Category: Events

Dear Friends,

Tangents:
On Oct. 3, 1990, West Germany and East Germany ended 45 years of postwar division, declaring the creation of a new unified country.
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PHOTOS OF THE DAY

Policemen walk through Theaterplatz during celebrations marking German Unification Day in Dresden on Monday. Fabrizio Bensch/Reuters

LEGO statues for the ‘South by South Lawn Festival’ of ideas, arts, and action are on exhibit at the White House in Washington, D.C. on Monday. Gary Cameron/Reuters

 

A photographer takes a picture as a fish balloon floats through hanging speakers, part of the new commission entitled ‘Anywhen’ by French artist Philippe Parreno, in the Turbine Hall at the Tate Modern in London on Monday. The commission transforms the area into an experience that plays with time and space. It is open to the public from Oct. 4 until April 2, 2017. Kirsty Wigglesworth/AP
Market Closes for October 3^rd, 2016

Market Index	Close	Change
Dow Jones	18253.85	-54.30   -0.30%
S&P 500	2161.20	-7.07   -0.33%
NASDAQ	5300.875	-11.127   -0.21%
TSX	14689.04	-36.82
		-0.25%

International Markets

Market Index	Close	Change
NIKKEI	16598.67	+148.83
		+0.90%
HANG SENG	23584.43	+287.28
		+1.23%
SENSEX	28243.29	+377.33
		+1.35%
FTSE 100	6983.52	+84.19
		+1.22%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.007	0.998
CND. 30 Year Bond	1.666	1.657
U.S.    10 Year Bond	1.6238	1.5927
U.S. 30 Year Bond	2.3420	2.3147

Currencies

BOC Close	Today	Previous
Canadian $	0.76228	0.76170
US $	1.31185	1.31285
Euro Rate 1 Euro=		Inverse
Canadian $	1.47068	0.67996
US $	1.12106	0.89201

Commodities

Gold	Close	Previous
London Gold Fix	1313.30	1318.10
Oil	Close	Previous
WTI Crude Future	48.81	47.83

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks slipped for a second day as financial-services shares retreated after the group capped the best quarterly performance since 2013, while Aritzia Inc. surged in its trading debut.
     The S&P/TSX Composite Index fell 0.3 percent to 14,689.04 at 4 p.m. in Toronto, in the first day of trading in the fourth quarter. The index rose 4.7 percent for the three months since the end of June on Friday for a third quarterly gain, its longest streak in two years. The S&P/TSX is up 13 percent this year, making it the the second-best performing developed market equity index in the world behind New Zealand.
     Canadian stock valuations touched highest level in 14 years Friday, and remain more expensive than their U.S. peers, with the S&P/TSX carrying a price-to-earnings ratio of 23.5 compared with 20.3 for the the S&P 500 Index, according to data compiled by Bloomberg.
     Raw-materials producers slumped 1.8 percent to lead losses across seven of 11 industries in the S&P/TSX. Goldcorp Inc. tumbled 4.4 percent after halting work at one of its biggest mines amid a labor protest. Oil and gas companies ended the day 0.3 percent higher after crude settled at the highest level in three months to follow up an 8.5 percent rally last week.
     Financial services companies dropped 0.2 percent as Royal Bank of Canada lost0.4 percent. The group comprises one-third of the Canadian stock market.
     Canadian Finance Minister Bill Morneau introduced a series of new measures to tighten access to mortgage insurance for commercial banks and close a tax loophole on home purchases by foreigners, in an attempt to cool the Vancouver and Toronto real-estate markets without harming other regions.
     The banks joined a retreat in financials in Europe and the U.S., with losses coming as British Prime Minister Theresa May pledged to start pulling the U.K. out of the European Union by March. Deutsche Bank AG said it was poised to reach an agreement with labor representatives paving the way for the elimination of 1,000 jobs. The lender has come under pressure as mounting legal costs have prompted some clients to pull funds and investors to question Deutsche Bank’s financial health. Meanwhile banks across Europe are preparing to cut some 20,000 jobs.
     Aritzia, the Canadian women’s fashion retailer, jumped 11 percent after raising C$400 million in its initial public offering, the largest in Canada this year. Aritzia was started in 1984 by Brian Hill, who’s the current CEO. The company sells clothes and accessories aimed at women aged 15 to 45 has 75 locations across North America.
     Energy and raw-materials producers remain the top- performing industries in Canada this year, fueling a rebound in the wider gauge. The S&P/TSX Materials Index is up 46 percent and set to halt its longest yearly losing streak since 1988, while energy producers are second with a 24 percent gain.
     Ritchie Bros. Auctioneers Inc. added 3 percent for a third day of gains, climbing to a record. The company said they conducted their largest-ever two-day auction in the U.S. last week, selling more than $76 million worth of equipment.

US
By Rita Nazareth and Anna-Louise Jackson
     (Bloomberg) — Government debt fell with stocks after data showing expansion in U.S. manufacturing bolstered wagers that the Federal Reserve will raise interest rates this year. The pound slid on concern Britain may face a so-called hard Brexit.
     Treasuries declined across maturities and the S&P 500 Index fell following three straight weekly gains. U.K. shares climbed the most among western-European markets as the weaker currency boosted exporters with Prime Minister Theresa May saying the country will begin to exit the European Union next year. Colombian assets sank as the government’s failure to gain popular support for a peace deal fueled speculation it won’t be able to deliver key tax reforms. Oil rallied as traders mulled last week’s shift in OPEC policy.
     Traders are keeping a close watch on U.S. economic reports this week, scouring data for clues as to the timing of a potential Fed rate increase. New orders and production swung into expansion territory last month, indicating gradual improvement across America’s manufacturing landscape. At the same time, factories continued to focus on becoming leaner by trimming inventories and cutting employment. Later this week, a key jobsreport could show a pickup in the pace of hiring, according to economists surveyed by Bloomberg.
     “You’ve got to watch the bond markets, that’s been key,” said John Canally, chief economic strategist at LPL Financial in Boston, which oversees about $479 billion. “Markets are warming up to the idea that the Fed is going to hike rates.”
     While the U.S. central bank decided last month to wait for stronger signs of growth before raising rates, some officials have since publicly endorsed a hike in the near term amid signs of a tightening labor market and expectations that inflation will move closer to the Fed’s 2 percent target. Traders are pricing in 60 percent odds of Fed action in December, up from 51 percent a week ago.
     Fed Bank of New York President William Dudley suggested the central bank should be cautious in raising interest rates. Noting concerns from some economists that the risk of a recession is increasing, he told a central-banking seminar hosted at his bank that the Fed may have limited room to cut rates in the event of a downturn in the next few years. That may fuel the need to turn again to unconventional policies, such as purchasing bonds.
     The S&P 500 Index lost 0.3 percent to 2,161.20 as of 4 p.m. in New York. Financial shares in the benchmark index lost momentum after jumping the most in eight weeks on Friday.
      “Data will matter,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. in Milwaukee. “Earnings kick off in a couple weeks. I think people have their eyes on that.”
     The reporting season unofficially starts in about a week, when Alcoa Inc. posts results. Analysts forecast a drop of 1.5 percent in S&P 500 company profits in the third quarter, which would mark a sixth consecutive decline.
     Britain’s megacap stocks rose to their highest level in more than 16 months, with companies that get most of their revenue outside the U.K. contributing the most to gains in the FTSE 100 Index. HSBC Holdings Plc, Royal Dutch Shell Plc, GlaxoSmithKline Plc and British American Tobacco Plc all advanced at least 1 percent.
     Henderson Group Plc surged 17 percent after agreeing to buy Janus Capital Group Inc. to create a $320 billion money manager, while peers Aberdeen Asset Management Plc and Jupiter Fund Management Plc advanced 5 percent or more. The Stoxx Europe 600 Index gained 0.1 percent.
     Emerging-market shares extended their best quarterly performance since 2012 as a strong Chinese manufacturing reading eased anxiety over the world’s second-largest economy. Egyptian stocks soared as investors bet that policy makers may devalue the country’s currency, luring back foreign investors.
     Saudi Arabia’s benchmark, which fell to the lowest level since 2011 on Sunday, has lost about $30 billion since the nation last week announced a series of cuts to government salaries and bonuses as part of efforts to slash spending.
     Exchanges in China, Germany and South Korea were shut for holidays on Monday. Asian index futures foreshadowed a mixed picture for Tuesday, with contracts on Japan’s Nikkei 225 Stock Average diverging despite losses in the yen.
     Ten-year U.S. yields rose three basis points, or 0.03 percentage point, to 1.62 percent. The yields on two-year bonds, which are most sensitive to Fed expectations, advanced three basis points to 0.79 percent.
     Benchmark securities posted their first back-to-back declines in two weeks. The U.S. manufacturing report will be followed by data on services and factory orders, while the non- farm payrolls numbers are due out Friday.
     “The most important thing, of course, will be Friday’s payrolls data,” said Philip Marey, a strategist at Rabobank International in Utrecht, Netherlands. “Provided the data goes in the right direction, they will hike but there are considerable downside risks. The market has been prepared by the Fed for a December hike.”
     Treasuries advanced last week as mounting concern over the financial health of Germany’s Deutsche Bank AG roiled financial markets and fueled demand for the safest assets. Those bond gains were pared Friday on a media report that the lender was nearing a settlement with the U.S. Department of Justice that was less than half the amount initially requested.
     Italy’s yield spread with Spanish securities widened to the most in almost two years after an opinion poll showed that the constitutional referendum, on which Prime Minister Matteo Renzi’s political fate hangs, is too close to call.
     Sterling dropped 1 percent to $1.2842, the most among its 16 major peers. British financial-services companies will get no special favors in Brexit negotiations, according to three senior figures in Prime Minister May’s administration. The government will refuse to prioritize the protection of the sector after the U.K. has left the EU, the people said.
     May told delegates at her Conservative Party’s annual conference at the weekend that she’ll curb immigration, stoking speculation the nation is headed toward a Brexit scenario that involved limited access to the EU’s single market.
     “Hard Brexit is a sell for the pound,” said Neil Jones, head of hedge-fund sales at Mizuho Bank Ltd in London. “I know the government line is that they don’t see a need to differentiate between hard and soft Brexit, but the market certainly does.”
     The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, rose 0.1 percent.
     Colombia’s peso weakened 1.7 percent versus the dollar after citizens narrowly rejected a peace agreement with Marxist guerrillas by 50.2 percent to 49.8 percent in a weekend ballot.
     West Texas Intermediate crude climbed 1.2 percent to $48.81 a barrel after rallying 8.5 percent last week. It was the highest close since July 1 and followed a 7.9 percent jump in September.
     While the Organization of Petroleum Exporting Countries outlined an accord to curb output by as much as 750,000 barrels a day last week, Libyan production rose and will advance further this month, according to an official of the state oil company. Independent crude producers are using the rally that followed the agreement to hedge their price risk for next year, banks and consultants said. Rigs targeting oil in the U.S. also rose to the most since February, Baker Hughes Inc. said on its website Friday.
     “This looks like follow through from the OPEC accord last week,” said Thomas Finlon, director of Energy Analytics Group LLC in Wellington, Florida. “For all the holes in this agreement it’s still the first one that’s been reached in eight years.”
     Gold futures for December delivery slipped 0.3 percent to settle at $1,312.70 an ounce on the Comex in New York as silver also slumped. Nickel slid 2.1 percent in London, leading losses among industrial metals.

 

Have a wonderful evening everyone.

 

Be magnificent!

The lamp is empty, the oil is used up.
The tambourine is dead, the dancer lies down,
The fire is out, and no smoke rises from it.
The soul is absorbed into the Unique, and there is no longer a duality.
Kabir

 

As ever,
 

Carolann

 

We shall never know all the good that a simple smile can do.
                                           -Mother Teresa, 1910-1997

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On September 30…
1452: Gutenberg Bible published.
1924: Truman Capote was born.
1928: Elie Wiesel was born.
1955: James Dean killed in auto collision.

CELEBRATE:  Autumn/ Rosh Hashanah/ Yom Kippur/ Michaelmas
                                                                        By John Miller

In the northern hemisphere, the autumn equinox signals Earth’s waning life forces, just as spring proclaimed their rejuvenation.  With the frost, harvest must be gathered.  Amidst ripeness and plenty, we can enjoy Earth’s bounty together.  Yet, after the equinox, the days grow shorter.  Darkness and cold are ascendant, and we must prepare for winter.
   Inwardly, too, we feel the change. The outer dread of nature’s death corresponds to a multitude of fears within.  Fears reflect shortcomings, and to compensate we may appear arrogant.  In many ways, we come face to face with the Shadow, the “who we are” that we don’t want to be.  The journey of individuation is a fearful one, for what could be more daunting than to gaze unflinchingly at ourselves?  This is the task of Rosh Hashanah (October 2^nd) and Yom Kippur (October 11), days of atonement and purification.
   An esoteric Christian picture of the meeting between higher self and lower self is that of Michael and the Dragon.  Michael is consciousness; the Dragon pure impulse.  Though they are polarities, they are also alike.  Michael means “He who is like God” and the Dragon is Lucifer (the Light Bearer), the great angel who took himself to be greater than God.
   Casting Lucifer from the Heavens, Michael struck a gem from Lucifer’s crown.  This became the Philosopher’s Stone – the magical substance that alchemists believed could turn lead into gold.  It stands for transformation and is our guide on paths of wisdom (gnosis).  The alchemical rule, “As above, so below” assures us that ultimately all is one.  We are one with our Dragon.  The gem from Lucifer’s crown can also be the Holy Grail – love.  Out of love, we may embrace the Dragon.  For only by love can that which is flawed – both in ourselves and in the world – be made whole again.

