March 22, 2022 Newsletter

Dear Friends,

Tangents: United Nations World Day for Water.
1945: Arab League formed, Cairo.
On March 22, 1972, Congress sent the proposed Equal Rights Amendment to the Constitution to the states for ratification. It fell short of the three-fourths approval needed. Go to article »

These were the best and worst places for air quality in 2021.  The air in Los Angeles was the most polluted out of more than 2,400 US cities analyzed. Yikes.

There are now more than 5,000 confirmed worlds outside of our solar system.  NASA is spearheading a hunt to discover more planets (and whatever what may be on them.)

Netflix’s future could be as an app platform, helping it draw new subscribers. — Trung Phan.

Here’s what air travel might look like in the future. (h/t Scott Kominers)

The art of J.R.R. Tolkien.

In praise of memorization.

PHOTOS OF THE DAY

An ashy mining bee (Andrena cineraria) forages on heather in Rennes
CREDIT: Damien Meyer/AFP/Getty Images

Vervet monkeys at Bwabwata National Park in Namibia
CREDIT: Xinhua/Rex/Shutterstock

Guests in indigenous costumes attend a special reception hosted by the governor general of Belize in celebration of the Queen’s platinum jubilee
CREDIT: Getty Images

Market Closes for March 22^nd, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1811, the New York state legislature passed the “Act Relative to Incorporations for Manufacturing Purposes,” the world’s first law granting limited liability to common stockholders—a revolutionary concept that protected investors from ever losing more than their initial investment and helped New York quickly become the industrial and financial capital of the world.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian stocks closed at a record high for the fourth consecutive session as technology and financial stocks pulled the index higher even as energy and materials sunk.
The S&P/TSX Composite rose for the sixth day, climbing 0.3%, or 65.22 to 22,074.35 in Toronto.
Shopify Inc. contributed the most to the index gain, increasing 6.0%.
Lightspeed Commerce Inc. had the largest increase, rising 7.9%.
Today, 128 of 239 shares rose, while 110 fell; 6 of 11 sectors were higher, led by information technology stocks.
Insights
* This quarter, the index rose 4%
* This month, the index rose 4.5%
* The index advanced 17% in the past 52 weeks. The MSCI AC Americas Index gained 13% in the same period
* The S&P/TSX Composite is 0.4% below its 52-week high on March 22, 2022 and 19.6% above its low on March 25, 2021
* The S&P/TSX Composite is up 4.2% in the past 5 days and rose 5.6% 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 14.3 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$3.5t
* 30-day price volatility fell to 13.12% compared with 13.22% in the previous session and the average of 13.48% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | 53.2192| 3.6| 12/4
* Financials | 41.8300| 0.6| 26/2
* Industrials | 14.8778| 0.6| 17/12
* Real Estate | 7.4772| 1.2| 22/1
* Consumer Discretionary | 6.5742| 0.9| 10/4
* Health Care | 3.5413| 2.5| 8/0
* Consumer Staples | -0.4097| -0.1| 4/7
* Communication Services | -1.3034| -0.1| 5/2
* Utilities | -3.9798| -0.4| 6/10
* Energy | -19.2741| -0.5| 10/24
* Materials | -37.3372| -1.3| 8/44
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Shopify | 40.7400| 6.0| 33.8| -47.6
* Canadian Pacific | 10.4300| 1.6| -15.8| 13.0
* Bank of Nova Scotia| 7.5430| 1.0| 53.1| 4.7
* Agnico Eagle Mines | -5.1020| -2.1| -27.1| 14.6
* Teck Resources | -6.0300| -3.7| -30.4| 36.0
* Canadian Natural Resources | -9.3190| -1.5| 61.9| 45.2

US
By Emily Graffeo and Vildana Hajric
(Bloomberg) — U.S. stocks rebounded while the selloff in Treasuries deepened Tuesday as trader weighed hawkish comments by Federal Reserve Chair Jerome Powell, which signaled the central bank will take more aggressive measures to tame inflation.
The S&P 500 gained, recovering half its losses now from a selloff that started in January.
Meanwhile, bond yields continued their ascent as short-dated Treasuries hurtled toward their worst quarterly performance in almost four decades.
The gains come as traders are braced for high volatility until there’s more certainty about Fed policy, inflation and the war in Ukraine.
Yet the S&P 500’s reversal from a recent downtrend could be an indicator U.S. stocks have reached a bottom, said Craig Johnson, Piper Sandler & Co. chief market technician.
“The collective technical evidence suggests the correction lows have likely been set,” he wrote in a note. “Momentum indicators remain bullish after forming positive divergences from price action over the last several weeks.”
Still, commodity-market disruptions stemming from the war have increased pressure on key central banks to tighten monetary policy.
Oil in New York fell after a volatile session for Brent crude futures as Germany and Hungary put the brakes on a potential embargo on Russian oil.
The Fed hiked rates by a quarter-point last week and signaled six more such moves this year, with Powell indicating the bank is prepared to raise rates by 50 basis points at its next policy meeting if needed.
Derivative traders are now pricing in about 7.5 quarter-point rate hikes at the remaining meetings this year, effectively making provision for more than one half-point rise.
“I think that investors were heartened by what Fed Chair Powell said yesterday — that they’re really not going to remain behind the curve,” Sam Stovall, chief investment strategist at CFRA, said on Bloomberg’s “QuickTake Stock” stream. “What you’re seeing with the selloff in bonds is that investors are looking to go elsewhere. They certainly don’t want to be in an asset classes like a seesaw — if the yield goes up, their price will be going down. So they’re gravitating toward that area that most likely has better upside potential, and that’s equities right now.”
European stocks marched higher, led by banks and cyclical stocks like automakers.
The dollar pared back an earlier advance against peers.
And Bitcoin gained about 3% to trade at its highest level in almost three weeks..
Here are some key events this week:
* European Central Bank President Christine Lagarde among central bank speakers at the BIS innovation summit, Tuesday to March 23
* EIA crude oil inventory report, Wednesday
* Bank of England Governor Andrew Bailey, Fed Chair Powell speak at BIS panel, Wednesday
* U.K. Chancellor Rishi Sunak’s “Spring Statement” on the budget, Wednesday
* U.S. President Joe Biden attends NATO emergency summit in Brussels, Thursday
* Eurozone Markit PMIs, Thursday
* U.S. initial jobless claims, U.S. durable goods, Thursday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.1% as of 4:03 p.m. New York time
* The Nasdaq 100 rose 1.9%
* The Dow Jones Industrial Average rose 0.7%
* The MSCI World index rose 1.1%
Currencies
* The Bloomberg Dollar Spot Index fell 0.1%
* The euro was little changed at $1.1027
* The British pound rose 0.7% to $1.3258
* The Japanese yen fell 1.1% to 120.77 per dollar
Bonds
* The yield on 10-year Treasuries advanced nine basis points to 2.38%
* Germany’s 10-year yield advanced three basis points to 0.50%
* Britain’s 10-year yield advanced seven basis points to 1.71%
Commodities
* West Texas Intermediate crude fell 0.3% to $111.76 a barrel
* Gold futures fell 0.4% to $1,926.90 an ounce
–With assistance from Cecile Gutscher, Isabelle Lee and Lu Wang.

Have a lovely evening.

Be magnificent!
As ever,

Carolann

Life’s a bit like mountaineering – never look down. –Sir Edmund Percival Hillary, 1919-2008.

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