January 6, 2021 Newsletter

Dear Friends,

Tangents: Epiphany or Twelfth Day, Three Kings Day

Joan of Arc, saint b. 1412
Carl Sandburg poet, b. 1878
Kahlil Gibran, b. 1883
Alan Watts, writer, b. 1916Break out the king cakes! It’s Epiphany, also known as Twelfth Night or Three Kings’ Day, which marks the start of Carnival season.

2001 With the vanquished Vice President Al Gore presiding, Congress certified Republican George W. Bush the winner of the close and bitterly contested 2000 presidential election. Go to article »

1941: US President Franklin Roosevelt makes hi “Four Freedoms” speech (freedom of speech and worship; freedom frow want and fear) during his US State of Union  address.

Astronomers agree: Universe is nearly 14 billion years old

A black hole is missing. 

The Late Night Hosts:
“[Imitating Trump] ‘Hello, is this the secretary of state of Arizona? Are you happy with your internet service? What if I told you you could combine Wi-Fi and cable for the price of only 11,000 votes?” — SETH MEYERS

“If this were an after-school special, this is the part where we would tell Mike Pence that if the president says he won’t like you unless you give him what he wants, then he doesn’t really care about you. He should like you for who you are — although we understand why he wouldn’t, because who you are is Mike Pence.” — STEPHEN COLBERT

“Poor Mike Pence. He hasn’t been this stressed out since the time he saw a woman in short sleeves.” — JIMMY KIMMEL
PHOTOS OF THE DAY

Despite warning issued by health authorities, Bulgarian men perform the traditional Horo dance in the city winter waters of the Tundzha river. Traditionally, an Eastern Orthodox priest throws a cross in the river.
CREDIT: NIKOLAY DOYCHINOV/AFP VIA GETTY IMAGES

A young boy holds the cross as believers stand in the icy Tundzha River, some waving national flags to recover a crucifix cast by a priest in an old ritual marking the feast of Epiphany, Wednesday, Jan 6, 2021. The legend goes that the person retrieves the wooden cross will be freed evil spirits and will be healthy throughout the year.
CREDIT:VALENTIA PETROVA/AP

