March 9, 2022 Newsletter

Dear Friends,

Tangents:
March 9, 1959: The Barbie doll makes its debut at the American International Toy Fair in New York.  In 2020, Mattel sold $1.3 billion worth of Barbie dolls and accessories and this was their best sales growth in two decades attributed to the Covid-19 pandemic.  This was an increase from the $950 million the brand sold during 2017.

On March 8, 1917, Russia’s February Revolution (so called because of the Old Style calendar used by Russians at the time) began with rioting and strikes in St. Petersburg.  Go to article »

Swanky workout brand Lululemon jumps into the footwear business with a new shoe called ‘Blissfeel’.  The words “bliss” and “blister” are far too close for comfort

Giant venomous spiders infiltrated the southeastern US and are expected to spread rapidly, but experts say not to worry.  Please do not kill the beautiful, hand-sized nightmares. They will not hurt you. Simply back away from wherever you found them, move to the other side of the world and never return. This has been a message from the Committee for No More Scary Bugs 2022. 

This Russian superyacht is staying put.

The wreck of the steam-yacht Endurance, which famously sank in 1915 during an Antarctic expedition by the polar explorer Ernest Shackleton, has been rediscovered by searchers using autonomous underwater vehicles.

The shipwreck was found at a depth of 9,869 feet (3,008 meters) beneath West Antarctica’s Weddell Sea, according to the Falklands Maritime Heritage Trust (FMHT), which sponsored the search.
Full Story: Live Science (3/9) 

Scientists haven’t found evidence of a “cosmic dawn.”

Life, uh, finds a way: mouse edition.

Winners of the 2021 World Nature Photography awards.

From the late night hosts:
“Gas prices are so high, this morning, parents were like: ‘All right, kids, we’re Amish now. Let’s get in the buggy — we’re taking the horse to school.’” — JIMMY FALLON

“But on the bright side, this is the perfect excuse to pretend you’re going to get back on the bike you bought mid-pandemic and rode twice.” — JAMES CORDEN

“Meanwhile, in the battle, McDonald’s and Starbucks are cutting ties with Russia, both announcing they would temporarily close all locations in the country. No Starbucks, no McDonald’s — that’s a sad life to live. And no pick-me-up in the morning, no Happy Meals — or, as they call them in Russia, meals.” — TREVOR NOAH

“Yeah, we don’t want their oil and they can’t have our grease.” — JIMMY FALLON

“Not to be outdone, Arby’s announced that they are punishing Russia by staying open.” — JIMMY FALLON

“Yes. Russia just became a ‘no fry zone.’” — STEPHEN COLBERT

PHOTOS OF THE DAY

Death Denied, 2008, goes on view as part of the Damien Hirst Natural History Exhibition at Gagosian Gallery
CREDIT: Tristan Fewings/Getty Images

Visitors enjoy cherry blossoms and flower-themed installations inside the Flower Dome of Gardens by the Bay
CREDIT: Xinhua/REX/Shutterstock

The Endurance trapped in ice in 1915 before it sank
CREDIT: Bettmann Archive

Market Closes for March 9^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1929, just in time to suffer through the worst depression in modern history, the forerunner of the Buenos Aires Stock Exchange was established.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities reversed two days of losses, climbing as technology and consumer discretionary stocks rallied.
The S&P/TSX Composite rose 1.2% at 21,493.23 in Toronto.
The move was the biggest since rising 1.7% on Feb. 25 and follows the previous session’s decrease of 0.3%.
Today, financials stocks led the market higher, as 8 of 11 sectors gained; 163 of 238 shares rose, while 72 fell.
Shopify Inc. contributed the most to the index gain, increasing 13.6%.
Nuvei Corp. had the largest increase, rising 13.8%.
Insights
* In the past year, the index had a similar or greater gain seven times. The next day, it advanced four times for an average 0.5% and declined three times for an average 0.3%
* This quarter, the index rose 1.3%
* The index advanced 16% in the past 52 weeks. The MSCI AC Americas Index gained 9% in the same period
* The S&P/TSX Composite is 1.4% below its 52-week high on Nov. 16, 2021 and 16.4% above its low on March 25, 2021
* The S&P/TSX Composite is up 1.1% in the past 5 days and fell 0.5% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.3 on a trailing basis and 14.5 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$3.39t
* 30-day price volatility rose to 13.37% compared with 12.95% in the previous session and the average of 13.62% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 142.7558| 2.1| 26/2
* Information Technology | 101.8556| 7.9| 16/0
* Industrials | 40.4321| 1.6| 28/2
* Consumer Discretionary | 23.2139| 3.5| 14/0
* Consumer Staples | 20.9528| 2.7| 10/1
* Real Estate | 9.8536| 1.7| 20/3
* Health Care | 4.9877| 3.8| 8/0
* Communication Services | 3.3647| 0.3| 5/2
* Utilities | -4.3226| -0.4| 6/10
* Materials | -16.2707| -0.6| 25/25
* Energy | -65.6293| -1.9| 5/27
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | 70.4400| 13.6| 18.6| -56.7
* TD Bank | 26.5500| 2.2| -29.2| 1.5
* Royal Bank of Canada | 24.5700| 1.9| -34.0| 2.6
* Suncor Energy | -14.1000| -3.4| 70.3| 26.7
* Barrick Gold | -18.6900| -4.7| 19.2| 29.6
* Canadian Natural Resources | -22.4200| -3.6| 22.6| 38.8

