Category: Events

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

The eye of a lion is photographed at the zoo in Gelsenkirchen, Germany. Martin Meissner/AP

A man makes a horse stand on its back legs before a traditional Epiphany celebration horse race in Pietrosani, Romania. According to local traditions, following the religious service, villagers get their horses blessed with the Holy water then compete in a race. Vadim Ghirda/AP

Market Closes for January 7^th, 2015   

Market Index	Close	Change
Dow Jones	17584.52	+212.88
		+1.23%
S&P 500	2025.89	+23.28   +1.16%
NASDAQ	4650.469	+57.732
		+1.26%
TSX	14282.01	+35.24
		+0.25%

International Markets

Market Index	Close	Change
NIKKEI	16885.33	+2.14
		+0.01%
HANG SENG	23681.26	+195.85
		+0.83%
SENSEX	26908.82	-78.64
		-0.29%
FTSE 100	6419.83	+53.32
		+0.84%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.650	1.636
CND. 30 Year Bond	2.215	2.201
U.S.    10 Year Bond	1.9608	1.9402
U.S. 30 Year Bond	2.5205	2.5023

Currencies

BOC Close	Today	Previous
Canadian $	0.84606	0.84464
US $	1.18195	1.18394
Euro Rate 1 Euro=		Inverse
Canadian $	1.39949	0.71455
US $	1.18405	0.84456

Commodities

Gold	Close	Previous
London Gold Fix	1210.50	1217.51
Oil	Close	Previous
WTI Crude Future	48.65	47.93

Market Commentary:

Canada

By Michelle F. Davis

     (Bloomberg) — Canadian stocks rebounded from the biggest two-day plunge in 19 months, as Valeant Pharmaceuticals International Inc. closed at a record and gains in consumer shares offset declines in energy producers.

     Valeant surged 1.6 percent, contributing the most to gains in the benchmark index. Penn West Petroleum Ltd. and Crew Energy Inc. each fell more than 6 percent to lead energy shares to a third straight loss. Iamgold Corp. and Detour Gold Corp. fell at least 3.9 percent as gold tumbled for the first time this year.

     The Standard & Poor’s/TSX Composite Index advanced 38.23 points, or 0.3 percent, to 14,285 at 4 p.m. in Toronto, trimming an earlier gain of as much as 1.3 percent in afternoon trading. The benchmark equity gauge fell 3.4 percent in the previous two days, the most since April 15, 2013.

     Eight of the 10 main industries in the S&P/TSX increased on trading volume 4.2 below the 30-day average.

     Consumer shares advanced at least 1.4 percent to pace gains, with Hudson’s Bay Co. rallying 4.4 percent for among the biggest increases. Financial shares, which account for about one-third of the index’s weighting, added 0.5 percent.

     Energy shares decreased for a third-straight day, erasing an earlier gain of as much as 1.9 percent. West Texas Intermediate oil futures advanced 1.9 percent, the first gain in five sessions after dropping below $50 for the first time since April 2009.

     The rout in oil prices led to a plunge in Canada’s crude shipments in November, triggering the biggest export drop in almost three years and widening the national trade deficit, Statistics Canada said today.

     The report is a setback for policy makers relying on foreign demand to lead an economic recovery. Plunging prices for Canada’s top export may curb the value of shipments abroad this year, eroding any benefit manufacturers receive from faster U.S. growth and a lower currency.

     Equities trimmed gains in afternoon trading today after most U.S. Federal Reserve officials agreed an interest rate increase is unlikely before late April, according to December meeting minutes released today.

US

By Callie Bost

     (Bloomberg) — The Standard & Poor’s 500 Index rallied the most in three weeks, halting a five-day selloff, as data stoked optimism on the economy and Federal Reserve minutes did little to change investor expectations on interest rates.

     The S&P 500 jumped 1.2 percent to 2,025.90 at 4 p.m. in New York, after plunging 4.2 percent over the previous five days. The Dow Jones Industrial Average climbed 212.88 points, or 1.2 percent, to 17,584.52. More than 7 billion shares changed hands on U.S. exchanges, 1.6 percent above the three-month average.

     “We had some good economic news and the market got tired of going down,” Randy Bateman, the chief investment officer of Huntington Asset Advisors, which manages about $2.3 billion in the funds, said by phone.

     Before today, U.S. equities were off to the worst start for any year since 2008, with the S&P 500 dropping 2.7 percent in the first three sessions of 2015. The losses trimmed the index’s return since the bull market began in March 2009 to 196 percent and followed an advance of 11.4 percent in 2014.

     Stocks rallied at the market’s open as data on the labor market and the U.S. trade deficit bolstered confidence in the strength of the economy. Equities extended gains at midday as lawmakers in Chancellor Angela Merkel’s coalition said Germany is leaving the door open to debt-relief talks with Greece’s next government, signaling a more flexible stance than her administration has taken publicly.

     Equities maintained gains after the central bank released minutes from their December meeting. Most Fed officials agreed their new policy guidance means they are unlikely to raise interest rates before late April, and a number expressed concern inflation could remain too low.

     In a statement following that meeting, the Fed pledged to be patient in its approach to raising rates, while Chair Janet Yellen said the central bank will probably hold rates near zero through at least the first quarter.

     “From the Fed’s perspective, they’re seeing more of the same,” Stephen Wood, chief market strategist at Russell Investments in New York, said by phone. “The Fed has used forward guidance more effectively and the markets are responding to a consistent message and consistent policy path. The takeaway is the Fed isn’t changing anything any time soon.”

     Central bank officials said the faltering global economy may be a threat to the U.S., while concluding that those risks were “nearly balanced” by positive developments.

     Several policy makers said consumer and business confidence and payroll gains suggest the economy “may end up showing more momentum than anticipated,” while a few others said the boost to spending from cheaper oil and gas prices “could turn out to be quite large.”

     Some officials worried the oil decline could reduce longer- term inflation expectations, while others were concerned a drop in market-based inflation measures might reflect that “such a decline had already begun.”

     West Texas Intermediate has fallen 15 percent since the Fed’s last meeting. A combination of rising supply as domestic production picks up and slower growth overseas that’s reducing demand is leading to a rout in oil prices that has continued into 2015.

     “In general it seems they’re not too worried about inflation, and the oil shock is a temporary inflationary dampener,” said Frank Maeba, managing partner at Breton Hill Capital in Toronto. His firm manages about C$700 million ($592 million). “In the long term it will be outweighed by a general pickup in GDP and jobs.”

     Data from the Roseland, New Jersey-based ADP Research Institute showed companies in the U.S. added 241,000 workers in December, the most since June, indicating the U.S. job market was sustaining strength as 2014 drew to a close.

     The ADP data comes before the Labor Department’s report on Jan. 9, which may show payrolls, including government agencies, climbed 240,000 in December after a 321,000 increase a month earlier, according to the median forecast of economists surveyed by Bloomberg. The unemployment rate is projected to fall to 5.7 percent, the lowest since 2008.

     A separate report today showed the trade deficit narrowed more than forecast in November as U.S. petroleum imports sank to the lowest level in more than five years. Outside of fuel, Americans bought record amounts of consumer goods that shows the world’s largest economy is strengthening.

     “Investors have been overly pessimistic given the underlying fundamentals,” Karyn Cavanaugh, the New York-based senior market strategist at Voya Investment Management LLC, said by phone. “The underlying fundamentals are still very strong. Today’s ADP payroll report was positive, and central to everything is the labor market. If the labor market is strong, the economy is doing OK and this does bode well for Friday.”

     The bull market in equities, approaching its seventh year, has endured 30 declines of 4 percent or more. Last year, the benchmark gauge advanced 11 percent after experiencing three pullbacks of more than 4 percent and then recovering all the losses each time within one month.

     Investors expect this month’s swings to calm down as the year progresses, options trading shows. The Chicago Board Options Exchange Volatility Index, a measure of demand for options on the S&P 500, dropped 8.6 percent to 19.31 after rising for six out of the previous seven days. At 21.12 yesterday, the gauge was higher than all nine of its monthly futures contracts with expiration dates ranging from Jan. 21 to Sept. 16.

     Losses in equities have pushed the S&P 500’s price-earnings ratio down to 17.9 from as high as 18.5 on Dec. 29, according to data compiled by Bloomberg. The decade average is 16.3. Stocks are trading at about 1.8 times annual sales, compared with an average of 1.4 over the last 10 years.

     Stocks are cheap relative to bonds and global earnings should climb by 9 percent this year, Citigroup Inc. wrote in a note dated yesterday. The firm boosted its rating on U.S. equities to neutral from underweight, similar to sell, citing an increase in preference for growth.

     Nine out of 10 major industries in the S&P 500 advanced today. Health-care and consumer shares had the biggest gains, rising at least 1.5 percent.

     Energy stocks rose 0.3 percent, following a 5.3 percent tumble over the previous two days. West Texas Intermediate oil climbed 1.3 percent. Brent earlier slipped below $50 a barrel for the first time since May 2009.

     Anadarko Petroleum Corp. jumped 1.6 percent, pacing gains among energy producers in the S&P 500. Halliburton Co. rallied 2.7 percent and Exxon Mobil Corp. increased 1 percent.

     Helmerich & Payne Inc. plunged 6.6 percent for the worst performance in the S&P 500. The oil drill provider said low oil prices are “increasingly impacting” the U.S. land drilling market.

     The Nasdaq Biotechnology Index surged 3.6 percent for the biggest jump since April. Alexion Pharmaceuticals Inc. gained 5.6 percent for the biggest advance in the S&P 500. Biogen Idec Inc. also rallied 5.6 percent.

     J.C. Penney surged 20 percent. Fourth-quarter comparable- store sales will be at the upper end of its projected increase of 2 percent to 4 percent, the Plano, Texas-based department- store chain said.

     Monsanto Co. climbed 1.3 percent. The biggest seed company posted better-than-estimated fiscal first-quarter earnings and revenue, helped by sales of its newest soybean variety that’s genetically modified to withstand pests in South America.

     Eli Lilly & Co. lost 0.7 percent. The company forecast earnings for 2015 that missed analyst predictions even as the drugmaker said sales will rebound led by medications for diabetes, oncology and animal health.

 

Have a wonderful evening everyone!

 

Be magnificent!

 

“The most important thing is to enjoy your life – to be happy – it’s all that matters.” – Audrey Hepburn

As ever,

 

Karen

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Visitors walk past large ice sculptures during the Harbin International Ice and Snow Festival in the northern city of Harbin, Heilongjiang province, China. The winter event runs through the end of February and draws several million tourists each year. Kim Kyung-Hoon/Reuters  crocodiles. Toby Melville/Reuters

A Hubble telescope photograph of the iconic Eagle Nebula’s ‘Pillars of Creation’ is seen in this NASA image released today. By comparing 1995 and 2014 pictures, astronomers noticed a lengthening of a narrow jet-like feature that may have been ejected from a newly-forming star. Over the intervening 19 years, this jet has stretched farther into space, across an additional 60 billion miles, at an estimated speed of about 450,000 miles per hour. NASA/ESA/Hubble Heritage Team/Reuters

Market Closes for January 6^th, 2015   

Market Index	Close	Change
Dow Jones	17371.64	-130.01
		-0.74%
S&P 500	2002.61	-17.97   -0.89%
NASDAQ	4592.736	-59.837
		-1.29%
TSX	14246.77	-145.93
		-1.01%

International Markets

Market Index	Close	Change
NIKKEI	168883.19	-525.52
		-3.02%
HANG SENG	23485.41	-235.91
		-0.99%
SENSEX	26987.46	-854.86
		-3.07%
FTSE 100	6366.51	-50.65
		-0.79%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.636	1.690
CND. 30 Year Bond	2.201	2.246
U.S.    10 Year Bond	1.9402	2.0320
U.S. 30 Year Bond	2.5023	2.5987

Currencies

BOC Close	Today	Previous
Canadian $	0.84464	0.85017
US $	1.18394	1.17629
Euro Rate 1 Euro=		Inverse
Canadian $	1.40585	0.71131
US $	1.18742	0.84216

Commodities

Gold	Close	Previous
London Gold Fix	1217.51	1204.97
Oil	Close	Previous
WTI Crude Future	47.93	50.04

Market Commentary:

Canada

By Doug Alexander

     (Bloomberg) — Bank of Nova Scotia was Canada’s top arranger of stock sales for the first time since 2002 after exclusively leading offerings for Manulife Financial Corp. and Veresen Inc. in a year fueled by energy financings.

