Newsletters – Page 211 – Carolann Steinhoff

March 24, 2017

March 24, 2017 Newsletter

Dear Friends,

Tangents:
On this day in 1765, Britain’s parliament passes the Quartering Act, requiring American colonists to provide temporary housing to British soldiers.
Also on this day, on March 24, 1989, one of the nation’s worst oil spills occurred as the supertanker Exxon Valdez ran aground on a reef in Alaska’s Prince William Sound and began leaking 11 million gallons of crude.
Go to article »

Be as you wish to seem. –Socrates.

PHOTOGRAPHS OF THE DAY

Race official Graham Warren wears a cat mask and 3D sunglasses trackside during the first Formula One practice session at the Australian Grand Prix in Melbourne on Friday. Jason Reed/Reuters

The Southern Lights are seen from a chartered plane over the Southern Ocean near Antarctica on Friday. The plane that left Dunedin, New Zealand, flew close to the Antarctic Circle to give passengers an up-close view of the Aurora Australis, or Southern Lights. Ian Griffin/AP

Participants of a so-called ‘Mirror March’ (Spiegelmarsch) art performance carry flags and giant mirrors in the old town of Dresden, eastern Germany, on Friday. The performance is a project by artist Svea Duwe. It is said to be a concrete artistic reflection of social movements that are currently taking place in Germany and other European countries. Jens Meyer/AP

More than 500,000 sandhill cranes stop over on the Platte River near Fort Kearny State Historical Park in Kearny, Neb., on Friday. The cranes fly from southern wintering grounds to northern breeding grounds in Canada, Alaska, and Siberia. Nick Ut/AP
Market Closes for March 24^th, 2017

Market Index	Close	Change
Dow Jones	20596.72	-59.86 -0.29%

S&P 500	2343.98	-1.98 -0.08%

NASDAQ	5828.738	+11.045 +0.19%

TSX	15442.67	+9.07
		+0.06%

International Markets

Market Index	Close	Change
NIKKEI	19262.53	+177.22
		+0.93%
HANG SENG	24358.27	+30.57
		+0.13%
SENSEX	29421.40	+89.24
		+0.30%
FTSE 100*	7336.82	-3.89
		-0.05%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.634	1.688
CND. 30 Year Bond	2.303	2.347
U.S. 10 Year Bond	2.4105	2.4194
U.S. 30 Year Bond	3.0134	3.0294

Currencies

BOC Close	Today	Previous
Canadian $	0.74732	0.74896
US $	1.33812	1.33518

Euro Rate 1 Euro=		Inverse
Canadian $	1.44507	0.69201
US $	1.07993	0.92599

Commodities

Gold	Close	Previous
London Gold Fix	1247.50	1247.50

Oil	Close	Previous
WTI Crude Future	47.32	47.00

Market Commentary:
Number of the Day
1,057
The number of hedge funds that closed down in 2016, the most in a year since 2008, dropping the number of operating firms to 8,326, the lowest since 2013.
Canada
By Kristine Owram
(Bloomberg) — Canadian stocks closed slightly higher as oil prices notched their first gain this week and investors shrugged off a canceled vote on U.S. President Donald Trump’s health-care bill.
The S&P/TSX Composite Index added nine points or 0.1 percent to 15,442.67 as Republican lawmakers indicated that they’ll tackle Trump’s planned pro-growth policies next no matter what becomes of his health-care bill. The Canadian benchmark was down 0.3 percent on the week.
Consumer discretionary stocks gained 0.7 percent, led by Amaya Inc., which added 3.8 percent after the online gaming company’s CEO said he’s on the hunt for deals. Energy stocks added 0.1 percent after West Texas Intermediate climbed 1 percent to $48.14, its first gain this week.
In other moves:
* Detour Gold Corp. jumped 6.9 percent following Thursday’s 5.9 percent loss. BMO analyst Brian Quast said the selloff was overblown.
* Klondex Mines Ltd. tumbled 6 percent after the company missed fourth-quarter earnings expectations. The materials index fell 0.2 percent.
US
By Jeremy Herron and Julie Verhage
(Bloomberg) — U.S. stocks rose from session lows to end little changed as investors assessed the fallout from a failed health-care vote that has raised questions on Trump administration’s ability to push its pro-growth agenda through Congress. Treasuries rose and the dollar slipped.
The S&P 500 Index capped its worst week since the election as political wrangling in Washington dominated sentiment. Banks sank 3.8 percent in the week, though losses were limited Friday after Donald Trump suggested to the Washington Post that he will turn his attention to tax reform. The yield on 10-year Treasury notes fell to 2.40 percent, while the dollar fell for a second week.
Investors were left assessing the impact of the failed vote on the future of Trump’s pro-growth agenda after the battle captivated Wall Street for most of the week. The White House had threatened to move on to other policy priorities, including tax reform, though its ability to sail its agenda through Congress was thrown into doubt. The reflation trades sparked by Trump’s election have faltered in March, with the dollar down 1.6 percent and the S&P 500 headed for its worst month since October.
“Whatever the case may be, tax reform was always second on the agenda. What may have changed is that now they’ll go to tax reform next and not come back to this,” Joe LaVorgna, Deutsche Bank AG chief U.S economist, said in a phone interview.
Read our Markets Live blog here.
Here are the main moves in markets:
Stocks
* The S&P 500 ended 0.1 percent lower at 2,343.98 at 4 p.m. in New York. The index fell 1.4 percent in the five days, its worst week since Nov. 4.
* Banks led losses in the week with a 3.8 percent rout that was the biggest since January 2016. Health-care shares slid 1.3 percent in the week.
* The Stoxx Europe 600 Index fell 0.2 percent to cap a 0.5 percent drop in the year.
* Japan’s Topix trimmed some losses for a week that included the biggest one-day drop since Trump’s election. The index finished with a 1.4 percent decline for the week. The MSCI Asia Pacific fared better, with a 0.1 percent decrease.

Currencies
* The Bloomberg Dollar Index lost 0.1 percent as it heads for a weekly slide of 0.7 percent. The measure Thursday eked out a gain to snap a six-day losing streak.
* The British pound weakened 0.3 percent to $1.2479, while the euro added 0.1 percent to $1.0797.
* The Mexican peso has rallied about 9 percent versus the dollar this year, setting up for the best first quarter performance in more than two decades.

Bonds
* U.S. Treasuries rose, pushing the 10-year yield down to 2.41 percent.
* Ten-year yields remained pinned between the average price over the past 50 days and the 100-day moving average for a third straight day.
* European bonds shrugged off stronger-than-expected purchasing managers data out of Germany and France. French 10-year yields dropped six basis points to 0.982 percent.
* The yield on bund benchmarks fell three basis points to 0.40 percent.

Commodities
* Crude capped a weekly loss as OPEC and its market allies prepared to review cuts, while rising U.S. inventories indicated the measures aren’t working yet.
* West Texas Intermediate rose 27 cents Friday to settle at $47.97 a barrel, trimming the weekly loss to 1.7 percent.999
* Gold futures were little changed near $1,250, holding the week’s gain at 1.4 percent.
* Iron ore futures in China posted an unprecedented weekly loss; the most-active contract in Singapore is lower for a sixth day; and spot prices had the biggest slump since November.

