January 26, 2021 Newsletter

Dear Friends,

Tangents:
Australia Day, 1^st British settlement, 1788
On Jan. 26, 1950, India proclaimed itself a republic. Go to article »

A ginormous earthquake hit the Pacific Northwest coast on this day in 1700. Read about the really, really “Big One,” which caused the entire coastline to suddenly drop 3 to 6 feet as it sent a 33-foot high tsunami across the ocean to Japan. Might not be a bad reminder to refresh the ol’ disaster kit and get ready to rumble with our guide to earthquake preparedness.-The Seattle Times.

The Late Night Hosts weigh in on the impeachment:
“Man, they’re throwing everything at the wall: Impeachment will stir up the country, the election was stolen, we all bear some responsibility. It’s like getting pulled over with a giant plume of marijuana smoke in the car and telling the cop, ‘I think it’s the exhaust pipe, and it is legal in several states, and I only started smoking when you pulled me over because that gave me severe anxiety.’” — SETH MEYERS

“So you just want to let him off scot-free for insurrection because he’s no longer in power? That’s like acquitting Jeffrey Dahmer because he’s full.” — STEPHEN COLBERT

“Violent seditionists and white supremacists and militia members stormed the Capitol building and tried to overthrow democracy. We have to do something about that so it doesn’t happen again. Instead, Republican leaders are talking about Trump’s base the way park rangers talk about bears on a campground: ‘Don’t make eye contact, move away slowly, and if worst comes to worst, let ‘em eat your hot dogs — they’re just hot dogs.’” — SETH MEYERS
PHOTOS OF THE DAY
Dawn breaks over Tynemouth Longsands beach.
CREDIT: OWEN HUMPHREYS/PA
Skier makes their way down a freshly snow-covered Mammoth Mountain Ski Area, in Mammoth Lakes, California
CREDIT: PETER MORNING/ MAMMOTH MOUNTAIN SKY AREA VIA AP
Amazing Photo Appears To Show Lion With Cheetah’s Head In Its Mouth. This jaw-dropping shot appears to show a very hungry lion with a cheetah’s head in its mouth. It is actually a clever optical illusion with the lion in the foreground lined up perfectly with the other big cat. Wildlife photographer Saeed Aljafar captured the amazing scene in Kenya’s Masai Mara. 
CREDIT: SAEED ALJAFAR/COVER-IMAGES.COM
Market Closes for January 26^th, 2021 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1921, Akio Morita, the future co-founder of Sony, was born in Nagoya, Japan.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities fell Tuesday amid weakness across multiple sectors. The S&P/TSX Composite Index lost 0.7%, the most since Dec. 14, with seven of 11 sectors lower. Marijuana stocks rallied with Canopy Growth Corp. and Aphria Inc. each gaining at least 7.5%. Prime Minister Justin Trudeau said his government is preparing to unveil new travel measures soon to help protect Canadians from new Covid-19 variants.
Commodities
* Western Canadian Select crude oil traded at a $13.30 discount to West Texas Intermediate
* Spot gold fell 0.2% to $1,851.47
FX/Bonds
* The Canadian dollar rose 0.4% to C$1.2693 per U.S. dollar
* The 10-year Canada government bond yield edged higher to 0.819%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite fell 0.7 percent at 17,779.41 in Toronto. The move was the biggest since falling 0.9 percent on Dec. 14 and follows the previous session’s increase of 0.3 percent. Shopify Inc. contributed the most to the index decline, decreasing 4.2 percent. Vermilion Energy Inc. had the largest drop, falling 8.8 percent. Today, 127 of 221 shares fell, while 89 rose; 7 of 11 sectors were lower, led by information technology stocks.
Insights
* This month, the index rose 2 percent
* The index advanced 1.2 percent in the past 52 weeks. The MSCI
AC Americas Index gained 18 percent in the same period
* The S&P/TSX Composite is 1.5 percent below its 52-week high on
Jan. 8, 2021 and 59.1 percent above its low on March 23, 2020
* The S&P/TSX Composite is down 1 percent in the past 5 days and rose 0.9 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of
26.1 on a trailing basis and 17 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$2.77t
* 30-day price volatility rose to 8.46 percent compared with
8.19 percent in the previous session and the average of 8.43 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | -55.6062| -2.9| 3/7
Energy | -31.7539| -1.5| 2/20
Materials | -23.8494| -1.0| 23/28
Industrials | -14.2119| -0.6| 12/17
Consumer Discretionary | -7.6752| -1.1| 4/9
Utilities | -4.6364| -0.5| 5/11
Consumer Staples | -0.7503| -0.1| 7/4
Real Estate | 1.6741| 0.3| 16/8
Financials | 1.7454| 0.0| 8/17
Communication Services | 3.0358| 0.3| 5/1
Health Care | 5.4167| 2.1| 4/5
US
By Lu Wang and Claire Ballentine
(Bloomberg) — U.S. stocks slid ahead of earnings reports from the biggest tech companies. The dollar weakened. The S&P 500 Index edged lower after struggling to gain traction throughout the day, weighed down by worries over new coronavirus variants and hurdles to a fresh aid package. Small- caps were among the worst performers as traders turned away from bets on an end to Covid lockdowns. GameStop Corp. extended its astronomical surge as day traders continued to pile into the heavily shorted retailer. European stock markets closed in the green. Naturgy Energy Group SA soared 15% as asset manager IFM Global Infrastructure offered to buy a stake in the Spanish utility. Sweden’s EQT AB, one of Europe’s biggest private equity firms, jumped 15% after agreeing to take over Exeter Property Group in a $1.9 billion deal.
Global stocks are mostly treading water near record highs as U.S. corporate earnings season gears up this week, with traders also keeping an eye on developments related to the pandemic and its spread. Vaccine coverage won’t reach a point that would stop transmission of the virus in the foreseeable future, the World Health Organization said. “There’s little bit of bumpiness to start the week,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management. “Part of the cross current we’re seeing is concern about the new variants of the virus that seem to be spreading quite a bit. It just raises a question of uncertainty and when we’re going to get out from under the cloud of Covid.” Elsewhere, Treasury yields held steady. Bitcoin retreated to trade near $32,000. In Asia, stock markets took a dive after China’s central bank withdrew cash from the banking system and an official cautioned about asset bubbles. The MSCI Asia Pacific Index sank the most in two months and internet giant Tencent Holdings Ltd. lost 6.3%.