PHOTOS OF THE DAY

A man rides his mountain bike on a trail atop Eggerberg mountain as the sun rises in the western Austrian village of Noesslach on Friday.Dominic Ebenbichler/Reuters

Luxury boats are seen during the 26th Monaco Yacht show in Monte Carlo port on Friday. It is one of the most prestigious pleasure boat shows in the world, highlighting hundreds of yachts for the luxury yachting industry. Eric Gaillard/Reuters
Market Closes for September 30^th, 2016

Market Index	Close	Change
Dow Jones	18308.15	+164.70   +0.91%
S&P 500	2168.27	+17.14   +0.80%
NASDAQ	5312.004	+42.850   +0.81%
TSX	14725.98	-28.57
		-0.19%

International Markets

Market Index	Close	Change
NIKKEI	16449.84	-243.87
		-1.46%
HANG SENG	23297.15	-442.32
		-1.86%
SENSEX	27865.96	+38.43
		+0.14%
FTSE 100	6899.33	-20.09
		-0.29%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	0.998	0.953
CND. 30 Year Bond	1.657	1.624
U.S.    10 Year Bond	1.5927	1.5582
U.S. 30 Year Bond	2.3147	2.2767

Currencies

BOC Close	Today	Previous
Canadian $	0.76170	0.76089
US $	1.31285	1.31424
Euro Rate 1 Euro=		Inverse
Canadian $	1.47574	0.67763
US $	1.12407	0.88962

Commodities

Gold	Close	Previous
London Gold Fix	1322.50	1318.10
Oil	Close	Previous
WTI Crude Future	48.24	47.83

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — A scorching rally in gold and other commodities has driven Canadian stocks to their priciest level since 2002, raising concerns about the endurance of a yearlong equities surge as corporate earnings remain stuck in a rut.
     Stocks in the S&P/TSX Composite Index touched 23.6 times earnings Friday, the highest since September 2002, before closing slightly lower. The benchmark for Canadian equities has gained 13 percent this year, the second-most among developed markets after New Zealand, buoyed by rallies of at least 25 percent in gold and crude. That’s resulted in a 15 percent price premium over U.S. stocks, the widest gap since 2009.
     Valuations have become stretched as share prices climb while corporate earnings remain mired in one of the worst slumps since the financial crisis. Profits for companies in the S&P/TSX retreated 11 percent in the second quarter amid lackluster economic growth. Energy producers in particular have been a drag, as the industry posted a loss last year for the first time since at least 2002.
     Analysts surveyed by Bloomberg expect earnings to rise in the quarter that ends Friday. But the index would need to see 25 percent profit growth for the ratio to prices to fall back to its five-year average of 18.8 percent, according to data compiled by Bloomberg.
     For Shailesh Kshatriya, director of Canadian strategies at Russell Investments, there’s not much more room for shares to gain.                          “Volatility will be higher and cash is still king at the moment,” said Kshatriya, whose firm manages about C$316 billion ($241 billion) globally and has been building cash reserves across various Canadian multi-asset portfolios. “North America is more expensive than the rest of the world, and while Canada is a tad bit more attractive, there is far more uncertainty with the economy. There could be a correction this year and we hope it does, we have dry powder.”
     The S&P/TSX ended the day lower at 14,725.98 at 4 p.m. in Toronto, paring its gain in September to 0.9 percent as raw- materials producers fell with gold. The gauge is still up 4.7 percent since the end of June, capping its best quarterly performance since 2014. Information technology and industrial companies drove gains in the quarter, led by Brookfield Business Partners LP and BlackBerry Ltd.
     Canadian shares have joined a rally in global equities this year as central banks from Asia to Europe and America have tried to stoke sluggish growth with monetary stimulus. While the measures have boosted asset prices, they’ve failed to revive flagging corporate profits, leaving many valuation metrics above long-term averages.                        
     Irwin Michael, fund manager at IA Michael Investment Counsel in Toronto, said the relatively high equity valuations don’t necessarily signal an end to the equity rally, especially as investors stare at historically low yields on sovereign bonds.
     “The rules of the game have changed with interest rates at record lows,” he said. His firm manages about C$400 million. “I go out and buy a bunch of bonds yielding negative rates, I’m guaranteed to lose money. We’d get fired for that.”
     Michael has bought into dividend-paying stocks through the year — including Brookfield Property Partners LP, Algonquin Power & Utilities Corp. and Fortis Inc. — which are particularly attractive because they’ve regularly raised their payouts, he said.
     “If you can find a good, liquid, dividend-paying company then yes, why not?” he said.
     The Federal Reserve’s decision to keep rates unchanged since a hike in December has pushed the U.S. dollar lower, bolstering prices for commodities denominated in the greenback.
Energy and raw-materials producers are the top-performing industries in Canada this year as a result. The S&P/TSX Materials Index is up about 49 percent and set to halt its longest yearly losing streak since 1988, while energy producers are second with a gain of almost 24 percent.
     Canadian investors have plenty of other worries beyond valuations, Kshatriya said. The unexpected vote by the U.K. to secede from the European Union, uncertainty about the implications of the U.S. presidential election on the global economy and the spread of negative interest rates in Europe are among his biggest concerns.
     “There is plenty of event risk,” he said.
     Meanwhile, the Canadian economy has had to grapple with a disastrous wildfire in Alberta’s oil sands disrupting a million barrels a day of production in May, while a persistent lack of export growth had frustrated Bank of Canada Governor Stephen Poloz.
     But the outlook for Canada’s economy is starting to brighten. GDP expanded 0.5 percent in July, Statistics Canada said Friday from Ottawa. That was much faster than the 0.3 percent economists expected, buttressing expectations for 3.3 percent growth for the third quarter.

US
By Dani Burger
     (Bloomberg) — U.S. stocks rallied, with the Dow Jones Industrial Average rising more than 160 points, as worries over the health of European banks diminished after a report said Deutsche Bank AG is nearing a less-costly settlement with regulators than investors feared.
     Relief swept over equities as Agence France-Presse reported the German lender is near a $5.4 billion deal with the Justice Department, less than half an initial request, to settle a probe related to bad mortgages. Financial shares in the S&P 500 Index jumped the most in eight weeks, after falling yesterday to the lowest since Aug. 2. Costco Wholesale Corp. increased the most in more than two months to boost consumer-staples companies after its earnings beat estimates.
     The S&P 500 rose 0.8 percent to 2,168.27 at 4 p.m. in New York, posting a fourth consecutive quarterly gain and the strongest this year. The index closed near its average price during the past 50 days. The Dow rose 164.70 points, or 0.9 percent, to 18,308.15 today. The Nasdaq Composite Index added 0.8 percent. About 7.6 billion shares traded hands on U.S. exchanges, 15 percent higher than the three-month average.
     “There’s a little bit of recognition of the reality that Deutsche Bank is not Lehman,” John Stoltzfus, chief market strategist at Oppenheimer & Co. in New York, said by phone. “The banks, as a result of all the regulatory changes since the world crisis, are in better shape to withstand this. The other side is that we’re coming to the quarter end, and people are beginning to realize that September was not as bad as many thought it was.”
     Concerns about weakness among European banks and the potential impact on the global economy have buffeted markets, with the Dow lurching by triple digits in every session this week for the first time since January. Despite today’s rally, the S&P 500 closed with a second-straight monthly drop, down 0.1 percent. The CBOE Volatility Index wiped out a September climb, sliding 5.2 percent today to 13.29.
     The main U.S. stocks benchmark posted a 3.3 percent third- quarter gain, its best this year, bolstered by technology shares as the group capped the strongest period since 2013. Financial stocks rose 4 percent, while industrials added 3.6 percent as American Airlines Group Inc. and United Continental Holdings Inc. soared more than 27 percent since June.
     Deutsche Bank wiped out a 9 percent drop in German trading Friday to rise 6.4 percent after the AFP report. Its shares tumbled to a record low yesterday as a Bloomberg News report signaling growing concern among some of the lender’s clients exacerbated pressure caused by the DOJ’s initial demand for $14 billion to settle the probe. Chief Executive John Cryan told staff in a memo Friday the bank’s balance sheet is safer than at any point in the past two decades.                         
     Commerzbank AG said yesterday that it will cut one in five jobs, suspend dividends and shrink securities trading in a bid to cut costs, while ING Groep NV is reported to be planning to announce thousands of job cuts next week. In the U.S., the future of Wells Fargo & Co. Chief Executive Officer John Stumpf looks tenuous after an intense grilling by lawmakers over the unauthorized-account scandal.
     “It’s not just the potential risk in Deutsche Bank, there are now lots of concerns about the global banking system and the risk spilling out of European banks,” said Michael Ingram, a market strategist at BGC Partners in London. “We have a very connected financial system. A zombie financial system at some point translates into a zombie economy.”
     While markets calmed after the Federal Reserve’s decision last week to leave rates unchanged, some central-bank officials have since publicly endorsed a rate hike in the near-term. Traders are now pricing in a 58 percent chance of higher borrowing costs in December.                    With policy makers watching for signs of stronger inflation, a report today showed the Fed’s preferred measure picked up, rising 1.7 percent from a year earlier, though it still lags the central bank’s 2 percent target. Consumer spending was little changed last month as income growth cooled, while the gain in personal income was the weakest since a decline in February. A separate report showed consumer confidence rose in September for the first time in four months.
     Investors are also awaiting quarterly reports from corporate America. Alcoa Inc. unofficially kicks off the next earnings season in less than two weeks, and analysts forecast profit at S&P 500 members fell 1.5 percent in July-September period, which would mark a sixth consecutive decline.
     In Friday’s trading, eight of 11 main industries in the S&P 500 gained as the benchmark returned to within 1 percent of a record set on Aug. 15. Financial companies rose 1.4 percent to reverse nearly all of a 1.5 percent loss yesterday, while energy and health-care shares advanced more than 1 percent. Utilities fell for a sixth day, the longest losing streak in seven weeks.                         
     Banks jumped the most in almost two months, with Citigroup Inc. and Bank of America Corp. rallying at least 3.1 percent. In the broader financial group, Morgan Stanley and Charles Schwab Corp. added more than 2.8 percent.
     Semiconductors were among the day’s leaders as the group finished with the strongest quarterly advance in seven years, rising 18 percent. Qualcomm Inc. gained 1.6 percent today, extending its climb since June to 28 percent, the best since 2010. The shares jumped Thursday on a report it’s considering purchasing NXP Semiconductors NV in a deal that would be valued at about $30 billion. Nvidia Corp. climbed 46 percent in the quarter, the most in a decade.
     Consumer staples rose for the third time in four days, trimming the worst quarterly slide in five years. Wal-Mart Stores Inc. jumped 2 percent, and Procter & Gamble Co. gained 1.7 percent to an eight-month high following Costco’s better- than-forecast earnings.

Have a wonderful weekend everyone.

 

Be magnificent!

Nature is forever giving us chance after chance at what we call rebirth and death,
and we, in our folly, in our fear of death, fail to understand that which represents a new journey,
a new page on which to write, and thus to believe in a new beginning for ourselves….
The truth is that my body has come to existence, and that it will cease to exist.  I am eternal.
Parthasarathi Rajagopalachari

As ever,

 

Carolann

 

Over time, you weed out luck.
                        -Billy Beane, b. 1962

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

CALIFORNIA POEM

There’s trouble on the mountain
And the valley’s full of smoke
There’s crying on the mountain
And again the same heart broke.