Have a wonderful weekend everyone.

Be magnificent!

You have to stand against the whole world although you may have to stand alone.
You have to stare the world in the face although the world may look at you with a bloodshot eye.
Do not fear.
Trust that little thing in you which resides in the heart and says:
forsake friends, wife, all, but testify to that for which you have lived and for which you have to die.
Mahatma Gandhi

As ever,

Carolann

One book, one pen, one child, and one teacher can change the world.
-Malala Yousafzai, b. 1997

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

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

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

March 23, 2017

March 23, 2017 Newsletter

Dear Friends,

Tangents:
On March 23, 2010, President Barack Obama signed into law the Affordable Care Act, the most sweeping piece of federal legislation since Medicare was passed in 1965.
Go to article »

The Numbers:

1 BILLION
Hours of YouTube watched daily by the global population.

506 TONS
Of luggage Saudi King Salman bin Abdul Aziz is reportedly taking on his nine-day visit to Indonesia. It includes two limousines.

3.77 BILLION
Age (in years) of “microfossils” discovered in Canada. This would make them the oldest fossils ever found, but scientists suspect they could be as old as 4.28 billion years; the planet itself is estimated to be 4.55 billion years old.

146 YEARS
Since Chicago last experienced a January and February with no snow on the ground, as measured by the National Weather Service.
PHOTOS OF THE DAY

A bee collects nectar from a flower at the Spring Flowers exhibition at Orman Garden in Cairo, Egypt, on Thursday. The annual exhibition attracts flower enthusiasts and art photographers. Amr Nabil/AP

The Brandenburg Gate in Berlin is illuminated with the colors of the British flag on Thursday to show solidarity with the victims of the recent attack in London. Fabrizio Bensch/Reuters
Market Closes for March 23^rd, 2017

Market Index	Close	Change
Dow Jones	20656.58	-4.72 -0.02%

S&P 500	2345.96	-2.49 -0.11%

NASDAQ	5817.691	-3.950 -0.07%

TSX	15433.61	+85.15
		+0.55%

International Markets

Market Index	Close	Change
NIKKEI	19085.31	+43.93
		+0.23%
HANG SENG	24327.70	+7.29
		+0.03%
SENSEX	29332.16	+164.48
		+0.56%
FTSE 100*	7340.71	+15.99
		+0.22%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.688	1.678
CND. 30 Year Bond	2.347	2.341
U.S. 10 Year Bond	2.4194	2.4014
U.S. 30 Year Bond	3.0294	3.0158

Currencies

BOC Close	Today	Previous
Canadian $	0.74896	0.75054
US $	1.33518	1.33238

Euro Rate 1 Euro=		Inverse
Canadian $	1.43971	0.69458
US $	1.07829	0.92740

Commodities

Gold	Close	Previous
London Gold Fix	1247.50	1249.05

Oil	Close	Previous
WTI Crude Future	47.00	47.34

Market Commentary:
Canada
By Linda Nguyen
(Canadian Press) — TORONTO — A gain across most sectors sent Canada’s largest stock market higher Thursday, as New York indexes barely moved amid a delayed vote in U.S. Congress to replace Obamacare.
In Toronto, the S&P/TSX composite index climbed 85.15 points to 15,433.61, helped by advancing industrials and financial stocks.
The increase came a day after Ottawa released its latest federal budget, which held few surprises and avoided making any changes to capital gain taxes.
Todd Mattina, a chief economist with Mackenzie Investments, said the budget was void of any major announcements because the government had to factor in incoming policy changes out of the United States under President Donald Trump.
“The Trump effect is keeping Canadian policy-makers in a holding pattern until they have more clarity about the U.S.,” Mattina said.
“It’s hard to raise local taxes, as your most important trading partner plans on large-scale tax cuts, especially if the goal is to attract highly skilled and talented workers in an new innovation type of economy.
“The macro outlook on Canada could also change this year if the U.S. suddenly announces major border taxes aggressively renegotiates NAFTA.”
Mattina also noted that Ottawa will have the option of introducing more measures at its fall fiscal update, or earlier in the year.
On Wall Street, indexes were at a near standstill, as doubts mount over whether the American Health Care Act backed by Trump will pass through Congress. Near the close of trading Thursday, House Republican leadership postponed the vote because of a lack of support.
The Dow Jones industrial average lost 4.72 points to 20,656.58, the S&P 500 index fell 2.49 points to 2,345.96, and the Nasdaq composite index pulled back 3.95 points to 5,817.69.
Investors are watching the ‘Trumpcare’ vote closely because if it doesn’t go ahead, it may spell trouble for the U.S. leader’s other business-friendly policies that have driven stock markets to record levels since November.
“Investors are starting to wonder if Trump can live up to the high expectations of pushing through a very ambitious agenda of tax cuts and infrastructure spending,” Mattina said.
In currencies, the Canadian dollar fell 0.14 of a U.S. cent at 74.90 cents US as oil prices fell for a fourth straight day in a row.
Meanwhile in commodities, the May crude contract was down 34 cents at US$47.70 per barrel and April natural gas contracts were up four cents at US$3.05 per mmBTU.
The April gold contract fell $2.50 at US$1,247.20 an ounce and May copper contracts was up a penny at US$2.64 a pound.
US
By Oliver Renick
(Bloomberg) — U.S. stocks slid, with health-care stocks and the viability of President Trump’s agenda in focus as House leaders delayed a scheduled vote on their embattled health-care bill.
* S&P 500 ends 0.1% lower at 2,345.96 after switching between positive and negative throughout the day as outcome of health bill remained murky
** Rose 0.2% on Wednesday after the biggest selloff since October the previous day
* Dow Jones down 5 points to 20,656.58
* Banks and material stocks led with gains of at least 0.2%
* Energy shares down 0.4% after fluctuating between up and down as oil declines for the third time this week
* VIX up for fifth session to 13; highest of 2017
* About 6.3 billion shares traded hands, below YTD average; eight of 11 sectors traded on volume lower than 30-day average
* The current version of American Health Care Act would slash billions of dollars from health-care spending and raise insurance costs for many, according to an analysis by a nonpartisan government body
* ECONOMY:
** Jobless claims increased by 15,000 to 258,000 in the week ended March 18
* S&P 500 EARNINGS: None
* Stoxx 600 Index rallied 0.9% with all 10 sector groups higher
** Consumer discretionary and financial shares led with gains of 1.2%

Have a wonderful evening everyone.

Be magnificent!

Very few people in this world can reason normally.
There is a terrible tendency to accept all that is said, all that is read, and to accept it without question.
Only he who is ready to question, to think for himself, will find the truth!
To understand the currents of a river,
he who wishes to know the truth must enter the water.
Nisargadatta

As ever,

Carolann

One must be one’s own inspiration.
-Tegla Loroupe, b. 1973

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

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

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

March 22, 2017

March 22, 2017 Newsletter

Dear Friends,

Tangents:

SPRING

How fair the flowers unaware
That do not know what beauty is!
Fair, without knowing they are fair,
With poets and gazelles they share
Another world than this.

They can but die, and not betray
As friends or love betray the heart.
They can but live their pretty day
And do no worse than simply play
Their brief sufficient part.