     Canadian stock sales climbed to a four-year high of $34.5 billion last year, with oil-and-gas firms accounting for about35 percent of the total, according to data compiled by Bloomberg. The amount companies raised through Canadian initial public offerings, secondary sales and convertible debentures inched up from $34.1 billion in the prior year, the data show.

     “Energy was a significant contributor to the activity level both in terms of acquisition finance and also IPOs and follow-on offerings,” said John McCartney, managing director and head of global equity capital markets at Scotia Capital.“We were on our way to surpassing the record issuance of 2009, but a very quiet final quarter of the year had us fall short.”

     Crude oil plunged 54 percent from a June 20 high amid a glut in supplies and a battle for market share between the U.S. and Organization of Petroleum Exporting Countries. Surging production and slower-than-expected demand growth also contributed to the rout, which saw oil-and-gas producer Teine Energy Ltd. push back the timing of its IPO.

     Scotiabank was credited on 33 deals for $5.1 billion in 2014, while Royal Bank of Canada’s RBC Capital Markets, which previously held top spot for two straight years, ranked second with 44 deals for $4.86 billion, the data show. Scotiabank, the country’s third-biggest bank by assets, hasn’t ranked higher than second since 2008.

     Bank of Montreal’s BMO Capital Markets fell to third from second, with 51 sales for $4.28 billion. Canadian Imperial Bank of Commerce was fourth with $3.9 billion of sales, edging past fifth-ranked Toronto-Dominion Bank’s TD Securities by less than$1 million.

     The figures and rankings, which exclude preferred share sales and self-led deals, were current as of today and may change as more transactions are recorded.

     RBC, which ranked No. 1 for domestic stock sales seven times in the past decade, helped oversee some of last year’s largest deals including Scotiabank’s sale of C$2.62 billion ($2.25 billion) shares of CI Financial Corp. in May. Energy will likely play less of a role in stock sales this year, though issuance by consumer companies, retailers and industrial firms may pick up, said Kirby Gavelin, RBC’s head of Canadian equity capital markets.

     “Canadian equity new-issue finance may not be as high as what we saw last year, but we don’t see it dropping by a major factor,” Gavelin said in an interview. “There’s M&A activity, expansion activity and other parts of the economy that have the potential to be more active than energy perhaps this year.”

     Scotiabank had mandates including landing the sole bookrunner role for Manulife’s sale of C$1.76 billion in subscription receipts in September, and Veresen’s C$920 million sale of subscription receipts the same month.

     “We’ve had a long history with these clients,” said Scotia Capital’s Lawrence Lewis, a vice chairman in equity capital markets. “We were able to get Manulife exceptionally tight terms, very good terms for the size required on a time- effective basis.”

     Scotiabank’s ties with Calgary-based Veresen, an owner of natural-gas pipelines, go back to the 1990s, when the bank took the company known then as Fort Chicago public.

     “The firm’s had strong relationships, we’ve done equity financings, preferred financings and we know the management well,” Lewis said. “It’s allowed us to be in a competitive position to sole lead these transactions.”

     Five stock sales each raised more than C$1 billion, with Encana Corp.’s C$2.6 billion September sale of its remaining stake in PrairieSky Royalty Ltd. topping the list.

     PrairieSky Royalty was also Canada’s biggest IPO last year — and the largest in the country since 2000 — after Encana raised C$1.67 billion including an over-allotment in its May initial sale of its 46 percent stake.

     Companies raised $3.6 billion from 29 IPOs last year, the highest amount since 2010, with CIBC No.1 based on value with roles on PrairieSky, Northern Blizzard Resources Inc. and Journey Energy Inc.  “The No. 1 ranking in IPOs is something that is absolutely essential to us,” Benoit Lauze, CIBC’s head of equity capital markets, said in a phone interview. “The IPO market leads to a lot of follow-on activity, typically, so this bodes very well for CIBC going forward given that we were bookrunner on most of the very large IPOs.”

     Beyond energy, Catalyst Capital Group Inc. raised $264 million in an IPO of its Callidus Capital Corp. unit, while technology firms Kinaxis Inc. and Lumenpulse Inc. each raised about $105 million in IPOs last year. A more diverse group of companies, such as retailers, technology firms and those involved in consumer products, may tap public markets for the first time this year, Lauze said.

     “Recent market volatility will certainly have an impact on equity new issue markets in 2015, with lower oil prices leading to lower oil and gas issuance,” said Sante Corona, head of equity capital markets at TD Securities. “There are sectors that stand to benefit from lower oil prices and a weaker Canadian dollar, and we may see issuance from those sectors such as industrials or companies that sell into U.S. markets.”

     IPO candidates include Inovent Capital Inc. and Canada Jetlines Ltd., which are marketing a C$50 million offering to fund a new “ultra-low cost” airline out of Vancouver International Airport, according to company filings. And BitGold Inc. co-founder Roy Sebag said in a December interview that he aims to raise as much as C$20 million in a Toronto IPO within six months for a business that will enable customers to swap their holdings between gold bullion and bitcoins.

     Both of those deals would pale in comparison to any sale of part of Vale SA’s base metals unit. After buying Canadian nickel producer Inco Ltd. eight years ago, the Brazilian miner said Dec. 2 it may sell a minority stake in the unit, valued as much as $35 billion.

     “Vale’s been well broadcast and that could clearly come, as well as some of the unnamed senior mining companies who do have debt and will have to deleverage in this environment,” Peter Miller, head of Canadian equity capital markets at BMO Capital Markets, said in an interview. “They could come with some chunky offerings.”

US

By Michael P. Regan

     (Bloomberg) — Perusing the list of the biggest stock- market losers since the price of oil peaked in June yields some predictable results.

     You have your large-cap energy companies like Transocean Ltd., Denbury Resources Inc., Nabors Industries Ltd., Noble Corp. and Halliburton Co., all down at least 45 percent.

     Yet mixed in with all the obvious ugliness are some names that bring to mind the question asked of Billy Joel by those drinkers at the piano bar, or perhaps even some of the wedding guests who watched him walk down the aisle with Christie Brinkley: Man, what are you doing here?

     The answer illustrates how much of an impact the energy industry has had on the bottom line of corporate America, whether it’s companies profiting from the boom in domestic production or those that made big investments based on the premise that fuel will always be expensive. As such it helps explain why the entire stock market, not just the energy companies, tends to freak out when oil heads lower rapidly.

     The big bets on high energy prices made by companies like Ford Motor Co. (down 13 percent since oil peaked on June 20) or Tesla Motors Inc. (down 10 percent) or Boeing Co. (down 3.9 percent) jump immediately to mind.

     Not so obvious, unless you follow the stock closely, is the investment made by Fifth Third Bancorp, one of the regional lenders that tried to chase the fracking boom. (It’s down 12 percent since June 20.)

     Here’s how the company’s management described the rationale for the launch of a new national energy banking team two years ago: “The energy sector is a rapidly growing industry,” said the announcement. The new team “demonstrates our commitment to providing dedicated banking services to this evolving sector.The oil and natural gas sector represents a tremendous growth opportunity.”

     The sector certainly is “evolving.” Fitch Ratings last month identified regional banks lifted by the shale boom that now face potential credit pressures in loans related to the industry. Oil prices below $50 a barrel, like now, would likely trigger a jump in credit losses, Fitch said.

     Fitch’s list of banks with high concentrations of loans to the industry is topped by BOK Financial Corp., which is down 13 percent since June 20.; Cullen/Frost Bankers Inc., down 16 percent; Hancock Holding Company, down 19 percent; Comerica Inc., down 14 percent; and Amergy Bank of Texas, a subsidiary of Zions Bancorp, which is down 13 percent.

     Losses are even worse among the industrial companies that provide the services and sell the pipes, valves and assorted doodads used to pump oil and gas.

     Fluor Corp., an engineering, maintenance and project management firm that counted on the oil and gas industry for 42 percent of its revenue in 2013, is down 27 percent since June 20. Flowserve Corp., whose pumps and valves are used in refineries and pipelines, is off about the same amount.

     Caterpillar Inc., Joy Global Inc., Allegheny Technologies Inc., Dover Corp., Jacobs Engineering Group and Quanta Services Inc. are all down more than 20 percent since oil peaked at almost $108.

     Morgan Stanley last month detailed stocks that stand to benefit from lower oil prices, such as airlines and consumer companies, and concluded cheaper fuel is a net benefit for the U.S. economy.

     Yet the firm’s list of stocks outside the energy and industrial sectors that could be challenged was not short, and included some surprising names: from Sprint Corp. to Intelsat SA in the telecommunications industry, to Agilent Technologies Inc. and Varian Medical Systems Inc. in health care, and investment firms like Carlyle Group LP and real-estate investment trusts such as American Residential Properties Inc.

     Just yesterday, U.S. Steel Corp. warned of potential layoffs for 756 employees at two plants that stand to be hurt by lower spending by energy companies.

     Anyway, the latest boom and bust in the energy industry calls to mind another Billy Joel lyric, reflecting on a summer in Highland Falls, New York, a state where our reason coexists with our insanity and fracking was banned last month: We are always what our situations hand us, it’s either sadness or euphoria.

Have a wonderful evening everyone!

 

Be magnificent!

 

Thousands of candles can be lighted from a single candle, and the life of the candle will not be shortened. Happiness never decreases by being shared.

Buddha

As ever,

 

Leyla

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

People slide on on an ice sculpture illuminated by colored lights during opening day of the 31st Harbin International Ice and Snow Festival in the northern city of Harbin, Heilongjiang province. Harbin is one of the coldest cities in China. Kim Kyung-Hoon/Reuters

A Sumatran tiger cub at the London Zoo poses for a photographer. The annual stock take and animal count, a requirement of the zoo’s license, included additions to the international conservation breeding program such as three tiger cubs and Philippine crocodiles. Toby Melville/Reuters

Market Closes for January 5^th, 2015   

Market Index	Close	Change
Dow Jones	17501.65	-331.64
		-1.86%
S&P 500	2020.58	-37.62   -1.83%
NASDAQ	4652.574	-74.238
		-1.57%
TSX	14392.70	-360.95
		-2.45%

International Markets

Market Index	Close	Change
NIKKEI	17408.71	-42.06
		-0.24%
HANG SENG	23721.32	-136.50
		-0.57%
SENSEX	27842.32	-45.58
		-0.16%
FTSE 100	6417.16	-130.64
		-2.00%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.690	1.744
CND. 30 Year Bond	2.246	2.296
U.S.    10 Year Bond	2.0320	2.1105
U.S. 30 Year Bond	2.5987	2.6873

Currencies

BOC Close	Today	Previous
Canadian $	0.85017	0.84853
US $	1.17629	1.17850
Euro Rate 1 Euro=		Inverse
Canadian $	1.40371	0.71238
US $	1.19333	0.83799

Commodities

Gold	Close	Previous
London Gold Fix	1204.97	1172.00
Oil	Close	Previous
WTI Crude Future	50.04	52.69

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks posted the steepest plunge since 2013, joining a global selloff, as banks and energy producers tumbled after oil prices slumped below $50 a barrel for the first time in five years amid concern over Greece.

     MEG Energy Corp. and Legacy Oil & Gas Inc. sank at least 19 percent as energy stocks fell 5.5 percent as a group. Toronto- Dominion Bank and National Bank of Canada slumped more than 2.3 percent as bank shares declined a fourth day. First Quantum Minerals Ltd. lost 8.3 percent with copper at a four-year low.

     The Standard & Poor’s/TSX Composite Index fell 360.95 points, or 2.5 percent, to 14,392.70 at 4 p.m. in Toronto, the biggest decline since June 2013. The benchmark equity gauge rose 7.4 percent in 2014.

