May 26, 2021 Newsletter

Dear Friends,

Tangents:
1805~Napoleon crowned king of Italy.
1805~Lewis & Clark see the Rocky Mountains
2004 Terry Nichols was found guilty of 161 state murder charges for helping carry out the Oklahoma City bombing. Go to article »

The super-rich have made their choice. In a world overrun by pandemic, economic uncertainty and geopolitical volatility, the 1% are pouring their money into this city. 

Here’s what to know if you’re planning a trip to Europe this summer.
PHOTOS OF THE DAY

A lunar eclipse is observed during dawn in Brasilia, Brazil. The eclipse is the first in more than two years and coincides with a supermoon.
CREDIT: AP PHOTO/ERALDO PERES

This stunning time lapse image shows the night sky over an iconic British Natural wonder is out of this world! Astrophotographer Nathan O’Looney was on location at the world famous landmark in Dorset, UK to capture the beauty of the night sky. The time lapse shows the movement of the stars and the full beauty of the Milky Way behind Durdle Doors iconic rock archway. The 24-year-old content creator said: “It had always been a dream of mine to shoot in this location. I had seen what other photographers had been able to capture and wanted to give it a go myself to see if I could get the once in a lifetime shot.”
CREDIT: NATHAN O’LOONEY / SWNS

The startling moment two foxes howl at each other in a squabble over a large hedgehog they found on their feeding ground is caught on camera. The two vixens stood one foot away from each other and bared their sharp teeth in the dramatic face-off. Between them was the plucky hedgehog they had found tucking into dog food left out for them by wildlife enthusiast Alison Ellis.
CREDIT: ALISON ELLIS/BNPS

Market Closes for May 26^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1667, mathematician Abraham de Moivre was born in Vitry, France. In 1688, he fled to England to escape King Louis XIV’s persecution of the Huguenots. In London, de Moivre discovered the normal statistical distribution (the “bell curve”) and worked out the formula for standard deviation, or short-term volatility. 
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities gained for a second session to a record high. The S&P/TSX Composite Index gained 0.9%, with all eleven sectors rising. Health care and energy led the charge. U.S. Commerce Secretary Gina Raimondo said she wants to find a “long-term solution” to Washington’s long-running dispute with Canada over lumber, the cost of which has soared to records.
Commodities
* Western Canadian Select crude oil traded at a $14.00 discount to West Texas Intermediate
* Spot gold fell 0.2% to $1,896.00 an ounce
FX/Bonds
* The Canadian dollar fell 0.4% to C$1.2119 per U.S. dollar
* The 10-year Canada government bond yield edged lower to 1.452%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.9 percent, or 181.35 to 19,745.47 in Toronto. The move was the biggest since rising 1.2 percent on May 14. Today, financials stocks led the market higher, as all sectors gained; 169 of 229 shares rose, while 53 fell. Canadian National Railway Co. contributed the most to the index gain, increasing 2.6 percent. BlackBerry Ltd. had the largest increase, rising 10.5 percent.
Insights
* This month, the index rose 3.3 percent
* The index advanced 30 percent in the past 52 weeks. The MSCI AC Americas Index gained 42 percent in the same period
* The S&P/TSX Composite is 0.1 percent below its 52-week high on May 26, 2021 and 32.2 percent above its low on June 15, 2020
* The S&P/TSX Composite is up 1.2 percent in the past 5 days and rose 3 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 24.5 on a trailing basis and 17.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.07t
* 30-day price volatility rose to 9.88 percent compared with 9.57 percent in the previous session and the average of 9.09 percent over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 50.3767| 0.8| 18/9
* Energy | 35.2701| 1.4| 20/3
* Industrials | 26.2857| 1.2| 20/9
* Materials | 23.9416| 1.0| 33/16
* Health Care | 9.9033| 3.8| 10/0
* Consumer Discretionary | 8.9093| 1.2| 11/1
* Communication Services | 8.1447| 0.8| 8/0
* Information Technology | 8.0521| 0.4| 6/5
* Consumer Staples | 5.8291| 0.8| 11/2
* Real Estate | 2.7183| 0.4| 22/4
* Utilities | 1.9185| 0.2| 10/4

US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — Stocks tied to a broader economic reopening led gains on Wednesday amid easing concern the Federal Reserve would boost rates sooner than expected. The dollar climbed. Energy producers and retailers in the S&P 500 advanced, while tech companies were little changed. The Russell 2000 Index of small caps climbed 2%, outperforming major U.S. equity benchmarks. The Dow Jones Industrial Average — which made its debut 125 years ago — fluctuated throughout most of the session. Banks advanced after the chief executive officers from the largest lenders testified before Congress. Investors have been weighing prospects for an economic rebound against the threat of price pressures. While there are multiple factors that could prompt jitters as stocks trade near all-time highs, this week’s reassurance from Fed officials has bolstered the market. As they look to damp concern that inflation would translate into a bond-buying slowdown, interest- rate volatility has tumbled. “The market really today is hitting that sweet spot where macro fears are in decline, and simultaneously, microeconomic reality is improving,” said Lawrence Creatura, a fund manager at PRSPCTV Capital LLC. “Anything that indicates a less hot environment is positive because it means that the Fed can sit on their hands that much longer. The interesting phenomenon that’s occurring simultaneously is that consumer-facing companies are reporting sizzling results.” For Craig W. Johnson, technical market strategist at Piper Sandler & Co., economic uncertainty and volatility could still remain high as traders await clarity on inflation trends and tapering prospects. “Investors appear to be giving the Fed the benefit of the doubt with their transitory inflation forecast, but we suspect the window of confidence could close without supporting evidence in coming months,” he said.
Some corporate highlights:
* Ford Motor Co. surged on plans to increase spending on electric vehicles.
* Reddit favorites GameStop Corp. and AMC Entertainment Holdings Inc. soared — delivering more losses to skeptics who have piled
on bets against the two companies.
* Retailers Dick’s Sporting Goods Inc. and Abercrombie & Fitch Co. climbed on better-than estimated results. Nordstrom Inc.
tumbled on disappointing margins.

Here are some events this week:
* U.S. initial jobless claims, GDP, durable goods, pending home
sales on Thursday.

These are some of the main moves in markets:
Stocks
* The S&P 500 rose 0.2% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.3%
* The Dow Jones Industrial Average was little changed
* The MSCI World index rose 0.2%
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%
* The euro fell 0.5% to $1.2193
* The British pound fell 0.2% to $1.4122
* The Japanese yen fell 0.3% to 109.15 per dollar
Bonds
* The yield on 10-year Treasuries advanced two basis points to 1.58%
* Germany’s 10-year yield declined four basis points to -0.21%
* Britain’s 10-year yield declined three basis points to 0.75%
Commodities
* West Texas Intermediate crude rose 0.2% to $66 a barrel
* Gold futures were little changed
–With assistance from Andreea Papuc, Robert Brand, Kamaron Leach and Stephen Spratt.
Have a great night.

Be magnificent!
As ever,

Carolann

The journey of a thousand miles begins with one step. -Lao Tzu, c. 6^th century BCE.

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