August 29, 2022 Newsletter

Dear Friends,

Tangents: Happy Monday.
On Aug. 29, 1991, the Supreme Soviet, the parliament of the U.S.S.R., suspended all activities of the Communist Party, bringing an end to the institution.  Go to article »
2005: Hurricane Katrina makes 2^nd & 3^rd landfall as a category 3 hurricane, devastating much of the US Gulf Coast from Louisiana to Florida Panhandle.  Kills more than 1,836, causes over $115 billion in damage.

And while your calendar may say we are still three weeks away from the arrival of fall, September 1 is the first day of meteorological fall in the Northern Hemisphere. Click here to learn why.
MTV VMAs 2022: See the full list of winners: Some of the world’s most popular artists were recognized at the MTV Video Music Awards on Sunday. Here are the stars who took home shiny new trophies.

Here’s how you can calmly handle common household headaches: Unexpected plumbing leaks and appliance breakdowns can be extremely stressful. But don’t worry, CNN made a list of solutions to frequent household problems so you can feel better prepared when these issues arise.

Father and daughter go viral with Harry Styles concert outfits:  If there’s a “Father of the Year” award, this man deserves to be a contender. Watch this heartwarming video of a dad who dressed up to match his young daughter at a Harry Styles concert. 

Nazi warships revealed as Danube River levels drop: Falling water levels in the Danube River during a recent heat wave across Europe have revealed more wrecks from a Nazi German flotilla of warships that were deliberately sunk there in the last months of World War II.  The wrecks of about 20 warships are now exposed near the town of Prahovo in eastern Serbia, which is one of the 10 countries the Danube flows through between western Germany and the Black Sea, according to the news agency Reuters. Full Story: Live Science (8/29) 

Could Earth ever leave our solar system? In Liu Cixin’s short story “The Wandering Earth” (first published in Chinese magazine Science Fiction World in July 2000), Cixin portrays a scenario in which the planet’s leaders agree to propel Earth out of the solar system to escape an imminent solar flare that is expected to decimate all of the terrestrial planets.  This story is, of course, based in the realm of fiction, but could Earth ever really leave the solar system?
Full Story: Live Science (8/28) 

PHOTOS OF THE DAY

Icelandic horses graze at a stud farm as the sun rises.
CREDIT: Michael Probst/AP

Footballers from Bourton Rovers create a splash as they fight for the ball during the annual Football in the River match.
CREDIT: Ben Birchall/PA

Female workers sort through millions of red chilli peppers, which create a sea of red covering acres of land. They slowly move forward with their baskets to separate the bad from the good after the chillies have been dried in the sun for a week
CREDIT: Mustasinur Rahman Alvi/Rex/Shutterstock

