August 24, 2021 Newsletter

Dear Friends,

Tangents: 79 AD: Mt. Vesuvius erupts – Pompeii destroyed.

Schäferlauf~Shepherd’s Race, Germany.

Jorge Luis Borges, writer, b. 1899.

The Pumpkin Spice Latte is back at Starbucks today.  PSL lovers, unite!  We are overcaffeinated and unashamed! 

Playing golf may help you live longer.  But probably only if you don’t stress about it too much. 

Beyoncé becomes the first Black woman to wear iconic Tiffany Diamond.  Big “Breakfast at Tiffany’s” vibes here (if Tiffany’s also housed a large Basquiat painting).

Rolling Stones drummer Charlie Watts has died. He was 80. 

The Late Night hosts weigh in on the vaccination approval:

Yeah, it was approved by the real F.D.A., the Food and Drug Administration, which is not to be confused with the fake F.D.A., the Facebook Doctors Association.” — JIMMY FALLON

“Approval also offers an opportunity to clear up substantial public confusion. And, look, I’ll admit, it can be confusing to follow. We all wish the F.D.A. and C.D.C. could be more like the S.C.F., which is an organization where people Speak [expletive] Clearly.” — SETH MEYERS

“Yeah, this is great news. Although, if it didn’t get approved, I’m not really sure what the options were: Pfizer store credit?” — JIMMY FALLON

“It must be weird working at the F.D.A. One day you’re approving a lifesaving vaccine, the next you’re approving new s’mores-flavored Oreos.” — JIMMY FALLON

“Exactly what paranoid anti-vaxxers have been waiting for: a stamp of approval by the federal government.” — JAMES CORDEN

“The Pfizer vaccine is now fully approved by the F.D.A., which sounds like a big deal, until you remember that so is Mountain Dew Baja Blast.” — JAMES CORDEN

“Get this: The new name of the fully approved Pfizer vaccine is Comirnaty. Comirnaty, which sounds more like a drunk person trying to say ‘community’: [imitating drunk] ‘You can’t arrest me; I’m a valued member of the comirnaty.” — JIMMY FALLON

PHOTOS OF THE DAY

A plane crosses the full Blue Sturgeon Moon seen from South Norfolk by photographer Edward Russell. A Blue Moon is a full moon which appears for the second time in the same month and is very rare. There are usually only three moons per season so this full moon is extremely rare
CREDIT: EDWARD RUSSELL/BAV MEDIA

One of two snow leopard kittens, born in  Wroclaw Zoo, Poland. The snow panther, also known as snow leopard, is a species of mammal from the subfamily panther in the (Felidae) family, found in Central Asia
CREDIT: MACIEJ KULCZYSKU/EPA-EFE/SHUTTER STOCK

Brood of black cygnets hatched in Dawlish where have been a feature since the early 20th century when the first pair were brought over from New Zealand
CREDIT: APEX

Market Closes for August 24^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1927, Harry M. Markowitz was born in Chicago, son of Morris and Mildred Markowitz, who ran a small grocery store. In 1950-1952, Mr. Markowitz devised the intricate mathematics that proved the virtue of diversification and laid the groundwork for modern portfolio theory. In 1990, he shared the Nobel Prize in Economics for his work.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities advanced for a third straight session as broader markets continued their rebound.  The S&P/TSX Composite Index rose 0.3%, with tech, health care, and energy leading the charge. Shopify rose after the New York Times reported that the e-commerce company would partner with TikTok. Meanwhile, Oil extended gains from the biggest jump in five months. Earnings at Bank of Nova Scotia and Bank of Montreal got some help from Canada’s economic reopening.
Commodities:
* Western Canadian Select crude oil traded at a $13.00 discount to West Texas Intermediate
* Spot gold fell 0.1% to $1,803.79 an ounce
FX/Bonds:
* The Canadian dollar rose 0.5% to C$1.2595 per U.S. dollar
* The 10-year Canada government bond yield rose 2.1 basis points to 1.187%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.3 percent, or 70.5 to 20,547.76 in Toronto. The index advanced to the highest closing level since Aug. 11.Shopify Inc. contributed the most to the index gain, increasing 3.4 percent. BlackBerry Ltd. had the largest increase, rising 9.0 percent. Today, 130 of 229 shares rose, while 91 fell; 5 of 11 sectors were higher, led by information technology stocks.
Insights
* This month, the index rose 1.3 percent
* The index advanced 24 percent in the past 52 weeks. The MSCI AC Americas Index gained 32 percent in the same period
* The S&P/TSX Composite is 0.1 percent below its 52-week high on Aug. 24, 2021 and 33.3 percent above its low on Oct. 30, 2020
* The S&P/TSX Composite is up 0.9 percent in the past 5 days and rose 1.8 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 20 on a trailing basis and 16.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.5 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.22t
* 30-day price volatility rose to 8.44 percent compared with 8.40 percent in the previous session and the average of 8.89 percent over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | 55.3860| 2.3| 9/3
* Energy | 19.3142| 0.8| 20/2
* Materials | 5.0895| 0.2| 29/20
* Consumer Discretionary | 4.1008| 0.5| 9/4
* Health Care | 3.8222| 1.6| 7/2
* Communication Services | -0.8714| -0.1| 4/3
* Real Estate | -1.1194| -0.2| 8/15
* Utilities | -2.6397| -0.3| 6/9
* Industrials | -3.8631| -0.2| 20/10
* Consumer Staples | -4.0415| -0.5| 3/10
* Financials | -4.6667| -0.1| 15/13
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Shopify | 49.9500| 3.4| -20.3| 35.0
* Bank of Montreal | 9.6980| 1.7| -36.5| 35.2
* Blackberry | 4.1700| 9.0| 133.0| 65.9
* Bank of Nova Scotia| -5.3280| -0.8| -4.7| 15.7
* TD Bank | -5.9630| -0.5| 12.7| 19.3
* Brookfield Asset | | | |
* Management | -6.0720| -0.9| -33.4| 34.5