They cannot break the heart, as friend
Or love may split our trust for ever.
We never asked them to pretend:
Death is a clean, sufficient end
For flower, friend, or lover.
-V. Sackville-West, The Garden

PHOTOS OF THE DAY

Umbrellas are placed over the statue of the Beatles during a photocall on Liverpool’s waterfront in England on Wednesday. The city is getting ready to celebrate the half-centenary of ‘Sgt. Pepper’s Lonely Hearts Club Band,’ one of the most influential albums by local heroes The Beatles. Peter Byrne/PA/AP

Black swans swim on Lake Baldeneysee, near Essen, Germany, on Wednesday. Roland Weihrauch/dpa/AP

People walk in the World Trade Center Oculus transportation hub beneath a portion of ‘The Water Clouds by Stella Artois,’ a public art installation of balloons to recognize World Water Day, in New York on Wednesday. Mike Segar/Reuters
Market Closes for March 22^nd, 2017

Market Index	Close	Change
Dow Jones	20661.30	-6.71 -0.03%

S&P 500	2348.45	+4.43 +0.19%

NASDAQ	5821.641	+27.815 +0.48%

TSX	15348.46	+35.33
		+0.23%

International Markets

Market Index	Close	Change
NIKKEI	19041.38	-414.50
		-2.13%
HANG SENG	24320.41	-272.71
		-1.11%
SENSEX	29167.68	-317.77
		-1.08%
FTSE 100*	7324.72	-53.62
		-0.73%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.678	1.704
CND. 30 Year Bond	2.341	2.363
U.S. 10 Year Bond	2.4014	2.4175
U.S. 30 Year Bond	3.0158	3.0343

Currencies

BOC Close	Today	Previous
Canadian $	0.75054	0.74869
US $	1.33238	1.33566

Euro Rate 1 Euro=		Inverse
Canadian $	1.43869	0.69508
US $	1.07979	0.92610

Commodities

Gold	Close	Previous
London Gold Fix	1249.05	1241.60

Oil	Close	Previous
WTI Crude Future	47.34	47.34

Market Commentary:
On this day in 2000, the S&P 500 closes above 1500 for the first time, finishing the day at 1500.64.
Number of the Day
109
The number of trading sessions the the S&P 500 and Dow Jones Industrial Average had gone without a pullback of 1%, the longest such streak since the mid-1990s. Tuesday both indexes closed down more than 1%.
Canada
By Kristine Owram
(Bloomberg) — Canadian stocks rebounded to end the day higher after briefly moving into negative territory for the year.
The S&P/TSX Composite Index gained 0.2 percent to close at 15,348.46. Earlier in the day, it fell as low as 15,241.55, erasing its gains for 2017 and making it one of the worst- performing developed market benchmarks year-to-date.
The rebound followed a widespread global rout on Tuesday that saw the S&P 500 lose more than 1 percent for the first time since October over concerns that U.S. President Donald Trump’s pro-growth policies will be delayed. Utilities stocks led the TSX higher, gaining 1.1 percent, while consumer staples stocks rose 0.9 percent.
In other moves:
* Silver Wheaton Corp. jumped 7.5 percent after the company reported better-than-expected fourth-quarter results and boosted its dividend
* The health-care index was the biggest loser, falling 1.1 percent. Shares of ProMetic Life Sciences Inc. slumped 6.4 percent.
US
By Dani Burger and Jeremy Herron
(Bloomberg) — U.S. stocks rebounded after the first 1 percent decline since October, while havens from Treasuries to the yen remained in demand as investors assessed the prospects for pro-growth policies in America.
The S&P 500 Index edged higher, while technology-heavy measures posted solid advances. Banks slipped to an eight-week low after bearing the brunt of Tuesday’s rout. Treasury 10-year yields fell to 2.40 percent, the yen surged versus all its G-10 peers and gold rose toward $1,250 an ounce. Bloomberg’s dollar measure fell a sixth day, its longest slump since November. New Zealand’s central bank held its benchmark rate steady.
The gains in U.S. equities provided a measure of calm to the market, though havens remained in demand a day before a Republican health-care bill is set for a vote in Congress. Lawmakers have signaled any setback could delay enactment of tax cuts and spending increases, the prospects for which have underpinned the rally in risk assets since Donald Trump’s election. The depth of selling Tuesday drew some investors back in on speculation the drop went too far given data showing strength in the global economy.
“Everyone has been waiting for a dip for so long that when you get some kind of a dip, for not just tech but large-cap value too, it’s one of those opportunities to buy in,” said Mariann Montagne, a portfolio manager at Gradient Investments LLC, which oversees about $1.4 billion. “Maybe people are seeing a cue that things aren’t deteriorating across tech land. The deterioration of tech wasn’t due to fundamentals, it was just a function of pricing.”
Read our Markets Live blog here.
What’s coming up the rest of this week:
* The U.S. Federal Reserve speakers just keep coming, and as you’d expect Janet Yellen’s appearance on March 23 will attract most attention.
* The timing of the House of Representatives vote Thursday has not been set, with reports differing on whether the Republicans can marshal enough support to pass the measure.
* Central bank policy decisions are expected in New Zealand, the Philippines and Sri Lanka.
* March PMI and final fourth-quarter GDP figures for France are due Friday.
Here are the main moves in markets:
Stocks
* The S&P 500 added 0.2 percent to 2,348.50 at 4 p.m. in New York, after earlier falling as much as 0.3 percent. The measure notched on Tuesday its first 1 percent decline since October.
* The Nasdaq 100 Index jumped 0.7 percent, while small caps in the Russell 2000 Index fell 0.1 percent.
* Financial shares slid 0.1 percent following a 2.9 percent rout Tuesday.
* The Stoxx Europe 600 Index fell 0.4 percent, the biggest decrease in about a month.
* The FTSE 100 Index slid 0.7 percent, holding its level after London’s worst terror attack in more than a decade left four people dead.
* The MSCI Emerging Market Index fell 0.5 percent in its first retreat in almost two weeks.

Currencies
* The Bloomberg Dollar Spot Index dropped 0.2 percent, headed for a sixth straight loss..
* The British pound was little changed at $1.2487, showing scant reaction to the attacks in London.
* The Japanese yen rose 0.5 percent to 111.136 per dollar, hitting the strongest in about four months with its seventh straight increase.

Bonds
* The yield on 10-year Treasuries declined two basis points to 2.39 percent, the lowest in more than three weeks.
* Gilts advanced, sending the 10-year yield lower by eight basis points.
* France’s 10-year yield fell five basis points to the lowest in a week. Germany’s also dropped five basis points.

Commodities
* Brent took center stage in the oil market after dipping below $50 for the first time this year. It pared losses to trade 0.4 percent lower at $50.73 a barrel.
* West Texas Intermediate oil settled at $48.04, dropping for a third day as data showed U.S. crude supplies climbed.
* Gold capped a sixth straight gain in its longest run since the U.K. vote to leave the European Union. Futures for April delivery gained 0.3 percent to settle at $1,249.70.
* Iron ore futures on the Dalian Commodity Exchange sank into a bear market as steel in Shanghai posted the longest run of declines this year.

Have a wonderful evening everyone.

Be magnificent!