     “Today’s move below $50 has created more panic in the oil patch and the energy sector,” said Andrew Pyle, fund manager at ScotiaMcLeod Inc., via phone from Peterborough, Ontario. He manages about C$300 million ($255.3 million). “The market ran out of reasons to convince itself Greece wasn’t a problem. Greece is still a problem and to think it wouldn’t affect the market was naive.”

     Nine of 10 industries in the S&P/TSX fell as trading volume was 3.6 percent lower than the 30-day average today. All 66 members of the S&P/TSX Energy Index declined.

     West Texas Intermediate oil slumped below $50 a barrel in New York for the first time since April 2009 and settled at $50.04, a 5 percent decline. Brent crude plunged 5.9 percent to $53.11 as record supplies in Iraq and Russia bolstered speculation the global glut will continue.

     MEG Energy tumbled 22 percent to C$16.02, a record loss, and Legacy Oil & Gas retreated 19 percent to C$1.82, most since April 2009. The S&P/TSX Energy Index, the worst-performing industry in the broader benchmark last year, lost 5.5 percent, the biggest drop in a month.

     “It’s a correction, it started months ago and it hasn’t run its course,” said Bob Decker, fund manager at Aurion Capital Management Inc. in Toronto. His firm manages about C$6 billion.

     It would take a recovery in global growth to turn things around for the Canadian index, “but we haven’t seen any indication of that,” Decker said.

     Toronto-Dominion Bank, the nation’s largest lender by assets, sank 2.3 percent to C$53.94 and National Bank plunged 4.9 percent to C$47.60, the largest decline since December 2009, as the S&P/TSX Banks Index lost 2.3 percent for a fourth day of losses.

     Canadians are the least optimistic since May 2013 that home prices will keep rising, according to the latest polling data compiled by Nanos Research for Bloomberg. The share of survey respondents predicting higher prices fell to 31.1 percent last week, from as high as 47 percent in July.

     The slump in Canada joined a selloff in equity markets around the world. The MSCI All-Country World Index, which includes both developed and developing markets, slumped 1.9 percent, the most in a year. The S&P 500 sank 1.8 percent to 2,020.58 in New York, the biggest loss since October.

     First Quantum Minerals declined 8.3 percent to C$15.85 and Teck Resources Ltd., the nation’s largest diversified miner, dropped 3.5 percent to C$15.57 as copper fell a third day to extend a four-year low.

     Iamgold Corp. jumped 7.6 percent to C$3.55 as gold for February delivery advanced a second day, up 1.5 percent to settle at $1,204 an ounce in New York.

US

By Michelle F. Davis and Joseph Ciolli

     (Bloomberg) — Stocks fell around the world as energy shares plunged and U.S. crude oil sank below $50 for the first time since April 2009. The euro weakened to an almost nine-year low, while Treasuries rose with gold on demand for haven assets.

     The Standard & Poor’s 500 Index fell 1.8 percent by the 4 p.m. close, its biggest drop since Oct. 9. The Stoxx Europe 600 Index slid 2.2 percent, as a gauge of European energy stocks dropped the most in three years. West Texas Intermediate oil tumbled as much as 5.5 percent to $49.77 a barrel. The euro declined 0.5 percent to $1.1937, after touching its weakest level since March 2006. Yields on 10-year Treasuries fell eight basis points to 2.04 percent. Gold futures added 1.5 percent.

     The S&P 500 capped its first four-day slump since December 2013 as a gauge of global stocks slid the most in almost a year. Record supplies from Iraq and Russia coupled with concern over slowing demand fueled oil’s declines, while concern over Greece intensified as Prime Minister Antonis Samaras said this month’s election could lead to the nation exiting the euro area. Data today showed German inflation slowed more than forecast, bolstering the case for European quantitative easing.

     “This fear trade is being sparked by the deflationary concerns over in Europe,” said Chad Morganlander, a money manager at St. Louis-based Stifel, Nicolaus & Co., which oversees about $160 billion. “Sprinkle that together with the fact that it looks as if oil prices are going to continue to see lower lows in the course of the next couple weeks, and it puts together a risk-off trading environment within the markets.”

     The MSCI All-Country World Index plunged 1.9 percent, the most on a closing basis since Jan. 24 last year, as all but one of the 24 developed market gauges tracked by Bloomberg retreated. Australia’s S&P/ASX 200 Index added 0.3 percent, the only gainer.

     All of the 10 main S&P 500 industry groups declined as the sub-index of energy companies plunged 4 percent. S&P 500 energy stocks fell 10 percent in 2014 for the worst performance among the groups. A gauge of oil and gas explorers and producers tumbled 5.9 percent, with all 18 members declining. Chevron Corp. lost 4 percent today, the most since November.

     WTI crude settled 5 percent lower in New York, at $50.04 a barrel, the lowest close since April 28, 2009. Brent oil slid 5.9 percent to $53.11 per barrel in London, its lowest settlement since May 1, 2009, amid speculation a global glut that drove oil into a bear market will persist this year.

     Iraq plans to expand crude exports to 3.3 million barrels a day this month, Oil Ministry spokesman Asim Jihad said by phone yesterday. The country exported 2.94 million a day in December, the most since the 1980s, he said. Russian oil production rose to a post-Soviet record of 10.67 million barrels a day in December, according to Energy Ministry data published Jan. 2.

     Shares of Caterpillar Inc. slid 5.3 percent, the most since October 2013, to lead the Dow Jones Industrial Average down 1.9 percent. The company, already battered by a slump in demand for its mining machinery, faces slowing sales of compressors, pumps and gas turbines as oil companies reduce spending.

     The S&P 500 fell 1.5 percent last week as traders sold shares that rose the most in 2014 and scrutinized growth prospects after a three-year rally that took benchmark indexes to records. Professional forecasters are calling for an 8.5 percent advance in the index this year.

     European stocks fell the most in three weeks as oil’s retreat and the speculation over Greece’s euro membership overshadowed the prospect of increased stimulus from the European Central Bank. Oil companies in the Stoxx 600 declined 4.9 percent, the most among 19 industry groups, as BP Plc and Total SA dropped at least 4.3 percent.

     Greece’s ASE Index lost 5.6 percent for the biggest decline among 18 western-European stock gauges.

     “The declines in oil are representing something much more ominous, which is a global economic slowdown,” Jeff Sica, president and CEO of advisory firm Circle Squared Alternative Investments, which oversees $1.5 billion, said by phone. “Investors have gone past the thought that this is good for the economy.”

     The inflation rate in Germany, the euro region’s largest economy, fell to 0.1 percent in December from 0.5 percent in November, the Federal Statistics office in Wiesbaden said today. That’s the lowest level since October 2009.

     ECB officials are debating whether to start large-scale buying of government bonds in an attempt to boost consumer prices in the euro area and stimulate the economy. President Mario Draghi, who is trying to counter arguments that bond purchases would see the central bank take on too much risk and reduce the incentive for economic reforms, has said the possibility of deflation can’t be excluded.

     Adding to pressure on the euro is the prospect that the Federal Reserve will raise interest rates this year, boosting the allure of the dollar. Intercontinental Exchange Inc.’s Dollar Index, which measures the U.S. currency against major peers, rose to its strongest level since December 2005.

     “It’s very hard to imagine something that can convince the market that the euro is not a selling opportunity at this juncture,” said Roberto Mialich, a senior currency strategist at UniCredit SpA in Milan. “The market continues to speculate that the ECB will start QE this month. The election in Greece probably complicates the agenda for Draghi.”

     Yields on Greece’s three-year notes rose 127 basis points, or 1.27 percentage point, to 13.21 percent. Rates touched 14.07 percent Jan. 2. The nation’s 10-year yields increased 41 basis points to 9.67 percent, having reached 9.85 percent Dec. 29. Italy’s 10-year rates climbed 10 basis points to 1.84 percent, having touched a record low of 1.737 percent Jan. 2.

     Treasuries rose, pushing 30-year bond yields to the lowest level in more than two years. Rates slipped eight basis points to 2.61 percent, the least since Aug. 2, 2012.

     Bill Gross, the former manager of the world’s largest bond fund, predicted the Fed won’t raise U.S. rates until late this year “if at all.”

     While the U.S. central bank has concluded its three rounds of asset purchases interest rates in almost all developed economies will remain near zero as policy makers in Europe and Japan embark on similar projects, Gross said today in an outlook report published on the website of Janus Capital Group Inc.

     Gold futures rose for a second trading day, climbing 1.5 percent to $1,204 an ounce. Silver futures jumped 2.8 percent.

     The MSCI Emerging Markets Index dropped 1.4 percent today and a gauge of 20 developing-nation currencies fell for a second day, sliding 0.9 percent to a 12-year low. Brazil’s Ibovespa stock gauge slid 2.1 percent.

     “It is a cautious start to the year,” said Neil Shearing, chief emerging-markets economist at London-based Capital Economics Ltd. “The signs that problems are building in Greece are adding to an already long list of things for emerging-market investors to worry about.”

     Russia’s dollar-denominated RTS Index retreated 3.7 percent, while the ruble-based Micex index gained 2.8 percent. The Dubai Financial Market Index tumbled 3.4 percent, Saudi Arabia’s Tadawul All Share Index lost 3 percent and Qatar’s benchmark gauge declined 1.9 percent.

     The Shanghai Composite Index advanced 3.6 percent to the highest close since August 2009 as investors bought shares of the largest companies and developers on the first trading day of 2015 in mainland China. The Hang Seng China Enterprises Index of slipped 0.3 percent after gaining 3.4 percent over the previous two trading days.

     China’s benchmark money-market rate dropped by the most in almost two weeks today as cash returned to the financial system with the end of the holiday season.

 

Have a wonderful evening everyone!

 

Be magnificent!

 

“True life is lived when tiny changes occur.”

Leo Tolstoy

As ever,

 

Leyla

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE YEAR

Seattle Seahawks fans Todd Gibson and his son Carsten cheer their team near the field at Super Bowl XLVIII in East Rutherford, N.J. The Seahawks defeated the Denver Broncos, 43-8. Ann Hermes

Peter Schumann, founder and director of Bread and Puppet Theater, sits in the Bread and Puppet Museum in Glover, Vt. Ann Hermes

Market Closes for January 2^nd, 2015   

Market Index	Close	Change
Dow Jones	17832.99	+9.92
		+0.06%
S&P 500	2058.20	-0.70   -0.03%
NASDAQ	4726.813	-9.241
		-0.20%
TSX	14753.65	+121.21
		+0.83%

International Markets

Market Index	Close	Change
NIKKEI	17450.77	-279.07
		-1.57%
HANG SENG	23857.82	+252.78
		+1.07%
SENSEX	27887.90	+380.36
		+1.38%
FTSE 100	6547.80	-18.29
		-0.28%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.744	1.813
CND. 30 Year Bond	2.296	2.359
U.S.    10 Year Bond	2.1105	2.1871
U.S. 30 Year Bond	2.6873	2.7563

Currencies

BOC Close	Today	Previous
Canadian $	0.84853	0.86121
US $	1.17850	1.16111
Euro Rate 1 Euro=		Inverse
Canadian $	1.41415	0.70714
US $	1.19995	0.83337

Commodities

Gold	Close	Previous
London Gold Fix	1172.00	1206.00
Oil	Close	Previous
WTI Crude Future	52.69	54.12

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose to a one-month high, capping a third weekly gain, as health-care shares rallied with commodities producers on higher gold prices.

     Detour Gold Corp. and Silver Standard Resources Inc. gained at least 6.7 percent as miners advanced. Valeant Pharmaceuticals International Inc. rose 2.2 percent. Ballard Power Systems Inc. sank 9.7 percent after saying it ended two licensing agreements in China and will miss revenue targets.

     The Standard & Poor’s/TSX Index rose 121.21 points, or 0.8 percent, to 14,753.65 at 4 p.m. in Toronto, the highest since Dec. 3. The index gained 1 percent in the holiday-shortened week. Trading volume was 47 percent lower than the 30-day average today.

     All 10 industries in the S&P/TSX advanced, with materials shares jumping 2.9 percent as gold and silver rose. Health-care stocks rose 2.2 percent.