The lights are on past midnite
The curtains closed all day
There’s trouble on the mountain
The valley people say.
                     -Johnny Cash, 1932-2003

PHOTOS OF THE DAY

A member of the gallery stands inside a piece called ‘Passage,’ by artist Antony Gormley, which forms part of an exhibition entitled ‘Fit’ at the White Cube gallery in London on Thursday. Peter Nicholls/Reuters

Israeli member of parliament Mickey Levy (3rd r.) stands in front of the flag-draped coffin of former Israeli President Shimon Peres as he lies in state at Knesset plaza in Jerusalem on Thursday. Amir Cohen/Reuters
Market Closes for September 29^th, 2016

Market Index	Close	Change
Dow Jones	18143.45	-195.79   -1.07%
S&P 500	2151.13	-20.24   -0.93%
NASDAQ	5269.156	-49.391   -0.93%
TSX	14754.55	+23.12
		+0.16%

International Markets

Market Index	Close	Change
NIKKEI	16693.71	+228.31
		+1.39%
HANG SENG	23739.47	+119.82
		+0.51%
SENSEX	27827.53	-465.28
		-1.64%
FTSE 100	6919.42	+70.04
		+1.02%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	0.953	0.980
CND. 30 Year Bond	1.624	1.644
U.S.    10 Year Bond	1.5582	1.5719
U.S. 30 Year Bond	2.2767	2.2913

Currencies

BOC Close	Today	Previous
Canadian $	0.76089	0.75760
US $	1.31424	1.31996
Euro Rate 1 Euro=		Inverse
Canadian $	1.47468	0.67812
US $	1.12207	0.89121

Commodities

Gold	Close	Previous
London Gold Fix	1318.10	1322.50
Oil	Close	Previous
WTI Crude Future	47.83	47.05

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks ended higher Thursday after swinging between gains and losses, as oil a and gas producers extended a rally that offset weakness among lenders sparked by worries over Deutsche Bank AG’s finances.
     Bloomberg reported that some Deutsche Bank clients are concerned about doing business with the firm after the U .S. Justice Department requested $14 billion to settle an investigation into residential mortgage-backed securities.
     The S&P/TSX Composite Index rose 0.2 percent to 14,754.55 at 4 p.m. in Toronto, recovering from a brief dip after an earlier advance of as much as 0.6 percent. The index has risen 4.9 percent since the end of June and is headed for a third quarterly gain, its longest streak in two years. The S&P/TSX is up more than 13 percent this year, making it the the second-best performing developed market equity index in the world behind New Zealand.
     Not coincidentally, Canadian stocks are now more expensive than their U.S. peers, with the S&P/TSX carrying a price-to- earnings ratio of 23.6 compared with 20.6 for the the S&P 500 Index. The current valuation of Canadian equities is near the highest levels in 14 years, according to data compiled by Bloomberg.
     Financial shares lost 0.2 percent after Bloomberg reported that a number of funds that clear derivatives trades with Deutsche Bank have withdrawn some excess cash and positions held at the firm. Meanwhile, U.S. lender Wells Fargo & Co. is now facing Justice Department sanctions over improperly repossessing cars owned by members of the military, according to two people with knowledge of the investigation. A penalty of as much as $20 million is expected. This comes after weeks of pummeling over the bank’s practice of opening fraudulent customer accounts.
     Energy producers continued to rally following an agreement by OPEC members for their first output cut in eight years. Suncor Energy Inc. rose 2.3 percent and Canadian Natural Resources Ltd. gained 2.4 percent as the energy sector advanced 1.4 percent.
     The S&P/TSX Energy Index has rallied 5.1 percent in its best two-day gain since March, rising to a three-week high. Meanwhile, raw-materials producers slipped 0.1 percent as gold drifted to a loss amid gains in the dollar on evidence the U.S. economy is improving. Torex Gold Resources Inc. declined 2.2 percent. Kirkland Lake Gold Inc. fell 7.6 percent, its biggest loss in two months, after agreeing to buy Newmarket Gold Inc. in a stock deal valued at C$1.01 billion to create a producer with operations in Canada and Australia.
     U.S. gross domestic product rose 1.4 percent in the second quarter, ahead of analysts’ forecasts, while jobless claims increased less than predicted last week. The dollar climbed against most major peers, after a three-day slide, as traders priced in a 54 percent chance the Federal Reserve will raise rates in December.
     Crude added 1.7 percent in New York to the highest in a month, erasing an earlier decline, after posting the biggest advance since April on Wednesday. Energy and raw-materials producers are the top-performing industries in Canada this year, fueling a rebound in the wider gauge. The S&P/TSX Materials Index is up 51 percent and set to halt its longest yearly losing streak since 1988, while energy producers are second with a 24 percent gain.

US
By Joseph Ciolli and Dani Burger
     (Bloomberg) — U.S. stocks fell as banks retreated amid growing concern that Deutsche Bank AG’s woes will spread to the global financial sector. Health-care shares sank on speculation tighter regulations will crimp profits.
     Financial shares erased gains and tumbled 1.5 percent after a Bloomberg News report that signaled growing concern among some Deutsche Bank AG clients roiled markets. A number of funds that clear derivatives trades with Deutsche withdrew some excess cash and positions held at the lender, according to an internal bank document seen by Bloomberg. Johnson & Johnson and Pfizer Inc. fell more than 1.7 percent, pacing declines among drug companies.
     The S&P 500 Index slid 0.9 percent to 2,151.13 at 4 p.m. in New York, after falling as low as 2,145, the level that marked the bottom of a selloff on Monday. The Dow Jones Industrial Average declined 195.79 points, or 1.1 percent, to 18,143.45, and the Nasdaq Composite Index lost 0.9 percent. About 7.7 billion shares traded hands on U.S. exchanges, 17 percent more than the three-month average.
     “There’s some problems in the financial industry now,” Brian Frank, portfolio manager at Key Biscayne, Florida-based Frank Capital Partners LLC, said by phone. “There’s no fear and no volatility in the stock market so something like Deutsche Bank could make people say, maybe we shouldn’t be trading at such high valuations. It doesn’t make it easier for U.S. banks, especially with what’s going on with Wells Fargo.”
     The S&P 500 trades at 18.4 times forecast earnings, the highest since 2002. The main U.S. equity benchmark slipped below its average price during the past 50 days on Thursday, while erasing its climb for the month. Stocks fluctuated earlier amid a gain in energy shares sparked by the first output-reduction decision by OPEC in eight years.
     All of the 11 main industries in the S&P 500 retreated Thursday. Health-care shares paced declines with a 1.8 percent rout, led by drugmakers on concern that a Hillary Clinton presidency would tighten regulations on the industry and hurt profits. Financials and utilities tumbled more than 1.4 percent. Banks in the benchmark sank 1.6 percent.
     Deutsche Bank fell to all-time lows on Monday amid concerns that mounting legal bills may force the lender to raise capital. That dragged lenders in the S&P 500 to the steepest slide in almost three months. The CBOE Volatility Index on Thursday jumped nearly 27 percent before paring the surge to 13 percent by the close of trading. The measure of market turmoil known as the VIX is now on track for a second straight monthly gain.
     Investors were also reminded today that borrowing costs may be rising before year-end, with a handful of Federal Reserve officials publicly endorsing a rate hike in the near-term. Fed Bank of Atlanta President Dennis Lockhart on Thursday said the central bank is nearing its goals of maximum employment and steady inflation near 2 percent, a day after Chair Janet Yellen testified that jobs growth will likely soon warrant tighter policy.
     The latest eruption of selling spurred by anxiety over banks reignited a bout of turbulence from earlier this month. Markets had calmed briefly, after the Fed’s decision last week to leave rates unchanged and signals of a slower pace of future increases soothed investors. The S&P 500 is on the verge of a second-straight monthly loss and its worst since January.
     Wells Fargo & Co. fell 2.1 percent and was headed toward the worst month since 2010, as Chief Executive John Stumpf endured a second day of withering assaults from lawmakers furious over the bank’s fake-account scandal. The bank was also said to be facing sanctions over improperly repossessing cars owned by members of the military. Among other banks, Citigroup Inc. dropped 2.3 percent to a seven-week low.
     Within the health-care group, biotechnology shares skidded to a three-month low, with EpiPen maker Mylan NV losing 4.4 percent, while Celgene Corp. and Allergan Plc declined at least 2.8 percent. Drug giant Merck & Co. fell 2.2 percent, the second-worst in the Dow behind Goldman Sachs Group Inc.’s 2.8 percent retreat.
     Energy producers were little changed along with phone companies. Crude oil extended yesterday’s rally, rising to a one-month high after OPEC’s agreement to reduce production. Murphy Oil Corp. and Transocean Ltd. added more than 4.9 percent. Still, refiners Valero Energy Corp. and Tesoro Corp. lost at least 6.1 percent to help offset those gains.

 

Have a wonderful evening everyone.

 

Be magnificent!

Man progresses, from epoch to epoch, toward the full realization of his soul,
of this soul that is greater than all the riches he can accumulate,
than all the actions he can accomplish and all the theories he can set forth,
this soul that continues onward, never ending in death or dissolution.
Rabindranath Tagore

As ever,

 

Carolann

 

The point is not to pay back kindness but to pass it on.
                                          -Julia Alvarez, b. 1950

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

THOUGHT FOR THE DAY:
 

PHOTOS OF THE DAY

A visitor views the work of artists Gonzalo Duran and Cheri Pann at their Mosaic Tile House in Venice, Calif. Mario Anzuoni/Reuters

A boy in traditional dress adjusts another’s headgear before a group photo following a ceremony to observe the 2567th birthday of Confucius in Beijing on Wednesday. Confucius was a famed thinker and philosopher in Chinese history. Mark Schiefelbein/AP
Market Closes for September 28^th, 2016

Market Index	Close	Change
Dow Jones	18339.24	+110.94   +0.61%
S&P 500	2171.37	+11.44   +0.53%
NASDAQ	5318.547	+12.835   +0.24%
TSX	14731.43	+173.39
		+1.19%

International Markets

Market Index	Close	Change
NIKKEI	16465.40	-218.53
		-1.31%
HANG SENG	23619.65	+47.75
		+0.20%
SENSEX	28292.81	+69.11
		+0.24%
FTSE 100	6849.38	+41.71
		+0.61%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	0.980	0.966
CND. 30 Year Bond	1.644	1.635
U.S.    10 Year Bond	1.5719	1.5582
U.S. 30 Year Bond	2.2913	2.2789

Currencies

BOC Close	Today	Previous
Canadian $	0.76389	0.75760
US $	1.30908	1.31996
Euro Rate 1 Euro=		Inverse
Canadian $	1.46830	0.68106
US $	1.12162	0.89156

Commodities

Gold	Close	Previous
London Gold Fix	1322.50	1327.00
Oil	Close	Previous
WTI Crude Future	47.05	44.67

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks halted a three-day slide as energy producers jumped the most since February after OPEC agreed to cut production for the first time in eight years, while BlackBerry Ltd. rose to the highest in six months after saying it will stop making smartphones.
     The S&P/TSX Composite Index surged 1.2 percent to 14,731.43 at 4 p.m. in Toronto, extending gains in afternoon trading after sinking 1.6 percent in the past three sessions. The index has advanced 4.7 percent since the end of June, the most in two years.
     That’s made Canadian stocks more expensive than U.S. peers, with a price-to-earnings ratio of 23.5 maintaining a 15 percent premium over the S&P 500 Index. The current valuation of Canadian equities is near the highest levels in 14 years, according to data compiled by Bloomberg.
     Canadian Natural Resources Ltd. and Crescent Point Energy Corp. surged at least 5.9 percent to lead a 3.7 percent rally among energy producers as nine of 11 industries in the S&P/TSX advanced. Financial companies increased 0.8 percent, with Manulife Financial Corp. up 1.4 percent, while Bank of Nova Scotia rose 1 percent.
     Crude soared 5.3 percent in New York, settling at $47.05 a barrel for the biggest gain since April. Producers in the Organization of Petroleum Exporting Countries said they will drop production to 32.5 million barrels a day, nearly 750,000 barrels lower from what it pumped in August, according to a delegate briefed on the matter. The group had adopted a pump-at- will policy in 2014.
     Saudi Arabia and Iran had earlier signaled they wouldn’t come to any agreement on production cuts at the meeting in Algiers, while laying groundwork for a deal at the next official meeting in Vienna. Instead, this deal points to a new phase in relations for the two nations, which have clashed on oil policy in the past.
     Energy and raw-materials producers are the top-performing industries in Canada this year, fueling a rebound in the wider gauge after slumping the most since the 2008 financial crisis last year. The S&P/TSX Materials Index is up 51 percent and set to halt the longest yearly losing streak since 1988, while energy producers are second with a 22 percent gain.
     BlackBerry rallied 4.6 percent to the highest since March, as the Waterloo, Ontario-based company said it will hand over production of its once-iconic smartphones to overseas partners to focus on its more profitable software business. BlackBerry also reported second-quarter adjusted earnings at break-even, compared with expectations for a loss, while revenue fell short of analysts’ projections.
     DHX Media Ltd., the children’s TV programming company, lost 3.3 percent to close at the lowest in almost three months after reporting fourth-quarter adjusted earnings and sales that trailed analysts’ estimates. The company also boosted its dividend.

