November 12, 2021 Newsletter

Dear Friends,

Tangents: Happy Friday.
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 »

Auguste Rodin, sculptor, b. 1840.
Neil Young, singer/song-writer, b. 1945.

Astronomers spot a small back hole beyond the Milky Way in milestone discovery. 

In an age of low-cost rocket launches and William Shatner space flights, putting boots on Mars feels closer and more attainable than ever—or at least as close as something requiring a six-month, 140 million-mile flight can. It’s led a growing group of urban planners, architects, designers, astrophysicists, entrepreneurs and philosophers to start rolling out renderings of what Martian cities would look like.

Loners are good for society.

How your cat always knows where you are.

PHOTOS OF THE DAY
A camel owner shows off his animal at the Pushkar camel fair
CREDIT: Himanshu Sharma/AFP/Getty Images
Hindu devotees on the banks of the Surma River prepare to perform a ritual that invokes the energy of the sun to bring happiness
CREDIT: Md Rafayat Haque Khan/Barcroft/Getty Images
Migrants carry firewood as they gather at the Belarus-Poland border. About 15,000 Polish troops have joined riot police and guards at the border. The Belarusian Defense Ministry accused Poland of an “unprecedented” military buildup there, saying that migration control didn’t warrant such a force
CREDIT: Ramil Nasibulin/AP

Market Closes for November 12^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1999, President Bill Clinton signed into law the Gramm-Leach-Bliley Act—or the “Financial Services Modernization Act”—essentially repealing  the Glass-Steagall Act of 1933, which banned banks from the brokerage business.
Canada
By Alex Wittenberg
(Bloomberg) — Canadian equities extended gains Friday to close at a fresh all-time high as technology-sector stocks advanced.  The S&P/TSX Composite rose for the second day, climbing 0.9%, or 186.55 to 21,768.53 in Toronto. The move was the biggest since rising 1% on Nov. 1. Today, information technology stocks led the market higher, as six of 11 sectors gained; 125 of 233 shares rose, while 105 fell. Shopify Inc. contributed the most to the index gain, increasing 11.6%. Canopy Growth Corp. had the largest increase, rising 12.8%.
Insights
* This year, the index has risen 25 percent, heading for the best year in at least 10 years
* This week, the index rose 1.5 percent
* The index advanced 31 percent in the past 52 weeks. The MSCI AC Americas Index gained ~32 percent in the same period
* The S&P/TSX Composite is ~30 percent above its 52-week low on Nov. 12, 2020
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.8 on a trailing basis and 16.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.4 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.4t
* 30-day price volatility rose to 9.22 percent compared with 9.05 percent in the previous session and the average of 10.19 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | 182.3106| 7.5| 13/2
* Financials | 28.3396| 0.4| 17/11
* Health Care | 8.4556| 4.1| 6/3
* Consumer Discretionary | 5.4088| 0.7| 10/3
* Materials | 3.2501| 0.1| 30/23
* Real Estate | 1.7831| 0.3| 11/12
* Industrials | -0.2756| 0.0| 18/12
* Consumer Staples | -1.0058| -0.1| 6/7
* Communication Services | -1.1719| -0.1| 3/4
* Utilities | -3.3696| -0.4| 6/10
* Energy | -37.1615| -1.3| 5/18
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | 170.3000| 11.6| 140.8| 45.8
* Brookfield Asset Management | 15.1900| 2.0| 146.4| 45.0
* TD Bank | 7.4600| 0.6| 59.3| 29.9
* Fortuna Silver | -2.8100| -22.3| 608.5| -53.6
* WSP Global | -3.3960| -3.5| 61.3| 50.1
* Canadian Natural Resources | -4.4470| -1.0| -33.5| 70.0

US
By Kamaron Leach and Emily Graffeo
(Bloomberg) — U.S. equities climbed, led by technology and communication services, Friday as inflationary pressures continued to reverberate through markets. The S&P 500 rose 0.7% in a second day of gains after a slide Wednesday on higher-than-expected consumer prices. Johnson & Johnson gained after saying it will split into two companies. And Lordstown Motors slid after announcing production delays. Treasuries fell. “It’s almost like were in this period of invincible optimism,” Liz Young, head of investment strategy at SoFi, said in a phone interview. “It is just an optimistic time. When you have a week that was kind of flat to sideways, a Friday bounce isn’t all that unlikely.” While global stocks secured their first weekly drop since early October, their losses have been muted compared with the gyrations in the bond market. Equities remain near all-time highs after a strong corporate earnings season. However, bond traders fear elevated inflation could lead to tighter monetary policy. U.S. consumer sentiment has dropped to a 10-year low. “Both cyclical and secular growth sectors are doing well because that’s where we’re seeing growth in the economy,” said Tom Hainlin, national investment strategist at U.S. Bank National Association, by phone. “We’re seeing cyclical companies be able to overcome that inflation. And then I’m seeing the secular growth companies still seeing strong demand.”  Treasury yields rose Friday with the 30-year bond gaining 4 basis points after a U.S. trading holiday Thursday.
Meanwhile, a gauge of the U.S. yield curve has flattened to the least since March 2020. “In many ways, we’re back in this environment where inflation fears are rearing their ugly head again,” said Kara Murphy, CIO of Kestra Investment Management, by phone. “We’re still sticking with our view that eventually these will abate, but I think the timing and how long it will take for these prices to pull back is longer than what we might have expected a few months ago.” In Europe, stocks climbed, led by luxury consumer companies, and in Asia, shares were higher, helped by a rally in Japan. The dollar fell amid caution triggered by a U.S. warning Russia may be weighing a potential invasion of Ukraine.  Oil and Bitcoin slipped. Gold erased earlier losses. 

Stocks
* The S&P 500 rose 0.7% as of 4 p.m. New York time
* The Nasdaq 100 rose 1%
* The Dow Jones Industrial Average rose 0.5%
* The MSCI World index rose 0.7%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro was little changed at $1.1446
* The British pound rose 0.4% to $1.3421
* The Japanese yen rose 0.2% to 113.88 per dollar
Bonds
* The yield on 10-year Treasuries advanced two basis points to 1.57%
* Germany’s 10-year yield declined three basis points to -0.26%
* Britain’s 10-year yield was little changed at 0.91%
Commodities
* West Texas Intermediate crude fell 1% to $80.81 a barrel
* Gold futures rose 0.2% to $1,868.50 an ounce
–With assistance from Vildana Hajric and Namitha Jagadeesh.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

I don’t like that man, I must get to know him better. –Abraham Lincoln, 1809-1865.

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