November 12, 2020 Newsletter

Dear Friends,

Tangents:
Auguste Rodin, French sculptor, b. 1840.
Neil Young, singer songwriter, b. 1945

In Anglo-Saxon times, November was known as Blotmonaþ (blood month or sacrifice month).  Another Saxon name was Windomōnath, “wind month” when fishermen beached their boats and stopped fishing until the next spring.

No sun – no moon!
No morn -no noon –
No dawn – no dusk – no proper time of day.
No warmth, no cheerfulness, no healthful ease.
No comfortable feel in any member –
No shade, no shine, no butterflies, no bees.
No fruits, no flowers, no leaves, no birds –
November!
       -Thomas Hood, 1844.

On Nov. 12, 1942, the World War II naval Battle of Guadalcanal began. The Americans eventually won a major victory over the Japanese. Go to article »

Fans of “The Crown” prepare for Diana.  The face that launched a thousand tabloid stories is taking center stage in the fourth season of the Netflix series, which begins airing Nov. 15. The new season takes us back to the beginning of Diana and Prince Charles’s disastrous love story, when the world was thrilled to believe in what seemed like a fairy tale.  The season also introduces us to Gillian Anderson as Prime Minister Margaret Thatcher, the latest in a long line of Thatcher impersonators.  Accuracy was a major focus, the show’s creator said. The research team relied heavily on advisers with direct knowledge of the events. “The more I’ve learned about the intricacies of this marriage and this relationship, the harder it’s been to pick sides,” said Emma Corrin, who plays Diana. -from The New York Times.

PHOTOS OF THE DAY

A general view is seen of poppies projected onto the sails of the Opera House in Sydney, Australia
CREDIT: JENNY EVANS/GETTY IMAGES

RAF veteran Alan McQuillin, 97, observes the two minute silence outside his home in Cirencester, Gloucestershire, on Armistice Day
CREDIT: JACOB KING/PA WIRE

 A royal banquet hosted by Crown Prince Hyomyeong for his mother’s birthday in 1828 is reenacted at Changdeok Palace in Seoul, South Korea
CREDIT: YONHAP/EPA-EFE/SHUTTERSTOCK

People walk under flower arches at the Dubai Miracle Garden, the world’s largest flower garden, in the United Arab Emirates
CREDIT: KARIM SAHIB/AFP
Market Closes for November 12^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
I’d be a bum on the street with a tin cup , if the markets were always efficient. –Warren Buffett.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian equity markets slid on Thursday after three consecutive days of gains as energy and health care underperformed.
The S&P/TSX Composite Index fell 1.1% in Toronto, the most in more than two weeks. Energy stocks were the worst performers as oil dropped after an unexpected increase in U.S. stockpiles and a Federal Reserve warning that a vaccine may not be enough to get the economy back on track.
Materials were the best performing stocks as gold advanced after record U.S. Covid cases lifted the appeal of the haven metal.
Meanwhile, Brookfield Asset Management Inc. is launching a reinsurance business and plans to distribute shares in the new entity to its investors in the form of a $500 million special dividend.
Commodities
* Western Canada Select crude oil traded at a $10.10 discount to West Texas Intermediate
* Spot gold rose 0.5% to $1,875.60 an ounce
FX/Bonds
* The Canadian dollar weakened 0.5% to C$1.3132 per U.S. dollar
* The 10-year government bond yield fell 6 basis points to 0.719%
US
By Rita Nazareth and Claire Ballentine
(Bloomberg) — Stocks slumped and Treasuries rallied as a resurgence in coronavirus cases added to concern about tougher restrictions that could slow down the economic recovery without further stimulus.
The S&P 500 sank as much as 1.5% as New York City – the early epicenter of the pandemic in the U.S. — prepared for the possibility of closing its schools while Chicago issued an advisory urging residents to avoid leaving home except for work and other essential activities. The Trump administration is stepping back from talks on a relief package and leaving it up to Congress to revive negotiations with House Speaker Nancy Pelosi, according to people familiar with the situation. All major groups in the American equity benchmark fell, with energy and financial companies among the worst performers. Benchmark 10-year Treasury yields moved away from the cusp of 1%.
Three of the world’s top central bankers warned that the prospect of a Covid-19 vaccine isn’t enough to put an end to the economic challenges created by the pandemic. Coronavirus infections and hospitalizations are rising in 49 U.S. states, compared with a week ago, according to Covid Tracking Project data. Deaths, a lagging indicator, are climbing in 35. And the velocity at which records are being shattered suggests any decline may yet be far off. New York State saw nearly 10,000 new coronavirus cases over two days, as Governor Andrew Cuomo urged people to “buckle down.” “We’re experiencing a bit of exhaustion for the market as we focus on the troubling near-term Covid trends and the potential for a few tough months ahead,” said Yousef Abbasi, global market strategist at StoneX. JPMorgan Asset Management is cutting its projections for cross-asset returns over the next decade and signaling more pain for 60/40 allocations that have long formed the bedrock of traditional portfolios. Strategists at the firm reduced their estimate for global equities by 1.4 percentage point to 5.1% a year in the next decade, citing elevated valuations in U.S. large caps. They forecast negative inflation-adjusted returns across almost all sovereign bonds over the next 10 to 15 years, with yields remaining low even after rates normalize.
On the trade front, President Trump signed an order prohibiting U.S. investments in Chinese firms determined to be owned or controlled by the country’s military. Relations between the U.S. and China have deteriorated following the signing of a deal early in the year. Trump also has repeatedly vowed to punish Beijing over the coronavirus pandemic, its treatment of Muslim minorities and the crackdown on protesters in Hong Kong.
These are some of the main moves in markets:
Stocks
* The S&P 500 dipped 1% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index decreased 0.9%.
* The MSCI Asia Pacific Index rose 0.2%.
Currencies
* The Bloomberg Dollar Spot Index climbed 0.1%.
* The euro climbed 0.3% to $1.1809.
* The Japanese yen strengthened 0.3% to 105.11 per dollar.
Bonds
* The yield on 10-year Treasuries declined 10 basis points to 0.88%.
* Germany’s 10-year yield slid three basis points to -0.54%.
* Britain’s 10-year yield sank seven basis points to 0.348%.
Commodities
* The Bloomberg Commodity Index fell 0.4%.
* West Texas Intermediate crude dipped 1.1% to $40.98 a barrel.
* Gold climbed 0.6% to $1,876.59 an ounce.
–With assistance from Andreea Papuc, Adam Haigh, Todd White, Yakob Peterseil,
Lynn Thomasson, David Wilson, Ksenia Galouchko, and Vildana Hajric.

Have a great night.

Be magnificent!

As ever,

Carolann

The real voyage of discovery consists not in seeking new landscapes, but in having new eyes.
                                                                                          -Marcel Proust, 1871-1922

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