August 8, 2022 Newsletter

Dear Friends,

Tangents: Happy Monday.
August 8, 1945: The United States, the Soviet Union, the United Kingdom, and France sign the London Agreement, which authorized the Nürnberg trials, in which former Nazi leaders were Indicted and tried as war criminals by the International Military Tribunal.
On Aug. 8, 1974, President Richard Nixon announced he would resign following damaging revelations in the Watergate scandal. Go to article »

The only pan every cook needs.  It doesn’t matter if you’re an amateur foodie or a culinary genius… this piece of cookware should always be in your kitchen. 

Photographer retakes model portraits decades later.  Like fine wine, these models got even better with time. Check out the stunning before and after photos taken years apart. 

Jewelry heist caught on security camera.  This intense footage shows a group of masked men stealing more than $2 million in diamond jewelry. Watch the video here.

Treasure trove of gold and jewels recovered from a 366-year-old shipwreck in the Bahamas:  A treasure trove of gold coins, gemstones and jewels was recently uncovered at a 366-year-old Spanish shipwreck.
In an effort to conserve what’s left of the ship and its prized cargo, an international team of preservationists and underwater archaeologists has been working to recover objects from the shipwreck, which sits in the Atlantic Ocean about 43 miles (70 kilometers) off the coast of the Bahamas.  Full Story: Live Science (8/8) 

Last supermoon of the year — the ‘Sturgeon moon’ rises Aug. 11:  As summer slips into autumn and nights begin to grow longer, the final supermoon of the year will make a big splash Thursday (Aug. 11).
Nicknamed the “Sturgeon Moon,” August’s full moon peaks around 9:36 p.m. EDT on Thursday (0136 a.m. GMT on Friday), although the moon will appear bright and full on Wednesday and Friday night (Aug. 10 and Aug. 12) as well.
Full Story: Live Science (8/8) 

PHOTOS OF THE DAY

A replica of the Swedish East India Company ship, Götheborg, sails down the River Thames. The original ship sank outside of Gothenburg harbour in 1745
CREDIT: Tony Hicks/AP

A rare view of an orangutan climbing a tree. The image won fourth prize in the nature category of the Hamdan International Photography Award
CREDIT: Thomas Vijayan/HIPA/SWNS

A performer proceeds along the 2.2 miles- (3.6km) long Jember Fashion Carnaval route
CREDIT: Robertus Pudyanto/Getty Images