With the clouds hanging in the air above the trees,
and the birds falling silent before the storm,
this morning brings forth serious reflection,
bringing into question the entirety of existence,
the gods themselves, and all human activity.
Krishnamurti

As ever,

Carolann

Dream big and dare to fail.
-Norman D. Vaughan, 1923-2002

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

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

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

March 21, 2017

March 21, 2017 Newsletter

Dear Friends,

Tangents:

On March 21, 1965, more than 3,000 civil rights demonstrators led by the Rev. Martin Luther King Jr. began their march from Selma to Montgomery, Ala.
Go to article »

Also on this day in 2006, Jack Dorsey fires off the first tweet, launching Twitter.

As this summer’s total solar eclipse over North America gets closer, the University of California, Berkeley and Google are looking for filmmaking volunteers. The two partners aim to carry out what they’re calling the Eclipse Megamovie Project. By combining footage from more than 1,000 cameras in the path of the eclipse, they hope to create a 90-minute “megamovie” capturing the phenomenon in a way no single human could.
When the moon passes directly between Earth and the sun on August 21^st, the center of its shadow will trace a diagonal path across the United States from Oregon to South Carolina. Observers located at the exact center of the “path of totality” will be able to experience the total eclipse – full moon darkness – for as long as 2 minutes 40 seconds as the moon’s shadow flies over the ground at about 1,500 miles per hour.
The Eclipse Megamovie Project hopes to select and train some 1,000 volunteers to record as much of the eclipse as they can. The terabytes of video data will be stitched together to create a complete, high-resolution record of the eclipse.
“it is truly a transformative, life-changing experience and we want to prepare people for that,” says Laura Peticolas, a physicist with the megamovie project, in a press release. An application will be released this summer so that anyone can contribute to the project via smartphone. That footage will be used in a second, lower resolution video.
For more information, visit the megamovie website at https://eclipsemega.movie/.

7 Earth-size planets orbiting in the habitable zone of a newly discovered solar system 39 light years away, making it the most promising place in the galaxy to look for extraterrestrial life.
PHOTOS OF THE DAY

A blue tit gathers twigs for its nest from a garden in Vertou, France, on Tuesday. Stephane Mahe/Reuters

Smurf dolls are lined up to promote the new 3D computer-animated movie ‘Die Schluempfe – Das verlorene Dorf’ (‘The Smurfs – The lost village’) in front of Stadelhof railway station in Zurich, Switzerland, on Tuesday. Arnd Wiegmann/Reuters

Visitors celebrating the spring equinox reach their arms up to receive the sun’s energy atop the Pyramid of the Sun at the Teotihuacan archeological site in Mexico on Tuesday. Although the official vernal equinox occurred early Monday, thousands of visitors were expected to climb the ancient pyramid between Sunday and Tuesday to greet the sun and celebrate the beginning of spring. Rebecca Blackwell/AP
Market Closes for March 21^st, 2017

Market Index	Close	Change
Dow Jones	20668.01	-237.85 -1.14%

S&P 500	2344.02	-29.45 -1.24%

NASDAQ	5793.825	-107.704 -1.83%

TSX	15313.13	-129.19
		-0.84%

International Markets

Market Index	Close	Change
NIKKEI	19455.88	-65.71
		-0.34%
HANG SENG	24593.12	+91.13
		+0.37%
SENSEX	29485.45	-33.29
		-0.11%
FTSE 100*	7378.34	-51.47
		-0.69%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.704	1.765
CND. 30 Year Bond	2.363	2.414
U.S. 10 Year Bond	2.4175	2.4987
U.S. 30 Year Bond	3.0343	3.1112

Currencies

BOC Close	Today	Previous
Canadian $	0.74869	0.74891
US $	1.33566	1.33528

Euro Rate 1 Euro=		Inverse
Canadian $	1.44331	0.69285
US $	1.08078	0.92526

Commodities

Gold	Close	Previous
London Gold Fix	1241.60	1232.40

Oil	Close	Previous
WTI Crude Future	47.34	48.17

Market Commentary:
NUMBERS OF THE DAY
400 million

The approximate number of customers Vodafone will have in India after merging its embattled business there with a local rival, Idea Cellular. The $24 billion deal would create India’s largest wireless company.

2.01 percentage points
The 10-year break-even rate, which measures the yield premium on the 10-year Treasury note relative to comparable Treasury inflation-protected securities, was 2.01 percentage points Monday. That reflects investors’ expectation of an annual 2.01% rate of inflation over the next 10 years, nearly the same as the 2% reading on the five-year break-even rate.
Canada
By Kristine Owram
(Bloomberg) — Canadian stocks fell to their lowest level this year, reversing earlier gains, as oil prices slumped below $48 a barrel and U.S. President Donald Trump’s promised tax cuts looked less likely.
The S&P/TSX Composite Index lost 0.8 percent to 15,313.13, its lowest close since Dec. 30. Financial stocks fell 1.2 percent as government bond yields lost ground, and the industrials index slipped 1.2 percent after U.S. Republicans warned that failure to pass a health-care bill could jeopardize plans for massive corporate tax cuts.
Energy stocks lost 1.1 percent as West Texas Intermediate fell 1.8 percent to $47.34, its lowest close since November, on forecasts that U.S. crude supplies will continue to grow.
In other moves:
* Shares of Ivanhoe Mines Ltd. jumped 9.3 percent after it discovered more copper at a joint-venture mining project in the Democratic Republic of Congo
* Consumer discretionary shares fell 1.3 percent as auto supplier Magna International Inc. lost 3.4 percent.
US
By Jeremy Herron and Joseph Ciolli
(Bloomberg) — U.S. stocks fell the most since Donald Trump’s election as the reflation trades that bolstered the dollar and Treasury yields faltered amid growing concern pro- growth policies won’t sail through Congress. Crude slumped through $48 a barrel.
The S&P 500 Index sank more than 1 percent for the first time since Oct. 11, with the selloff deepening in the final 30 minutes of trading after Reuters reported North Korea would pursue accelerating its nuclear program. Banks led the rout throughout the day, tumbling the most since June as Treasury yields tumbled and Morgan Stanley warned its fixed-income trading won’t pick up.
Industrial and material shares slumped as House Republicans warned failure to pass a health-care bill on Thursday could imperil tax and spending reforms. Oil resumed a slide as U.S. crude stockpiles are forecast to increase. Gold topped $1,240 an ounce on haven demand.
Trump met with House Republicans Tuesday morning to rally support for the repeal of Obamacare as investors look for signs that his plans to cut corporate taxes and boost spending will move forward. Fed Bank of Minneapolis President Neel Kashkari repeated Tuesday his opposition to the Fed’s latest rate hike and argued the central bank shouldn’t rush to tighten with signs of inflation remaining subdued.
“With the health-care morass, the Trump effect is taking a little bit of a backseat in peoples’ minds,” said Steve Sosnick, an equity risk manager at Timber Hill LLC, the market-making unit of Greenwich, Connecticut-based Interactive Brokers Group Inc. “It feels like the market needs another catalyst. The catalysts had been coming largely from the Fed and the Trump effect. Something is spooking people.”
Read our Markets Live blog here.
What’s coming up this week:
* There’s a steady lineup of Fed speakers this week, headlined by Janet Yellen on March 23, while central bank policy decisions are expected in New Zealand, the Philippines and Sri Lanka.
* The House of Representatives votes Thursday on the repeal of the Affordable Care Act.
* March PMI for France is due Friday, along with final fourth- quarter GDP figures.
Here are the main moves in markets:
Stocks
* The S&P 500 fell 1.2 percent to 2,343.98 as of 4 p.m. in New York, the biggest drop since September and the lowest level in a month. The index hadn’t fallen 1 percent in any session for 109 straight days.
* Banks sank 2.9 percent for the steepest slide since June 24, the day after the U.K. vote to leave the European Union.
* The Stoxx Europe 600 Index fell 0.5 percent. Mining stocks tumbled as the British pound strengthened.
* The MSCI Emerging Market Index halted a seven-day advance that was the longest rally since August.