     Detour Gold jumped 10 percent to C$10.44 and Agnico Eagle Mines Ltd. surged 9.7 percent to C$31.72 to pace gains. Gold futures rallied from a four-week low, increasing 0.2 percent to settle at $1,186.20 an ounce in New York. Gold dropped 1.5 percent last year as U.S. equity markets climbed to records.

     Silver Standard Resources rose 6.7 percent to C$6.22 as silver for March delivery climbed 1.1 percent to $15.768 an ounce.

     Catamaran Corp., a provider of pharmacy benefits services, advanced 2.2 percent to C$61.44, a record. The stock rose 19 percent last year, a seventh straight annual increase. Valeant rallied 2.2 percent to an all-time high of C$169.99 after a fourth straight gain.

     Ballard, which makes and sells hydrogen fuel cells, sank 9.7 percent to C$2.14, the biggest decrease since April. The Burnaby, British Columbia-based company ended two license pacts in the Chinese market with Azure Hydrogen due to “material breaches” and said it will consider legal remedies.

US

By Michelle F. Davis and Joseph Ciolli

     (Bloomberg) — U.S. stocks were little changed, erasing earlier losses, as gains in utilities and energy companies offset a slide in small-caps amid data showing manufacturing expanded less than forecast.

     Range Resources Corp. and EQT Corp. surged more than 2.4 percent as energy shares advanced after fluctuating earlier in the day. Weight Watchers International Inc. plunged 13 percent as the Russell 2000 Index lost 0.5 percent.

     The Standard & Poor’s 500 Index fell less than 0.1 percent to 2,058.20 at 4 p.m. in New York. The gauge rose as much as 0.7 percent and dropped more than 0.6 percent during the session. The Dow Jones Industrial Average added 9.92 points, or less than 0.1 percent, to 17,832.99. More than 5.3 billion shares changed hands on U.S. exchanges, 23 percent below the three-month average.

     “Investors are looking for validation that the economy is, in fact, as strong as advertised,” Peter Sorrentino, a Cincinnati-based fund manager at Huntington Asset Advisors Inc., which oversees $1.8 billion, said in a phone interview. “The market may struggle to find its footing here in the first couple of days until we get some more data points out.”

     The benchmark index fell on the last two days of 2014, giving it a monthly decline of 0.4 percent for the first December drop since 2007. That trimmed its third straight annual gain to 11 percent.

     Stocks fell earlier today after a report showed manufacturing in the U.S. cooled in December, settling into a more sustainable pace of growth as the year drew to a close.

     The Institute for Supply Management’s factory index dropped to a six-month low of 55.5 from 58.7 in November, a report from the Tempe, Arizona-based group showed. The reading in October matched a three-year high.

     “The data failed to meet early expectations but is still trending in the right direction,” Eric Wiegand, a senior portfolio manager at U.S. Bank Wealth Management in New York, which oversees $120 billion, said by phone. “We expect more volatility but as you look around the globe we’re still in expansionary territory and that’s not the case with our major trading partners.”

     Separate data showed construction spending fell in November for the first time since June.

     In the euro area, manufacturing expanded less than initially estimated. European Central Bank President Mario Draghi said he can’t exclude the risk of deflation in the euro area, in a sign that the likelihood of large-scale quantitative easing is increasing.

     A Chinese manufacturing gauge slipped to the lowest level in 18 months, adding pressure on policy makers to do more to support economic growth, according to data released yesterday by the statistics bureau and the China Federation of Logistics and Purchasing in Beijing.

     Shares rallied last year as accelerating growth fueled optimism in the U.S. economy and an accommodative Federal Reserve policy sent risk-seeking investors into equities.

     The S&P 500, Dow and Russell 2000 Index climbed to records last month, while the Nasdaq Composite Index reached its highest level since March 2000. The S&P 500 closed at an all-time high on Dec. 29 for the 53rd time of the year, and the Dow reached 18,000 last week.

     In the biggest bull market since the 1990s, the S&P 500 overcame five separate declines of 4 percent or more in 2014. The gauge never fell more than three straight days, a first in data compiled by Bloomberg going back to 2000. It has jumped more than 200 percent from its low in March 2009, including its biggest annual rally since 1997 in 2013.

     The Chicago Board Options Exchange Volatility Index, a measure of demand for options on the S&P 500, fell 7.3 percent to 17.79 today, after reaching a two-week high Wednesday.

     Six of 10 major groups in the S&P 500 advanced, with utilities, phone and energy companies rising the most. Industrial, consumer and technology companies retreated.

     Energy companies fluctuated with the price of crude before climbing at the end of the day. West Texas Intermediate fell 1.1 percent after rallying almost 3.5 percent earlier. Range Resources added 3.7 percent, the most in the S&P 500, and EQT surged 2.4 percent.

     Bed Bath & Beyond rose 0.7 percent after Canaccord Genuity upgraded the shares to buy from hold. The company “turned in a strong showing” over the holiday season, based on store visits and surveys, Canaccord Genuity analyst Laura Champine wrote in a note.

     International Business Machines Corp. added 1 percent. The company was the worst performer in the Dow for a second straight year in 2014, with a slump of 14 percent.

     Weight Watchers plunged 13 percent, the most since February, after more than 4,000 bearish options changed hands Wednesday and the stock was among the most heavily shorted last month. The company, founded in 1963, has struggled to compete with new weight-loss apps and services, contributing to seven straight quarters of declining sales.

     Weight-loss and vitamin retailers slumped, with Vitamin Shoppe Inc., Nutrisystem Inc. and GNC Holdings Inc. dropping at least 1.2 percent.

     Technology companies dropped 0.2 percent, after tumbling 1.2 percent on Wednesday. Apple slid 1 percent, extending its loss for the week to 4.1 percent.

     An S&P index of homebuilders lost 1 percent. Disappointing November construction spending suggests some economists may revise down fourth-quarter gross domestic product estimates, Christophe Barraud, Market Securities LLP chief economist, said in a note to Bloomberg First Word.

 

Have a wonderful evening everyone!

 

Be magnificent!

 

“New Year’s Day. A fresh start. A new chapter in life waiting to be written. New questions to be asked, embraced, and loved. Answers to be discovered and then lived in this transformative year of delight and self-discovery. Today carve out a quiet interlude for yourself in which to dream, pen in hand. Only dreams give birth to change.” Sarah Ban Breathnach

As ever,

 

Karen

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY
Fishermen unload their catch in the port of Sabang in Pulah Weh, Indonesia. ‘The fishermen often unload their catch before dawn. It’s a messy, chaotic flurry of activity that smells strongly of fish and is a blast to watch.’ Ann Hermes

 Iranian laugh instructor Mahro Sameni (wearing red scarf) leads a laughing class in Tehran, Iran. More than 250 Iranian instructors have been trained in ‘laughing yoga’ in the past decade, and work privately and in venues such as state banks, health clinics, and addiction centers to ease the modern stresses of urban living.  Scott Peterson

Market Closes for December 29th, 2014     

Market Index	Close	Change
Dow Jones	18038.23	-15.48
		-0.09%
S&P 500	2090.57	+1.80   +0.09%
NASDAQ	4806.910	+0.051
		—
TSX	14663.92	+54.67
		+0.37%

International Markets

Market Index	Close	Change
NIKKEI	17729.84	-89.12
		-0.50%
HANG SENG	23773.18	+423.84
		+1.82%
SENSEX	27395.73	+153.95
		+0.57%
FTSE 100	6633.51	+23.58
		+0.36%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.834	1.898
CND. 30 Year Bond	2.382	2.422
U.S.    10 Year Bond	2.2021	2.2605
U.S. 30 Year Bond	2.7728	2.8524

Currencies

BOC Close	Today	Previous
Canadian $	0.85871	0.86062
US $	1.16454	1.16195
Euro Rate 1 Euro=		Inverse
Canadian $	1.41561	0.70641
US $	1.21564	0.82262

Commodities

Gold	Close	Previous
London Gold Fix	1185.50	1175.75
Oil	Close	Previous
WTI Crude Future	53.61	56.90

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose for a third day, extending a three-week high, as banks posted the longest winning streak in more than a year while energy producers pared gains as crude slumped to a five-year low.

     Bank of Nova Scotia and Canadian Western Bank climbed at least 1 percent to pace gains among financial stocks. TransCanada Corp. rose 1.4 percent after buying a solar power plant from Canadian Solar Inc. for C$60 million ($51.6 million).  Bombardier Inc. gained 1.5 percent after winning an order to sell 42 double-deck trains to France for about $484 million.  BlackBerry Ltd. added 2.1 percent to C$12.67, a six-week high.

     The Standard & Poor’s/TSX Composite Index rose 54.67 points, or 0.4 percent, to 14,663.92 at 4 p.m. in Toronto. The index has gained 7.7 percent for the year, on pace for a third straight annual advance, the longest streak since 2007.

     Canadian Western Bank added 1.3 percent to C$33.21 and Bank of Nova Scotia rallied 1 percent to C$66.96. Nine of 10 industries increased in the S&P/TSX on trading volume that was 50 percent lower than the 30-day average today.

     The S&P/TSX Banks Index increased 0.7 percent for a ninth straight day of gains, the longest streak since October 2013. Toronto-Dominion Bank, the nation’s largest lender, added 0.6 percent to C$55.70.

     Bellatrix Exploration Ltd. rose 3.9 percent to C$4.25 as energy stocks increased 0.3 percent, paring an earlier gain of as much as 1.6 percent. West Texas Intermediate crude sank 2.1 percent in New York to the lowest level in more than five years, erasing an advance spurred by an escalating conflict in Libya.

     Financials, raw-materials and energy stocks are the three biggest laggards in Canada for the first time since at least 1988, fueling concerns about the nation’s economic recovery as crude prices plunged into a bear market this year, gold fluctuated and bank earnings slowed.

     The three groups, which account for about two-thirds of the S&P/TSX, are the worst performers among 10 groups, led by a 7.4 percent drop in energy shares.

     Greek Prime Minister Antonis Samaras failed in a third and final attempt to get his presidential candidate, Stavros Dimas, confirmed. The vote will trigger a general election in late January or early February, a few weeks before the nation’s 240- billion-euro ($293 billion) bailout expires.

US

By Joseph Ciolli and Inyoung Hwang

     (Bloomberg) — The Standard & Poor’s 500 Index rose, approaching a third straight yearly advance and extending gains after equity gauges climbed past milestones last week.

     Gilead Sciences Inc. increased 3.7 percent as biotechnology shares rebounded for a third day. Energy companies rose despite a drop in crude prices. Losses in Microsoft Corp., Intel Corp. and International Business Machines Corp. weighed down the Dow Jones Industrial Average.

     The S&P 500 rose 0.1 percent to 2,090.57 at 4 p.m. in New York. The Dow fell 15.48 points, or 0.1 percent, to 18,038.23.  The Russell 2000 Index gained 0.3 percent. More than 4.7 billion shares changed hands on U.S. exchanges, 32 percent below the three-month average. Volume for U.S. exchanges on Dec. 26 was the lowest this year for a full day of trading.

     Equities are approaching the end of the year at record levels, bolstered by the fastest expansion for the American economy in more than a decade. The Federal Reserve’s pledge on Dec. 17 to be patient in raising interest rates helped the S&P 500 fully recoup a 5 percent loss in the first half of the month.

    “There’s lots for investors to digest going into 2015,”said James Buckley, who helps oversee about $47 billion as a portfolio manager at Baring Asset Management Ltd. in London. “The focus will likely be on more macro-type events immediately. The U.S. economy is the one real bright spot. That economy is doing phenomenally well. That in itself is reason to be optimistic.”

     The S&P 500 has gained 13 percent this year, while the Dow is up 8.8 percent in 2014 after climbing above 18,000 for the first time last week. The Russell 2000 of small-cap stocks climbed to an all-time high on Dec. 26. The Nasdaq Composite Index reached its highest since March 2000 that same day, closing about 5 percent below its record.

     U.S. stocks have overcome upheavals in 2014 that threatened to derail a bull market in its sixth year, ranging from violence in the Ukraine to an Ebola outbreak and a bear market in oil prices. The S&P 500’s worst retreat was only 7.4 percent, and the gauge recovered from each of its declines of 4 percent or more within one month.

