December 16, 2021 Newsletter

Dear Friends,

Tangents:
December 16, 1773 – The Boston Tea Party took place as American colonists boarded a British ship and dumped more than 300 chests of tea overboard to protest tea taxes. Go to article »
1944 – Nazi Germany launches a counteroffensive against the Allies in the Ardennes region of Belgium, beginning the “Battle of the Bulge.”

Margaret Mead, anthropologist, b. 1901.
Jane Austen, novelist, b. 1775.
Ludwig Von Beethoven, composer, b. 1770

We really did buy more alcohol during the early pandemic, study finds.  Oh, if we only knew what was to come.  

‘Shatner in Space’ joins William Shatner on his trip to the final frontier.  Reminder: Shatner is 90 YEARS OLD. And he WENT TO SPACE. 

PHOTOS OF THE DAY
A long-exposure photo shows a regional train leaving a station
CREDIT: Michael Probst/AP

People queue outside a vaccination centre at Chester Cathedral as the coronavirus booster programme is accelerated in England
CREDIT: Peter Byrne/PA
Clouds hover over Foothill Boulevard as a storm moves through the Californian valley, threatening to trigger possible mudslides in neighbourhoods next to the Bobcat Fire burn scar
CREDIT: Robert Gauthier/Los Angeles Times/REX/Shutterstock
                                                                  
Market Closes for December 16^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1835, a disastrous fire raged through Manhattan, destroying the New York Stock & Exchange Building—but Wall Street breathed a sigh of relief anyway. A strongbox of documents showing who stood to gain and lose from the manipulation of stock prices was rescued from the flames by a brave (or desperate) broker. His grateful peers promptly gave him a generous cash reward.
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian equities slipped Thursday, dragged down by a 3.1% drop in information technology stocks including sharp declines for Shopify Inc. and Lightspeed Commerce Inc. The S&P/TSX Composite fell 0.1 percent to 20,739.78 in Toronto. The move follows the previous session’s increase of 0.6%. Shopify contributed the most to the index decline, decreasing 3.4%. Lithium Americas Corp. had the largest drop, falling 7.3%. Today, 109 of 233 shares fell, while 119 rose; six of 11 sectors were lower, led by information technology stocks.
Insights
* This year, the index rose 19%, poised for the best year since 2019
* This quarter, the index rose 3.3%
* So far this week, the index fell 0.7%
* The index advanced 18% in the past 52 weeks. The MSCI AC Americas Index gained 24% in the same period
* The S&P/TSX Composite is 4.8% below its 52-week high on Nov. 16, 2021 and 19.9% above its low on Jan. 29, 2021
* The S&P/TSX Composite is down 0.9% in the past five days and fell 4.5% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.7 on a trailing basis and 15.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.31t
* 30-day price volatility fell to 14.13% compared with 14.26% in the previous session and the average of 12.09% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | -70.0367| -3.1| 0/15
* Industrials | -14.3673| -0.6| 4/26
* Consumer Discretionary | -3.8088| -0.5| 4/9
* Health Care | -3.6559| -2.2| 1/8
* Consumer Staples | -2.9967| -0.4| 5/8
* Real Estate | -2.3293| -0.4| 10/12
* Communication Services | 2.7534| 0.3| 6/1
* Utilities | 3.1471| 0.3| 11/4
* Energy | 3.4818| 0.1| 13/9
* Financials | 4.7800| 0.1| 19/9
* Materials | 53.6270| 2.3| 46/8
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | -46.5500| -3.4| 54.7| 17.8
* Bank of Montreal | -14.9400| -2.4| 89.7| 41.2
* Brookfield Asset Management | -12.6500| -1.7| 18.7| 42.7
* CIBC | 7.2450| 1.6| 81.6| 34.1
* Barrick Gold | 11.0200| 4.0| 52.2| -17.2
* Royal Bank of Canada | 11.2800| 0.9| -6.0| 25.7