Les Peebles dives into the River Ribble near Stainforth in North Yorkshire. Mr Peebles is swimming in the wild every day in January to raise money for the homelessness charity Crisis
CREDIT: DANNY LAWSON/PA
Market Closes for January 6^th, 2021 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1933, the New York Stock Exchange for the first time began requiring listed companies to have their annual financial statements prepared by an independent auditor.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian stocks rose on Wednesday, closing shy of record highs, amid chaos in the U.S. Capitol.
The S&P/TSX Composite index rose 0.8%, giving back some of its earlier gains of as much as 1.4% as pro-Trump mobs stormed the legislature.
Pot stocks outperformed as Democrats, seen as more positive for the cannabis industry, edged closer to control of the U.S. Senate. After the markets closed, it was announced that Democrats won both seats in the Georgia runoff elections.
Canada’s economy and financial markets are moving in opposite directions as investors drive up asset prices in response to cheap-money policies. That trend will continue in the months ahead, according to Manulife’s Frances Donald.
Commodities
* Western Canadian Select crude oil traded at a $15.30 discount to West Texas Intermediate
* Spot gold fell 1.6% to $1,919.23 an ounce
FX/Bonds
* The Canadian dollar was little changed at C$1.2672 per U.S. dollar
* The 10-year Canada government bond yield rose 4 basis points to 0.749%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.8 percent, or 145.6 to 17,828.11 in Toronto. The index advanced to the highest closing level since Feb. 21.
Today, financials stocks led the market higher, as 9 of 11 sectors gained; 137 of 221 shares rose, while 81 fell. Toronto-Dominion Bank contributed the most to the index
gain, increasing 2.8 percent. Cronos Group Inc. had the largest increase, rising 14.2 percent. Insights
* The index advanced 4.2 percent in the past 52 weeks. The MSCI  AC Americas Index gained 17 percent in the same period
* The S&P/TSX Composite is 0.8 percent below its 52-week high on Feb. 20, 2020 and 59.6 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 1.6 percent in the past 5 days and rose 1.8 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 26.9 on a trailing basis and 17.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.9 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.73t
* 30-day price volatility rose to 8.81 percent compared with 8.61 percent in the previous session and the average of 9.92 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 101.4456| 1.9| 22/4
Industrials | 25.9231| 1.2| 17/12
Materials | 16.6714| 0.7| 28/23
Consumer Discretionary | 14.0085| 2.1| 11/2
Health Care | 12.4456| 5.9| 6/3
Utilities | 9.9204| 1.1| 13/3
Communication Services | 3.8571| 0.4| 3/4
Real Estate | 1.9443| 0.4| 15/11
Energy | 0.0995| 0.0| 14/7
Consumer Staples | -2.3721| -0.4| 6/4
Information Technology | -38.3431| -2.2| 2/8
US
By Rita Nazareth and Claire Ballentine
(Bloomberg) — U.S. stocks stabilized in the green, though remained well off session highs after protesters surged into the U.S. Capitol, forcing a lockdown that interrupted certification of the presidential election.
The S&P 500 trimmed its advance to 0.6% at the close of trading in New York, after rallying as much as 1.5% earlier Wednesday. Equities had been on track for a record, buoyed by speculation that a Democratic control of Congress could unleash a torrent of spending to revive growth. That sparked a reflation trade, with investors pouring into small caps and banks, companies that benefit from an economic rebound. Tech shares lagged behind.
Democrats will take control of the U.S. Senate for the first time in six years, NBC and CBS said late in the day. Investors’ buoyant mood was pierced, but not sunk, when Vice President Mike Pence left the floor of Congress as hundreds of protesters swarmed past barricades surrounding the building where lawmakers were debating Joe Biden’s victory in the Electoral College.
     “Apparently, elevated investor sentiment knows no bounds,” said Adam Phillips, director of portfolio strategy at EP Wealth Advisors. “Obviously, the reflation trade stemming from last night’s election results is driving the markets, but it takes a special set of blinders to ignore what we are seeing in real-time.” Democrats claimed one of the two Senate seats contested in Georgia and led in the other tight race. Two wins would give Biden’s party control of Congress and smooth the path for some of his spending policies. That’s fueled bets that increased stimulus will boost the economy and spark inflation. The 10-year Treasury yield climbed past 1% for the first time since March.
“The growth-into-value rotation may be reinforced after the results of the Georgia Senate election amid the prospect of a higher fiscal stimulus bill and steeper yield curve, which would benefit banks and other non-tech companies,” David Bahnsen, chief investment officer of the Bahnsen Group in Newport Beach, California, wrote in a note to clients.
Congress passed at year’s end a $900 billion spending deal to bolster an economy showing signs of slowing as the raging virus prompts stricter lockdowns across the country. The number of employees at U.S. businesses unexpectedly declined in December for the first time since April, underscoring the ongoing labor-market fallout from the pandemic. The figures preceded the monthly jobs report on Friday, which is projected to show weaker payroll growth. U.S. 10-year breakeven — a market gauge of inflation expectations over the next decade — topped 2% this week for the first time since 2018, having gained in each of the last three months. While the pandemic is still raging with the rollout of vaccines in the early stages, the risk is that further signs of inflationary pressure could start prompting bets on Fed rate hikes.
For Matt Miskin, co-chief investment strategist at John Hancock Investment Management, the ball will be in the Fed’s court next and how policy makers will react to this evolving political backdrop.
“They have been wanting more fiscal support, well now they have it, and it is coming with a cost — higher interest rates based on Treasury yields rising,” Miskin noted. “We will see what the Fed’s pain threshold is for higher Treasury yields in the first half of 2021. The tug-of-war between monetary and fiscal policy will be key to markets. While the fiscal side is looking more promising based on the results today, monetary policy may take a step back.”

These are some of the main moves in markets:
Stocks
* The Stoxx Europe 600 Index jumped 1.4%.
* The MSCI Asia Pacific Index declined 0.4%.
Currencies
* The Bloomberg Dollar Spot Index fell 0.1%.
* The euro advanced 0.2% to $1.2324.
* The Japanese yen weakened 0.3% to 103.04 per dollar.
Bonds
* The yield on 10-year Treasuries rose eight basis points to 1.03%.
* Germany’s 10-year yield jumped six basis points to -0.52%.
* Britain’s 10-year yield rose three basis points to 0.243%.
Commodities
* West Texas Intermediate crude advanced 0.9% to $50.39 a barrel.
* Gold lost 1.6% to $1,918.97 an ounce.
–With assistance from Ksenia Galouchko, Andreea Papuc, Anchalee Worrachate, Lynn Thomasson and Kamaron Leach.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

Anyone can hold the helm when the sea is calm.
                             –Publilius Syrus, 85-43BC

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