     The S&P 500 has not seen a four-day decline since December 2013. The benchmark gauge has declined for four consecutive trading sessions at least once every year since at least 2000.

     The Chicago Board Options Exchange Volatility Index, a measure of demand for options on the S&P 500, dropped 12 percent last week. It gained 3.9 percent to 15.06 today. The gauge, also known as the VIX, has tumbled 36 percent from a two-month high on Dec. 16.

     The S&P 500 trades at 18.5 times profits, the highest level since 2010 and compares with the average of 16.3 over the past decade.

     Analysts forecast earnings for the S&P 500 to increase 6.4 percent next year. Consumer-discretionary, technology and raw- materials companies are expected to post the fastest growth, with profits rising at least 13 percent, estimates compiled by Bloomberg show.

     Stock futures slumped earlier today after Greek Prime Minister Antonis Samaras failed in his third and final attempt to persuade parliament to back his candidate for head of state. Concern that anti-austerity party Syriza will win snap elections next month roiled stocks in Athens, as such an outcome risks the European Union’s common currency and the start of the European Central Bank’s bond-buying plan.

     “We’re seeing if people will try to add to performance before the year is over,” Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion, said in a phone interview. “There might be some trading around the edges by people looking for a little more performance. It’s more of a stock-picker way of looking at it at this point.”

     Economic reports this week may show consumer confidence climbed in December, pending home sales rose in November, while an Institute for Supply Management index of manufacturing slipped this month, according to economists surveyed by Bloomberg.

     Six out of 10 major group in the S&P 500 increased today. Utilities and consumer-discretionary companies gained the most, while technology and phone shares had the worst performance.

     Gilead Sciences Inc. rose 3.7 percent as biotechnology shares gained for a third day after the biggest two-day drop since February 2012.

     Biotech shares slumped last week amid concern health insurers and companies that manage patient’s drug benefits will put new pressure on how much the industry can charge for breakthrough treatments. The selloff was prompted by Express Scripts Holding Co.’s announcement that it would block its U.S. patients from getting Gilead’s $1,100-a-pill hepatitis C medicine.

     Energy shares rose 0.3 percent, even as oil erased an early rally. Crude reached a five-year low on speculation that a global supply glut that’s driven crude into a bear market will continue through the first half of 2015.

     IBM, Intel, Microsoft and Red Hat Inc. lost more than 0.9 percent. While Red Hat, Intel and Microsoft have rallied at least 25 percent this year, IBM is down 14 percent for 2014, heading for the worst performance in the Dow for a second straight year.

Have a wonderful evening everyone!

Be magnificent!

 

“ True happiness… is not attained through self-gratification, but through fidelity to a worthy purpose”.   Helen Keller

As ever,
 
Leyla
 

“Imagine all the people living life in peace. You may say I’m a dreamer, but I’m not the only one. I hope someday you’ll join us, and the world will be as one”. John Lennon
 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY
 

Wishing everyone a very Merry Christmas and a very joyous holiday season!!

Market Closes for December 23^rd, 2014     

Market Index	Close	Change
Dow Jones	18024.17	+64.73
		+0.36%
S&P 500	2082.17	+3.63   +0.17%
NASDAQ	4765.426	-15.998   -0.33%
TSX	14594.03	+161.65
		+1.12%

International Markets

Market Index	Close	Change
NIKKEI	17635.14	+13.74
		+0.08%
HANG SENG	23333.69	-74.88
		-0.32%
SENSEX	27506.46	-195.33
		-0.71%
FTSE 100	6598.18	+21.44
		+0.33%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.898	1.792
CND. 30 Year Bond	2.422	2.329
U.S.    10 Year Bond	2.2605	2.1583
U.S. 30 Year Bond	2.8524	2.7430

Currencies

BOC Close	Today	Previous
Canadian $	0.86062	0.85928
US $	1.16195	1.16376
Euro Rate 1 Euro=		Inverse
Canadian $	1.41440	0.70701
US $	1.21726	0.82151

Commodities

Gold	Close	Previous
London Gold Fix	1175.75	1195.25
Oil	Close	Previous
WTI Crude Future	56.90	54.96

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose to a three-week high as energy shares rallied on higher oil prices and data showed the U.S. and Canadian economies grew faster than forecast last quarter.

     Pacific Rubiales Energy Corp. jumped 6.1 percent after a well test found offshore oil. Veresen Inc. gained 15 percent, its biggest-ever advance, after agreeing to a joint venture with KKR & Co. to expand pipeline and natural gas infrastructure in British Columbia. MEG Energy Corp. rose 5 percent as crude advanced in New York. Teck Resources Ltd., the nation’s largest diversified miner, jumped 4.2 percent.

     The Standard & Poor’s/TSX Composite Index rose 161.65 points, or 1.1 percent, to 14,594.03 at 4 p.m. in Toronto, the highest close since Dec. 3. The index has gained 7.1 percent for the year, on pace for a third straight annual advance, the longest streak since 2007.

     Nine of the 10 main industries in the S&P/TSX advanced on trading 35 percent lower than the 30-day average today.

     Manulife Financial Corp. climbed 1.2 percent to C$22.41, a two-week high, after agreeing to buy New York Life Insurance Co.’s retirement plan services business in a deal that will boost the insurer’s assets under administration by about $50 billion. Terms of the deal were not disclosed.

     Energy shares in the index climbed 2.2 percent to the highest since Dec. 3. West Texas Intermediate oil advanced 3.4 percent in New York while London Brent climbed 2.3 percent.

     U.S. gross domestic product grew at a 5 percent annual rate from July through September, the biggest advance since the third quarter of 2003, as consumers and businesses spent more than previously estimated.

     Canada’s economy rose 0.3 percent in October on gains in the public sector and commodity production, ahead of economists’ estimates. The highest forecast was 0.2 percent.

     The S&P/TSX surged 5.4 percent last week, the most since July 2009, as equities worldwide climbed as oil prices stabilized and Federal Reserve Chair Janet Yellen said the U.S. central bank will probably hold rates near zero at least through the first quarter.

US

By Joseph Ciolli and Callie Bost

     (Bloomberg) — The Dow Jones Industrial Average rose above 18,000 for the first time as faster-than-forecast growth in gross domestic product boosted confidence in the economy and overshadowed declines in health-care companies.

     The Dow average added 64.73 points, or 0.4 percent, to a record 18,024.17 at 4 p.m. in New York. The Standard & Poor’s 500 Index rose 0.2 percent to 2,082.17, also reaching an all- time high. Both gauges have advanced five straight days. The Nasdaq Biotechnology Index slipped 4.6 percent for the biggest decline since April.

     “The market was roaring yesterday, and going into the end of the year it keeps pushing higher,” Stephen Carl, principal and head equity trader at New York-based Williams Capital Group LP, said in a phone interview. “The Fed is part of the fueling of everything, and you have to couple that with the year-end push.”

     It’s been 172 days since the Dow closed above 17,000 on July 3, data compiled by Bloomberg show. That’s the fifth- fastest trip between thousands, with the record being 35 days to 11,000 in May 1999. It took the index almost 5,200 days to go from 1,000 to 2,000 between 1972 and 1987, according to Howard Silverblatt, an index analyst at the New York-based S&P Dow Jones Indices.

     The Dow closed at an eight-month low on Oct. 16 before rallying more than 1,882 points, or 12 percent, to to top 18,000.

     The gauge has risen 175 percent during the five-year bull market that began in March 2009, propelled by better-than- estimated corporate results and three rounds of Fed bond purchases. The S&P 500 has more than tripled in that time.

     Technology companies have had some of the biggest gains in the Dow this year, with Intel Corp. rising more than 44 percent and Microsoft Corp. jumping 29 percent. Consumer companies such as Home Depot Inc., Walt Disney Co. and Nike Inc. have also risen at least 22 percent to lead the 30-stock gauge’s advance.

     Nike, UnitedHealth Group Inc., Visa Inc., Home Depot and Intel have paced gains during the gauge’s run to 18,000 in the second half of the year, with each rallying more than 20 percent from July 3. Caterpillar Inc., International Business Machines Corp. and Chevron Corp. have been the worst performers, with slumps of more than 14 percent in that period.

     The industrial gauge has climbed 8.7 percent this year, almost three times more than the Russell 2000 Index of small-cap companies.

     “I think it’s a testament to where the economy is,” John Canally, a Boston-based economic strategist at LPL Financial Corp., which oversees $464.8 billion, said in a phone interview. “The underlying trend in the economy is still there, we’re still in the middle of the business cycle  and earnings look solid. That’s adding up to a lot of people saying ‘hey, I’m missing this, I better get involved in the stock market.’”

     Equity benchmarks have rallied to records, with the S&P 500 rebounding 12 percent from a low in October, amid speculation the U.S. economy is strong enough to withstand a slowdown overseas.

     Data today showed the world’s largest economy expanded at the fastest pace in more than a decade, as U.S. consumers and businesses spent more than previously estimated.

     Gross domestic product grew at a 5 percent annual rate from July through September, the biggest advance since the third quarter of 2003, and up from a previously estimated 3.9 percent, revised figures from the Commerce Department showed today in Washington. The median forecast of 75 economists surveyed by Bloomberg projected a 4.3 percent increase.

     Consumer spending rose more than forecast in November as incomes increased and gasoline prices dropped, indicating the biggest part of the U.S. economy is strengthening as the year ends.

     Stocks started to rally last week, with the S&P soaring the most in four days since 2011, after the Fed said it will be patient on the timing of a rate increase even as U.S. growth shows signs of accelerating. Chair Janet Yellen said any spillover from the situation in Russia is likely to be small, while the central bank’s policy statement didn’t mention turmoil sparked by tumbling oil prices.

     The S&P 500 is now up 0.7 percent for December and 13 percent this year.

     “Part of the rebound we’re now witnessing has to do with the realization that the selloff was overdone,” said David Wartenweiler, chief investment officer at Habib Bank AG in Zurich. “The U.S. economy is really on track to continue to grow at a healthy pace. It’s also important that the Fed said they’re going to increase interest rates but be patient.”

     The Chicago Board Options Exchange Volatility Index fell 3 percent to 14.8. The gauge known as the VIX has dropped five straight days, its longest streak in a month.

     Nine out of 10 industries in the S&P 500 rose today, with health-care companies posting the only losses as a group, tumbling 2.2 percent.

     The Nasdaq Biotechnology Index fell for a second day, with losses beginning after a drug-benefit manager blocked Gilead Sciences Inc.’s $1,000 hepatitis treatment.

     Gilead dropped 3.7 percent today, after tumbling 14 percent yesterday. Biogen Idec Inc. lost 4.7 percent and Celgene Corp. slipped 6.5 percent.

     Health companies accounted for the biggest losses in the Dow as Johnson & Johnson, Pfizer Inc. and Merck & Co. fell more than 2 percent.

     “Health-care is definitely underperforming today, specifically in biotechnology names,” Joe Bell, a Cincinnati- based senior equity analyst at Schaeffer’s Investment Research Inc., said by phone. “Gilead is really dragging down the biotechnology sector.”

 

Have a wonderful evening everyone!

 

Be magnificent!

 

”Christmas is the spirit of giving without a thought of getting. It is happiness because we see joy in people. It is forgetting self and finding time for others. It is discarding the meaningless and stressing the true values.”Thomas S. Monson

As ever,

 

Karen

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Harry Winston, a Persian, is groomed by his owner before competing in a cat show in Dover, N.H. The show, put on by New Hampshire Feline Fanciers, had 118 entries of which 106 were pedigree and 12 were household pets. Melanie Stetson Freeman

Women over age 58 compete in the 36th and final Ms. Senior Sweetheart Pageant of America in Fall River, Mass. Ida White, 79, from Florida, sits on her throne surrounded by the runners-up after being crowned the 2014 winner. ‘One of my favorite assignments of the year. The ladies were full of energy and spunk.’ Melanie Stetson Freeman

Market Closes for December 22^nd, 2014     

Market Index	Close	Change
Dow Jones	17959.44	+154.64
		+0.87%
S&P 500	2078.54	+7.89   +0.38%
NASDAQ	4781.424	+16.044   +0.34%
TSX	14432.38	-35.88
		-0.25%

International Markets

Market Index	Close	Change
NIKKEI	17635.14	+13.74
		+0.08%
HANG SENG	23408.57	+291.94
		+1.26%
SENSEX	27701.79	+329.95
		+1.21%
FTSE 100	6576.74	+31.47
		+0.48%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.792	1.810
CND. 30 Year Bond	2.329	2.335
U.S.    10 Year Bond	2.1583	2.1618
U.S. 30 Year Bond	2.7430	2.7542

Currencies

BOC Close	Today	Previous
Canadian $	0.85928	0.86170
US $	1.16376	1.16050
Euro Rate 1 Euro=		Inverse
Canadian $	1.42302	0.70273
US $	1.22278	0.81781

Commodities

Gold	Close	Previous
London Gold Fix	1195.25	1196.35
Oil	Close	Previous
WTI Crude Future	54.96	56.52

Market Commentary:

Canada

By Callie Bost

     (Bloomberg) — Canadian stocks declined, after posting the best week in five years, as commodity producers tumbled with the price of crude and metals.