Currencies
* The Bloomberg Dollar Spot Index slipped by 0.3 percent, following a 0.1 percent drop Tuesday.
* The euro was up by 0.7 percent at $1.0812, rising versus all of its G-10 peers except sterling.
* The British pound traded 1 percent higher to $1.2487 after U.K. inflation accelerated more than forecast to break through the Bank of England’s target for the first time since 2013.

Bonds
* The yield on 10-year Treasury notes fell three basis points to 2.43 percent after earlier rising by four basis points. The rate is down 11 basis points in the past three sessions.
* The U.S. bond rally pushed the yield advantage on 10-year U.S. Treasuries over German debt to the narrowest level in more than four months.
* The yield on 10-year German government bonds rose two basis points to 0.46 percent.

Commodities
* West Texas Intermediate oil fell 1.8 percent to settle at $47.34 before U.S. inventory data on Wednesday and as Libya prepared to restart crude shipments from major ports.
* Copper slumped 1.8 percent to finish at $5,776 a metric ton in London, amid signs supplies are returning. Disruptions caused the metal to surge last month to the highest level since 2015.
* Gold dropped 0.1 percent to $1,233.68 an ounce, after four days of gains.

Have a wonderful evening everyone.

Be magnificent!

The outward freedom that we shall attain will only be in exact proportion
to the inward freedom to which we may have grown at any given moment.
Mahatma Gandhi

As ever,

Carolann

Nothing in life is to be feared. It is only to
be understood.
-Marie Curie, 1967-1934

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

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

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

March 20, 2017

March 20, 2017 Newsletter

Dear Friends,

Tangents: Spring Equinox 🙂 !

Spring is when life’s alive in everything. –Christina Rosetti

SPRING VERSE
One swallow does not make a spring.
Bluebirds are a sign of spring; warm weather and gentle south breezes they bring.
In spring, no one thinks of the snow that fell last year.
Don’t say that spring has come until you can put your foot on nine daisies.
Spring-time sweet!
The whole Earth smiles, thy coming to greet.
SPRING PICTURE SLIDESHOW
Enjoy 10 beautiful images of springtime. This photo comes from Texas. Just click below and smile!
(from The Farmer’s Almanac).

On this day in 1602, the western world’s first major publicly traded company is born, as the Dutch legislature grants a monopoly on trade to the Dutch East India Company. In 1609, the company’s directors declare that investors cannot sell their shares back to the company, but only to other investors — giving birth to the modern stock market.
1852: Uncle Tom’s Cabin was published.
1828: the writer Henrik Ibsen was born.
43 BC: the writer Ovid was born.
PHOTOS OF THE DAY

A robot sits quietly at the Robotics Innovation Center booth during preparations at the CeBit computer fair, which will open its doors to the public on March 20, at the fairground in Hanover, Germany. Fabian Bimmer/Reuters

A cow grazes in a field of Sinapis in the Israeli-occupied Golan Heights on Monday. Baz Ratner/Reuters

Iraqi Kurdish people carry torches up a mountain to celebrate Newroz Day, a festival marking their Spring and New Year, in the town of Akra, Iraq, on Monday. Ari Jalal/Reuters
Market Closes for March 20^th, 2017

Market Index	Close	Change
Dow Jones	20905.86	-8.76 -0.04%

S&P 500	2373.47	-4.78 -0.20%

NASDAQ	5901.53	+0.53 +0.01%

TSX	15442.32	-48.17
		-0.31%

International Markets

Market Index	Close	Change
NIKKEI	19521.59	-68.55
		-0.35%
HANG SENG	24501.99	+192.06
		+0.79%
SENSEX	29518.74	-130.25
		-0.44%
FTSE 100*	7429.81	+4.85
		+0.07%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.728	1.765
CND. 30 Year Bond	2.391	2.414
U.S. 10 Year Bond	2.462	2.4987
U.S. 30 Year Bond	3.078	3.1112

