March 10, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.

March 10, 1969 James Earl Ray pleaded guilty in Memphis, Tenn., to the assassination of Martin Luther King Jr.. …It was also his birthday… the King Family however believes vehemently that Ray was framed for the assassination. Go to article ».

1933- Soon after Adolf Hitler becomes chancellor, the first concentration camp in Germany opens at Dachau, where at least 33,000 people die from disease, malnutrition , physical oppression and execution.

1862- Paper Money issued in the US.

The truly worst year to be alive was 536.

Area algae species has three sexes.

Ukrainian photographer turns war into art.  Instead of wallowing in the destruction around her, this woman is making clever TikTok videos to document her daily life during the Russian invasion. 

Affection from a dog really is medicinal, according to a new study.  So, dogs are actually dog-tors?! Experts say canine affection may help reduce physical pain for some hospital patients. 

PHOTOS OF THE DAY

A carpet of crocuses at the National Trust’s Wallington Hall in Northumberland
CREDIT:  Owen Humphreys/PA

Dua Lipa performs at United Center
CREDIT: Natasha Moustache/Getty Images

Workers load thousands of pots on to a boat to be sold at markets across the country. A team can make up to 25,000 handmade pots each day
CREDIT: Mustasinur Rahman Alvi/Zuma/Rex/Shutterstock

Market Closes for March 10^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1876, the telephone was born in a laboratory in Boston, as Alexander Graham Bell said into his variable resistance transmitter, which sat in a bowl of water and sulphuric acid, “Mr. Watson, come here, I want to see you.” Mr. Bell’s assistant, Thomas A. Watson, heard him; “the effect was loud but indistinct and muffled.” A year-and-a-half later, Bell offered to sell the commercial rights to the telephone for $100,000 to Western Union, which rejected the offer on the grounds that the telephone was a passing fad.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities climbed to the highest in a month as companies in the materials sector soared amid surging prices for commodities such as metals.
The S&P/TSX Composite rose for the second day, climbing 0.4%, or 88.47 to 21,581.70 in Toronto.
The index advanced to the highest closing level since Feb. 9.
Nutrien Ltd. contributed the most to the index gain, increasing 6.9%.
Endeavour Silver Corp. had the largest increase, rising 8.1%.
Today, 134 of 238 shares rose, while 102 fell; 7 of 11 sectors were higher, led by materials stocks.
Insights
* This quarter, the index rose 1.7%
* So far this week, the index rose 0.8%
* The index advanced 15% in the past 52 weeks. The MSCI AC Americas Index gained 8% in the same period
* The S&P/TSX Composite is 1% below its 52-week high on Nov. 16, 2021 and 16.9% above its low on March 25, 2021
* The S&P/TSX Composite is up 1.6% in the past 5 days and was little changed in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.4 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$3.43t
* 30-day price volatility fell to 13.34% compared with 13.37% in the previous session and the average of 13.63% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | 67.6895| 2.3| 41/11
* Energy | 44.0808| 1.3| 24/8
* Industrials | 19.9848| 0.8| 12/18
* Consumer Staples | 6.4427| 0.8| 6/5
* Utilities | 4.2012| 0.4| 10/6
* Real Estate | 1.6145| 0.3| 15/8
* Consumer Discretionary | 0.1240| 0.0| 5/8
* Communication Services | -0.0747| 0.0| 5/2
* Health Care | -1.5818| -1.2| 3/5
* Financials | -10.1190| -0.1| 11/17
* Information Technology | -43.9058| -3.2| 2/14
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Nutrien | 33.0000| 6.9| 43.3| 36.9
* Canadian Natural Resources | 21.9300| 3.7| 162.8| 43.9
* Canadian National | 17.2900| 2.6| -5.1| 5.0
* Bank of Nova Scotia| -4.3420| -0.6| 24.0| 2.9
* Brookfield Asset Management | -6.0180| -0.9| -35.8| -9.9
* Shopify | -36.6800| -6.2| -12.7| -59.4