US
By Joseph Ciolli
     (Bloomberg) — U.S. stocks rose, with energy shares rallying the most in eight months, as OPEC agreed to a preliminary deal that will cut production for the first time in eight years.
     Oil and gas producers in the S&P 500 Index posted the biggest jump since January as crude futures surged more than 5 percent. Equities had earlier swung between gains and losses as oil prices whipsawed amid optimism for an agreement and mixed data on stockpiles. The afternoon rally in energy overshadowed a 3.8 percent drop in Nike Inc. and AT&T Inc.’s 1.5 percent retreat that dragged down phone companies.
     The S&P 500 rose 0.5 percent to 2,171.37 at 4 p.m. in New York, erasing a 0.4 percent slide and closing above its average price during the past 50 days for the first time in almost a week. The gauge also wiped out a monthly decline. The Dow Jones Industrial Average rose 110.94 points, or 0.6 percent, to 18,339.24, with two stocks — Exxon Mobil Corp. and Chevron Corp. — contributing more than 40 percent of the gain. The Nasdaq Composite Index added 0.2 percent.
     “While the correlation between oil and stocks has loosened, it’s still dictated some trading this week,” said Matt Maley, an equity strategist in New York at Miller Tabak & Co LLC. “We’re about to head back into earnings season, when we’ll see if stocks can get the pick-up the market’s been hoping for.”
     OPEC agreed to drop production to a range of 32.5 to 33 million barrels per day, said Iran’s Oil Minister Bijan Namdar Zanganeh, following a meeting in Algiers. While some members of the organization will have to cut output, Iran won’t have to freeze production, he said. Many of the details remain to be worked out and the group won’t decide on targets for each country until its next meeting at the end of November.
     Federal Reserve Chair Janet Yellen testified today on bank supervision and regulation while also including remarks on monetary policy. She told lawmakers the U.S. will continue to add jobs at a solid rate, though the recent average pace is probably higher than what’s sustainable over the long term and would eventually cause the economy to overheat. She also said the current course calls for a gradual increase in interest rates, something that doesn’t have a fixed timetable.
     Meanwhile, investors are looking for signs that the economy is strengthening and awaiting the next earnings season, which will kick off in about two weeks. A report today showed orders for durable goods were little changed in August, while shipments of capital equipment declined for a fourth month, indicating lingering weakness in manufacturing. A revised reading on second-quarter growth, pending home sales as well as measures of personal income and spending are due later this week.
     In addition to eking out a gain for the month, the S&P 500 is also now on pace for a third weekly increase, which would be the most since July. The CBOE Volatility Index fell 5.4 percent today to 12.39, extending its two-day decline to almost 15 percent after an 18 percent jump on Monday. The measure of market turbulence known as the VIX is now down almost 8 percent in September, erasing a climb that reached 35 percent two weeks ago.
     In Wednesday’s trading, energy companies jumped 4.3 percent as eight of the S&P 500’s 11 main industries advanced. Raw- materials and industrials added more than 0.6 percent. Phone companies dropped 1 percent, after losing as much as 1.6 percent. Utilities fell for a fourth day, while biotechnology shares slipped to weigh on the health-care group. About 7.1 billion shares changed hands on U.S. exchanges, 7.6 percent more than the three-month average.
     Leading energy, Exxon Mobil rallied 4.4 percent, the most since February, and Chevron added 3.2 percent. Murphy Oil Corp. and Devon Energy Corp. increased more than 8.3 percent. Nine of the S&P 500’s 10 strongest performers today were energy names. The lone outsider was copper miner Freeport-McMoRan Inc., which gained 6.9 percent.
     AT&T fell the most in two weeks after UBS Group AG downgraded the shares to neutral from buy, and lowered its price target to $43 from $46. The firm cited, in part, higher competition in the wireless business. Verizon lost 0.8 percent after declining as much as 1.3 percent.
     Nike had its worst session since March, after disappointing futures orders renewed concerns that competitors are crimping the sneaker maker’s growth.

Have a wonderful evening everyone.

 

Be magnificent!

There are thousands of lives in one single life.
Swami Prajnanpad

As ever,

 

Carolann

 

Fortune favors the bold.
      -Virgil, 70 BC-19 BC

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

All Things Pass
LAO-TZU

All things pass
A sunrise does not last all morning
All things pass
A cloudburst does not last all day
All things pass
Nor a sunset all night
All things pass
What always changes?

Earth…sky…thunder…
mountain…water…
wind…fire…lake…

These change
And if these do not last

Do man’s visions last?
Do man’s illusions?

Take things as they come

All things pass

PHOTOS OF THE DAY

A cyclist pedals across a road flooded by the overflowing Lachlan River after a natural disaster zone was declared in the New South Wales town of Forbes, Australia, Tuesday. Jason Reed/Reuters

Participants dressed in traditional attire pose during rehearsals for Garba, a folk dance, ahead of Navratri, a festival during which devotees worship the Hindu goddess Durga and youths dance in traditional costumes, in Ahmedabad, India, Tuesday. Amit Dave/Reuters

Britain’s Labour Party leader Jeremy Corbyn is given a violin lesson by 10-year-old Jessica Kelly during a visit to Faith Primary School in Liverpool, England Tuesday, where he met children taking part in the In Harmony project.The project is supported by the Royal Liverpool Philharmonic Orchestra and helps school children learn to play musical instruments. Stefan Rousseau/PA/AP
Market Closes for September 27^th, 2016

Market Index	Close	Change
Dow Jones	18228.30	+133.47   +0.74%
S&P 500	2159.93	+13.83   +0.64%
NASDAQ	5305.711	+48.220   +0.92%
TSX	14558.04	-61.42
		-0.42%

International Markets

Market Index	Close	Change
NIKKEI	16683.93	+139.37
		+0.84%
HANG SENG	23571.90	+253.98
		+1.09%
SENSEX	28223.70	-70.58
		-0.25%
FTSE 100	6807.67	-10.37
		-0.15%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	0.966	0.994
CND. 30 Year Bond	1.635	1.660
U.S.    10 Year Bond	1.5582	1.5839
U.S. 30 Year Bond	2.2789	2.3205

Currencies

BOC Close	Today	Previous
Canadian $	0.75760	0.75610
US $	1.31996	1.32258
Euro Rate 1 Euro=		Inverse
Canadian $	1.48064	0.67539
US $	1.12173	0.89148

Commodities

Gold	Close	Previous
London Gold Fix	1327.00	1340.50
Oil	Close	Previous
WTI Crude Future	44.67	45.93

Market Commentary:
Canada
By John Hyland
     (Bloomberg) — Canadian stocks fell a third day as a rout in commodities prices from oil to gold sent shares in resource producers tumbling.
     Raw-materials producers led declines as gold slumped 0.8 percent and an index of gold miners lost 2.4 percent. Energy shares slumped as crude dropped as much as 3 percent in New York after Iran said it’s not willing to freeze output. Consumer shares advanced amid data showing U.S. consumer confidence rose to the highest level since 2007, which helped spark gains in American shares.
     The S&P/TSX Composite Index fell 0.4 percent to 14,558.04 at 4 p.m. in Toronto, paring its advance this quarter to 3.5 percent. The measure has gained 12 percent this year, second- most among developed markets tracked by Bloomberg.
     The Canadian equity benchmark is roughly one-third commodity producers by weighting, making any selloff in resources likely to weigh on the broader index. The drop came as global equities looked set to halt a two-day slide, with U.S. shares edging higher after Hillary Clinton was deemed to have won Monday’s presidential debate against Donald Trump.
     Energy producers in Canada declined 1.2 percent, as crude slumped after Iran said it’s not on their agenda to reach an agreement at the OPEC talks in Algiers. Crude fell 3 percent at 4 p.m. in New York. Cenovus Energy Inc. fell 2.5 percent to their lowest level since July 2016. TransCanada Corp. declined 0.3 percent, after the company agreed to buy all outstanding units of Columbia Pipeline Partners LP for about $848 million in cash.
     Raw-materials producers lost 1.5 percent as spot gold and spot silver declined. OceanaGold Corp. dropped 14 percent to their lowest level since June, after they were named in an audit in the Philippines. Gold is set to end its longest winning streak since July, after Hillary Clinton was deemed the debate winner. Higher odds of a Trump victory are likely to spur price volatility in precious metals, according to Citigroup Inc. Barrick Gold Corp. fell 2.2 percent.
     Financial shares fell less than 0.1 percent, amid lingering European bank concern and weakened national trade. The Bank of Nova Scotia fell at least 0.5 percent and the Royal Bank of Canada dropped 0.2 percent. Toronto-Dominion Bank edged 0.2 percent higher.

US
By Rita Nazareth and Dani Burger
     (Bloomberg) — U.S. stocks shrugged off a drop in oil to rally as consumer confidence jumped and banking shares rebounded. Mexico’s peso led emerging markets higher on the perception that presidential nominee Hillary Clinton beat Donald Trump in their first debate.
     The S&P 500 Index extended its quarterly advance, led by technology and retail companies, while European stocks halted a two-day rout as banks trimmed their losses. Mexico’s peso, increasingly a barometer of Trump-related anxiety, led gains among the world’s major currencies. Treasuries advanced to a three-week high as the dollar retreated. Oil tumbled as Iran said it’s unwilling to freeze output at current levels and wants to raise production to 4 million barrels a day. Gold and copper slumped.
     Equities climbed after data showing U.S. consumer confidence rose to the highest since 2007 bolstered optimism about the world’s largest economy. The report also fueled gains in Europe, where lenders almost erased losses and Deutsche Bank AG was unchanged after plunging to a record low. While stocks struggled to find direction in early trading, polls showing Clinton outperformed Trump in the debate were also cited as a reason for relief. Citigroup Inc. has said a Republican win in November could send stocks slumping, and warned this week it may also spur volatility in both gold and currency markets.
     “You have the perspective that Trump lost the debate, and good consumer confidence numbers,” said Dennis Debusschere, a senior managing director and global portfolio strategist at Evercore ISI in New York. “If Deutsche Bank goes to the back page on the day, markets can focus on the election and the confidence data.”
     The first of three presidential debates between Trump and Clinton ahead of the Nov. 8 election drew more than 83 million viewers, making it the most-watched in history. The number snapped the previous record for the biggest audience set during the 1980 contest between Jimmy Carter and Ronald Reagan, with 80.6 million viewers.
     A CNN poll showed that 62 percent of voters who watched the debate said Clinton won the discussion, compared with 27 percent for Trump. Still, the Republican and Democratic nominees each got 46 percent of likely voters in a head-to-head contest in a Bloomberg Politics national poll released before the event.
     “Polls on voting intentions still show that the race is essentially neck and neck,” said James Athey, a money manager at Aberdeen Asset Management Plc in London, which has $402.9 billion in assets. “It will be these polls which truly have the power to drive a genuine re-pricing.”
     The S&P 500 added 0.6 percent to 2,159.93 at 4 p.m. in New York, extending its quarterly advance to 2.9 percent. Amazon.com Inc. jumped to a record, while Microsoft Corp. was up 1.9 percent to pace the rally.
     “Really, it’s the consumer confidence number, which was extremely strong here, a big positive surprise that has helped the market,” said Timothy Ghriskey, who helps manage 1.5 billion as chief investment officer at Solaris Asset Management LLC in New York.
     The Stoxx Europe 600 Index added less than 0.1 percent, wiping out an earlier decline. Banks trimmed losses as Deutsche Bank erased a drop of as much as 3.5 percent. Commerzbank AG fell after a report it plans to cut jobs and suspend dividend payments. Credit Suisse Group AG slid as its chief said the lender is mulling further cost cuts at the global markets unit that posted a loss earlier this year.
     MSCI’s gauge of global equities rose 0.3 percent, and emerging-market shares halted a two-day slide.
     The Mexican peso rebounded from a record low, a respite for a currency that has posted the worst performance among its major peers in the past month amid polls showing that Trump gained ground on Clinton. The U.S. Republican candidate has vowed to renegotiate the North American Free Trade Agreement if he wins.
     “Markets perceive a lower probability of Trump winning after the debate,” said Andres Jaime, a strategist at Barclays Plc who was the top forecaster for the currency in the first half of the year. “As shorts get squeezed, the Mexican peso is outperforming its peers.”
     Bloomberg’s Dollar Spot Index, which measures the greenback against major peers, dropped 0.3 percent. The yen was little changed, while the euro slipped 0.3 percent.
     The Swedish krona led losses among its Group-of-10 peers after Riksbank Governor Stefan Ingves said that he remains determined if necessary to fight low inflation with more stimulus.
     The Egyptian pound fell to a record low on the black market on speculation that policy makers will weaken the official exchange rate for the second time this year.
     U.S. 10-year notes advanced for a second day, with the yield falling three basis points, or 0.03 percentage point, to 1.56 percent, according to Bloomberg Bond Trader data. Merrill Lynch’s Option Volatility Estimate Index, known by the acronym MOVE, declined for a fifth day to 58.9 Monday, the lowest closing level in 21 months. It has fallen about 14 percent since Sept. 20, the day before the Federal Reserve’s latest policy decision.
     A closer-than-expected U.S. election or further turmoil in the European banking sector may serve as catalysts that would send volatility higher, according to Timothy High, U.S. strategist at BNP Paribas SA in New York, a primary dealer.
     “I don’t think we’re going to get a big warning before a volatility event,” High said. “It’s kind of like when a flock of birds changes direction. When one goes, they all go at the same time.”
     European securities from higher-rated nations climbed as investor uneasiness about Deutsche Bank’s financial footing sparked demand for the safest assets at the expense of those from more indebted nations. Germany’s 10-year bond yield fell to the lowest since July and Finland’s dipped below zero for the first time.
     Oil dropped in New York, continuing the gyrations of recent days. It’s “not on our agenda” to reach agreement at the OPEC talks in Algiers, Iranian Oil Minister Bijan Namdar Zanganeh said in the Algerian capital. Influential forecasters gave a worsening outlook for the market, with the head of the International Energy Agency saying supply and demand won’t be in balance until late 2017 and Goldman Sachs Group Inc. cutting its fourth quarter price forecast.
     “The chances of a deal being reached are shrinking,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “The more we hear, the greater the doubts. The IEA’s comments and Goldman cutting their forecast put further pressure on the market.”
     West Texas Intermediate for November delivery dropped 2.7 percent to $44.67 a barrel on the New York Mercantile Exchange. Nickel surged after top ore supplier Philippines said three-quarters of its mining industry fell short in an audit. Gold, silver and copper retreated.