US
By Vildana Hajric and Kamaron Leach
(Bloomberg) — U.S. equities rose to record highs as strong corporate earnings and a rally in commodity prices outweighed lingering concerns about the threat of Covid-19 to the global economy. The S&P 500 and Nasdaq 100 gained as Best Buy Co. became the latest U.S. retailer to report robust consumer demand while the price of oil and iron ore similarly gained on improving sentiment. Energy, consumer discretionary and materials stocks were among the best performers as investors also awaited insights from Federal Reserve Chairman Jerome Powell’s address from Jackson Hole this week. “As long as the economic and corporate earnings environments continue to improve, the market is likely to withstand ongoing concerns about the virus and policy,” said Lauren Goodwin, economist and portfolio strategist at New York Life Investments. “That said, risks for the market are becoming more balanced as we move throughout the market cycle.” While markets started the week with a strong global rally, equities in the U.S. and Europe remain volatile on concern over the spread of the delta variant and tighter monetary policy. Economic data so far this week have painted a mixed picture, with manufacturing purchasing managers’ indexes in Europe and the U.S. showing continued growth, though slowing from last month’s levels. “How the Fed tapers is the next major variable for this market,” wrote Tom Essaye, a former Merrill Lynch trader who founded The Sevens Report newsletter. “We do not expect these specifics to be announced on Friday. They will come at the September meeting. But we do expect Powell to hint at an outcome. And given the Fed’s changes to the conference  (masks, more social distancing, Powell virtual), if there’s going to be a surprise, it’s likely dovish.”
With the Pfizer Inc. vaccine gaining full approval in the U.S. and cases falling in many of the original delta-variant hot spots, optimism is growing about the momentum of the global economic recovery, especially after strong corporate earnings. “We are starting to see a bit of decoupling between new waves of the virus and how the markets — and how the economy — reacts to it,” Dan Skelly, head of market research and strategy at Morgan Stanley Wealth Management, said in a Bloomberg TV interview. “We do expect virus concerns to subside in the coming weeks.” Stephen Dover, chief market strategist and head of Franklin Templeton Investment Institute, said “incredible” corporate earnings growth has been better than expected, which will be vital if the rally is to continue. “The U.S. just keeps continuing to outperform, to which we keep saying, how long can this go on?” Dover said. “How long does it really make sense that the U.S. still outperforms the rest of the world, at least in terms of the equity market? And the answer seems to be, well, at least a bit longer.” Earlier in the session, a rebound in Chinese tech stocks drove gains in global equities after solid results at JD.com Inc. drew in investors including Cathie Wood.  In Asia, equities in Japan and China gained while in Europe, the Stoxx Europe 600 index ended a mixed day little changed. Iron ore climbed on expectations additional support from the Chinese government will boost demand. WTI crude rallied to above $67 a barrel. Treasuries fell and the dollar was weaker.

Here are some events to watch this week:
* Bank of Korea policy decision; briefing by Governor Lee Ju-yeol Thursday
* Fed officials attend the Jackson Hole Economic Policy Symposium from Thursday through Saturday
* U.S. GDP, initial jobless claims Thursday
* July U.S. personal income and spending data Friday. Investors will scrutinize the personal consumption expenditures price index, an inflation measure closely watched by the Fed.

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.2% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.3%
* The Dow Jones Industrial Average was little changed
* The MSCI World index rose 0.6%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.1% to $1.1757
* The British pound was little changed at $1.3732
* The Japanese yen was little changed at 109.67 per dollar
Bonds
* The yield on 10-year Treasuries advanced four basis points to 1.29%
* Germany’s 10-year yield was little changed at -0.48%
* Britain’s 10-year yield was little changed at 0.54%
Commodities
* West Texas Intermediate crude rose 3.2% to $67.72 a barrel
* Gold futures were little changed
–With assistance from Robert Brand, Andreea Papuc and Jan-Patrick Barnert.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

This above all: to thine own self be true, and it must follow, as the night the day, thou canst not then be false to any man. –William Shakespeare, 1564-1616.

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