January 25, 2022 Newsletter

Dear Friends,

Tangents: Burns’ Night, Scotland, England, Newfoundland.
1959 American Airlines opened the jet age in the United States with the first scheduled transcontinental flight of a Boeing 707.  Go to article » 

1949-The first Emmy Awards is presented; there were only six categories, and nominated shows were limited to those that aired in the Los Angeles area.

Robert Burns, poet,  b. 1759.
Virginia Woolf, author, b. 1882.
W. Somerset Maugham, writer, b. 1874.

Saturn’s ‘Death Star’ moon could harbor a hidden ocean.  Yes, it looks strangely similar to the Death Star from the “Star Wars” movies, but a thick ice shell is protecting anything from getting in or out. Sorry, Han and Luke.

So many people want this truck that Ford stopped taking orders.  Do we have any truck fans? This is the last week to get on the waiting list for this popular 2022 model.

Mind the gap: there are about 40 billion billion (that’s “quintillion” to number geeks) black holes in the universe.

Pro tip: Don’t play chess with Harvard mathematician Michael Simkin, who just solved a 150-year-old chess puzzle. (h/t Scott Kominers)

PHOTOS OF THE DAY

Charlotte Casiraghi rides a horse on the catwalk as part of Chanel’s haute couture show
CREDT: David Fisher/Rex/Shutterstock

A member of staff at the Royal Academy of Arts looks at Second Version of Triptych 1944 on display in the Francis Bacon: Man and Beast exhibition
CREDIT: Jonathan Brady/PA

The northern lights appear over a forest in the Arctic Circle
CREDIT: Lev Fedoseyev/Tass

Market Closes for January 25^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1853, basic financial disclosure became mandatory for all companies seeking to list their stock for trading on the New York Stock & Exchange Board.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite advanced slightly to 20,590.98 in Toronto, ending a 5-day loss.
The gain follows the previous session’s decrease of 0.2 percent.
Suncor Energy Inc. contributed the most to the index gain, increasing 5.0 percent.
Turquoise Hill Resources Ltd. had the largest increase, rising 15.6 percent.
Today, 131 of 241 shares rose, while 106 fell; 6 of 11 sectors were higher, led by energy stocks.
Insights
* This month, the index fell 3 percent
* The index advanced 15 percent in the past 52 weeks. The MSCI AC Americas Index gained 11 percent in the same period
* The S&P/TSX Composite is 5.5 percent below its 52-week high on Nov. 16, 2021 and 19 percent above its low on Jan. 29, 2021
* The S&P/TSX Composite is down 3.2 percent in the past 5 days and fell 3 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.6 on a trailing basis and 14.4 times estimated earnings of its members for the coming year * The index’s dividend yield is 2.7 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.29t
* 30-day price volatility little changed to 12.40 percent compared with 12.40 percent in the previous session and the average of 13.65 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 72.3592| 2.4| 27/5
* Financials | 17.7822| 0.3| 18/10
* Materials | 14.7957| 0.6| 41/14
* Communication Services | 4.4637| 0.4| 3/3
* Consumer Staples | 1.9412| 0.3| 6/5
* Real Estate | 1.5058| 0.2| 14/8
* Health Care | -1.2673| -0.9| 2/6
* Utilities | -7.0116| -0.8| 3/13
* Consumer Discretionary | -7.7041| -1.1| 4/10
* Industrials | -10.1841| -0.4| 9/20
* Information Technology | -66.9863| -3.9| 4/12
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Suncor Energy | 16.5700| 5.0| 18.4| 10.1
* Canadian Natural Resources | 13.6600| 2.7| -17.7| 19.7
* Enbridge | 12.0900| 1.7| 59.8| 4.7
* CGI Inc | -5.2800| -3.3| 59.4| -8.9
* Constellation Software | -8.2440| -2.9| 66.2| -13.9
* Shopify | -45.7500| -4.9| 57.0| -35.1