 

Have a wonderful evening everyone.

 

Be magnificent!

Our consciousness is not actually yours or mine; it is the consciousness of man,
evolved, grown, accumulated through many, many centuries…
When one realizes this our responsibility becomes extraordinarily important.
Krishnamurti

As ever,

 

Carolann

 

Lost time is never found again.
-Benjamin Franklin, 1706-1790

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On this day in…

1960 – the first televised debate between presidential candidates took place in Chicago as Republican Richard M. Nixon and Democrat John F. Kennedy squared off.

1789 – Thomas Jefferson was appointed America’s first secretary of state and John Jay the first chief justice.

1888 – Poet T.S. Eliot was born in St. Louis, Mo.

1898 – Composer George Gershwin was born in Brooklyn, New York.

1914 – The Federal Trade Commission was established.

1950 – United Nations troops recaptured the South Korean capital of Seoul from the North Koreans.

1969 – The album “Abbey Road” by the Beatles was released.

T.S. Eliot, born 1888.

STAGE MAGIC
Tickets for the West End production of Harry Potter and the Cursed Child may be hard to obtain, but a video taking you behind the curtain with set designer Christine Jones includes tantalizing glimpses at some of the scenery and effects that bring the story to life.  See the video at http://bit.ly/hpottercursedchild.  

We shall not cease from our exploration, and at the end of all our exploring, we shall arrive where we started and know the place for the first time. –T.S. Eliot.
PHOTOS OF THE DAY

People walk across a bridge between tree-like structures at the Gardens by the Bay park in Singapore on Monday. Jorge Silva/Reuters

People enjoy a swing ride in front of St. Paul’s church at the 183rd Oktoberfest beer festival in Munich, Germany, on Monday. The festival runs until October 3. Matthias Schrader/AP
Market Closes for September 26^th, 2016

Market Index	Close	Change
Dow Jones	18094.83	-166.62   -0.91%
S&P 500	2146.10	-18.59   -0.86%
NASDAQ	5257.492	-48.255   -0.91%
TSX	14619.46	-78.47
		-0.53%

International Markets

Market Index	Close	Change
NIKKEI	16544.46	-209.46
		-1.25%
HANG SENG	23317.92	-368.56
		-1.56%
SENSEX	28294.28	-373.94
		-1.30%
FTSE 100	6818.04	-91.39
		-1.32%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	0.994	1.040
CND. 30 Year Bond	1.660	1.696
U.S.    10 Year Bond	1.5839	1.6167
U.S. 30 Year Bond	2.3205	2.3441

Currencies

BOC Close	Today	Previous
Canadian $	0.75610	0.75950
US $	1.32258	1.31665
Euro Rate 1 Euro=		Inverse
Canadian $	1.48835	0.67188
US $	1.12538	0.88859

Commodities

Gold	Close	Previous
London Gold Fix	1340.50	1338.65
Oil	Close	Previous
WTI Crude Future	45.93	44.33

Market Commentary:
Canada
By John Hyland
     (Bloomberg) — Canadian stocks declined a second day, tracking losses in U.S. shares spurred by weakness in banks, while investors prepare for the U.S. presidential debate and a meeting between major oil producers this week.
     Ten of 11 main groups in the Canadian benchmark index retreated, with bank shares contributing the most to losses as concern mounted that Deutsche Bank AG’s slump could destabilize the European banking sector. Consumer shares slid as household confidence fell after views of the country’s economic prospects hit the lowest in six months. Energy shares declined despite crude gains ahead of an OPEC meeting.
     The S&P/TSX Composite Index fell 0.5 percent to 14,619.46 at 4 p.m. in New York, paring its advance this quarter to 4 percent. The measure has gained 12 percent this year, second- most among developed markets tracked by Bloomberg. The rally has pushed the price-to-earnings ratio for stocks in the index to 23.3 times reported profit, about 15 percent higher than the valuation for S&P 500 Index shares.
     Monday’s slump was attributable to financial-service firms, which lost 0.6 percent amid a global selloff in banks. The Royal Bank of Canada and Toronto-Dominion Bank fell 0.6 percent.
     Canada’s lenders and insurers, which account for one-third of the S&P/TSX by weighting, took an extra hit from data showing the nation’s core inflation rate was the slowest in two years in August. That spurred bets the economy may need added monetary stimulus, with any lower rates crimping profits at financial institutions.
     Shares of consumer stocks fell at least 1 percent amid the confidence data. Loblaw Cos. and Cott Corp. plunged more than 1.6 percent to pace declines.
     Energy producers declined 0.4 percent, even as crude surged in New York after Saudi Arabia offered to cut output, signaling the possibility for a future OPEC deal. TransCanada Corp. declined 1 percent, after the company agreed to buy all outstanding units of Columbia Pipeline Partners LP for about $848 million in cash.
     Raw-materials producers lost 0.5 percent as spot gold declined. Barrick Gold Corp. fell 0.5 percent.

US
By Joseph Ciolli
     (Bloomberg) — Even before Deutsche Bank AG’s drop to a record low dragged down U.S. financial shares on Monday, investors were braced for the worst.
     Blame the Federal Reserve’s decision to hold interest rates steady last week, prolonging the wait for higher yields on cash holdings for financial firms. Traders responded by pushing short interest on an exchange-traded fund tracking the industry to a seven-month high, according to data compiled by Bloomberg and IHS Markit Ltd.
     That’s proven prescient as concerns over Deutsche Bank’s weakened finances sent an index of financial companies in the S&P 500 Index down 1.5 percent at 4 p.m. in New York, while the benchmark gauge lost 0.9 percent to 2,146.10. It marked the latest hiccup for a sector already maligned by a nearly 12 percent plunge this month for scandal-plagued Wells Fargo & Co., formerly the biggest U.S. bank by market value.
     “The fact that rates were not raised made financials a relative underperformer last week,” said Michael James, managing director of equity trading at Wedbush Securities Inc. in Los Angeles. “And given what’s going on with Deutsche Bank and Wells Fargo, I would expect that weakness to continue with financials as a whole. It could be a headwind to the whole market making an upside move.”
     Short interest on the Financial Select Sector SPDR ETF rose to 4.5 percent of shares outstanding on Thursday, the highest since Feb. 2, IHS Markit data show. Still, it wasn’t the first time investor skepticism around financial stocks perked up in recent weeks. In a Sept. 14 note to clients, Goldman Sachs Group Inc. said that while investors should be getting bullish on banks ahead of a rate hike, the cost to hedge them is no different from the broader S&P 500.
     Now, with the Fed’s decision to stand pat on lending rates in the rear-view mirror, investors are turning their attention to the first of three televised debates between presidential candidates Hillary Clinton and Donald Trump tonight. The pair is deadlocked in a head-to-head race in the latest Bloomberg Politics national poll. The Democratic candidate had a 6-point advantage on her Republican rival in August. A Trump victory could lead to equity declines, Citigroup Inc. analysts warned last month.
     Investors are also awaiting a meeting between major oil producers this week after crude slumped on Friday on concern OPEC won’t reach an agreement to curb output. Its members and Russia meet on Wednesday in Algiers to discuss coordinated action to support prices. Crude rebounded Monday from its worst one-day drop in more than two months, as Saudi Arabia’s offer to cut output opened the door to a future deal.
     The S&P 500 increased 1.2 percent last week as the Fed’s decision to hold rates steady renewed the appeal of stocks to yield-seeking investors — although the move higher was damped by a 0.6 percent decline on Friday.
     “The spillover from Friday’s weak action, with nothing material coming from overseas other than the Deutsche Bank concerns, it’s not surprising to see the market with a weaker tone,” said James. “There isn’t a lot happening this week, so the presidential debate is likely to have a big impact tomorrow and potentially going forward.”
     Lenders in the S&P 500 posted the steepest slide in almost three months, with Bank of America Corp. and Citigroup Inc. losing more than 2.6 percent, while the yield on the 10-year Treasury note fell to a two-week low. The Dow Jones Industrial Average dropped 166.62 points, or 0.9 percent, to 18,094.83, while the CBOE Volatility Index jumped 18 percent. About 5.9 billion shares traded hands on U.S. exchanges, 11 percent below the three-month average.
     Deutsche Bank slumped 7.1 percent in U.S. trading after a media report said the German government wouldn’t step in to back the lender. Chief Executive Officer John Cryan’s efforts to shore up profitability and capital, by cutting thousands of jobs and shrinking, have been put at risk by the U.S. Justice Department requesting $14 billion to settle a probe tied to residential mortgage-backed securities.
     Among shares moving on corporate news, Pfizer Inc. slipped 1.8 percent after deciding not to pursue a strategy of splitting into two separate companies. Bats Global Markets Inc. fell 4.6 percent after agreeing to be bought by CBOE Holdings Inc. for about $3.2 billion in cash and stock. Bats jumped 20 percent Friday on a Bloomberg report that the two companies were in talks.
     Investors are also weighing economic data and the prospects for corporate profits, with Alcoa Inc. unofficially kicking off the next earnings season when it reports results on Oct. 10. A gauge today showed purchases of new homes dropped in August after surging a month earlier to the fastest pace since 2007. Releases on durable-goods orders, a revised look at second- quarter growth, as well as readings on personal income and spending are due later this week.

 

Have a wonderful evening everyone.

 

Be magnificent!

What is the soul?  The soul is consciousness.
It shines as the light within the heart.
Brihadaranyaka Upanishad

As ever,

 

Carolann

 

All great leaders have had one characteristic in common: it was the willingness
to confront unequivocally the major anxiety of their people in their time.  This,
and not much else, is the essence of leadership.
                                          -John Kenneth Galbraith, 1908-2006

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On this day in…
63 B.C. – Caesar Augustus was born in Rome.

1806 – The Lewis and Clark expedition returned to St. Louis from the Pacific Northwest.

1846 – The planet Neptune was discovered by German astronomer Johann Gottfried Galle.

1926 – Jazz saxophonist and composer John Coltrane was born in Hamlet, N.C.

1930 – Musician Ray Charles was born Ray Charles Robinson in Albany, Ga.

1939 – Sigmund Freud, the founder of psychoanalysis, died at age 83.

1949 – Bruce Springsteen was born.

1990 – Iraq threatened to destroy Middle East oil fields and attack Israel if other nations tried to force it from Kuwait.

POINTS OF PROGRESS:
SCOTLAND: The country’s wind turbines produced enough energy to meet all of its electricity needs over the course of one day – 106 percent of those needs, to be precise.  Portugal managed a similar feat in May, meeting all of its energy needs for four days straight (107 hours) via renewable sources.  Over the course of a year, more than half of Scotland’s electricity is generated via renewable. –The Guardian.

CALIFORNIA:  Freeways are to start generating energy.  On several of the state’s major roads, piezoelectric crystals will be installed as part of a pilot program.  About as big as watch batteries, these sensors produce an electrical charge when submitted to pressure, as by vehicles driving over them, for instance.  Other countries are already using this technology to generate electricity, including Japan, Israel, and Italy, and scientists estimate the amount of energy produced by a 10-mile stretch of four-lane roadway could power the entire city of Burbank. –California State Assembly, Ecowatch

JAPAN: Tokyo elected its first female governor.  In a country lagging behind many others in the advancement of women in the workplace, this represents a milestone.  Japan is endeavoring to boost an economy largely stagnant for a quarter of a century, and some analysts regard incorporating more women into the labor force as crucial contribution to that effort. –CSM.