Currencies

BOC Close	Today	Previous
Canadian $	0.74891	0.74907
US $	1.33528	1.33499

Euro Rate 1 Euro=		Inverse
Canadian $	1.43408	0.69731
US $	1.07399	0.93111

Commodities

Gold	Close	Previous
London Gold Fix	1232.40	1229.60

Oil	Close	Previous
WTI Crude Future	48.17	48.82

Market Commentary:
NUMBER OF THE DAY
$11.5 million
Median pay for the CEOs of 104 of the biggest American companies in fiscal 2016, up 6.8%. Twice as many companies increased their chiefs’ pay as reduced it.
Canada
By Linda Nguyen | March 20, 2017 17:30
Source: The Canadian Press
The Toronto stock market fell Monday as oil prices tracked lower ahead of the release of the federal budget, while Wall Street remained steady.
The S&P/TSX composite index gave up 48.17 points at 15,442.32, a notable gain in the gold sector not enough to offset losses in most other sectors.
The market also benefited from news of an unsolicited US$1.1 billion takeover offer that was rejected by Toronto-based Dominion Diamond, a company run by American billionaire Dennis Washington.
Dominion Diamond operates the Ekati mine in the Northwest Territories and owns a 40% stake in the Diavik mine through a joint venture with Rio Tinto.
Shares in the company soared more than 23%, or $3.06, to finish at $16.27 on the Toronto Stock Exchange.
Canadian markets analyst Craig Fehr said the Canadian market is shying away from any major moves until the federal budget gets released on Wednesday.
Market watchers will wait to see if Ottawa plans on any massive spending in areas like the resource or industrials sectors, which may stand to benefit most.
“This is going to be an interesting budget, not because it’s going to contain a lot of surprises, but it will show a bit of how the government is perhaps trying to navigate the uncertainties that exist now with trade policies and the U.S.,” said Fehr, who is with Edward Jones in St. Louis.
The budget will also be keeping an eye on fiscal restraint to ensure that government debt levels don’t raise dramatically, he added.
“There are a lot of balls in the air for the government and I think the budget is going to address some or all of them at the same time,” said Fehr.
In New York, markets were mixed. The Dow Jones industrial average declined 8.76 points to 20,905.86 and the broader S&P 500 dipped 4.78 points to 2,373.47. The tech-heavy Nasdaq composite index was barely changed, gaining 0.53 of a point to 5,901.53.
The Canadian dollar was trading at US74.88¢, down 0.10 of a U.S. cent amid weaker crude prices. The April oil contract lost US56¢ at US$48.22 a barrel, while the more heavily traded May contract fell 4US0¢ at $48.91 a barrel.
US
In New York, markets were mixed. The Dow Jones industrial average declined 8.76 points to 20,905.86 and the broader S&P 500 dipped 4.78 points to 2,373.47. The tech-heavy Nasdaq composite index was barely changed, gaining 0.53 of a point to 5,901.53.
Last week, the U.S. Federal Reserve hiked its key short-term rate by a quarter-point to a range of 0.75% to 1%, committing to staying the course by planning only two more raises this year despite a strengthening U.S. economy.
Following the lackluster performances seen in the two previous sessions, stocks continued to show a lack of direction during trading on Monday. The major averages once again spent the day bouncing back and forth across the unchanged line.
The major averages eventually ended the day little changed. While the Nasdaq inched up 0.53 points or less than 0.1 percent to 5,901.53, the Dow edged down 8.76 points or less than 0.1 percent to 20,905.86 and the S&P 500 dipped 4.78 points or 0.2 percent to 2,373.47.
The choppy trading on Wall Street came as many traders stuck to the sidelines amid a quiet day on the U.S. economic front.
The economic calendar remains relatively light throughout the week, although traders are likely to keep an eye on reports on new and existing home sales and durable goods orders.
Speeches by a number of Federal Reserve officials may also attract attention this week after the central bank’s decision to raise interest rates by a quarter point last week.
In an interview on CNBC’s “Squawk Box,” Minneapolis Fed President Neel Kashkari said he voted against the rate hike because inflation is still below the central bank’s 2 percent target.
Meanwhile, traders largely shrugged off disappointment with the outcome of the G20 meeting, where finance ministers failed to agree on a commitment to keep global trade free and open.
The token reference to trade in the G20 communique was seen as a reflection of President Donald Trump’s more protectionist policies.
Among individual stocks, shares of Esperion Therapeutics (ESPR) moved sharply higher after the lipid management company said the FDA confirmed that its LDL-C lowering program is adequate to support approval of an LDL-C lowering indication for bempedoic acid.
Aralez Pharmaceuticals (ARLZ) also posted a strong gain following news CEO Adrian Adams acquired an additional 500,000 shares of the specialty pharmaceutical company’s common stock.
Meanwhile, Aevi Genomic Medicine (GNMX) saw substantial weakness after revealing a SAGA trial of AEVI-001 in adolescents with mGluR mutation positive ADHD did not meet its primary endpoint.
Most of the major sectors ended the day showing only modest moves, contributing to the lackluster performance by the broader markets.
Within the biotech sector, Nektar Therapeutics (NKTR) posted a standout gain after announcing positive results from a study of its new opioid pain medication.Biotechnology stocks showed a substantial move to the upside, however, with the NYSE Arca Biotechnology Index surging up by 2 percent. The jump lifted the index to its best closing level in over a year.
Significant strength also emerged among gold stocks, as reflected by the 1.4 percent gain posted by the NYSE Arca Gold Bugs Index. The strength in the sector came as gold for April delivery rose $3.80 to $1,234 an ounce.
On the other hand, banking stocks came under pressure over the course of the session, dragging the Dow Jones Banks Index down by 1.3 percent. With the drop, the index fell to its lowest closing level in a month.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Hong Kong’s Hang Seng Index climbed by 0.8 percent, while Australia’s All Ordinaries Index fell by 0.4 percent. The Japanese markets were closed for a holiday.
The major European markets also finished the day mixed. While the U.K.’s FTSE 100 Index inched up by 0.1 percent, the French CAC 40 Index and the German DAX Index dipped by 0.3 percent and 0.4 percent, respectively.
In the bond market, treasuries moved to the upside on the day, extending a recent upward trend. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dropped by 2.8 basis points to 2.473 percent.
Amid another quiet day on the U.S. economic front on Tuesday, traders are likely to keep an eye on speeches by several Federal Reserve officials.
Additionally, General Mills (GIS) and Lennar (LEN) are among the companies due to report their quarterly results before the start of trading.
by RTT Staff Writer

Have a wonderful evening everyone.

Be magnificent!

With closed eyes, I have come to this last thought:
even while I am unconscious in sleep, the dangers of life will continue’
in this silent field of my sleeping body, in the same rhythm as the stars above.
My heart beats, my blood courses through my arteries,
and the millions of atoms that live in my body will vibrate in time with the harp
that quivers under the fingers of the great Master.
Rabindranath Tagore

As ever,

Carolann

Chance is always powerful. Let your hook be always cast; in the pool where you least
expect it, there will be a fish. –Ovid, 43 BC-17 AD

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

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

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

March 20, 2017

March 17, 2017 Newsletter

Dear Friends,

Tangents: HAPPY St. PATRICK’S DAY!

You’ve got to do your own growing, no matter how tall your grandfather was. -Irish Proverb.

And this is from my favorite song that my Mom (whose maiden name is Murphy) used to play the acoustic guitar and sing to us when we were children (among the many – like all the Irish, she is so musical; she was always singing as she was doing house work, and what a treat it was when she sat down and played guitar and sang):

Oh Danny boy, the pipes, the pipes are calling
From glen to glen, and down the mountain side
The summer’s gone, and all the flowers are dying
‘Tis you, ’tis you must go and I must bide.

But come ye back when summer’s in the meadow
Or when the valley’s hushed and white with snow
‘Tis I’ll be here in sunshine or in shadow
Oh Danny boy, oh Danny boy, I love you so.

And if you come, when all the flowers are dying
And I am dead, as dead I well may be
You’ll come and find the place where I am lying
And kneel and say an “Ave” there for me.

And I shall hear, tho’ soft you tread above me
And all my dreams will warm and sweeter be
If you’ll not fail to tell me that you love me
I’ll simply sleep in peace until you come to me.

I’ll simply sleep in peace until you come to me.

And what is St. Patrick’s Day without lamb. After many years of trying several different recipes for rack of lamb, I believe I’ve finally found the best. It’s from Danny Meyer’s old Union Square Café in NYC (and his cookbook “Second Helpings”:

ROAST RACK OF LAMB
Serves 4

The trick is that the racks rest between two short roasting, allowing you to carve them while they’re evenly cooked, rosy pink, and still piping hot.
1 cup fresh bread crumbs (the best in Victoria are from Ottavio’s Italian bakery in Oak Bay)
1 teaspoon minced garlic (that’s the recipe – I use more)
1 ½ teaspoons chopped fresh tarragon (that’s the recipe; I prefer minced parsley)
2 tablespoons extra-virgin olive oil
Salt
Freshly ground black pepper
2 lamb racks, 8 ribs each (see note)
1 tablespoon plus 1 teaspoon Dijon mustard.

1. Preheat the oven to 425 degrees F.

2. In a bowl, combine the bread crumbs, garlic, tarragon, olive oil, 1/8 teaspoon salt and 1/8 teaspoon pepper, mixing with your fingers so that the bread crumbs absorb the oil. Set aside.

3. In a cast iron skillet or ovenproof sauté pan large enough to hold both racks, heat some olive oil over high heat until smoking. Season the racks all over with salt and pepper and sear them in the pan, meaty sides down. Cook until well browned, about 2 minutes. Turn the racks over and cook 1 minute longer. Place the skillet in the oven. Roast 9 minutes for medium rare or 8 minutes for rare.