US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — Global stocks staged a ferocious rebound from the war-induced rout, with European equities notching the biggest rally since the pandemic bottom in March 2020 and U.S. shares jumping the most since June of that year.
Oil sank more than 10% and Treasuries dropped.
Dip buyers powered the S&P 500 up 2.6% and Germany’s DAX Index to an eye-popping 7.9% surge on speculation that two weeks of selling amply reflected the global economic impact of escalating sanctions on Russia.
Oil slid to $110 a barrel in New York and the 10-year Treasury yield climbed back above 1.9%.
Still, the rallies managed to claw back only some of the losses incurred since Russia invaded Ukraine.
The DAX had plunged into a bear market earlier this week, while the S&P 500 is still sitting 10% below where it started the year.
West Texas crude has added almost $20 a barrel in two weeks, and other commodities from nickel to wheat remain near historically high prices.
The risk-on rally is the latest wild ride for markets have been roiled by fears of a global inflation shock from a commodity-price rally fueled by Russia’s isolation, while supply disruptions threaten to usher in a period of slower global growth.
Sentiment was lifted Wednesday after a top foreign policy aide to Ukrainian President Volodymyr Zelenskiy said the country is open to discussing Russia’s demand of neutrality as long as it’s given security guarantees.
“Risk markets are higher today, suggesting traders are no longer in flight mode and are starting to think about value again,” said Chris Low, chief economist at FHN Financial. “That doesn’t mean volatility is over.
Economic consequences, macro and micro, are still in flux.
The West is still working on sanctions for Russian energy, and the duration and outcome of the war is still a big unknown.”
The rally in U.S. stocks Wednesday comes on the 13^th anniversary since the S&P 500 bottomed out following the financial crisis.
The gauge has climbed more than 500% in this bull market, with an annual return of about 15%.
Russian forces intensified their bombardment of Ukraine’s capital Kyiv, the U.S. said.
The Russian stock market’s trading halt is being extended in an effort to keep prices from tumbling in the wake of vast international sanctions.

Meanwhile, Coca-Cola Co. joined McDonald’s Corp., Starbucks Corp. and a host of other companies in suspending Russia operations in protest at the war.
Fitch Ratings cut Russia’s credit rating and said a bond default is “imminent.”
Oil tumbled as the U.A.E. and Iraq signaled OPEC may have greater willingness to raise output.
Crude has posted huge intraday swings in recent days as Russia’s invasion of Ukraine threatens a major global supply shock.
Declines in crude and gas Wednesday are reversing some of the main trades seen since war broke out.
“What we’re seeing today is a lot of focus on commodity prices,” Michelle Cluver, associate portfolio strategist at Global X, said in a phone interview. “We are also seeing, especially with what’s happened with banning energy imports from Russia, the question about economic growth increasingly coming to the forefront.”

Commodity costs underline the inflation challenge and growth dilemma facing central banks.
The European Central Bank meeting Thursday may reflect caution as the war on Ukraine has upended the continent’s economic outlook, while bets on a Federal Reserve rate hike have been scaled back over the past few weeks, with a quarter point now widely expected.
Still, with U.S. inflation data due Thursday set to capture prewar prices, economists are now saying it could peak somewhere in the 8%-9% range this month or next.

Commodities broadly pulled back from highs, with gold dropping from a 19-month high on improved risk sentiment.
Bullion is still up 9% this year as investors seek a hedge against the threat of an inflationary shock.
In cryptocurrencies, Bitcoin jumped above $42,000 amid a sharp rally in digital tokens, spurred by optimism about an impending U.S. overhaul of crypto oversight that Treasury Secretary Janet Yellen called “historic.”
Here are some key events this week:
* European Central Bank President Christine Lagarde briefing after policy meeting, Thursday
* U.S. CPI, initial jobless claims, Thursday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 2.6% as of 4 p.m. New York time
* The Nasdaq 100 rose 3.6%
* The Dow Jones Industrial Average rose 2%
* The MSCI World index rose 2.7%
Currencies
* The Bloomberg Dollar Spot Index fell 0.9%
* The euro rose 1.6% to $1.1070
* The British pound rose 0.6% to $1.3183
* The Japanese yen fell 0.1% to 115.81 per dollar
Bonds
* The yield on 10-year Treasuries advanced nine basis points to 1.94%
* Germany’s 10-year yield advanced 10 basis points to 0.22%
* Britain’s 10-year yield advanced eight basis points to 1.53%
Commodities
* West Texas Intermediate crude fell 11% to $110.23 a barrel
* Gold futures fell 2.4% to $1,995.20 an ounce
–With assistance from Akshay Chinchalkar, Sharon Cho, Andreea Papuc, Srinivasan Sivabalan and Peyton Forte.
Have  a lovely evening.

Be magnificent!
As ever,

Carolann

If you get angry easily, it may be because the seed of anger in you has been watered frequently over many years,
and unfortunately you have allowed it or even encouraged it to be watered. –Thich Nhat Hanh,1926-2022.

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