These are some key events coming up in the week ahead:
* Microsoft Corp., Apple Inc., Tesla Inc., Facebook Inc. and
Samsung Electronics Co. are among companies reporting results.
* The Federal Open Market Committee monetary policy decision and
briefing by Chair Jerome Powell are scheduled for Wednesday.
* Fourth-quarter GDP, initial jobless claims and new home sales are among U.S. data releases Thursday.
* U.S. personal income, spending and pending home sales come Friday.

These are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.2% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index gained 0.6%.
* The MSCI Asia Pacific Index fell 1.2%.
* The MSCI Emerging Market Index dipped 1.5%.
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%.
* The euro rose 0.2% to $1.2166.
* The British pound climbed 0.4% to $1.3737.
* The Japanese yen rose 0.1% to 103.62 per dollar.
Bonds
* The yield on 10-year Treasuries rose one basis point to 1.04%.
* Germany’s 10-year yield added two basis points to -0.54%.
* Britain’s 10-year yield was little changed at 0.26%.
Commodities
* West Texas Intermediate crude fell 0.5% to $52.55 per barrel.
* Gold fell 0.2% to $1,852.18 an ounce.
–With assistance from Cormac Mullen and Anchalee Worrachate.
Have a great night.

Be magnificent!
As ever,

Carolann

Chance favors the informed mind. –Louis Pasteur, 1822-1895.

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