4.Remove the skillet from the oven, transfer the racks to a plate, and let them rest for 15 minutes, uncovered. Use a pastry brush or a teaspoon to coat the meaty side of each rack with the mustard. Use your fingers to press the bread crumb mixture onto the mustard. Return the racks to the oven and roast for 15 more minutes to brown the crust. Slice in between each bone and serve the chops immediately.

Note: Ask your butcher to remove the chine bone, trim the racks completely down to the meat, and “French” the bones by scraping away all the fat and gristle. After this, each rack should weigh one pund.

PHOTOS OF THE DAY

Britain’s Kate, The Duchess of Cambridge, laughs as she presents shamrocks to the Colonel of the Irish Guards at the St. Patrick’s Day Parade at the Cavalry Barracks in Hounslow, London, on Friday. Kirsty Wigglesworth/AP

Spectators watch as revelers march up Fifth Avenue during the St. Patrick’s Day Parade on Friday in New York. New York City was awash in green and Irish pride as throngs celebrated. Andres Kudacki/AP

A boy takes part in the St Patrick’s Day parade on the streets of Dublin, Ireland, on Friday. Brian Lawless/PA/AP
Market Closes for March 17^th, 2017

Market Index	Close	Change
Dow Jones	20916.81	-17.74 -0.08%

S&P 500	2379.72	-1.66 -0.07%

NASDAQ	5900.996	+0.236 —

TSX	15508.81	-53.60
		-0.34%

International Markets

Market Index	Close	Change
NIKKEI	19521.59	-68.55
		-0.35%
HANG SENG	24309.93	+21.65
		+0.09%
SENSEX	29648.99	+63.14
		+0.21%
FTSE 100*	7424.96	+9.01
		+0.12%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.765	1.804
CND. 30 Year Bond	2.414	2.450
U.S. 10 Year Bond	2.4987	2.5348
U.S. 30 Year Bond	3.1112	3.1465

Currencies

BOC Close	Today	Previous
Canadian $	0.74907	0.75121
US $	1.33499	1.33118

Euro Rate 1 Euro=		Inverse
Canadian $	1.43406	0.69732
US $	1.07421	0.93092

Commodities

Gold	Close	Previous
London Gold Fix	1229.60	1229.35

Oil	Close	Previous
WTI Crude Future	48.82	48.75

Market Commentary:
On this day in 1997, Hewlett-Packard, Johnson & Johnson, Travelers Group and Wal-Mart are added to the Dow Jones Industrial Average, replacing Bethlehem Steel, Texaco, Westinghouse Electric and Woolworth.
Canada
By Oliver Renick
(Bloomberg) — Canadian stocks were little changed, poised for the fourth gain this week, as a rally in phone companies was offset by declining health-care stocks.
The S&P/TSX Composite Index added less than 0.1 percent to 15,562 at 10:35 a.m. in Toronto. On Tuesday, the index slid to its lowest since December. Seven of 11 major industries advanced as financial companies and consumer stocks declined.
* Canada Goose adds 7.3% after jumping 27% from its IPO price on Thursday
* Telecom stocks up 0.7% for biggest single-day gain in a month
* Health-care shares 0.4% lower with all five companies down, led by 1.5% decline in Knight Therapeutics
* Materials shares 0.3% higher with Bloomberg Commodity Index up for fourth day this week
* Dominion Diamond up 9.9% for biggest rally in index after saying Thursday that FY18 sales will increase 62% Y/y
US
By Oliver Renick
(Bloomberg) — U.S. stocks slid Friday as a drop in financial stocks offset gains in utilities as bonds advanced for a third time this week.
The S&P 500 Index lost 0.1 percent to 2,378.18 at 4 p.m. in New York, while the Dow Jones Industrial Average lost 20 points to 20,914.49. The S&P 500 ended the week 0.2 percent higher after the Federal Reserve raised rates without altering its forecast for further increases this year.
* Utility shares up 0.7% for biggest gain in S&P 500 as the 10- year Treasury yield dropped 4 basis points
* Financial stocks down 1.1%
* VIX reversed early decline to end higher
* Heavy volume amid quadruple witching and index rebalancing; about 9.5 billion shares traded hands, most so far this year
* Traders are pricing in a 54% chance that Fed officials will increase borrowing costs by June, Fed fund futures show
* S&P 500 up 3.7% in March, poised for its longest monthly winning streak since July
* Investors are also focusing on Treasury Secretary Steve Mnuchin, who will attend his first gathering of G-20 finance chiefs
** On Thursday, Mnuchin in Berlin repeated his view that the long-term strengthening of the dollar is in the best interest of the U.S. economy
* With the earnings season nearing its end, about three-quarters of S&P 500 firms that have reported results exceeded profit estimates and about half beat sales forecasts, according to data compiled by Bloomberg
* S&P 500 EARNINGS: none after-market Friday or pre-market Monday
* In Europe, stocks advanced to the highest level since December 2015

Have a wonderful weekend everyone.

Be magnificent!

Wise people are concerned only with what lies behind all these things.
Just as bees fly from one blossom to another, looking only for the essence of each one,
wise people look only for the essence of every person they meet.
Wise people, who know and understand the soul, are indifferent to both pleasure and pain;
they have risen above sensations. They are indifferent to the past and the future; they have risen above time.
They are indifferent to danger; they have risen above fear.
Wise people know that what is here, is also there;
that what was, will also be.
They see unity, not division.
Katha Upanishad

As ever,

Carolann

There are no traffic jams along the extra mile.
–Roger Staubach, b. 1942

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

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

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

March 16, 2017

March 16, 2017 Newsletter

Dear Friends,
Tangents:
On this day in…
1926   Rocket science pioneer Robert H. Goddard successfully tested the first liquid-fueled rocket, in Auburn, Mass.
1935   Adolf Hitler scrapped the Treaty of Versailles.
1968   U.S. troops gunned down hundreds of unarmed civilians in the village of My Lai during the Vietnam War.
PHOTOS OF THE DAY

A SpaceX Falcon 9 rocket launches from Kennedy Space Center over Cocoa Beach and Cape Canaveral skyline in Florida on Thursday. The rocket, carrying the Echostar XXIII communications satellite, was delayed from Tuesday due to high winds. Malcolm Denemark/Florida Today/AP

Horse race-goers arrive wearing St. Patrick’s Day fancy dress during the Cheltenham Festival at Cheltenham Racecourse in England on Thursday. Andrew Boyers/Action Images/Reuters

A rainbow appears next to St. Mary’s Lighthouse in Whitley Bay, England, on Thursday. Owen Humphreys/PA/AP
Market Closes for March 16^th, 2017

Market Index	Close	Change
Dow Jones	20934.55	-15.55 -0.07%

S&P 500	2381.38	-3.88 -0.16%

NASDAQ	5900.762	+0.714 +0.01%

TSX	15562.41	+41.50
		+0.27%

International Markets

Market Index	Close	Change
NIKKEI	19590.14	+12.76
		+0.07%
HANG SENG	24288.28	+495.43
		+2.08%
SENSEX	29585.85	+187.74
		+0.64%
FTSE 100*	7415.95	+47.31
		+0.64%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.804	1.767
CND. 30 Year Bond	2.450	2.419
U.S. 10 Year Bond	2.5348	2.4966
U.S. 30 Year Bond	3.1465	3.1095

