March 11, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday!
It’s time to spring forward again this weekend – daylight-savings time starts on Sunday.

The Poem:

We Lived Happily during the War
-by Ilya Kaminsky

And when they bombed other people’s houses, we

protested
but not enough, we opposed them but not

enough.  I was
in my bed, around by bed America

was falling: invisible house by invisible house by invisible house-

I took a chair outside and watched the sun.

In the sixth month
of a disastrous reign in the house of money

in the street of money in the city of money in the country of money,
our great country of money, we (forgive us)

lived happily during the war.

********************************************************
On March 11, 1941, President Roosevelt signed into law the Lend-Lease Bill, providing war supplies to countries fighting the Axis. Go to article »
March 11, 1918: US Army mess cook Private Albert Gitchell of Fort Riley, Kansas becomes the first documented case of the Spanish flu and signifies the start of a worldwide pandemic killing 50-100 million.

Rare wolverine sighting in Yellowstone was captured on video.  Yes, they’re dangerous predators…  so thankfully, this one kept its distance. 

Alicia Keys shares the inspiration behind her new graphic novel.  She’s a Grammy-winning musician, talented actress, busy mom, and now – budding novelist. We love a multifaceted queen. 
 
We could soon be using time crystals made of light.

PHOTOS OF THE DAY

Cosplayer Dom Charland, dressed as Batman, poses for a photograph on the Edge, the highest outdoor sky deck in the western hemisphere
CREDIT: Timothy A Clary/AFP/Getty Images

Seals on floes that Turkish scientists are monitoring as they melt as a result of climate change
CREDIT: Sebnem Coskun/Anadolu Agency/Getty Images

Visitors view cherry blossom in eastern Jiangsu province
CREDIT: AFP/Getty Images

Market Closes for March 11^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1991, Microsoft confirmed that it was the subject of an investigation by the Federal Trade Commission. Over the coming years, evidence of Microsoft’s monopolistic behavior mounted until U.S. District Judge Thomas Penfield Jackson issued a final ruling on April 3, 2000, finding that Microsoft violated Federal antitrust law.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities slumped the most in more than a week as companies in the materials sector sunk with falling metals prices.
The S&P/TSX Composite fell 0.6% at 21,461.83 in Toronto.
TC Energy Corp. contributed the most to the index decline, decreasing 2.8%.
Hut 8 Mining Corp. had the largest drop, falling 8.0%.
Today, 156 of 238 shares fell, while 80 rose; 8 of 11 sectors were lower, led by materials stocks.
Insights
* This quarter, the index rose 1.1%
* So far this week, the index rose 0.3%
* The index advanced 14% in the past 52 weeks. The MSCI AC Americas Index gained 5.1% in the same period
* The S&P/TSX Composite is 1.5% below its 52-week high on Nov. 16, 2021 and 16.3% above its low on March 25, 2021
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.2 on a trailing basis and 14.4 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$3.44t
* 30-day price volatility fell to 13.28% compared with 13.34% in the previous session and the average of 13.63% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | -40.5004| -1.4| 10/43
* Information Technology | -29.9845| -2.2| 1/15
* Industrials | -21.9255| -0.9| 9/21
* Energy | -15.6770| -0.4| 9/23
* Consumer Discretionary | -8.5758| -1.3| 3/10
* Financials | -7.5565| -0.1| 15/12
* Consumer Staples | -6.4121| -0.8| 2/9
* Health Care | -3.2893| -2.4| 1/7
* Utilities | 0.1005| 0.0| 7/9
* Communication Services | 6.5810| 0.6| 2/5
* Real Estate | 7.3589| 1.2| 21/2
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* TC Energy | -13.5200| -2.8| 13.1| 18.4
* Shopify | -10.2100| -1.9| 21.4| -60.2
* Canadian National | -9.1060| -1.3| 11.7| 3.6
* Manulife Financial | 3.6030| 1.1| -9.2| 4.8
* Canadian Natural Resources | 5.7460| 0.9| 118.8| 45.2
* BCE | 6.1810| 1.4| 61.8| 6.9

US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — U.S. stocks extended losses in late-day trading Friday as risk sentiment deteriorated after Ukraine’s top diplomat said he didn’t see progress in talks with Russia.
Comments by Ukrainian Foreign Minister Dmytro Kuleba came after IFX cited Russian President Vladimir Putin as underscoring daily efforts to resolve tensions, news that helped bolster risk appetite in early New York trading.
Meanwhile, President Joe Biden on Friday called on U.S. lawmakers to join Western allies to end normal trade relations with Russia.
The S&P 500 closed near session lows, capping the worst weekly performance since the period ending Jan. 21.
Global markets have been on edge as the worsening war in Ukraine and sanctions against Russia stoke inflation fears and threaten to sap growth.
The dollar gained on haven demand Friday, climbing to the highest since July 2020.
Markets lurched between panic-selling and dip-buying of beaten-down stocks that pushed S&P 500 to the biggest daily losses and gains since 2020.
Volatility wasn’t limited to equity markets, with oil in New York swinging in an arc from above $130 a barrel to as low as almost $103.
Bonds too gyrated, with 10-year Treasury yield climbing from below 1.7% to above 2%.
“We’re in a headline-driven market and headline-driven markets happen during periods of uncertainty,” Keith Lerner, co-chief investment officer and chief market strategist at Truist Advisory Services, said by phone. “We always have uncertainty, but when you have higher-than-normal uncertainty, each headline tends to get over-extrapolated in both directions.”
Those wild swings came in a week that saw inflation in February accelerating at the fastest pace in 40 years in February, reinforcing expectations that the Federal Reserve next week will start raising interest rates to contain inflation that some economists see rising above 8%.
If the European Central Bank’s decisions Thursday are any guide, policy makers may prioritize their inflation fight over the need to support economic recovery.
“Fundamentals are taking a back seat to the Fed, which is taking a backseat right now to what’s going on in Ukraine, Tom Hainlin, national investment strategist at U.S. Bank National Association, said by phone. The Fed meeting is “going to be a material event — anticipating that the Fed’s going to finally pivot to the beginning of tightening policy.”
Bond traders ramped up inflation projections Friday, with the 30-year security at the highest since 2013.
At 2.60%, the long-dated breakeven — the market’s forecast for price growth over the next three decades — is joining short-term maturities at historically elevated levels.
U.S. consumer sentiment tumbled in early March to the lowest since 2011 and year-ahead inflation expectations rose to a four-decade high in the aftermath of Russia’s invasion of Ukraine, according to a University of Michigan sentiment index.
Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.3% as of 4 p.m. New York time
* The Nasdaq 100 fell 2.1%
* The Dow Jones Industrial Average fell 0.7%
* The MSCI World index fell 1.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.5%
* The euro fell 0.7% to $1.0911
* The British pound fell 0.4% to $1.3036
* The Japanese yen fell 1% to 117.25 per dollar
Bonds
* The yield on 10-year Treasuries was little changed at 1.99%
* Germany’s 10-year yield declined two basis points to 0.25%
* Britain’s 10-year yield declined three basis points to 1.49%
Commodities
* West Texas Intermediate crude rose 3.1% to $109.31 a barrel
* Gold futures fell 0.6% to $1,988.80 an ounce
–With assistance from Andreea Papuc, Emily Barrett, Joanna Ossinger and Srinivasan Sivabalan.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

Everything that irritates us about others can lead us to an understanding of ourselves. –Carl Jung, 1875-1961.

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