$1.3557 per U.S. dollar
* The 10-year government bond yield rose to 0.554%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 1 percent, or 156.16 to 15,515.83 in Toronto.
Enbridge Inc. contributed the most to the index gain, increasing 2.7 percent. Pason Systems Inc. had the largest increase, rising 10.7 percent.
Today, 166 of 229 shares rose, while 59 fell; 10 of 11 sectors were higher, led by financials stocks.
Insights
* This quarter, the index rose 16 percent, heading for the biggest advance in at least 10 years
* The index declined 4.8 percent in the past 52 weeks. The MSCI AC Americas Index gained 7.2 percent in the same period
* The S&P/TSX Composite is 13.7 percent below its 52-week high on Feb. 20, 2020 and 38.9 percent above its low on March 23, 2020
* The S&P/TSX Composite is down 2 percent in the past 5 days and rose 6 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.4 on a trailing basis and 25.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.4 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.33t
* 30-day price volatility rose to 20.88 percent compared with 20.73 percent in the previous session and the average of 22.57 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 71.5762| 1.6| 25/1
Energy | 45.1392| 2.3| 24/4
Industrials | 27.1990| 1.5| 28/3
Communication Services | 11.8371| 1.4| 6/2
Health Care | 8.1624| 5.2| 7/2
Consumer Staples | 7.7649| 1.2| 8/3
Information Technology | 6.5161| 0.5| 7/3
Real Estate | 4.5229| 0.9| 22/4
Consumer Discretionary | 4.3253| 0.8| 10/4
Utilities | 2.5107| 0.3| 11/4
Materials | -33.3886| -1.6| 18/29
US
By Vildana Hajric and Claire Ballentine
(Bloomberg) — Stocks rose for a third day as optimism over a recovering U.S. economy overrode concern that coronavirus cases are worsening in locations ranging from Texas to China.
Treasury yields rose and the dollar strengthened.
The S&P 500 climbed 1.9%, with energy, health care and materials leading all 11 industry sectors higher in the biggest gain in more than a week. The benchmark index initially surged after data showed U.S. retail sales jumped by the most on record. Federal Reserve Chairman Jerome Powell said the U.S. economy may be bottoming out during his semi-annual policy report to Congress.
“Right now there’s more cross currents than I can ever remember,” said John Porter, chief investment officer of equities at Mellon Investments. “The weight of where investors are focusing day-to-day really swings wildly from fears of the second wave, concerns about escalating tensions with China, complete vacuum of visibility on earnings.”
Stocks briefly pared gains after Florida reported that new cases rose to the highest level since the pandemic began and Texas saw hospitalizations surge.    Elsewhere, Beijing shut its schools on concern about new infections.
“It shows you that the market is still extremely reactive in both directions to any virus-related news, especially on the upside when it’s good news,” said Liz Ann Sonders, chief investment strategist at Charles Schwab & Co. Government stimulus has been a key feature of the global equities rally, despite soaring unemployment and signs that a second wave of the virus has started to emerge. Now there are signals that more economic support is on the way.
The Trump administration is preparing a nearly $1 trillion infrastructure proposal as part of its push to spur the world’s largest economy back to life, according to people familiar with the plan. On top of that, the Fed will start buying individual corporate bonds.
“The Fed is delivering on its promise to do whatever it takes,” said Todd Jablonski, chief investment officer at Principal Portfolio Strategies. “They can’t however offset the volatility that comes with risk assets as the number of cases picks up.”
Elsewhere, oil climbed above $38 a barrel in New York amid signs of improving demand and declining production.
These are some key events coming up:
* Policy decisions from the Bank of England and the Swiss National Bank are due later this week.
* The New York Stock Exchange may allow a limited number of market makers to return to its historic trading floor Wednesday.

These are some of the main moves in markets:
Stocks
*The S&P 500 Index advanced 1.9% to 3,124.74 as of 4:03 p.m. New
*York time, the largest gain in more than a week.
*The Dow Jones Industrial Average advanced 2% to 26,289.98, the biggest gain in more than a week.
*The Nasdaq Composite Index gained 1.7% to 9,895.87, the largest gain in more than a week.
*The MSCI All-Country World Index surged 2.3% to 528.38, the biggest jump in more than four weeks.
Currencies
*The Bloomberg Dollar Spot Index gained 0.2% to 1,213.34.
*The euro decreased 0.6% to $1.1258.
*The Japanese yen was little changed at 107.31 per dollar.
*The British pound fell 0.3% to $1.2568.
Bonds
*The yield on two-year Treasuries gained one basis point to 0.20%, the highest in a week.
*The yield on 10-year Treasuries climbed three basis points to 0.75%, the highest in a week.
*Germany’s 10-year yield gained two basis points to -0.43%, the first advance in a week and the largest gain in more than a week.
*Britain’s 10-year yield increased less than one basis point to 0.207%.
Commodities
*West Texas Intermediate crude advanced 2.7% to $38.13 a barrel, the largest gain in more than a week.
*Gold strengthened 0.1% to $1,726.65 an ounce.
–With assistance from Katherine Greifeld.
Have a great night.

Be magnificent!
As ever,

Carolann

If you’re always trying to be normal you will never know how amazing you can be.
                                                                          -Maya Angelou, 1928-2014

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