FRANCE: A nearly complete ban on ivory and rhinoceros horn was announced by the country’s government, following similar bans elsewhere in Europe and in other regions.  The one exemption covers carved rhinoceros horn or ivory objects dated prior to July 1, 1975, when the Convention on International Trade in Endangered Species came into force.  –French Government, International Fund for Animal Welfare.
PHOTOS OF THE DAY

A drone, made by CyPhy Works, carries a UPS package on Children’s Island off the coast of Beverly, Mass., on Thursday during a demonstration of a drone making a commercial delivery of a package to a remote or difficult-to-access location. Brian Snyder/Reuters

Jon Kuhn, a team member at the Virginia Farm Market in Winchester, Va., catches one of the 1,000 pumpkins he was helping unload from a delivery truck on Friday. Jeff Taylor/The Winchester Star/AP
Market Closes for September 23^rd, 2016

Market Index	Close	Change
Dow Jones	18261.45	-131.01   -0.71%
S&P 500	2164.69	-12.49   -0.57%
NASDAQ	5305.746	-33.777   -0.68%
TSX	14697.93	-99.25
		-0.67%

International Markets

Market Index	Close	Change
NIKKEI	16754.02	-53.60
		-0.32%
HANG SENG	23686.48	-73.32
		-0.31%
SENSEX	28668.22	-104.91
		-0.36%
FTSE 100	6909.43	-1.97
		-0.03%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.040	1.099
CND. 30 Year Bond	1.696	1.731
U.S.    10 Year Bond	1.6167	1.6183
U.S. 30 Year Bond	2.3441	2.3367

Currencies

BOC Close	Today	Previous
Canadian $	0.75950	0.76665
US $	1.31665	1.30438
Euro Rate 1 Euro=		Inverse
Canadian $	1.47867	0.67628
US $	1.12306	0.89043

Commodities

Gold	Close	Previous
London Gold Fix	1338.65	1339.10
Oil	Close	Previous
WTI Crude Future	44.33	46.17

Market Commentary:
Canada
By John Hyland and Eric Lam
     (Bloomberg) — Canadian stocks halted a four-day rally as energy producers tumbled with crude, while inflation data that boosted the likelihood of added stimulus sent financial shares lower and an unexpected drop in retail sales weighed on consumer shares.
     The S&P/TSX Composite Index fell 0.7 percent to 14,697.93 at 4 p.m. in Toronto, paring the best weekly advance since April to 1.7 percent. The benchmark for Canadian equity has surged 4.5 percent in the third quarter, pushing its gain this year to 13 percent. 
     Nine of the 11 sectors declined Friday, with raw-materials and energy producers losing more than 1 percent. Oil and gas companies retreated as New York crude slumped as much as 4.1 percent to trade at around $44 a barrel after Saudi Arabia was said to dismiss the prospects for an output agreement in talks in Algiers next week, according to an OPEC delegate familiar with the nation’s oil policies.
     Financial-service firms fell 0.5 percent Friday. Only six of the 26 members in the group advanced. Combined the firms make up about one-third of the S&P/TSX. Bank of Nova Scotia fell 0.9 percent after closing at a record.
     Canada’s core inflation rate was the slowest in two years in August, with the pace of consumer prices and overall inflation decelerating. The data spurred bets the economy may need added monetary stimulus. That hit financial shares that would see profits crimped by lower interest rates.
     Shares of consumer staples stocks fell after data showed retail sales unexpectedly fell in July. Maple Leaf Foods Inc. slumped 1.8 percent and Loblaw Cos. slid 1 percent to pace declines.
     Raw-materials producers slipped 1.4 percent. Barrick Gold Corp. and Goldcorp Inc. dropped more than 1.2 percent. Silver Wheaton Corp. slumped 2.3 percent and First Quantum Minerals Ltd. fell 1.2 percent.

US
By Anna-Louise Jackson
     (Bloomberg) — U.S. stocks retreated as energy producers and Apple Inc. led declines, with the S&P 500 Index paring its best weekly advance in more than two months after a rally spurred by the Federal Reserve.
     Equities halted the longest winning streak in seven weeks as Apple and Facebook Inc. dragged down the technology group, while tumbling crude oil sank energy shares on worries OPEC won’t reach an agreement to curb output. Apple fell in afternoon trading amid speculation over iPhone demand. Bats Global Markets Inc. soared 19 percent and Twitter Inc. climbed the most since 2013 amid deal speculation.
     The S&P 500 lost 0.6 percent to 2,164.69 at 4 p.m. in New York, as crude dropped the most since July and Apple lost 1.7 percent. The equity benchmark closed below its average price during the past 50 days. The Dow Jones Industrial Average slipped 131.01 points, or 0.7 percent, to 18,261.45. The Nasdaq 100 Index declined 0.7 percent, a day after posting its 12th record close this year. About 6.3 billion shares traded hands on U.S. exchanges, 7 percent below the three-month average.
     “Today is the inevitable pause because the last two days saw a pretty significant move, particularly in light of a Fed that did what the market was expecting,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. in Milwaukee. “The bulk of the price action — you’ve got bonds selling off a little bit, you’ve got crude oil selling off, the dollar rallying a little bit — it’s what you’d expect from a pause in a rally.”
     Facebook slipped 1.6 percent after saying it gave advertisers an inflated measure of video ad viewership. Apple took a sudden afternoon dive, losing as much as 2.7 percent on speculation that German research firm GfK issued a report suggesting iPhone 7 sales would be lower than last year, based on data in Europe and Asia. That helped send tech stocks in the main U.S. equity measure to their biggest loss in two weeks.
     The S&P 500 closed up 1.2 percent for the week, after the Federal Reserve held off raising interest rates and scaled back the number of increases it expects in 2017. The equity gauge has returned to within 1.2 percent of a record set in August, recovering from a rout two weeks ago as signals from the Fed and the Bank of Japan calmed concerns that central banks might be less inclined to extend their unprecedented measures to support growth.
     The CBOE Volatility Index rose 2.3 percent Friday to 12.29, trimming its biggest weekly decline since July 1. The measure of market turbulence known as the VIX on Wednesday wiped out a monthly gain that had reached as much as 35 percent.
     “We had a good week and a consolidation is the right move, given the uncertainties that still linger and the elections coming up,” said Christoph Riniker, the Zurich-based head of strategy research at Julius Baer Group Ltd. “The Fed’s decision was positive short-term, but we’re still going to have a rate hike and the consensus is still going for December.”
     Three Fed officials on Wednesday dissented, the most since December 2014, in favor of a quarter-point hike. One of them, Boston Fed President Eric Rosengren said today in an explanation of his dissent that failure to get back to a strategy of gradual rate increases may threaten the ongoing U.S. economic recovery. Not tightening policy could generate “the sorts of significant imbalances that historically have led to a recession,” he said.
     Investors will now turn their attention to economic data and the next earnings season that gets underway in about two weeks. A Bloomberg gauge tracking the degree to which data miss or exceed economists’ estimates has been negative for all of September. Reports are due next week on durable-goods orders, services and personal spending in the world’s biggest economy. Analysts project profit at S&P 500 companies fell 1.5 percent in the third quarter.
     Nine of the S&P 500’s 11 main industries retreated, with real estate rising Friday, and leading in its first week after being separated from the financial group. Phone companies also gained. Energy producers lost 1.3 percent, while technology shares slipped 1 percent. Industrials and financials lost at least 0.6 percent.
     Oil and gas companies slumped as Saudi Arabia was said to dismiss the prospects for an output agreement to stabilize the market in talks in Algiers next week. The energy group in the benchmark index erased a morning gain, sliding as much 1.7 percent. Transocean Ltd. and Devon Energy Corp. declined at least 5.5 percent.
     Among shares moving Friday on corporate news, Salesforce.com Inc. fell the most in seven months after people familiar with the matter said it was among Twitter’s potential suitors. Yahoo! Inc. also weighed on the tech group, losing 3.1 percent a day after saying the personal information of at least 500 million users was stolen in an attack on its accounts from 2014.
     Endo International Plc jumped 15 percent after replacing its chief executive officer amid a 73 percent plunge in its stock price during the past year. Imperva Inc. rallied 21 percent to a seven-month high after people familiar with the matter said the security-software company has drawn interest from potential buyers including Cisco Systems Inc. and International Business Machines Corp. Cisco fell 1 percent.

Have a wonderful weekend everyone.

 

Be magnificent!

It is through you that the sun shines and the stars shed their luster, and the earth becomes beautiful.
It is through your blessedness that they all love and are attracted to each other.
You are in all, and you are all.
Swami Vivekananda

As ever,

 

Carolann

 

Without great solitude, no serious work is possible.
                                -Pablo Picasso, 1881-1973

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:
People are often unreasonable, illogical and self-centered.
FORGIVE THEM ANYWAY.

If you are kind, people may accuse you of selfish motives.
BE KIND ANYWAY.

If you are successful, you will win some false friends and some true enemies.
SUCCEED ANYWAY.

If you are honest and sincere, people may deceive you.
BE HONEST AND SINCERE ANYWAY.

What you spend year building, someone could destroy overnight.
BUILD ANYWAY.

If you find serenity and happiness, they may be jealous.
BE HAPPY ANYWAY.

The good you do today, people will often forget tomorrow.
DO GOOD ANYWAY.

Give the world the best you have and it may never be enough.
GIVE THEM YOUR BEST ANYWAY.

In the final analysis, it is between you and God.
IT NEVER WAS BETWEEN YOU AND THEM ANYWAY.
                                       -Mother Teresa

On this day:
On Sept. 22, 1862, President Abraham Lincoln issued the preliminary Emancipation Proclamation, declaring all slaves in rebel states should be free as of Jan. 1, 1863.
Go to article »

1949 – The Soviet Union exploded its first atomic bomb.

1969 – Willie Mays of the San Francisco Giants hit his 600th career home run during a game in San Diego.

1995 – Time Warner struck a $7.5 billion deal to buy Turner Broadcasting System IncPHOTOS OF THE DAY

A man sits on top of Alvier peak, 7,687 ft above sea level, with the fog covered Rhine valley to his feet, Thursday, in Wartau, Switzerland. Gian Ehrenzeller/Keystone/AP

Workers clean Rome’s famed Spanish Steps after restoration work that lasted almost a year in Rome, Italy, Thursday. Alessandro Bianchi/Reuters

Grape pickers fill boxes with grapes at a vineyard during the traditional Champagne wine harvest in Ay, France, on Thursday. Benoit Tessier/Reuters

A small fisherman’s boat makes its way past the rocks of Sete Nave as the sun sets outside Pietrosella, on the southern part of Corsica, France, on Thursday. Christian Hartmann/Reuters
Market Closes for September 22^nd, 2016

Market Index	Close	Change
Dow Jones	18392.46	+98.76   +0.54%
S&P 500	2177.18	+14.06   +0.65%
NASDAQ	5339.523	+44.342   +0.84%
TSX	14797.17	+86.35
		+0.59%

International Markets

Market Index	Close	Change
NIKKEI	16807.62	+315.47
		+1.91%
HANG SENG	23759.80	+89.90
		+0.38%
SENSEX	28773.13	+265.71
		+0.93%
FTSE 100	6911.40	+76.63
		+1.12%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.099	1.151
CND. 30 Year Bond	1.731	1.777
U.S.    10 Year Bond	1.6183	1.6546
U.S. 30 Year Bond	2.3367	2.3798

Currencies

BOC Close	Today	Previous
Canadian $	0.76665	0.76390
US $	1.30438	1.30907
Euro Rate 1 Euro=		Inverse
Canadian $	1.46203	0.68398
US $	1.12087	0.89217

Commodities

Gold	Close	Previous
London Gold Fix	1339.10	1326.10
Oil	Close	Previous
WTI Crude Future	46.17	45.14

Market Commentary:
Canada
By John Hyland
     (Bloomberg) — Canadian stocks rose for a fourth day, adding to gains sparked by the Federal Reserve’s decision to not raise interest rates amid signs the world’s largest economy is improving.
     The S&P/TSX Composite Index rose 0.6 percent to 14,797.17 at 4 p.m. in Toronto, touching the highest level since June 2015 before paring the advance. The index closed at a two week high and is now up almost 14 percent this year.
     Financial markets around the world rallied after a decision to leave interest rates unchanged boosted equities and bonds. The dollar fell, fueling a rally in commodities denominated in the U.S. currency from copper to oil. Shares of high-dividend- yielding companies also advanced as investors sought income amid a drop in fixed-income yields.
     Energy producers gained 0.9 percent, tracking a rally in oil after Algeria said OPEC may turn its informal talks next week into a formal session. OPEC members are focused on either boosting output or defending their market share, and will have difficulty reaching a deal, according to a Bloomberg survey. Oil edged higher after weekly government data showed U.S. inventories dropped to their lowest level since February. Suncor Energy Inc. and Canadian Natural Resources Ltd. gained at least 1.6 percent. TransCanada Corp. added 1 percent to yesterday’s gains, closing at a record.
     Financial-service firms rose 0.7 percent. Bank of Nova Scotia gained 0.5 percent, closing at its highest level in two years. Brookfield Asset Management Inc. rose 3.9 percent, after RBC Capital Markets raised the stock to a top pick, based on the company’s well executed business plan. TMX Group gained 2.7 percent, the most in a month, after eliminating 95 full-time positions in the third quarter and targeting further cost reductions.
     Raw-materials producers slipped 0.4 percent. Barrick Gold Corp. and Franco Nevada Corp. fell at least 1.4 percent. Silver Wheaton Corp. dropped 0.9 percent. Copper gained 4.6 percent, and First Quantum Minerals Ltd. closed at a two week high.