Market Closes for August 29^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 2000, in a sign of just how bullish the global bull market had become, OM Group of Sweden launched the world’s first hostile takeover bid for a stock exchange as it offers 822 million pounds sterling ($1.2 billion) to buy the London Stock Exchange
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian equities fell and the S&P/TSX Composite slid 0.2% to its lowest closing level since Aug. 9 as the materials and industrials sectors led a broad selloff.
Canadian Pacific Railway Ltd. contributed the most to the index decline, decreasing 1.5%.
Tfi International Inc. had the largest percentage drop, falling 6.5%.
Today, 149 of 238 shares fell, while 88 rose; 7 of 11 sectors were lower.
Terminal users can read more in our markets live blog.
Insights
* This month, the index rose 0.7%
* The index declined 3.9% in the past 52 weeks. The MSCI AC Americas Index lost 12% in the same period
* The S&P/TSX Composite is 10.7% below its 52-week high on April 5, 2022 and 9.2% above its low on July 14, 2022
* The S&P/TSX Composite is down 0.7% in the past 5 days and rose 0.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.4 on a trailing basis and 12.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.18t
* 30-day price volatility fell to 12.67% compared with 12.86% in the previous session and the average of 14.51% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | -30.7422| -0.5| 7/22
* Materials | -30.3874| -1.3| 2/48
* Industrials | -20.1218| -0.8| 10/19
* Information Technology | -6.8350| -0.7| 2/12
* Consumer Staples | -4.9996| -0.6| 3/8
* Communication Services | -2.1182| -0.2| 1/6
* Real Estate | -1.7726| -0.3| 9/14
* Health Care | 0.4860| 0.7| 6/1
* Consumer Discretionary | 0.5928| 0.1| 5/8
* Utilities | 0.8314| 0.1| 10/6
* Energy | 57.8974| 1.6| 33/5
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Canadian Pacific | -9.6760| -1.5| -2.0| 12.2
* TD Bank | -9.2750| -0.9| -16.9| -11.2
* Nutrien | -7.9780| -1.6| 3.6| 35.4
* Cenovus Energy | 6.0780| 2.8| -28.8| 66.7
* Cameco | 8.6750| 9.1| 92.4| 37.4
* Canadian Natural Resources | 9.8630| 1.7| -25.9| 44.1
US
By Isabelle Lee
(Bloomberg) — US stocks and Treasuries ended Monday lower as traders recalibrated their expectations in response to the Federal Reserve indicating that it will continue to raise interest rates to tamp down on inflation.
The S&P 500 and the Nasdaq 100 finished lower for the second straight session.
Treasury yields rose, with the 10-year rate hovering around 3.11%.
The two-year yield had climbed to its highest level since 2007 earlier in the day before paring the advance. Oil notched gains on supply risks.
Fed Chair Jerome Powell’s speech during the Jackson Hole symposium had made it clear that a dovish pivot that some investors had been positioning for was unlikely.
He had also warned of the potential for economic pain for households and businesses as the central bank continues to be aggressive to battle inflation.
“The Fed Friday took away the punch bowl from the party and equities were the drunkest asset class at the party,” Jeff Schulze, investment strategist at ClearBridge Investments, said in an interview.
“We’re going to deal with the hangover as a consequence. So I think investors are reassessing recession risks and are recognizing that the Fed is prioritizing price stability over economic stability.”
Minneapolis Fed President Neel Kashkari said the recent stock-market losses show that investors have understood that Powell and his colleagues are serious about tackling inflation.
Read More: Kashkari ‘Happy’ to See Market Rout in Wake of Jackson Hole August and September also tend to be the worst months for the S&P 500 Index, with the index averaging declines of 0.6% and 0.7%, respectively, over the past 25 years.
“Since World War II, the S&P 500 posted the worst average monthly price change in September, joining February as the only two months to register declines,” Sam Stovall, chief investment strategist at CFRA wrote in a note.
“Yet, September stands alone as the only month in which the market fell more frequently than it rose.
What’s more, the best September return places it in the bottom quarter of all months, while its deepest one-month decline was among the four worst.”
Going forward, weaker earnings — not higher interest rates — could pose the largest threat to US stock prices, Morgan Stanley strategists led by Michael J. Wilson said in a research note Monday.
The bank’s leading earnings model, which projects a steep fall in earnings per share growth over the next several months, confirms that view.
“The path for stocks from here will be determined by earnings, where we still see material downside,” the strategists said.
“As a result, equity investors should be laser focused on this risk, not the Fed.”
Seema Shah, chief global strategist at Principal Global Investors, echoed the sentiment.
“While earnings season has been positive, persistent challenges indicate an increasingly difficult operating environment, likely limiting profit persistence in the second half of the year,” she wrote.
Here are some key events to watch this week:
* US consumer confidence, Tuesday
* New York Fed President John Williams due to speak, Tuesday
* ECB Governing Council members due to speak at event Tuesday through Sept. 2
* China PMI, Wednesday
* Euro-area CPI, Wednesday
* Russia’s Gazprom set to halt Nord Stream pipeline gas flows for three days of maintenance, Wednesday
* Cleveland Fed President Loretta Mester due to speak, Wednesday
* China Caixin manufacturing PMI, Thursday
* US nonfarm payrolls, Friday
* UK leadership ballot closes Friday. Winner announced Sept. 5

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.7% as of 4 p.m. New York time
* The Nasdaq 100 fell 1%
* The Dow Jones Industrial Average fell 0.6%
* The MSCI World index fell 2.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%
* The euro rose 0.3% to $0.9995
* The British pound fell 0.3% to $1.1703
* The Japanese yen fell 0.8% to 138.70 per dollar
Bonds
* The yield on 10-year Treasuries advanced seven basis points to 3.11%
* Germany’s 10-year yield advanced 11 basis points to 1.50%
Commodities
* West Texas Intermediate crude rose 4.2% to $96.97 a barrel
* Gold futures were little changed

–With assistance from Vildana Hajric, Abigail Moses, Farah
Elbahrawy and Robert Brand.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

And we danced , on the brink of an unknown future, to an echo from a vanished past. – John Wyndham, 1903-1969.

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