Market Closes for August 8^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1896, the Dow Jones Industrial Average, less than three months old, hit the lowest level ever recorded: 28.48, down 30.5% in just ten weeks
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the fourth day, climbing 0.2%, or 49.04 to 19,669.17 in Toronto.
The move was the biggest since rising 1.2% on July 29.
Barrick Gold Corp. contributed the most to the index gain, increasing 3.3%. Canopy Growth Corp. had the largest increase, rising 20.6%.
Today, 175 of 238 shares rose, while 61 fell; 7 of 11 sectors were higher, led by materials stocks.
Insights
* The index declined 3.9% in the past 52 weeks. The MSCI AC Americas Index lost 8.5% in the same period
* The S&P/TSX Composite is 11.5% below its 52-week high on April 5, 2022 and 8.3% above its low on July 14, 2022
* The S&P/TSX Composite is little changed in the past 5 days and rose 3.4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14 on a trailing basis and 12.1 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$3.13t
* 30-day price volatility fell to 14.90% compared with 15.77% in the previous session and the average of 18.57% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | 45.9370| 2.1| 47/3
* Energy | 18.8745| 0.6| 27/11
* Real Estate | 5.7858| 1.1| 20/3
* Communication Services | 4.6778| 0.5| 3/4
* Utilities | 4.3339| 0.4| 13/2
* Health Care | 3.9358| 5.4| 5/2
* Consumer Discretionary | 2.6941| 0.4| 9/4
* Consumer Staples | -1.7893| -0.2| 5/6
* Industrials | -7.2916| -0.3| 18/11
* Information Technology | -8.3081| -0.7| 10/4
* Financials | -19.8235| -0.3| 18/11
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Barrick Gold | 8.2160| 3.3| 96.2| -13.3
* Enbridge | 6.2850| 0.8| 68.2| 12.9
* Cenovus Energy | 6.2500| 3.4| 3.4| 41.8
* Canadian Pacific | -7.3700| -1.1| 75.0| 12.5
* Shopify | -12.8300| -3.1| 6.9| -70.7
* Royal Bank of Canada | -18.2600| -1.5| 1.7| -7.2
US
By Rita Nazareth
(Bloomberg) — Stocks retreated after a three-week rally, with a gloomy forecast from Nvidia Corp. weighing on tech shares and traders awaiting inflation data for clues on the pace of Federal Reserve rate hikes.
The S&P 500 erased gains that reached 1% earlier in the day, while the Nasdaq 100 underperformed after an advance that briefly drove the tech-heavy gauge 20% above its June low.
Nvidia tumbled almost 6.5%, dragging down chipmakers.
Treasuries climbed.
Mounting risks to growth have sparked earnings downgrades, and after recent figures showed gross domestic product shrank for a second straight quarter, some strategists have warned that cuts are only set to ramp up.
Friday’s blowout jobs report spurred JPMorgan Chase & Co. and Evercore ISI to say bigger US rate hikes are now in store this year, with Citigroup Inc. seeing a risk of a 1 percentage-point hike in September.
“The economy still has to digest all this tightening and that will materially slow things,” wrote Tom Essaye, a former Merrill Lynch trader who founded The Sevens Report newsletter.  “That hasn’t even really started to occur yet, so celebrating the resilience of earnings and economic data when we’re still in an expanding economy (regardless of the GDP prints) seems to be the equivalent of a coach declaring victory because the game plan should work.”
Morgan Stanley’s Mike Wilson, who correctly predicted this year’s equity selloff, called the recent rebound a “bear-market rally” amid growing fears of a recession.
While he believes inflation has peaked and “will probably fall faster than the market currently expects,” that still doesn’t bode well for stock markets as it’ll reduce operating leverage and weigh on company earnings, he said.
As major equity indexes climbed last week, global hedge funds unwound risky bets — helping explain the lack of urgency to buy protection against potential stock-market declines.
That highlights a sentiment gap between professional speculators displaying a risk-off mood amid uncertainty about the aggressive pace of rate hikes and price action in the stock market, which seemed to reflect a takeaway from Fed Chair Jerome Powell’s press conference that monetary officials will taper the size of rate hikes if growth crumbles.
“Countertrend rallies are characteristic of secular bear-market downtrends, and from that perspective, 2022 has been remarkably similar to previous bear markets in history,” said Seema Shah, chief global strategist at Principal Global
Investors. “Until inflation abates and the Federal Reserve rebalances its priorities away from inflation and toward growth, tempting rallies are likely to remain unsustainable.”
Consumer expectations for US inflation over the coming years declined sharply in the latest survey by the Fed Bank of New York, with a recent drop in gasoline prices playing a big part in those results and likely contributing to a lower
headline rate of inflation for July when the Labor Department releases the data on Wednesday.
Still, almost all inflation measures are running well above the Fed’s 2% target.
In other corporate news, Tesla Inc. joined gains in electric-vehicle firms after the US Senate passed a key tax, climate and health-care bill.
Retail traders who lurk in forums like Reddit’s WallStreetBets are back to betting against Wall Street pros as rallies for meme stocks like Bed Bath & Beyond Inc. and AMC Entertainment Holdings Inc. show shades of last year’s mania.
What to watch this week:
* US CPI data, Wednesday
* Chicago Fed President Charles Evans and his Minneapolis counterpart Neel Kashkari due to speak, Wednesday
* US PPI, initial jobless claims, Thursday
* San Francisco Fed President Mary Daly is interviewed on Bloomberg Television, Thursday
* Euro-area industrial production, Friday
* US University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.1% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.4%
* The Dow Jones Industrial Average was little changed
* The MSCI World index rose 0.1%
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.1% to $1.0194
* The British pound was little changed at $1.2081
* The Japanese yen was little changed at 135.06 per dollar
Bonds
* The yield on 10-year Treasuries declined seven basis points to 2.76%
* Germany’s 10-year yield declined six basis points to 0.90%
* Britain’s 10-year yield declined 10 basis points to 1.95%
Commodities
* West Texas Intermediate crude rose 1.7% to $90.54 a barrel
* Gold futures rose 0.8% to $1,805.40 an ounce
–With assistance from Andreea Papuc, Sunil Jagtiani, John Viljoen, Vildana Hajric, Isabelle Lee and Elena Popina.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Some things have to be believed to be seen. –Ralph Hodgson, 1871-1962.

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