US
By Rita Nazareth, Dani Burger and Alan Soughley
     (Bloomberg) — From the U.S. to Europe and Asia, markets are sending a clear signal — the era of cheap money is far from over.
     Traders piled into equities, bonds and commodities as the Federal Reserve lowered its outlook for future rate hikes, soothing worries that global central banks would taper stimulus efforts. American stocks approached record highs, euro-region notes had their best day since Brexit, and the dollar fell against most major currencies. The decision also gave fresh impetus to emerging markets, with Russia and Argentina announcing debt sales. Commodities jumped for a sixth straight day as oil topped $46 a barrel.
     Stocks have surged, while bond yields fell to record lows as major central banks sought to boost growth with easy policies. Hours before the Fed scaled back tightening plans Wednesday, Japan tweaked its stimulus program, bolstering bets Europe will keep its accommodative stance. Thomas Lee, the biggest equity bull on Wall Street, said the U.S. monetary restraint is one more reason to bet shares will climb. Meanwhile, former Fed Chairman Alan Greenspan called the rally in Treasuries unsustainable, and Janus Capital Group’s Bill Gross said a bear market has been delayed.
     “It’s a bit of a relief rally,” said Chris Gaffney, the president of EverBank World Markets in St. Louis. “Now we are onto the next piece of uncertainty, which is third quarter earnings and, of course, the election.”
     With central banks moving off center stage, investors will turn their attention to the first of three U.S. presidential debates on Monday ahead of the Nov. 8 election and another earnings season that gets underway in about three weeks. Data today showed the mixed picture in the world’s largest economy — sales of previously owned homes declined in August, while filings for unemployment benefits dropped last week to match the lowest level since April.
     MSCI’s gauge of global equities climbed 1.2 percent at 4 p.m. in New York, the first back-to-back gain above 1 percent since the end of June. Emerging-market shares posted their biggest advance in more than two months.
     The S&P 500 Index added 0.7 percent to 2,177.18, rising back above its average price during the past 50 days for the first time in almost two weeks. The Nasdaq Composite Index rose to an all-time high.
     Computer and software stocks in the megacap realm keep vaulting to records at a rate not seen since before the dot-com bubble. While the Fed’s decision yesterday to leave interest rates unchanged is lifting the broader market, optimism about fourth-quarter earnings is giving technology companies an extra boost, according to Alan Gayle, a senior strategist at RidgeWorth Investments.
     “Technology is an easy place to invest in if you’re playing a turnaround in corporate profits and potential turn in capital spending,” Gayle said. “If you think we’ve gone through the worst of the profits downturn, which most people believe, the first beneficiary is likely to be technology.”
     For the first time since Bloomberg began compiling 2016 targets last year, forecasters have increased their estimates for the level at which the Stoxx Europe 600 Index will end in December. They now see the gauge reach 346, according to the average of 10 projections compiled by Bloomberg, up from 334 last month. The measure, propelled to its biggest jump in almost three weeks after the Fed kept borrowing costs unchanged, closed 0.5 percent above that level.
     The U.S. 10-year note yield dropped three basis points, or 0.03 percentage point, to 1.62 percent, according to Bloomberg Bond Trader data.
     “Yields will remain at historically low levels for some time,” Bill Irving, co-manager of Fidelity Government Income Fund said, according to the transcript of an interview on his firm’s website. “In that environment, I’d be cautious about reaching for yield.”
     Treasuries have rallied this year as economic circumstances in the U.S. and abroad caused the Fed to delay tightening policy multiple times after a liftoff from near zero in December. While signs of labor-market strength have led bond traders to price in a growing likelihood of a rate increase by year-end, other data such as August retail sales and industrial production have shown declines.
     The probability of a Fed move this year is about 57 percent, according to futures data compiled by Bloomberg. Still, the tightening cycle is poised to be the slowest and shallowest in recent history, based on the market for overnight index swaps, which reflect expectations for the fed funds effective rate.
     Benchmark German 10-year bund yields dropped the most since June 24, while those on Spanish five- and 10-year securities slid to all-time lows. The biggest gains were in longer-dated securities, which are more sensitive to the outlook for inflation and had underperformed last week in the run up to the Bank of Japan and Fed meetings.
     Russia offered investors $1.25 billion of 4.75 percent bonds in a tap of the 2026 notes it sold in May, according to the Finance Ministry. The Eurobonds were priced at 106.75 percent of face value, the ministry said. Meanwhile, Argentina has picked three banks to pitch an offering of at least 500 million euros ($562 million) bonds to European investors this month.
     Bloomberg’s Dollar Spot Index, which measures the greenback against major peers, dropped 0.1 percent, leaving its decline this year at about 4 percent. The greenback fell against most higher-yielding currencies including South Korea’s won and the Mexican peso.
     “The U.S. dollar decline has more weeks to go, we think about two months,” Hans Redeker, Morgan Stanley’s chief global currency strategist in London, said in an interview with Bloomberg Television. “We suggest that the U.S. dollar will extend its decline, index-wise, between 4 percent to 5 percent.”
     Elsewhere in the world, the rand halted a six-day rally after South Africa’s Reserve Bank left interest rates unchanged for a third straight meeting as it signaled it may be close to the end of its policy-tightening cycle. Norway’s krone led gains among major currencies after the nation’s central bank refrained from cutting interest rates. New Zealand’s dollar fell for the first time in four days after policy makers signaled further easing.
     The weaker dollar spurred gains in raw materials as the Bloomberg Commodity Index posted the longest advance in a month.
     Oil rose to a two-week high after rival OPEC members Saudi Arabia and Iran met in Vienna a week before the organization holds talks in Algeria.
     Futures rose 2.2 percent to $46.32 a barrel in New York. Officials from Saudi Arabia and Iran, whose rivalry derailed an oil supply accord earlier this year, along with fellow OPEC member Qatar, met at OPEC headquarters. Oil extended gains as equities advanced and the dollar fell. U.S. crude supplies dropped to the lowest since February, trimming stockpiles that remain at the highest seasonal level in at least three decades, government data showed Wednesday.
     “The Saudi talks with Iran increase the likelihood of an agreement next week,” said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York. “The Iraqi’s are saying it’s the right time for OPEC to make a deal, which is also supportive.”

 

Have a wonderful evening everyone.

 

Be magnificent!

The universe is like an ocean in perfect equilibrium.
A wave cannot rise in one place, without creating a hollow elsewhere.
The sum total of the energy of the universe remains identical from one end to the other.
If you take from one place, you must give elsewhere.
Swami Vivekananda

As ever,

 

Carolann

Don’t compromise yourself.
You are all you’ve got.
               -Janis Joplin, 1943-1970

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On September 21^st, 1819, John Keats wrote to J.H. Reynolds:
The side streets here [Winchester] are excessively maiden-lady-like: the door steps always fresh from the flannel.  The knockers have a  staid serious, nay almost awful quietness about them.  I never saw so quiet a collection of lions’ and rams’ heads.  The doors most part black, with a little brass handle just above the keyhole, so that in Winchester a man may very quietly shut himself out of his own house.  How beautiful the season is now  – how fine the air.  A temperate sharpness about it.  Really, without joking, chaste weather – Dian skies.  I never liked stubble fields so much as now, aye, better than the chilly green of the spring.  Somehow a stubble plain looks warm – in the same way that some pictures look warm.  This struck me so much in my Sunday’s walk that I composed upon it To Autumn.

To Autumn

John Keats, 1795-1821

Season of mists and mellow fruitfulness,
Close bosom-friend of the maturing sun;
Conspiring with him how to load and bless
With fruit the vines that round the thatch-eaves run;
To bend with apples the moss’d cottage-trees,
And fill all fruit with ripeness to the core;
To swell the gourd, and plump the hazel shells
With a sweet kernel; to set budding more,
And still more, later flowers for the bees,
Until they think warm days will never cease,
For Summer has o’er-brimm’d their clammy cells.

Who hath not seen thee oft amid thy store?
Sometimes whoever seeks abroad may find
Thee sitting careless on a granary floor,
Thy hair soft-lifted by the winnowing wind;
Or on a half-reap’d furrow sound asleep,
Drows’d with the fume of poppies, while thy hook
Spares the next swath and all its twinéd flowers:
And sometimes like a gleaner thou dost keep
Steady thy laden head across a brook;
Or by a cyder-press, with patient look,
Thou watchest the last oozings hours by hours.

Where are the songs of Spring? Ay, where are they?
Think not of them, thou hast thy music too,—
While barréd clouds bloom the soft-dying day,
And touch the stubble-plains with rosy hue;
Then in a wailful choir the small gnats mourn
Among the river sallows, borne aloft
Or sinking as the light wind lives or dies;
And full-grown lambs loud bleat from hilly bourn;
Hedge-crickets sing; and now with treble soft
The red-breast whistles from a garden-croft;
And gathering swallows twitter in the skies.

Birthdays:
Bill Murray, b. 1950
Leonard Cohen, b. 1934
Stephen King, b. 1947
H.G. Wells, b. 1866
PHOTOS OF THE DAY

Aerialist Sally Miller takes part in a stunt in London on Wednesday to promote the upcoming release of the film ‘Miss Peregrine’s Home for Peculiar Children.’ Vianney Le Caer/Invision/AP

A guide is reflected in the installation Mirror Maze, by artist Es Devlin, at Copeland Park in Peckham, south London, on Wednesday. Stefan Wermuth/Reuters
Market Closes for September 21^st, 2016

Market Index	Close	Change
Dow Jones	18293.70	+163.74   +0.90%
S&P 500	2163.12	+23.36   +1.09%
NASDAQ	5295.184	+53.832   +1.03%
TSX	14710.82	+188.84
		+1.30%

International Markets

Market Index	Close	Change
NIKKEI	16807.62	+315.47
		+1.91%
HANG SENG	23669.90	+139.04
		+0.59%
SENSEX	28507.42	-15.78
		-0.06%
FTSE 100	6834.77	+3.98
		+0.06%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.151	1.168
CND. 30 Year Bond	1.777	1.793
U.S.    10 Year Bond	1.6546	1.6910
U.S. 30 Year Bond	2.3798	2.4346

Currencies

BOC Close	Today	Previous
Canadian $	0.76390	0.75803
US $	1.30907	1.31920
Euro Rate 1 Euro=		Inverse
Canadian $	1.46478	0.68270
US $	1.11894	0.89370

Commodities

Gold	Close	Previous
London Gold Fix	1326.10	1314.85
Oil	Close	Previous
WTI Crude Future	45.14	43.44

Market Commentary:
Canada
By John Hyland and Eric Lam
     (Bloomberg) — Canadian stocks surged the most in more than two months as gold miners got a boost after the Federal Reserve left stimulative interest rates unchanged while signaling the world’s largest economy is showing signs of improving.
     The S&P/TSX Composite Index added 1.3 percent to 14,710.82 at 4 p.m. in Toronto, extending gains after the Fed decision from Washington. It was the biggest rally in two months, driven by materials producers in the equity benchmark, which jumped 4.6 percent as a group, the most June 3.
     “Gold and gold stocks are taking off here, it underscores the low-rate environment,” said Scott Colbourne, co-Chief Investment Officer at Sprott Asset Management in a phone interview from Toronto. His firm manages almost C$9 billion. “Materials, energy as well as base metals will continue to have a bit of a lift here. Broadly speaking I don’t see a real reason to break away from broad themes of support for the Canadian stock market and base metals.”
     In a decision to leave interest rates unchanged that saw three officials dissent in favor of a quarter-point hike, Fed policy makers said near-term risks to the economic outlook were “roughly balanced.” While the case for an increase in borrowing costs has strengthened the central bank is awaiting more evidence of progress towards its goals. Traders now see a 60 percent likelihood for a rate increase by the end of the year.
     Raw-materials producers led gains in the S&P/TSX as Barrick Gold Corp. and Goldcorp Inc. jumped at least 6.2 percent. Gold, seen as a store of value against other assets in a low-inflation environment, extended gains after the Fed decision. Tighter monetary policy is typically negative for gold because the metal doesn’t pay interest.
     The Bank of Japan earlier shifted the focus of stimulus from expanding the money supply to controlling interest rates, which some economists deemed as further evidence that BOJ policy had reached the limits of its effectiveness.
     Energy companies climbed 1.4 percent, tracking a rally in oil after Algeria said OPEC may turn its informal talks next week into a formal session. OPEC members are focused on either boosting output or defending their market share, and will have difficulty reaching a deal, according to a Bloomberg survey. Crude extended gains after weekly data showed U.S. stockpiles unexpectedly dropped. TransCanada Corp. added 0.8 percent, closing at a record.
     Encana Corp. advanced 1.7 percent, after yesterday’s slump of 7.6 percent. The drop stemmed from selling about $1 billion of shares to fund drilling in Texas next year and repay debt.
     Financial services stocks rose 0.6 percent. TMX Group gained 1.8 percent, the most in a month, after eliminating 95 full-time positions in the third quarter and targeting further cost reductions. Manulife Financial Corp. increased 0.9 percent, to the highest in almost three months.
     D-Box Technologies Inc. jumped 14 percent, the biggest one- day rally in more than a year. The company will install its special cinema seats designed to move in time with the action in a 143-seat auditorium in China.