US
By Rita Nazareth, Vildana Hajric and Emily Graffeo
(Bloomberg) — The afternoon rebound for stocks proved short-lived, with major averages falling again as investors remained on edge over the Federal Reserve’s inflation-fighting stance and Russia’s saber-rattling against Ukraine.
In another jittery session, the S&P 500 closed at the lowest since October, with tech shares weighing heavily on trading.
The gauge briefly erased losses as dip buyers resurfaced at one point to snap up bargains after a slide of nearly 3% earlier in the day.
Unlike Monday, the index failed to make a dramatic comeback.
In fact, there have never been two consecutive sessions when the index drew down at least 2% from the previous day’s close to finish higher,
according to data compiled by Bloomberg going back to the early 1980s.
In late trading, Microsoft Corp. sank even after sales beat estimates.
The risk of a “growth shock” to equities is increasing, according to Goldman Sachs Group Inc. strategists.
Ahead of Wednesday’s Fed decision that’s expected to point toward a rate hike in March, they warned that sharp monetary tightening to tame inflation could eventually have knock-on effects on
economic activity, hurting stocks.
The International Monetary Fund cut its world growth forecast for 2022, citing weaker prospects for the U.S. and China along with persistent inflation.
Comments:
* “Volatility is back. We’re having a sea-change in terms of Fed policy. Equity investors frankly have been behind the curve in anticipating what’s coming, so there’s a lot of catch-up to do,” Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, told Bloomberg Television
* “When everyone is wondering what the state of the world is, you are exposed to these extreme movements in price action that have no fundamental catalyst. The bad thing is that can take you
off in a direction that’s very scary,” said Mike Zigmont, head of trading and research at Harvest Volatility Management.
* “Is it time to dive into the market wholesale? I don’t think quite yet. I’m looking for the Fed to actually begin liftoff to sort of usher in an era of perhaps modestly less volatility than we’ve experienced in January,” Kate Moore, BlackRock global allocation team head of thematic strategy, told Bloomberg Television.

On the geopolitical front, Deputy Treasury Secretary Wally Adeyemo said the U.S. and its European allies have economic sanctions “at the ready” in case Russian troops invade Ukraine.
A Kremlin spokesman warned that a White House move to put as many as 8,500 troops on alert “exacerbates tensions,” while top Biden administration officials said reinforcements for North Atlantic Treaty Organization forces in Eastern Europe and potential sanctions on Russia are ready to go.
Corporate highlights:
* International Business Machines Corp. reported revenue that beat estimates, buoyed by strong demand in the software unit.
* American Express Co. raised forecasts for revenue and profit after spending on its cards surged to a record.
* Health-care giant Johnson & Johnson projected 2022 earnings and sales above Wall Street’s expectations.
* General Electric Co. missed sales expectations for the fourth quarter as it grappled with worsening supply-chain pressures.
* Nvidia Corp. is quietly preparing to abandon its purchase of Arm Ltd. from SoftBank Group Corp. after making little to no progress in winning approval for the $40 billion chip deal, according to people familiar with the matter.

What to watch this week:
* Fed monetary policy decision Wednesday.
* EIA crude oil inventory report Wednesday.
* U.S. new home sales, wholesale inventories Wednesday.
* South African Reserve Bank rate decision Thursday.
* U.S. initial jobless claims, durable goods, GDP Thursday.
* Euro zone economic confidence, consumer confidence Friday.
* U.S. consumer income, University of Michigan consumer sentiment Friday.

Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.2% as of 4 p.m. New York time
* The Nasdaq 100 fell 2.5%
* The Dow Jones Industrial Average fell 0.2%
* The MSCI World index fell 0.9%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro fell 0.2% to $1.1303
* The British pound rose 0.2% to $1.3509
* The Japanese yen was little changed at 113.89 per dollar
Bonds
* The yield on 10-year Treasuries advanced one basis point to 1.78%
* Germany’s 10-year yield advanced three basis points to -0.08%
* Britain’s 10-year yield advanced four basis points to 1.16%
Commodities
* West Texas Intermediate crude rose 2.5% to $85.36 a barrel
* Gold futures rose 0.3% to $1,850.40 an ounce
–With assistance from Sunil Jagtiani, Namitha Jagadeesh and Elaine Chen.
Have a wonderful evening.

Be magnificent!
As ever,

Carolann

A simple rule in dealing with those who are hard to get along with is to remember that this person is striving
to assert his superiority; and you must deal with him from that point of view. –Alfred Adler, 1870-1937.

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