     Legacy Oil + Gas Inc. and Crew Energy Inc. plunged at least 10 percent to pace losses in energy companies. Primero Mining Corp. slumped 14 percent to lead a 3.1 percent tumble among raw- materials producers. BlackBerry Ltd. jumped 7.6 percent after TD Securities analysts upgraded the stock.

     The Standard & Poor’s/TSX Composite Index fell 35.88 points, or 0.3 percent, to 14,432.38 at 4 p.m. in Toronto. Trading in the benchmark gauge’s stocks was 16 percent below the 30-day average. The index has lost 2.1 percent in December, paring its gains for the year to 6 percent.

     The S&P/TSX surged 5.4 percent last week, the most since July 2009, as equities worldwide climbed as oil prices stabilized and Fed Chair Janet Yellen said the U.S. central bank will probably hold rates near zero at least through the first quarter.

     Crude prices resumed a selloff today, extending a four-week slide on concern OPEC’s refusal to cut production will worsen a global glut. Gold fell the most in more than two weeks, while silver sank 2.6 percent and copper retreated.

     Four of the 10 main industries in the S&P/TSX declined today. Materials shares sank more than 3 percent as gold miners plunged 5.4 percent. Health-care companies jumped 1.3 percent as Valeant Pharmaceuticals International Inc. climbed 1.4 percent to a record C$167.77.

     Energy stocks in the benchmark index dropped 1 percent, halting a four-day rally. The group recorded its best gain in five years last week as oil advanced three out of the five days.

     Legacy Oil plunged 13 percent to C$2.18 and Crew Energy slid 10 percent to C$6.10.

     BlackBerry jumped 7.6 percent to C$12.43. TD Securities analyst Scott Penner increased his rating on the shares to a buy rating from a hold rating, with a price target of C$13.

     BlackBerry’s uptake of new software services is likely to drive earnings power, Penner wrote in a note today. The company’s third-quarter revenue miss was largely in device business, which is less relevant to earnings going forward, he wrote.

US

By Jeremy Herron and Joseph Ciolli

     (Bloomberg) — U.S. stocks extended their climb, with benchmark indexes rising to records as gains in technology shares offset losses among drugmakers. Energy producers resumed a selloff as crude sank with gold, while the ruble strengthened.

     The Standard & Poor’s 500 Index added 0.4 percent to an all-time high of 2,078.54 by 4 p.m. in New York, while gains in Intel Corp. and International Business Machines Corp. led the Dow Jones Industrial Average up 0.9 percent, also to a record. Oil traded in the U.S. and London slipped at least 2 percent, halting a four-day rally in S&P 500 energy stocks. Natural gas futures fell to a two-year low. Gold futures declined the most in more than two weeks. The ruble climbed on speculation exporters are selling foreign currency amid government pressure.

     Equities globally have been climbing since the Federal Reserve indicated last week that it will probably hold interest rates near zero at least through the first quarter, even as the U.S. economy shows signs of strength. An update on third-quarter gross domestic product is due tomorrow. Chinese ministers offered support for Russia, expanding a currency swap between the two nations as President Vladimir Putin seeks to shore up the ruble without depleting foreign-exchange reserves.

     “Once the trend got turned last week, given the time of the year, it became a perfect storm to the upside,” Walter Todd, who oversees about $1 billion as chief investment officer for Greenwood, South Carolina-based Greenwood Capital Associates LLC, said by phone. “Absent something from left field overseas or anything else unforeseen, stocks will continue to move higher and maybe approach that 2,100 level on the S&P by the end of the year.”

     The S&P 500 completed its fifth recovery this year from a decline of 4 percent or more, just 17 days after it started, data compiled by Bloomberg show. In comparable drops beginning in January, April, July and September, the S&P 500 needed about a month to erase losses, the data show.

     A slide in oil prices and the worsening financial crisis in Russia rippled through markets earlier this month, wiping more than $1 trillion off U.S. equity values in less than two weeks. The S&P 500 lost 5 percent in seven trading days through Dec. 16.

     After rising Dec. 19, oil resumed its retreat today, with West Texas Intermediate crude for February delivery dropped 3.3 percent to $55.26 a barrel in New York, extending its slide this year to 44 percent. Brent crude for February settlement slipped 2.1 percent to $60.11 per barrel in London, after jumping 3.6 percent Dec. 19, its steepest one-day gain in two years.

     Saudi Arabia reaffirmed its resolve to maintain output at current levels at a conference at the weekend, fueling concern over a global supply glut in oil. Energy shares in the S&P 500 fell 1 percent, after rallying 9.7 percent last week.

     Eight of the S&P 500’s 10 main industry groups advanced today, with technology shares rising 1.1 percent and telephone stocks up 1 percent. Intel and IBM gained at least 1.8 percent, while Apple Inc. added 1 percent. The Nasdaq 100 Index rose 0.3 percent, while the Russell 200 Index of small-cap stocks added 0.5 percent to close at its highest level since July 3.

     Gilead Sciences Inc. sank 14 percent after its hepatitis C drug was blocked by a drug-benefit manager. Health-care shares sank 1.2 percent as a group on the S&P 500, contributing the biggest decline. Trading in S&P 500 stocks was 7.4 percent below the 30-day average, according to data compiled by Bloomberg.

     “It’s going to be pretty tough to divine anything meaningful from the market this week with Christmas coming up on Thursday and with trading desks half-staffed,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said by phone. “If anything, you’re likely to see more impetus to show more equity positions and less cash going into year end.”

     After the close of European trading, S&P revised its outlook for the ratings of oil companies Total SA, BP Plc and Royal Dutch Shell Plc to negative, citing the deterioration in the forecast for crude prices. The Stoxx Europe 600 Index gained 0.5 percent today.

     The ratings service earlier raised its forecast for U.S. gross domestic product in 2015, saying lower oil prices may spur consumer spending. S&P now forecasts the U.S. economy to grow next year by 3.1 percent, up from 3.0 percent. The report boosted the S&P 500 index briefly above its Dec. 5 closing record, capping a five-day gain of 5.8 percent, the most in two months.

     Economists surveyed by Bloomberg predict annualized growth in U.S. gross domestic product will be revised up to 4.3 percent for the three-month period, from a previous estimate of 3.9 percent.

     The ruble strengthened 4.7 percent to 55.80 a dollar in Moscow, bringing its two-day appreciation to about 9.3 percent. The Micex Index rose 0.8 percent today.

     China will provide Russia with help if needed and is confident the country can overcome its economic difficulties, Foreign Minister Wang Yi was cited as saying in Bangkok in a Dec. 20 report by Hong Kong-based Phoenix TV.

     OAO Rosneft rallied 2.5 percent after it repaid $7 billion in debt and said it’s generating enough dollars to meet the obligations taken on to buy TNK-BP last year and become the world’s largest traded oil producer.

     The yen fell for a fourth day against the greenback, losing 0.5 percent to 120.08 per dollar, the longest losing streak in a month, as stabilizing oil prices reduced demand for haven currencies. The euro was little changed at $1.2226 after earlier sliding to $1.2220, matching its weakest level since August 2012. The 18-member currency advanced 0.5 percent to 146.82 yen.

     Yields on German 10-year bonds were little changed at 0.60 percent, and rates on similar-maturity U.S. Treasuries were also steady, at 2.16 percent. Yields on Spanish and Portuguese 10- year bonds fell to record lows today.

     Stocks in developing nations climbed for a fourth day, with the MSCI Emerging Markets Index rising 1.3 percent as investors bet on a stabilization in oil prices and that China will step up measures to support economic growth.

     Equity gauges in the Czech Republic, Hungary, Poland and Turkey climbed, while Dubai’s DFM General Index added 2.3 percent, trimming its plunge this quarter to 24 percent.

     The Bloomberg Commodity Index fell 1.5 percent as natural gas, oil and metals retreated. Natural gas futures slumped 9 percent to the lowest settlement since Jan. 9, 2013. Gold futures for February delivery fell 1.4 percent to $1,179.80 on the Comex, while contracts on silver retreated 2.1 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

”How far you go in life depends on your being tender with the young, compassionate with the aged, sympathetic with the striving and tolerant of the weak and strong. Because someday in your life you will have been all of these.” George Washington Carver

As ever,

 

Karen

 

“Life’s most persistent and urgent question is, ‘What are you doing for others?’” Martin Luther King, Jr.  

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAYIce covers trees and plants after a storm in Vienna, Va. Melanie Stetson Freeman

Retired lab chimps live at Chimp Haven, which is also the National Chimpanzee Sanctuary, in Keithville, La. ‘I loved seeing all the different personalities of the chimps – like these two who look like they’re gossiping.’ Melanie Stetson Freeman

Market Closes for December 19^th, 2014     

Market Index	Close	Change
Dow Jones	17804.80	+26.65
		+0.15%
S&P 500	2070.65	+9.42   +0.46%
NASDAQ	4765.380	+16.983   +0.36%
TSX	14468.26	+121.51
		+0.85%

International Markets

Market Index	Close	Change
NIKKEI	17621.40	+411.35
		+2.39%
HANG SENG	23116.63	+284.42
		+1.25%
SENSEX	27371.84	+245.27
		+0.90%
FTSE 100	6545.27	+79.27
		+1.23%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.810	1.868
CND. 30 Year Bond	2.335	2.391
U.S.    10 Year Bond	2.1618	2.2075
U.S. 30 Year Bond	2.7542	2.8182

Currencies

BOC Close	Today	Previous
Canadian $	0.86170	0.86313
US $	1.16050	1.15857
Euro Rate 1 Euro=		Inverse
Canadian $	1.41939	0.70453
US $	1.22309	0.81760

Commodities

Gold	Close	Previous
London Gold Fix	1196.35	1199.00
Oil	Close	Previous
WTI Crude Future	56.52	54.11

Market Commentary:

Canada

By Callie Bost

     (Bloomberg) — Canadian stocks rose for a fourth day, capping their best week in five years, as energy producers led gains in a rally ignited by the Federal Reserve’s pledge to be patient on boosting borrowing costs.

     Energy stocks in the Standard & Poor’s/TSX Composite Index rose 2.9 percent for a 13 percent gain this week, the most in five years. Trican Well Service Ltd. and TransGlobe Energy Corp. soared more than 8.8 percent. BlackBerry Ltd. dropped 1.2 percent after reporting third-quarter revenue short of analysts’ estimates.

     The S&P/TSX index climbed 121.51 points, or 0.9 percent, to 14,468.26 at 4 p.m. in Toronto. The gauge surged 5.6 percent in the past four days as oil prices stabilized and Fed Chair Janet Yellen said the U.S. central bank will probably hold rates near zero at least through the first quarter.

     The index’s weekly gain extended its advance in 2014 to 6.2 percent.

     Canada’s inflation rate slowed more than economists forecast in November, returning to the central bank’s target on a drop in gasoline prices. The consumer price index rose 2.0 percent from a year ago following the October pace of 2.4 percent, Statistics Canada said today from Ottawa.

     A report also showed retail sales were little changed in October as gains in appliances and building materials made up for a drop at automobile dealerships.

