August 27, 2021 Newsletter

Dear Friends,

Tangents: Happy Friday.

On Aug. 27, 1962, the United States launched the Mariner 2 space probe, which flew past Venus the following December.  Go to article »

The superyachts are fine, everybody.

Scientists are searching for lost Nazi nuclear cubes.

PICTURES OF THE DAY

Martin Broen explores the otherwordly landscapes of underwater caves and cenotes along the Riviera Maya in Mexico
CREDIT: CATERS NEWS AGENCY

Long exposure picture of Rocket Lab’s Electron takes off into space from Mahia Peninsula, New Zealand
CREDIT: ROCKET LAB/HANDOUT VIA REUTERS

Andy Jones of the USA dives from the 21 metre Stari Most (Old Bridge) during the first competition day of the third stop of the Red Bull Cliff Diving World Series at Mostar, Bosnia and Herzegovina
CREDIT: ROMINA AMATO/RED BULL VIA GETTY IMAGES

Market Closes for August 27^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1878, the day after he returned to his laboratory in Menlo Park, N.J., from a trip to St. Louis, Thomas Edison began experimenting with electric light. By the middle of September (the final date is uncertain), Edison had solved the problem of creating incandescent light.
Canada
By Michael Bellusci
(Bloomberg) — The S&P/TSX Composite rose 0.7% at 20,644.64 in Toronto, closing at a fresh record high to end the week.  Canadian Natural Resources Ltd. contributed the most to the index gain, increasing 4.6%.  Endeavour Silver Corp. had the largest increase, rising 6.4%. Today, 161 of 229 shares rose, while 67 fell; 9 of 11 sectors were higher, led by materials stocks.
Insights
* This month, the index rose 1.8 percent
* This week, the index rose 1.5 percent, the biggest advance since the week ended May 28
* The index advanced 23 percent in the past 52 weeks. The MSCI AC Americas Index gained 30 percent in the same period
* The S&P/TSX Composite is 0.1 percent below its 52-week high on Aug. 27, 2021 and 33.9 percent above its low on Oct. 30, 2020
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.4 on a trailing basis and 16.3 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 fell to 7.86 percent compared with 8.31 percent in the previous session and the average of 8.76 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | 63.9725| 2.8| 51/2
* Energy | 46.4027| 1.9| 22/1
* Information Technology | 24.0529| 1.0| 10/2
* Industrials | 11.6988| 0.5| 19/11
* Consumer Discretionary | 2.6023| 0.3| 7/6
* Health Care | 2.5845| 1.1| 7/2
* Communication Services | 2.5560| 0.3| 5/2
* Real Estate | 1.9427| 0.3| 18/6
* Utilities | 0.3664| 0.0| 8/8
* Consumer Staples | -0.9602| -0.1| 5/8
* Financials | -14.7222| -0.2| 9/19
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Canadian Natural | | | |
* Resources | 15.5400| 4.6| 0.1| 38.7
* Shopify | 10.7800| 0.7| -43.3| 34.6
* Barrick Gold | 6.5690| 2.1| -8.0| -11.4
* Bank of Nova Scotia| -3.4670| -0.5| 60.5| 15.4
* TD Bank | -5.0740| -0.5| 53.2| 15.8
* CIBC | -5.3780| -1.2| 168.9| 34.7

US
By Jennifer Bissell-Linsk and Vildana Hajric
(Bloomberg) — U.S. equities gained to another record high as investors took assurance from comments by Jerome Powell that the withdrawal of stimulus would be gradual. The S&P 500 and Nasdaq 100 rose after the Federal Reserve chairman’s much-anticipated Jackson Hole address, where he reinforced the message that it would be appropriate to begin tapering bond purchases by the end of the year. Treasury yields and the dollar fell. Gold gained. Powell said the economy has now met the test of “substantial further progress” toward the Fed’s inflation objective while the labor market has also made “clear progress.” The remarks come as the latest reading of a closely watched measure of inflation remained elevated, highlighting the case for starting policy normalization despite the threat of the delta virus variant on the economic recovery.  “Investors are breathing a sigh of relief as Powell suggests a kinder, gentler Fed tightening,” said Mike Bailey, director of research at FBB Capital Partners. “Judging by the equity move, my sense is mainstream investors expected a harder line from Powell about tapering starting in the fall and rate hikes locked in for late 2022 or early 2023.”
During the speech, Powell also drew a line between asset purchases and interest rates, saying the Fed wouldn’t be in a hurry to begin increasing rates after it begins tapering its $120-billion-a-month bond-buying program. “I would fully expect that they will formally start slowly cutting asset purchases in October,” said Jeffery Elswick, director of fixed income at Frost Investment Advisors, targeting a September announcement. “But as long as they continue to be ultra-dovish on future rate hikes, I don’t think it will create a huge market reaction– at least initially.” The next risk factors will likely come from economic reports, given the market’s experience with communicating quantitative easing, Kevin Caron, senior portfolio manager at Washington Crossing Advisors, said. “While a policy misstep could happen, while a communication misstep could happen, it’s really more in the economic data itself where we would look for risk,” he said. The Stoxx Europe 600 index gained, on track for the seventh straight month of gains, the longest streak in eight years. Stocks climbed in China, where the central bank signaled targeted steps to cushion the economy. West Texas Intermediate crude had its best week since June 2020. Bitcoin rose above $48,000.

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.9% as of 4 p.m. New York time
* The Nasdaq 100 rose 1%
* The Dow Jones Industrial Average rose 0.7%
* The MSCI World index rose 0.8%
Currencies
* The Bloomberg Dollar Spot Index fell 0.5%
* The euro rose 0.4% to $1.1796
* The British pound rose 0.5% to $1.3763
* The Japanese yen rose 0.2% to 109.83 per dollar
Bonds
* The yield on 10-year Treasuries declined five basis points to 1.30%
* Germany’s 10-year yield declined two basis points to -0.42%
* Britain’s 10-year yield declined two basis points to 0.58%
Commodities
* West Texas Intermediate crude rose 2% to $68.74 a barrel
* Gold futures rose 1.5% to $1,821.30 an ounce
–With assistance from Kamaron Leach and Elaine Chen.

Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

We don’t see things as they are, we see them as we are. –Anaïs Nin, 1903-1977.

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