November 17, 2020 Newsletter

Dear Friends,

Tangents:
Birds have scandals, too.  A flightless parrot has been named Bird of the Year after a lengthy and bitter election campaign marred by voter fraud. -CNN.

Racing pigeon sells for $1.9 million at auction. –Bloomberg.

Sports of the Times: Chris Nikic, 21, is the first person with Down syndrome to complete an Ironman triathlon, offering a lesson in perseverance and hope.

Gamers are onto something.  Playing video games can improve your mental health. So says a study by University of Oxford that singles out two games.-CNN.

1869 – The Suez Canal opened in Egypt, linking the Mediterranean and the Red seas. Go to article »

Earth has a new mini-moon, sort of. 

Take a virtual tour of the fabled Honey Forest in northeastern Turkey, which is home to the beekeeping traditions of the Hemshin people. The forest is full of the prized hornbeam trees that have been used for generations to keep bees.
PHOTOS OF THE DAY

A view shows a statue by Lebanese artist, Hayat Nazer, which is made entirely out of broken glass and debris of the August 4 port explosion, near the port of Beirut, Lebanon.
CREDIT: REUTERS/MOHAMED AZAKIR

A surfer wades out into the sea on Brighton beach, UK, for an early morning surf.
CREDIT: ANDY WEEKES

The Shard Christmas lights are switched on in London, UK.
CREDIT: JEREMY SELWYN/EVENIING STANDARD/ EYEVINE
Market Closes for November 17^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1927, President Calvin Coolidge said America was “entering upon a new era of prosperity.” Although Coolidge may not have been the first to use the words “new era,” his remarks christened the bull market of the 1920s. In this “new era” market, according to many investors, you couldn’t pay too much for a good stock; if you just waited long enough, it would make you rich. That worked for a while. Then it stopped working—for more than a quarter of a century
Canada
By Michael Bellusci
(Bloomberg) — Canadian stocks advanced Tuesday while U.S. equities dropped in the midst of a surge in virus cases.
The S&P/TSX Composite Index gained 0.3%, with energy and real estate shares leading the advance. Materials dropped as gold prices stalled. Keystone XL is receiving an investment from Canadian indigenous groups in a deal that TC Energy Corp. hopes will help save its embattled oil pipeline project from being scrapped by U.S. President-elect Joe Biden.
Transat AT Inc. told shareholders it’s seeking to allay antitrust issues pinpointed by the European Union over its takeover by Air Canada and hopes to win approval by February. Bank of Canada Governor Tiff Macklem called on the country’s banks and businesses to act more quickly to disclose their exposure to risks posed by global warming.
Commodities
* Western Canada Select crude oil traded at a $9.50 discount to West Texas Intermediate
* Spot gold fell 0.4% to $1,881 an ounce
FX/Bonds
* The Canadian dollar fell 0.1% to C$1.3089 per U.S. dollar
* The 10-year government bond yield fell 4.4 basis points to 0.639%
By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.3 percent, or 58.25 to 16,948.06 in Toronto. The index advanced to the highest closing level since Feb. 26. Royal Bank of Canada contributed the most to the index gain, increasing 1.7 percent. Trillium Therapeutics Inc. had the largest increase, rising 10.8 percent.
Today, 116 of 222 shares rose, while 101 fell; 6 of 11 sectors were higher, led by financials stocks.
Insights
* This year, the index fell 0.7 percent, heading for the worst year since 2018
* The index declined 0.5 percent in the past 52 weeks. The MSCI AC Americas Index gained 16 percent in the same period
* The S&P/TSX Composite is 5.7 percent below its 52-week high on Feb. 20, 2020 and 51.7 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 2 percent in the past 5 days and rose 3.1 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 26.4 on a trailing basis and 23.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.59t
* 30-day price volatility fell to 15.52 percent compared with 15.92 percent in the previous session and the average of 14.83 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 55.5985| 1.1| 21/4
Energy | 24.7893| 1.3| 17/6
Real Estate | 6.5496| 1.2| 22/4
Consumer Staples | 2.5563| 0.4| 4/6
Health Care | 0.8220| 0.4| 6/4
Utilities | 0.2543| 0.0| 11/5
Information Technology | -0.7586| 0.0| 7/2
Communication Services | -0.9928| -0.1| 2/5
Consumer Discretionary | -1.2387| -0.2| 4/9
Industrials | -7.1327| -0.3| 11/17
Materials | -22.1834| -0.9| 11/39
US
By Claire Ballentine
(Bloomberg) — Stocks pulled back from record highs as investor focus turned to the surge in virus cases and new lockdown measures, overshadowing optimism that Covid-19 vaccines will eventually end the pandemic.
Pharmacy chains were among the worst performers on the S&P 500 Index after Amazon.com Inc. unveiled a new push into prescription drugs. Tesla Inc. jumped on news the carmaker will join the benchmark U.S. gauge. Treasury yields dipped along with the dollar as Federal Reserve Chair Jerome Powell said the U.S. economy still has a “long way to go” before it fully recovers from the pandemic. Investors are taking a pause after sending stocks to all- time highs Monday in the wake of news that Moderna Inc.’s vaccine was shown to be 94.5% effective in a clinical trial. Wide distribution of a shot is still months away, and cases are spreading quickly in the U.S. and Europe. Chancellor Angela Merkel warned that the situation in Germany remains “very serious,” while Ohio, Illinois and Pennsylvania announced new restrictions tied to the virus. “Markets find themselves in a seemingly awkward moment as they attempt to weigh the near-term Covid trends and the potential for a very tough few months for the economy against the optimism and progress around vaccine development,” said Yousef Abbasi, global market strategist at StoneX.
Elsewhere, Asian stocks were slightly higher. In Europe, travel and leisure companies led declines as more lockdown rules were announced. The pound rose on signs the U.K. and European Union are nearing a breakthrough on Brexit as early next week.
Here are some events to watch out for this week:
* Brexit talks look set to continue as the U.K. and EU approach the latest deadline.
* Bloomberg New Economy Forum virtually convenes global leaders to discuss trade, growing political populism, climate change, and the pandemic. Through Nov. 19.
* Bank Indonesia rate decision Thursday.

These are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.5% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index declined 0.2%.
* The MSCI Asia Pacific Index climbed 0.2%.
* The MSCI Emerging Market Index fell 0.1%.
Currencies
* The Bloomberg Dollar Spot Index decreased 0.2%.
* The euro increased 0.1% to $1.1864.
* The British pound advanced 0.4% to $1.3251.
* The Japanese yen strengthened 0.4% to 104.2 per dollar.
Bonds
* The yield on 10-year Treasuries sank four basis points to 0.87%.
* Germany’s 10-year yield declined two basis points to -0.56%.
* Britain’s 10-year yield fell two basis points to 0.32%.
Commodities
* West Texas Intermediate crude rose 0.1% to $41.38 a barrel.
* Gold fell 0.4% to $1,881.34 an ounce.
–With assistance from Andreea Papuc, Vildana Hajric, Yakob Peterseil and Cecile Gutscher
Have a great night.

Be magnificent!
As ever,

Carolann

Inspiration exists, but it has to find you working.
                             -Pablo Picasso, 1881-1973

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
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www.carolannsteinhoff.com