     Seven of the 10 main industries in the S&P/TSX advanced. Trading in the benchmark gauge’s stocks was 128 percent above the 30-day average. Volume was heavy because of a quarterly event known as quadruple witching, when futures and options contracts on indexes and stocks expire.

     BlackBerry dropped 1.2 percent to C$11.55. Revenue dropped 34 percent to $793 million in the three months ended Nov. 29, missing analysts’ estimates for $931 million.

     Chief Executive Officer John Chen has said that his goals were to reach break-even cash flow by the end of this fiscal year and then return to sustainable profit and revenue growth next year.

US

By Jeremy Herron and Oliver Renick

     (Bloomberg) — The Standard & Poor’s 500 Index rose a third day, briefly topping its closing record and erasing losses in December, as energy shares surged after oil rebounded. The yen weakened, while metals advanced.

     The S&P 500 rose 0.5 percent at 4 p.m. in New York, extending a three-day rally to 5 percent, the most since November 2011. Energy shares in the index paced gains as U.S. oil rallied as much as 5 percent. The Stoxx Europe 600 Index added 0.4 percent for its best week in a year. The yield on 10- year Treasury notes fell three basis points to 2.18 percent. The ruble strengthened to 59.45 a dollar and Japan’s currency declined against all 16 major peers.

     The MSCI All-Country World Index capped its biggest weekly advance since the end of October after the Federal Reserve pledged patience on raising U.S. interest rates and Switzerland’s central bank introduced negative deposit rates. The Bank of Japan held monetary policy steady today, almost two months after unexpectedly boosting stimulus. U.S. equities trading may be subject to unexpected swings today because of a quarterly event known as quadruple witching, when futures and options contracts on indexes and stocks expire.

     “The Fed set the tone and that what’s fueling the market right now,” Stephen Carl, principal and head equity trader at New York-based Williams Capital Group LP, said in a phone interview.

     Fed Chair Janet Yellen said this week that policy makers are likely to hold key rates near zero at least through the first quarter, even as the U.S. economy strengthens. The central bank, in a statement after its last meeting of 2014, replaced a reference to borrowing costs staying low for a “considerable time” with a pledge to be patient on the timing.

     The S&P 500 surged 4.5 percent in the previous two days, erasing four-fifths of the seven-day decline that began Dec. 5. The gauge pulled within one point of its all-time high today.

     The index capped its biggest weekly gain in almost two months with a 3.4 percent gain. It has advanced 0.2 percent in December, headed for a seventh straight advance in the year’s final month.

     A recovery would mark the fifth time this year that the S&P 500 has come back after falling more than 4 percent from a high. In comparable drops beginning in January, April, July and September, the index needed about a month to erase losses, data compiled by Bloomberg show.

     Among shares that moved today, energy producers rallied 3.1 percent. The group climbed 9.8 percent in three days. Raw-materials companies gained 1.2 percent, as nine of the 10 main industries advanced. Nike Inc. slid 2.3 percent after saying future orders trailed analysts’ estimates

     Europe’s Stoxx 600 extended its weekly gain to 3 percent as commodities producers advanced after its worst week in three years.

     Air France-KLM Group lost 8.1 percent after cutting its annual profit target and saying it would push back delivery of some aircraft in the next two years. BASF SE declined 1.6 percent after saying a plan to swap natural gas assets with OAO Gazprom has fallen through. Roche Holding AG fell 6.3 percent after reporting disappointing results from a drug-combination trial of breast-cancer treatments.

     President Francois Hollande became the first major European leader to suggest easing sanctions on Russia, while German Chancellor Angela Merkel said the region is united in its stance.

     The MSCI Emerging Markets Index added 1 percent. It rose 3.8 percent in the past three days, its steepest advance in 13 months, as China’s benchmark stock index climbed to the highest level since November 2010.

     The Shanghai Composite Index rallied 1.7 percent as Aluminum Corp. of China Ltd. led a rally for metal companies on an asset restructuring plan and transport shares surged on lower oil prices. BYD Co. rebounded 14 percent in Hong Kong after the electric carmaker said it confirmed with shareholder Berkshire Hathaway Inc. that it has no intention to cut its stake.

     Russia’s benchmark Micex Index slid 1.9 percent, capping a weekly slide of 0.7 percent. The dollar-denominated RTS Index had it fourth weekly loss.

     The ruble strengthened 5.1 percent to 58.96 a dollar, paring a weekly decline. The currency rebounded from its record low of 80.10 a dollar reached Dec. 16 as as Russian President Vladimir Putin struck an uncompromising stance over the nation’s financial woes.

     The yen depreciated 0.6 percent today to 119.57 per dollar after weakening 2 percent during the previous two days. Japan’s currency declined 0.1 percent to 146.19 per euro. The dollar was up 0.5 percent at $1.2249 per euro.

     The Bank of Japan maintained unprecedented stimulus, as Governor Haruhiko Kuroda’s bid to stoke inflation faces increasing challenges from the tumble in oil prices.

     Exports have shown signs of picking up, while production has started to bottom out, the BOJ said, striking a more upbeat tone in its view of the world’s third-largest economy.

     West Texas Intermediate oil climbed 4.5 percent to settle at $56.52 a barrel in New York, after sinking to the lowest closing price since May 2009 yesterday. The U.S. benchmark is still down 42 percent this year. Brent crude rose 4.5 percent to close at $61.38 a barrel in London.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“You must understand the whole of life, not just one little part of it. That is why you must read, that is why you must look at the skies, that is why you must sing and dance, and write poems and suffer and understand, for all that is life.” Jiddu Krishnamurti

 

As ever,

 

Karen

 

“Life isn’t about finding yourself. Life is about creating yourself.” George Bernard Shaw

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

A girl prepares to hit a pinata during a traditional Mexican Christmas celebration known as ‘Posada mexicana’ at La Merced neighborhood in Mexico City. Posada Mexicana is a pre-Christmas celebration to commemorate the journey of the Holy Family from Galilee to Bethlehem. Edgard Garrido/Reuters

A man dressed as Santa Claus hangs on a cable for cable cars while descending from the Sugar Loaf Mountain in Rio de Janeiro.Ricardo Moraes/Reuters

Market Closes for December 18^th, 2014     

Market Index	Close	Change
Dow Jones	17778.15	+421.28
		+2.43%
S&P 500	2061.23	+48.34   +2.40%
NASDAQ	4748.398	+104.087   +2.24%
TSX	14346.75	+132.87
		+0.93%

International Markets

Market Index	Close	Change
NIKKEI	17210.05	+390.32
		+2.32%
HANG SENG	22832.11	+246.37
		+1.09%
SENSEX	27126.57	+416.44
		+1.56%
FTSE 100	6466.00	+129.52
		+2.04%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.868	1.808
CND. 30 Year Bond	2.391	2.331
U.S.    10 Year Bond	2.2075	2.1339
U.S. 30 Year Bond	2.8182	2.7282

Currencies

BOC Close	Today	Previous
Canadian $	0.86313	0.85892
US $	1.15857	1.16426
Euro Rate 1 Euro=		Inverse
Canadian $	1.42363	0.70243
US $	1.22878	0.81382

Commodities

Gold	Close	Previous
London Gold Fix	1199.00	1195.75
Oil	Close	Previous
WTI Crude Future	54.11	56.47

Market Commentary:

Canada

By Oliver Renick

     (Bloomberg) — Canadian stocks rose, capping the biggest three-day surge in more than three years, as consumer-staples and health-care companies led gains amid a global rally following the Federal Reserve’s pledge to be patient on boosting rates.

     Nine of the 10 main groups in the Standard & Poor’s/TSX Composite Index advanced. Alimentation Couche-Tard Inc. surged 8.3 percent to pace gains in consumer shares, while raw- materials stocks jumped 2.1 percent.

     The S&P/TSX Index increased 132.87 points, or 0.9 percent, to 14,346.75 at 4 p.m. in Toronto. The equity gauge has surged 4.7 percent in the past three days, the most since November 2011. The index is up 5.3 percent for the year.

     The MSCI All-Country World Index advanced 2 percent as U.S. benchmark gauges capped the biggest two-day rally in three years. The S&P 500 added 2.4 percent, while the Dow Jones Industrial Average climbed 2.4 percent for its best day in three years.

     Canadian stocks had their biggest daily advance in three years yesterday as the U.S. Fed said it will be patient on the timing of the first interest-rate increase since 2006. While a faster-than-estimated drop in unemployment is pushing the central bank toward raising rates next year, plunging prices of oil and commodities are holding inflation below its target.

     West Texas intermediate crude fell to a five-year low today, erasing an earlier advanced of as much as 4 percent in New York.

     Energy shares in the Canadian benchmark have advanced 11 percent over three days, the most in six years. Among the biggest moves today, Athabasca Oil Corp. jumped 16 percent while Canadian Oil Sands Ltd. rallying 10 percent.

     Torex Gold Corp. surged 12 percent, while OceanaGold Corp. climbed 9.1 percent to pace gains among materials producers.

US

By Callie Bost and Lu Wang

     (Bloomberg) — The Dow Jones Industrial Average surged the most since 2011 and the Standard & Poor’s 500 Index capped its best two-day gain in three years as global equities rallied on the Federal Reserve’s pledge to be patient on boosting rates.

     The S&P 500 added 2.4 percent to 2,061.23 at 4 p.m. in New York. The index climbed 4.5 percent over two days, the most since November 2011. The Dow gained 421.28 points, or 2.4 percent, to 17,778.15, the biggest one-day jump since December 2011. Technology shares soared as Oracle Corp. increased the most in six years. About 8.7 billion shares changed hands on U.S. exchanges, 22 percent above the three-month average.

     “Just as with other instances, a dovish Fed is making up for a lot of bad news, from Europe and from other parts of the world,” Russ Koesterich, chief investment strategist at New York-based BlackRock Inc., said in an interview on Bloomberg Television. “This is why you have this rebound rally after a few days of very harsh losses.”

     Today’s gains came amid a global rally. The MSCI All- Country World Index soared 2 percent and emerging-market stocks surged 1.9 percent. The Stoxx Europe 600 Index advanced 3 percent, the most in three years.

     The Chicago Board Options Exchange Volatility Index lost 14 percent to 16.81. The VIX plunged 29 percent over two days, the most since January 2013. The index climbed to a two-month high on Dec. 16 as a slide in oil and signs of a worldwide economic slowdown rippled through financial markets.

     U.S. stocks are rebounding from a seven-day decline that erased $1 trillion from equity prices and coincided with a 15 percent drop in West Texas Intermediate crude between Dec. 5 and Dec. 16. S&P 500 energy producers tumbled 8 percent over the stretch while chemical and mining companies lost 7.4 percent. The S&P 500 is now 0.7 percent away from wiping out all its losses from the recent selloff.

     A full recovery would be the fifth time this year the S&P 500 has come back after falling more than 4 percent from a high. In comparable drops beginning in January, April, July and September, the index needed about a month to erase losses, data compiled by Bloomberg show.

     The Fed meeting took place after a series of government reports showing that the U.S. economy is thriving. Payrolls rose by 321,000 last month, the biggest increase in almost three years, while retail sales increased 0.7 percent, the most in eight months.

     Jobless claims decreased by 6,000 to 289,000 in the week ended Dec. 13, the fewest since early November, a Labor Department report showed today in Washington. The Conference Board’s leading indicators index, a gauge of the outlook for the next three to six months, increased 0.6 percent in November. The median forecast of 49 economists surveyed by Bloomberg called for a 0.5 percent advance.

     “There’s no reason why the S&P 500 cannot continue to chug higher,” said Jonathan Aldrich-Blake, a U.S. equity fund manager at Ashburton Investments in Jersey, the Channel Islands. “The U.S. economy is one of the safest bets in the world, and the Fed coming out with a dovish tone yesterday just gives investors the confidence they needed.”

     Stocks in the benchmark gauge for U.S. equities are heading for their third consecutive annual gain and have risen almost 200 percent since global equities bottomed in 2009. The biggest bull market since the 1990s technology bubble was fueled as the Fed executed three rounds of bond buying to stimulate the economy and held interest rates near zero since December 2008.