US
By Rita Nazareth
(Bloomberg) — Technology companies drove stocks down on speculation that rate hikes will reduce the appeal of the highly valued industry that has powered the bull market in equities. The Nasdaq 100 sank the most since September, led by losses in giants like Apple Inc. and Tesla Inc.  Software company Adobe Inc. tumbled 10% on disappointing revenue forecasts, while a gauge of chip stocks slumped over 4%. The S&P 500 erased gains that were earlier triggered by bets central banks can tighten policies to fight inflation without derailing the economy. Financial and commodity shares rose. Bitcoin slid. FedEx Corp. climbed in late trading after profit beat estimates. Even with the weakness on Thursday, tech shares remain among the most-notable outperformers of 2021. Valuations have soared to levels last seen during the dot-com bubble, with Apple recently approaching what would be a historic $3 trillion market capitalization. While the outlook for rate hikes threatens the industry’s appeal, several analysts expect the group to still do well due to its strong earnings potential. Meantime, policy makers are weighing measures to fight price pressures while balancing risks to growth. European equities jumped as officials unveiled a gradual pullback of pandemic stimulus, while the pound gained as the Bank of England unexpectedly raised rates. The announcements followed Wednesday’s decision by the Federal Reserve to accelerate the pace at which it tapers asset purchases, while projecting rate hikes through 2024.

Comments:
* “Bitcoin and big tech are getting punished today as investors reallocate some of their more profitable risky bets. The growth outlook still remains upbeat for next year,” with some traders
rotating back into cyclicals, said Edward Moya, senior market analyst at Oanda.
* “While we expect increased stock-market volatility as the Federal Reserve embarks on normalizing policy, equity markets should end the year higher as the economy still remains strong,
which should lead to continued earnings growth,” said Richard Saperstein, chief investment officer at Treasury Partners.
* “I do think that central banks are being reactive, which is good. If inflation does start to moderate as these major central banks are still expecting, we may actually expect some turn in
the policy direction in the later part of next year,” said Janet Mui, investment director at Brewin Dolphin.
Corporate highlights:
* Apple is hiring engineers for a new office in Southern  California to develop wireless chips that could eventually replace components supplied by Broadcom Inc. and Skyworks Solutions Inc.
* Delta Air Lines Inc. projected it will report a profit this quarter, citing strong demand for travel and a decline in jet-fuel prices.
* Reddit Inc., the social-media platform that helped fuel this year’s meme stock frenzy, said it has confidentially filed for an initial public offering.

Applications for state unemployment benefits rose last week — but remained near the lowest levels of the pandemic as the labor market recovery continues.
U.S. housing starts strengthened in November to the fastest pace in eight months, while output at factories advanced solidly.
Here are some key events this week:
* Bank of Japan monetary policy decision, Friday.
* S&P Dow Jones Indices quarterly rebalance effective after markets close, Friday.

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.9% as of 4 p.m. New York time
* The Nasdaq 100 fell 2.6%
* The Dow Jones Industrial Average was little changed
* The MSCI World index fell 0.1%
Currencies
* The Bloomberg Dollar Spot Index fell 0.5%
* The euro rose 0.4% to $1.1332
* The British pound rose 0.5% to $1.3325
* The Japanese yen rose 0.3% to 113.68 per dollar
Bonds
* The yield on 10-year Treasuries declined three basis points to 1.42%
* Germany’s 10-year yield advanced one basis point to -0.35%
* Britain’s 10-year yield advanced two basis points to 0.76%
Commodities
* West Texas Intermediate crude rose 1.5% to $71.93 a barrel
* Gold futures rose 2% to $1,799.70 an ounce
–With assistance from Andreea Papuc, Namitha Jagadeesh, Emily Graffeo, Vildana Hajric, Peyton Forte and Sophie Caronello.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

How far that little candle throws its beams!  So shines a good deed in a naughty world.-William Shakespeare, 1564-1616.

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