US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — U.S. stocks fell and Treasury yields pushed higher after inflation accelerated for a sixth successive month and the Russian attack on Ukraine showed no sign of letting up.
Oil declined and the dollar rose.
The S&P 500 ended down but well off session lows, with tech stocks leading the retreat.
Treasuries fell across the board, sending the 10-year Treasury yields to levels not seen since Feb. 25 and the 30-year rate to the highest since May 2021 after data showed inflation running at the fastest pace in 40 years.
Oil dropped below $107 a barrel in New York amid concern surging prices could hasten the onset of demand destruction.
Markets have whipsawed since Russia invaded Ukraine two weeks ago, with U.S. stocks this week experiencing the biggest swings of gains and losses since 2020.
Commodity prices have also gyrated as investors grapple with uncertainties surrounding Russia’s attack on Ukraine and supply disruptions, while inflation showing sign of slowing keeps pressure on policy
makers to hike rates and threatens to curb economic growth.
“The market likely already priced the inflation increase in accordingly, and is instead intently focused on Ukraine and the downstream impact from commodities, which are already sending shockwaves through the market,” said Mike Loewengart, managing director of investment strategy at E*TRADE from Morgan Stanley.  “Bottom line for investors: Strap in for a bumpy ride, but keep your wits about you and don’t react emotionally.”
Ukraine and Russia failed to make progress in halting the war and bridging the vast differences between them at the first high-level talks between their foreign ministers since the Russian invasion began. Sentiment was boosted Wednesday after a top foreign policy aide to Ukraine’s president said the country was open to discussing Russia’s demand for neutrality as long as it was given security guarantees.
While the jump in U.S. consumer prices was in line with forecasts, it reinforced expectations that the Federal Reserve next week will start raising interest rates to contain inflation that some economists see rising above 8%.
That’s because the Ukraine war and U.S. President Joe Biden’s ban on Russian energy imports tightened oil supplies.
Comments
* “Expectations were already high for today’s U.S. inflation number, but the 7.9% print today wasn’t helpful for the Fed following the oil price rises we have seen in recent weeks,” wrote Nick Chatters, investment manager at Aegon Asset Management. “It seems that the Fed is going to have to react to the possible spiral scenario, where wages race higher in chase.”
* “I don’t think the war has knocked any of the central banks off their policy of trying to normalize rates in reaction to inflation,” said Chris Gaffney, president of world markets at TIAA Bank. “Inflation is certainly high. This morning’s print, it’s uncomfortable.”
* “The biggest risk is inflation,” said Fiona Cincotta, senior market analyst at City Index. “Even though central banks will try and rush to get through as much tightening as possible in the first half of the year, I think looking further out, they gonna struggle if growth really starts to take a hit.”
* “The key here is that shelter and food, not used cars are driving the print. Combined with the decline in real wages, this locks in the Fed’s compass,” said Max Gokhman, chief investment officer for AlphaTrAI. “Of course with the Russian invasion showing no sign of abating, it’s unlikely the next headline reading will be below expectations. The market reaction is investors finally pricing in that this war will make the Fed more, not less hawkish.”
* “After months of laying the groundwork for a steady and substantial tightening in monetary policy over the next year, the Fed now faces a sudden change in the economic outlook,” Richard Flynn, managing director at Charles Schwab U.K. Ltd., wrote in a note. “That said, the Fed will likely be reticent to stall rate hikes in the short term.”

Amazon.com Inc. jumped 5.4% after announcing a share split and a $10 billion buyback plan.
Crowdstrike Holdings Inc. soared 13% after posting strong results. Oracle Corp. fell in postmarket trading after reporting quarterly results.

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.4% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.1%
* The Dow Jones Industrial Average fell 0.3%
* The MSCI World index fell 0.2%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.9% to $1.0979
* The British pound fell 0.7% to $1.3085
* The Japanese yen fell 0.3% to 116.12 per dollar
Bonds
* The yield on 10-year Treasuries advanced three basis points to 1.99%
* Germany’s 10-year yield advanced six basis points to 0.27%
* Britain’s 10-year yield was little changed at 1.52%
Commodities
* West Texas Intermediate crude fell 2.2% to $106.36 a barrel
* Gold futures rose 0.8% to $2,003.90 an ounce
–With assistance from Emily Barrett, Andreea Papuc, Srinivasan Sivabalan, Peyton Forte and Isabelle Lee.

Have a lovely evening.

Be magnificent!
As ever,

Carolann

To Zen, time and eternity are one. –D.T. Suzuki, 1870-1966.

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