US
By Anna-Louise Jackson and Oliver Renick
     (Bloomberg) — U.S. stocks rallied after the Federal Reserve kept interest rates steady even as the economy showed signs of improving, removing at least for six weeks an obstacle for equities that rekindled volatility this month.
     Shares surged as the central bank opted to wait for further evidence of stronger inflation before boosting borrowing costs, while officials signaled growth remains on track to achieve their goals. Utilities, energy and raw-materials producers — among the year’s best performers — jumped the most in two months. Boeing Co. and Caterpillar Inc. increased 2.2 percent to lead industrials.
     The S&P 500 Index gained 1.1 percent to 2,163.12 at 4 p.m. in New York, the most on a Fed day since December, when it raised rates for the first time in a decade and the market ended 1.5 percent higher. The Dow Jones Industrial Average added 163.74 points, or 0.9 percent, to 18,293.70, and the Nasdaq Composite Index rose 1 percent. About 7.6 billion shares traded hands on U.S. exchanges, 12 percent above the three-month average.
     “You’ve got one sort of near-term risk factor off the table for investors, and markets like certainty,” Mike Bailey, director of research at FBB Capital Partners, which manages about $900 million, said by phone. “The market overall was pretty confident you wouldn’t see a rate increase today and we saw that achieved. The question now is what are the major catalysts. Earnings season is number one. You’ve got minor global catalysts like a referendum in Italy, the Brexit situation and the rate hike.”
     Policy makers said the case for higher interest rates has strengthened, but they decided “to wait for further evidence of continued progress” toward the central bank’s objectives. Three officials voted against the decision, up from one at the last meeting, and the Fed signaled it’s still prepared to raise rates in December. At the same time, the outlook for the path of rates indicated they expect fewer hikes in 2017 and over the long run.
     Stocks extended gains as Fed Chair Janet Yellen said that asset valuations are “not out of line with historical norms.” The S&P 500 trades at more than 18.4 times projected earnings, the highest since 2002. Yellen also reiterated that the Fed can tighten quickly if inflation were to increase toward the long- term goal of 2 percent, while raising rates too soon could damp growth.
      “Our decision does not reflect a lack of confidence in the economy,” Yellen said at the start of her press conference. “Since monetary policy is only modestly accommodative, there appears little risk of falling behind the curve in the near future.”
     The latest from the Fed came after the BOJ’s tweaks on Wednesday that give it scope to keep loosening policy to revive the economy and inflation, while limiting the negative impact on bank earnings. Based on fed funds futures trading, odds for rate increase in December were 59 percent, unchanged from levels before the FOMC’s statement today.
     “This is probably more hawkish than I would’ve expected — three dissenters in and of itself is more hawkish,” said Krishna Memani, New York-based chief investment officer at Oppenheimer Funds Inc., which oversees $223 billion. “Data would have to weaken for them not to do anything in December, that’s the nuance more than anything. This is more affirmation of what we are thinking as opposed to, ‘We need data to figure out what we are thinking.’ The likelihood is still that they’ll hike in December.”
     Optimism over policy adjustments made by the Bank of Japan earlier faded, with a morning surge in equities evaporating for a third-straight session before equities rebounded following the Fed statement and Yellen press conference.
     Stocks have struggled for direction since Sept. 9, when worries that central bankers may be losing their appetite for further stimulus efforts spurred the biggest slump since the U.K. secession vote in June, ending the summer’s calm. The S&P 500 on Wednesday posted only its second back-to-back advances this month. The CBOE Volatility Index tumbled more than 16 percent, the most since June, to erase a monthly gain that had reached 35 percent just a week ago.
     Wednesday’s rally was a departure from the prior two Fed days that left stocks lower after erasing gains. At the June meeting, policy makers signaled more caution on the growth outlook, while Britain’s vote on European Union membership still loomed. After a two-day plunge following the U.K. vote, U.S. shares surged to all-time highs on improving economic data and as global central banks indicated their willingness to act to offset Brexit damage.
     The Fed also emphasized a gradual pace of rate increases after its July meeting amid uneven data and the possible fallout from Brexit. The S&P 500 then remained in one of its tightest trading ranges ever, lingering near records until a selloff earlier this month.
     Among shares moving Wednesday on corporate news, Adobe Systems Inc. jumped the most since December 2014, rising 7.1 percent after forecasting a better-than-estimated quarterly profit. FedEx Corp. surged 6.9 percent to a three-month high after raising its full-year earnings outlook.

 

Have a wonderful evening everyone.

 

Be magnificent!

The universe is the energy of the soul; and from this energy comes life, consciousness, and the elements.
The universe is the will of the soul; and from this will comes the law of cause and effect.
From the soul one became many; but in the soul many are one.
Mundaka Upanishad

As ever,

 

Carolann

 

Life is to be fortified by many friendships.  To love and be loved
is the greatest happiness of existence.
                                            -Sydney Smith, 1771-1845

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:
We went to see the new Beatles’ documentary last night – Eight Days A Week – The Touring Years.  Even though I was a little too young during their touring years to see one of their concerts or to even witness Beatlemania, I must say it is a wonderful movie produced by Ron Howard, which invokes the intended nostalgia.  It’s well worth the effort to go see it on the big screen.

DAZZLING HIMALAYAS
Travel virtually to the Himalayas with the new app Verne: The Himalayas, which uses Google Maps to allow you to see the vistas as a yeti known as Verne.  Kids can learn from the app, but adults will appreciate the dazzling visuals too.  It’s available through Google Play (there’s no iOS version yet) free of charge. –CSM.

PHOTOS OF THE DAY

King Willem-Alexander arrives in the Glass Carriage at Knight’s Hall in The Hague, Netherlands, on Tuesday, prior to delivering a speech outlining the Dutch government’s budget plans for the year ahead. Lex van Lieshout/AP

People enjoy a slide at the 183rd Oktoberfest in Munich, southern Germany, on Tuesday. The world’s largest beer festival will be held from Sept. 17 to Oct. 3. Matthias Schrader/AP

Men compete in the Irish National Ploughing Championships in Tullamore, Ireland, on Tuesday. Clodagh Kilcoyne/Reuters
Market Closes for September 20^th, 2016

Market Index	Close	Change
Dow Jones	18129.96	+9.79   +0.05%
S&P 500	2139.76	+0.64   +0.03%
NASDAQ	5241.352	+6.325   +0.12%
TSX	14521.98	+25.75
		+0.18%

International Markets

Market Index	Close	Change
NIKKEI	16492.15	-27.14
		-0.16%
HANG SENG	23530.86	-19.59
		-0.08%
SENSEX	28523.20	-111.30
		-0.39%
FTSE 100	6830.79	+17.24
		+0.25%

Bonds

Bonds	% Yield	Previous  % Yield
CND. 10 Year Bond	1.168	1.193
CND. 30 Year Bond	1.793	1.824
U.S.    10 Year Bond	1.6910	1.7100
U.S. 30 Year Bond	2.4346	2.4551

Currencies

BOC Close	Today	Previous
Canadian $	0.75803	0.75755
US $	1.31920	1.32018
Euro Rate 1 Euro=		Inverse
Canadian $	1.47102	0.67980
US $	1.11509	0.89679

Commodities

Gold	Close	Previous
London Gold Fix	1313.80	1314.85
Oil	Close	Previous
WTI Crude Future	43.44	43.30

Market Commentary:
Canada
By John Hyland
     (Bloomberg) — Canadian stocks rose a second day, led by gains among the nation’s largest lenders as investors await crucial policy decisions Wednesday from the Federal Reserve and Bank of Japan.
     The S&P/TSX Composite Index added 0.2 percent to 14,521.98 at 4 p.m. in Toronto, to the highest level since Sept. 12. The Canadian equity benchmark advanced in line with a gauge of global developed and developing markets as equities rallied across North America and Europe.
     Financial markets around the world are anticipating the latest decisions from the Fed and BOJ, with the latter expected to add to unprecedented stimulus. Traders now see a 22 percent chance of a rate increase when Fed policy makers meet Wednesday, and a 56 percent likelihood by the end of the year. Two of the Fed’s 23 preferred bond-trading partners forecast officials will raise rates at Wednesday’s meeting.
     Bank of Nova Scotia and Toronto-Dominion Bank gained at least 0.6 percent as financial services stocks rose 0.6 percent as a group to pace gains in the S&P/TSX.
     Industrial stocks fell 0.5 percent with Bombardier Inc. leading the decline. The planemaker fell 6.3 percent to its lowest level in five months, after declining for three straight days. Bombardier and its competitors face a drop in demand for business-jets, according to a Bloomberg Intelligence report.
     Encana Corp. slumped 7.6 percent to the lowest in a more than a month, after selling about $1 billion of shares to fund drilling in Texas next year and repay debt. The company agreed to sell 107 million shares at $9.35 apiece through underwriters led by Credit Suisse Group AG and JP Morgan Chase, with a 30 day allotment to purchase 16.05 million additional shares.
     Crude closed little changed, adding 0.3 percent to its two day rebound. Growth continues after Algeria said OPEC may have formal sessions next week to discuss a cut in crude supplies to re-balance markets and stabilize prices. U.S. crude stockpiles probably increased by 3.13 million barrels last week, according to a Bloomberg survey before government data Wednesday.
     Natural resource producers remain the best-performing industries in Canada this year, fueling a 12 percent rebound in the S&P/TSX for the second-best performing developed market in 2016 behind New Zealand.

US
By Dani Burger
     (Bloomberg) — For all the dread surrounding central banks and valuations, risk appetites are being fed in at least one corner of the stock market.
     The S&P 600 Health Care Index of small caps posted a fifth- straight gain, surging 2.5 percent to briefly touch an all-time high. Its larger-company counterpart rose 1.1 percent over the same period, and sits 6.5 percent below its record. The outperformance is reason for optimism to JC O’Hara, chief market technician for FBN Securities Inc., who says it’s more evidence investors are being weaned of their defensive obsession.
     U.S. stocks closed little changed for a second day following another afternoon fade, as sentiment wavered before key policy decisions Wednesday from the Federal Reserve and Bank of Japan. The S&P 500 Index added less than 0.1 percent to 2,139.76 at 4 p.m. in New York, after climbing as much as 0.6 percent.
     “From a top-down point of view, when you have strength in small caps in any particular sector, it’s a sign of risk-on and it’s taken as an offensive signal for the market,” said O’Hara by phone. “The ability to take on risk and buy individual companies is starting to happen again.”
     A brightening forecast for biotechnology acquisitions is partially behind the resurgence of small-cap health-care companies. On Tuesday, Allergan Plc agreed to purchase Tobira Therapeutics Inc., while other companies are looking to buy Bayer AG’s dermatology unit. 
     Still, it’s an about-face from the sentiment surrounding biotech and health-care stocks to start the year, when stretched valuations and concerns about global growth sent small-cap shares tumbling into a bear market. While it isn’t unusual for the shares to lead equities out of a downturn because they are less liquid and also tend to fall harder, the speed and force of their recovery is what’s notable.
     The small-cap health index has outpaced the S&P 500 Health Care Index by 5 percentage points from the start of August through Monday. That’s lifted the gauge to its highest-ever level relative to the large-cap index. Among individual companies, MiMedx Group Inc. and Phibro Animal Health Corp. have surged more than 21 percent in the past month.
     In Tuesday’s trading, the Dow Jones Industrial Average rose 9.79 points to 18,129.96, nearly wiping out a gain of more than 100 points for a second day. The Nasdaq Composite Index increased 0.1 percent. About 5.9 billion shares traded hands on U.S. exchanges, 13 percent below the three-month average.
     “People are waiting for the Fed and the Bank of Japan,” Jim Davis, regional investment manager for The Private Client Group of U.S. Bank, said by phone. “The overall market is positioned for the Fed not to do anything. We’ve had a reset and we’re back to where we were pre-Brexit. Investors are seeking affirmation that central banks are going to continue to be somewhat friendly.”
     Stocks have struggled for direction since Sept. 9, when worries that central bankers may be less committed to further stimulus efforts spurred the biggest slump in more than two months, ending the summer’s calm. Amid swings between gains and losses as investors assessed economic releases and comments by Fed officials, the S&P 500 eked out an advance of 0.5 percent last week. The benchmark is trading at 18.3 times estimated earnings, its highest since 2002.
     A report today showed new-home construction fell more than projected in August, representing a pause after a spell of strong gains. Permits, a proxy for future construction, unexpectedly slipped on fewer applications for apartment projects. It’s the last piece of significant data before the Fed announces its rate decision and Chair Janet Yellen holds a press conference tomorrow afternoon. The Bank of Japan will also undertake a review of its monetary policy, with its outcome due before Wednesday’s Fed statement.
     The housing starts data added to a recent slew of weaker- than-forecast reports that has lowered trader odds of higher borrowing costs this month to 22 percent, from more than 40 percent in late August. A Bloomberg gauge tracking the degree to which data miss or exceed economists’ estimates is hovering near a two-month low.
     “It really is only about central banks,” said Christian Gattiker, the Zurich-based head of research at Julius Baer Group Ltd., which manages about 284 billion Swiss francs ($290 billion). “We’re generally in a bit of wait-and-see mode and it will depend on how much we get in terms of direction. A hike this month is priced out, but the market is waiting for guidance whether it’s going to happen in December or next year.”

 

Have a wonderful evening everyone.

 

Be magnificent!

The universe is not ruled by arbitrary, temporary martial law.
No force exists that is powerful enough to derail it, or to continue indefinitely on its own path unregulated,
like an outlaw who disrupts all harmony around him.  On the contrary, every force must return
to a state of equilibrium along a preordained curve.  Waves rise, each to its own level,
with an apparent attitude of relentless rivalry, but only up to a certain point.  We can thus understand
the vast serenity of the sea, to which all the waves are connected,
and to which they must all subside in the rhythm of marvelous beauty.
Rabindranath Tagore

As ever,

 

Carolann

 

In rivers, the water that you touch is the last of what
has passed and the first of that which comes;
so with present time.
                  -Leonardo Da Vinci, 1452-1519

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7