November 26, 2021 Newsletter

Dear Friends,

Tangents: Happy Friday.
Happy first day of Hanukkah, which begins Sunday evening.

On Nov. 26, 1942, President Roosevelt ordered nationwide gasoline rationing, beginning December 1. Go to article »

November 26, 2008: Mumbai attacks – a series of terrorist attacks occur, killing approximately 166 people.  The attacks were carried out by 10 members of Lashkar-e-Taiba, a Pakistan based extremist Islamist terrorist organisation.

Tina Turner, singer, b. 1938.
John Harvard, Harvard University founder, b.1607.
Charles M. Schultz, creator of “Peanuts” , b. 1922.

Feast your eyes on Time’s 100 top photos of 2021.

Is Tiddles a psychocat? (h/t Lara Williams)

Forget gas and hydrogen. Your next boiler should be a heat pump. 

PHOTOS OF THE DAY
The tunnel of lights at the Royal Botanic Gardens
CREDIT: Peter Summers/Getty Images
After years of renovation the 2,700-metre Avenue of the Sphinxes was reopened in a grand ceremony showcasing Egypt’s second-most-visited heritage site after the Giza pyramids
CREDIT: Islam Safwat/Getty Images
A giant menorah is placed in front of Brandenburg Gate for the Jewish holiday of Hanukah
CREDIT: Michele Tantussi/Reuters
A cat wearing a dress is seen in a transparent rucksack at the annual Pet Expo
CREDIT:  AFP/Getty Images

Market Closes for November 26^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1990, the Shanghai Securities Exchange was re-established in China, 31 years after it was closed by the new Communist regime
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities sunk the most in 13 months as all sectors dove into the red amid concerns over a new strain of the Covid-19 virus. The S&P/TSX Composite fell 2.3% at 21,125.90 in Toronto. Oil and gas stocks led losses, as all sectors dropped; 220 of 233 shares fell, while 12 rose. MEG Energy Corp. had the largest drop, falling 9.3%.
Air Canada slumped 8.9%, the most since June 2020, as the Canadian government announced tightened travel restrictions. The Canadian benchmark fell about 2% this week, its biggest slump since January as the World Health Organization said that a strain of coronavirus recently discovered by South African researchers poses a threat that could deal a setback to efforts to slow the spread of Covid-19. With only five weeks left to the end of the year, the TSX is still up about 21% this year while the S&P 500 Index is higher by about 1 percentage point.
Insights
* This year, the index rose 21 percent, heading for the best year in at least 10 years
* This month, the index rose 0.4 percent
* So far this week, the index fell 2 percent, heading for the biggest decline since the week ended Jan. 29
* The index advanced 22 percent in the past 52 weeks. The MSCI AC Americas Index gained 26 percent in the same period
* The S&P/TSX Composite is 3.1 percent below its 52-week high on Nov. 16, 2021 and 23.4 percent above its low on Nov. 30, 2020
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.2 on a trailing basis and 16.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.5 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.41t
* 30-day price volatility rose to 11.22 percent compared with 8.66 percent in the previous session and the average of 9.73 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -131.3777| -1.9| 0/28
* Energy | -105.9314| -3.7| 0/23
* Information Technology| -76.2715| -3.0| 0/15
* Industrials | -56.3655| -2.2| 1/29
* Materials | -49.1990| -2.0| 5/49
* Consumer Discretionary| -17.0952| -2.2| 1/12
* Consumer Staples | -15.6989| -2.1| 0/13
* Real Estate | -14.4558| -2.2| 0/24
* Communication Services| -11.0708| -1.1| 0/7
* Health Care | -6.5978| -3.4| 1/8
* Utilities | -3.2002| -0.3| 4/12
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | -55.7100| -3.4| 12.7| 39.4
* Canadian Natural Resources | -24.4600| -5.4| 102.9| 71.5
* Suncor Energy | -22.7700| -6.5| 106.6| 49.0
* Brookfield Renewable Partners | 0.2580| 0.4| 55.5| -16.1
* Kirkland Lake | 0.3140| 0.3| -6.9| -2.0
* Northland Power | 0.4860| 0.8| -10.0| -14.5