     Equities rallied yesterday as Fed Chair Janet Yellen clarified the central bank’s monetary policy plans, saying it is likely to hold rates near zero at least through the first quarter. She also laid out the economic parameters that would need to be met for liftoff to begin later in the year and said that rates probably would be raised gradually thereafter. They may not return to more normal levels until 2017, she added.

      December has been one of the strongest months for equities since the bull market began. The S&P 500 has risen in the year’s final month sixth consecutive times, posting an annual average return of 2.2 percent. The index has pared this month’s decline to 0.3 percent.

     Gains in the measure have been led by health-care companies and utilities, up 20 percent or more from the start of the year, followed by technology producers, makers of household products and banks and brokerages. Energy companies have been the biggest drag, falling 11 percent thanks to declines in four of the last five months.

     Stocks in the S&P 500 are trading at 18.2 times annual earnings after valuations reached a four-year high of 18.3 times profit earlier this month. Income among the gauge’s constituents is poised to rise 3 percent in the fourth quarter and 7.3 percent in 2015, analyst estimates compiled by Bloomberg show.

     Among industries, analysts estimate that earnings will grow fastest next year for consumer discretionary companies, at 14.1 percent, followed by commodity producers at 14 percent and technology makers at 13.2 percent. Energy companies may see profits fall more than 13 percent in 2015, analyst estimates compiled by Bloomberg show.

     All 10 groups in the S&P 500 advanced today, led by technology shares. Oracle jumped 10 percent, the most since 2008, after the software maker reported second-quarter profit and sales that beat analysts’ estimates.

     Microsoft Corp. and International Business Machines Corp. climbed more than 3.6 percent to lead gains in the Dow.

     Energy stocks, which soared the most in three years yesterday, added 2.1 percent even as West Texas Intermediate wiped out a gain of 4 percent, sinking 4.2 percent.

     Hertz Global Holdings Inc. added 5.8 percent after shareholder Carl Icahn reported an increased stake in the car- rental company. Icahn bought 2.63 million shares on Dec. 15.

     Rite Aid Corp. surged 12 percent after quarterly profit and revenue topped analysts’ estimates, helped by an increase in sales of prescription drugs, and the retailer boosted its annual earnings forecast.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“Your beliefs become your thoughts, 
Your thoughts become your words, 
Your words become your actions, 
Your actions become your habits, 
Your habits become your values, 
Your values become your destiny.” 
― Mahatma Gandhi

 

As ever,

 

Karen

 

“It is better to fail in originality than to succeed in imitation.” 
― Herman Melville

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Dear Friends,

Tangents:

On this day in history: Wilbur and Orville Wright completed the first man-powered, heavier-than-air aircraft flight in 1903 near Kitty Hawk, North Carolina. Orville piloted the flight, which lasted only 12 seconds and spanned 120 feet.

William Safire, writer, was born on this day in 1929.

The right to do something does not mean that doing it is right. – William Safire.

On another note, we are off to Hong Kong tomorrow for a couple of days on our way to the Maldives.  Back first week of January, so in addition to the wishes  from myself and my team in the Season’s Greetings cards we mailed to you, I’d just like to take this opportunity to once again wish you and yours the very best holiday season ever.  May 2015 pass a little more slowly than 2014 J!  

Was it ever a fast year – so many of you whom I’ve spoken to lately feel the same way.  And as always, please accept my very deepest gratitude for your very valued and loyal business.  Thank you.

It also looks like we’re in for a Santa Claus rally in the markets – to end the year on a positive note given the action – or lack thereof – by the FOMC today.  Thank you Janet Yellen.

PHOTOS OF THE DAY

A general view from top of the 6030 feet high Wendelstein mountain shows the Alps and surrounding mountains in Germany.Michael Dalder/Reuters

Michelle Cotterill gives a woman a hug in the street at a temporary memorial site close to the Lindt cafe in the central business district of Sydney, Australia. Cotterill said she had a steady stream of hug requests from the mourners who visited the site to pay their respect and leave flower tributes. Three people including a gunman were shot after police ended a siege in the city coffee shop. Rob Griffith/AP

Market Closes for December 17^th, 2014     

Market Index	Close	Change
Dow Jones	17356.87	+288.00
		+1.69%
S&P 500	2012.89	+40.15   +2.04%
NASDAQ	4644.313	+96.479   +2.12%
TSX	14213.39	+351.87
		+2.54%

International Markets

Market Index	Close	Change
NIKKEI	16819.73	+64.41
		+0.38%
HANG SENG	22585.84	-84.66
		-0.37%
SENSEX	26710.13	-71.31
		-0.27%
FTSE 100	6336.48	+4.65
		+0.07%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.808	1.749
CND. 30 Year Bond	2.331	2.293
U.S.    10 Year Bond	2.1339	2.0591
U.S. 30 Year Bond	2.7282	2.6906

Currencies

BOC Close	Today	Previous
Canadian $	0.85892	0.85949
US $	1.16426	1.16347
Euro Rate 1 Euro=		Inverse
Canadian $	1.43471	0.69701
US $	1.23229	0.81150

Commodities

Gold	Close	Previous
London Gold Fix	1195.75	1202.50
Oil	Close	Previous
WTI Crude Future	56.47	55.93

Market Commentary:

Canada

By Oliver Renick

     (Bloomberg) — Canadian stocks rallied for a second day, after tumbling to the lowest level since February last week, as energy companies surged with oil prices and raw-materials providers advanced.

     MEG Energy Corp. and Pacific Rubiales Energy Corp. paced gains among energy stocks, climbing at least 13 percent. Sherritt International Corp. surged 20 percent and Teck Resources Ltd. advanced 8.5 percent to lead gains in raw- materials providers.

     The Standard & Poor’s/TSX Composite Index jumped 259.18 points, or 1.9 percent, to 14,120.70 at 11:28 a.m. in Toronto, extending gains for a second day to 3.1 percent, the best rally in two months. The equity gauge dropped 5.1 percent last week, its worst decline since September 2011. The index is up 3.6 percent for the year.

     Eight of the 10 main groups in the S&P/TSX rose today. Energy shares added 5 percent, extending a two-day climb to 9.2 percent, the most since January 2009. Trading in S&P/TSX stocks was 59 percent above the 30-day average at this time of the day.

     Crude futures rebounded after sliding close to the lowest levels in five years. West Texas Intermediate jumped 1.3 percent.

     Canadian wholesale sales rose in October as higher prices for live animals pushed agricultural receipts to a record high.

     Sales rose 0.1 percent to C$54.2 billion ($46.5 billion), Statistics Canada said today in Ottawa, as farm products surged 13.5 percent to C$815 million. The increase comes as policy makers such as Bank of Canada Governor Stephen Poloz say that sustained momentum in exports and business investment is needed to complete an economic recovery over the next two years.

US

By Callie Bost

     (Bloomberg) — U.S. stocks surged the most since 2013, erasing almost half their December losses, as energy shares rebounded and the Federal Reserve said it will be patient on the timing of interest-rate increases.

     The Standard & Poor’s 500 Index rose 2 percent to 2,012.89 at 4 p.m. in New York, the most since October 2013, after plunging for three sessions. The Dow Jones Industrial Average gained 288 points, or 1.7 percent, to 17,356.87. The Russell 2000 Index of smaller companies surged 3.1 percent for its biggest increase in three years. The VIX tumbled the most since October 2013. About 9.4 billion shares changed hands on U.S. exchanges, the most since October.

     “The game has really changed in terms of inflation,” Jeff Kravetz, the Phoenix-based regional investment director at US Bank’s Private Client Reserve, said by phone. “There’s heightened uncertainty in international markets. The drop in oil prices has kept the lid on inflation. The Fed has to wait to see how these two factors play out. That’s why they retained dovish language.”

     In one day, the S&P 500 made up about 40 percent of the ground it lost in the seven days since touching a record 2,075.37 on Dec. 5. The index jumped back above 2,000 and its 50-day moving average of 2,002.89, levels that when breached on Dec. 15 led to amplified selling. Today’s gain lifted the gauge’s 2014 return to 8.9 percent, the 16th best among global markets this year.

     The S&P 500 fell 5 percent from a record on Dec. 5 through yesterday, as a slide in crude prices and signs of a worldwide economic slowdown rippled through financial markets.

     Investors have seen the wildest fluctuations in U.S. stocks since October. The Chicago Board Options Exchange Volatility Index plunged 18 percent, the most since October 2013, to 19.31 after rising to the highest since Oct. 16 through yesterday.

     The central bank said it will be patient on the timing of the first interest-rate increase since 2006, replacing a pledge to keep borrowing costs near zero for a “considerable time,” and raised its assessment of the labor market.

     The change in guidance is another step in the Fed’s plan to exit from the loosest monetary policy in its 100-year history. While a faster-than-expected drop in unemployment is pushing the central bank toward raising rates next year, plunging prices of oil and commodities are holding inflation below its target.

     Fed Chair Janet Yellen said a rate increase is possible at every meeting, though she doesn’t foresee the first increase in interest rates for “at least the next couple of meetings.”                         

     While today’s statement didn’t mention global market turmoil sparked by oil and the Russian currency crisis, Yellen said any spillover from the financial crisis in Russia is likely to be small.

     “They don’t see inflation pressure on the horizon,” Peter Jankovskis, who helps oversee $1.9 billion as co-chief investment officer of Lisle, Illinois-based OakBrook Investments LLC, said by phone. “With the statement, and if we can see some stabilization in oil prices, we’re well poised for a rally here perhaps through the year-end.”

     The consumer-price index dropped 0.3 percent in November, the most since December 2008, after being little changed the prior month, a Labor Department report showed today. Persistently low inflation allows Fed policy makers more flexibility in raising rates. Plunging fuel costs also will free up money that households can spend on other goods and services, bolstering the economic expansion.

     Crude oil has slumped almost 50 percent over six months as the Organization of Petroleum Exporting Countries seeks to defend market share while a U.S. shale oil boom exacerbates a global glut.

     All 10 major groups in the S&P 500 advanced, with energy shares jumping 4.2 percent, the most in three years, after climbing 0.7 percent yesterday. Raw-materials shares added 2.8 percent.

     Noble Energy Inc. rose 10 percent and Nabors Industries Ltd. surged 9.3 percent, while Newfield Exploration Co. and Transocean Ltd. added 8.5 percent. Exxon Mobil Corp. and Chevron Corp. added at least 3 percent.

     McDonald’s Corp. rose 3.3 percent, the most since March, after activist investor Bill Ackman said the world’s largest restaurant chain could be managed better.

     Ackman, whose Pershing Square Capital Management hedge fund owned shares in Burger King Worldwide Inc., said today in an interview on Bloomberg Television that McDonald’s could learn from its smaller rival. He declined to comment on whether he was taking a stake in McDonald’s.                      

     Royal Caribbean Cruises Ltd. gained 6.6 percent and Carnival Corp. jumped 3.5 percent. President Barack Obama said the U.S. will end more than a half century of isolation of Cuba, initiating talks to resume diplomatic relations, opening a U.S.

embassy in Havana and loosening trade and travel restrictions on the nation.

     Volcano Corp. jumped 55 percent after Royal Philips NV agreed to buy the diagnostic equipment maker for $1 billion.  Shareholders of Volcano will receive $18 a share in cash, Philips said in a statement.

     FedEx Corp. lost 3.7 percent after quarterly profit missed analysts’ estimates as the operator of the world’s largest cargo airline spent more on aircraft maintenance and collected less in fuel surcharges. United Parcel Service Inc. slid 1.32percent.

     Cliffs Natural Resources Inc. retreated 5.7 percent. The biggest U.S. iron-ore producer will need to be recapitalized within the next two years and near-term earnings aren’t sufficient to support its debt load, Credit Suisse Group AG analysts said. The broker cut its share-price target to $1 from $10.
 

Have a wonderful evening everyone.

 

Be magnificent!

All humanity shares the sunlight; that sunlight is neither yours nor mine.

It is the life-giving energy, which we all share.

The beauty of a sunset, if you are watching it sensitively, is shared by all human beings.

 

Krishnamurti

As ever,

 

Carolann

In the middle of every difficulty lies opportunity.

                          -Albert Einstein, 1879-1955

 

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM

Senior Vice-President &

Senior Investment Advisor

 

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7