US
By Emily Graffeo and Srinivasan Sivabalan
(Bloomberg) — U.S. stocks slid in a selloff across global markets amid growing fears a new coronavirus variant identified in South Africa could spark fresh outbreaks and scuttle a fragile economic recovery. Haven assets surged. It’s the worst post-Thanksgiving performance for the S&P 500 since 1941, when President Franklin D. Roosevelt signed a bill to officially establish the fourth Thursday in November as a national holiday. The Russell 2000 sank 3.7% and the Nasdaq 100 was dragged to its lowest close in a little more than two weeks. Travel and leisure stocks tumbled, while stay-at-home shares gained. In Europe, the Stoxx 600 closed down 3.7%, the most since June 2020. Oil fell through $70 a barrel in New York for the first time since late September. Treasuries jumped on haven bids, sending the 10-year yield down the most since March 2020 on a closing basis, while traders pushed back bets on the Federal Reserve hiking rates. The Japanese yen emerged as the main haven currency of the day, with the dollar falling. The World Health Organization and scientists in South Africa were said to be working “at lightning speed” to ascertain how quickly the B.1.1.529 variant can spread and whether it’s resistant to vaccines.
The new threat adds to the wall of worry investors are already contending with in the form of elevated inflation, monetary tightening and slowing growth. “This is not trivial,” said Jay Hatfield, chief executive and founder of Infrastructure Capital Management. “So it makes sense for people to rebalance because there’s tons of uncertainty and that’s never good for buying stocks.” Carnival Corp. and Royal Caribbean Cruises Ltd. dropped more than 10% while United Airlines Holdings Inc. dropped 9.6%. Zoom Video Communications Inc. and Peloton Interactive Inc. gained at least 5%, while Moderna Inc. jumped more than 20% and Pfizer Inc. climbed to a record. “It’s terrible news,” Ipek Ozkardeskaya, a senior analyst at Swissquote, said in emailed comments. “The new Covid variant could hit the economic recovery, but this time, the central banks won’t have enough margin to act. They can’t fight inflation and boost growth at the same time. They have to choose.”
The selloff comes after global markets adopted a Jekyll-and-Hyde posture for months, with equities rallying to newer records even as concerns intensified over a toxic combination of high inflation and slower growth. Investors poured almost $900 billion into equity exchange-traded and long-only funds in 2021 — exceeding the combined total from the past 19 years. “At these valuations any sort of headline is going to cause this pullback,” Brian Vendig, MJP Wealth Advisors President, said in an interview with Bloomberg TV. “You definitely don’t want to be 100% in risk assets — whether its interest rate risk, inflation risk, policy risk and now another cue for the health-care crisis letting us all know we’re not out of the pandemic.” Traders pushed back the expected timing of a first 25-basis-point rate increase by the Federal Reserve to September from June, while briefly pricing out any more hikes unit 2023. The rally in Treasuries pushed the 10-year yield down 16 basis points to close around 1.47%, its largest single-session decline since March 2020. They also bet on less than a 10-basis-point hike by the Bank of England next month, compared with 35 basis points projected a month ago. They called for seven basis points of tightening by the European Central Bank by December 2022 as against nine basis points seen Thursday.
The yen and Swiss franc found bids from safety-conscious traders, while the dollar posted a modest loss.  A gain for the euro, the biggest component of the Bloomberg Dollar Spot Index, also curbed the greenback. MSCI Inc.’s Asia-Pacific equity gauge slid to the lowest since early October.  Some of the worst-hit assets were in emerging markets. The currency of South Africa, where the virus strain was identified, lost 1.8% and the Turkish lira dropped 2.9%. While the selling continued unabated, some investors said it’s important not to get carried away by short-term jitters. “We must not forget the backdrop that this was a market that was headed towards another 25% year,” said Cate Faddis, Grace Capital President. “When the market gets ahead of itself it finds a reason, any reason to come back down to earth. A 2% move is not very significant in light of the year we have had.”

Some of the main moves in markets:
Stocks
* The S&P 500 fell 2.3% as of 2:25 p.m. New York time
* The Nasdaq 100 fell 2.1%
* The Dow Jones Industrial Average fell 2.5%
* The MSCI World index fell 2.2%
Currencies
* The Bloomberg Dollar Spot Index fell 0.4%
* The euro rose 0.9% to $1.1315
* The British pound rose 0.1% to $1.3339
* The Japanese yen rose 1.8% to 113.25 per dollar
Bonds
* The yield on 10-year Treasuries declined 16 basis points to 1.47%
* Germany’s 10-year yield declined eight basis points to -0.34%
* Britain’s 10-year yield declined 14 basis points to 0.82%
Commodities
* West Texas Intermediate crude fell 13% to $68.15 a barrel
* Gold futures were little changed
–With assistance from Stephen Kirkland, Chiara Remondini, Jan-Patrick Barnert, Lisa Pham, Michael Msika, Cecile Gutscher, Lu
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

My general attitude to life is to enjoy every minute of every day. 
I never do anything with a feeling of, “Oh God, I’ve got to do this today.” –Richard Branson, b. 1950.

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