Currencies

BOC Close	Today	Previous
Canadian $	0.75121	0.75191
US $	1.33118	1.32994

Euro Rate 1 Euro=		Inverse
Canadian $	1.43409	0.69731
US $	1.07731	0.92824

Commodities

Gold	Close	Previous
London Gold Fix	1229.35	1198.80

Oil	Close	Previous
WTI Crude Future	48.75	48.86

Market Commentary:
On this day in 1999, the Dow Jones Industrial Average tops 10000 for the first time.
Number of the Day
4%
Shortly after the Fed’s move, banks including Citigroup, J.P. Morgan, BB&T, M&T Bank and Fifth Third Bancorp increased their prime lending rates, from 3.75% to 4%.
Canada
By Joseph Ciolli
(Bloomberg) — Canadian stocks rose, continuing their rebound from a 2017 low, as gains in health-care and financial shares led the way higher one day after the U.S. Federal Reserve raised interest rates as expected and refrained from accelerating its future tightening timeline.
The S&P/TSX Composite Index added 0.3 percent to 15,562.41 at 4 p.m. in Toronto, after sliding on Tuesday to its lowest since December. Seven of 11 major industries advanced, with health-care and consumer staples companies jumping at least 0.9 percent, offsetting a loss in utility and industrial shares.
Canada Goose Holdings Inc., the maker of $900 parkas, raised C$340 million ($256 million) in its initial public offering, pricing the shares at C$17 a piece, above the marketed range of C$14 to C$16 a share, according to a statement Wednesday. At the IPO price, the company had a market value of about C$1.82 billion. In its first day of trading, shares rose as much as 41 percent to C$23.98 in Toronto.
In other moves:
* Bonavista Energy Corp., Nuvista Energy Ltd. and Encana Corp. fell at least 1.9 percent as crude oil slid 0.1 percent
* First Quantum Minerals Ltd., Detour Gold Corp. and Hudbay Minerals Inc. increased more than 2.8 percent as a Bloomberg index of commodities gained 0.4 percent
US
By Oliver Renick
(Bloomberg) — U.S. stocks slid as investors assessed the Federal Reserve’s path for interest rates and utility and health-care shares weighed on the market.
The S&P 500 Index lost 0.2 percent to 2,381.38 at 4 p.m. in New York, while the Dow Jones Industrial Average fell 16 points to 20,934.55. The S&P 500 rose 0.8 percent one day after the Fed’s decision.
* Financial shares were the biggest gainers in market, up 0.3%; spread between 5-year and 30-year Treasuries had biggest single- day gain since Nov. 9 on Wednesday
* Tech companies up 0.2%
** Volume in tech accounted for 20% of S&P 500 trading, with 3.6% of all trading taking place in Oracle
** Oracle up 6.2% after saying revenue in cloud services grew 62% in the Q3
* Traders are now pricing in a probability of almost 50 percent for another Fed rate increase by June
* ECONOMY:
** Housing starts climbed to a four-month high in February, led by the strongest pace of single-family homebuilding in nearly a decade
** Weekly jobless claims fell 2k to 241k; est. 240k
** March Philly Fed dropped to 32.8, est. 30
* EARNINGS:
** Pre-market Friday: Tiffany & Co (TIF)
* In Europe, stock markets rallied after a victory for Dutch liberals in the country’s parliamentary election
** Stoxx 60 ends 0.5% higher with all but 2 of 19 industry groups advancing.

Have a wonderful evening everyone.

Be magnificent!

Ever tell yourself, I am He.
These are words that will burn up the dross that is in the mind, words that will bring out the tremendous energy
which is within you already, the infinite power which is sleeping in your heart.
Swami Vivekananda

As ever,

Carolann

If you set out to be liked, you would be prepared to compromise on anything
at any time, and you would achieve nothing.
-Margaret Thatcher, 1925-2013

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

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

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

March 15, 2017

March 15, 2017 Newsletter

Dear Friends,

Tangents: THE IDES OF MARCH
On this day in 1985, Symbolics Computer Corp. of Massachusetts registers the first internet domain name, symbolics.com.
…and
1972 – “The Godfather,” Francis Ford Coppola’s epic gangster movie based on the Mario Puzo novel and starring Marlon Brando and Al Pacino, premiered in New York.
1975 – Greek shipping magnate Aristotle Onassis, the husband of former first lady Jacqueline Kennedy, died at age 69.
1917- Czar Nicholas II of Russia abdicates his throne.
44 BC – Julius Caesar dies.

Cowards die many times before their deaths;
The valiant never taste of death but once.
Of all the wonders that I yet have heard,
It seems to me most strange that men should fear;
Seeing that death, a necessary end,
Will come when it will come.
–Julius Caesar, Act 2; Scene 2, William Shakespeare.

Friends, Romans countrymen, lend me your ears;
I come to bury Caesar, not to praise him.
The evil that men do lives after them;
The good is oft interred with their bones.
-William Shakespeare.

PHOTOS OF THE DAY

During a press preview on Wednesday, a dinosaur robot, acting as a receptionist, demonstrates how to check in to the Henn-na Hotel Maihama Tokyo Bay in Urayasu, Japan. This is Japan’s second robot-run Henn-na Hotel (strange hotel). Issei Kato/Reuters

A man feeds swans in St. James’s Park in London on Wednesday. Toby Melville/Reuters

Two horse race attendees wear interesting hats on ladies day at the Cheltenham Racecourse during the Cheltenham Festival in England on Wednesday. Andrew Boyers/Action Images/Reuters
Market Closes for March 15^th, 2017

Market Index	Close	Change
Dow Jones	20950.10	+112.73 +0.54%

S&P 500	2385.26	+19.81 +0.84%

NASDAQ	5900.047	+43.231 +0.74%

TSX	15520.91	+141.30
		+0.92%

International Markets

Market Index	Close	Change
NIKKEI	19577.38	-32.12
		-0.16%
HANG SENG	23792.85	-35.10
		-0.15%
SENSEX	29398.11	-44.52
		-0.15%
FTSE 100*	7368.64	+10.79
		+0.15%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.767	1.838
CND. 30 Year Bond	2.419	2.489
U.S. 10 Year Bond	2.4966	2.6002
U.S. 30 Year Bond	3.1095	3.1780

Currencies

BOC Close	Today	Previous
Canadian $	0.75191	0.74171
US $	1.32994	1.34824

Euro Rate 1 Euro=		Inverse
Canadian $	1.42653	0.70100
US $	1.07262	0.93229

Commodities

Gold	Close	Previous
London Gold Fix	1198.80	1204.60

Oil	Close	Previous
WTI Crude Future	48.86	47.72

Market Commentary:
7
The number of consecutive sessions U.S.-traded crude oil has declined, its longest losing streak since January 2016.
Canada
By Lu Wang
(Bloomberg) — Canadian stocks rose, with the key index rebounding from its 2017 low along with oil prices, as the Federal Reserve raised interest rates as expected and refrained from accelerating its timeline for future tightening.
The S&P/TSX Composite Index added 0.9 percent to 15,520.91 at 4 p.m. in Toronto, after sliding to the lowest since December. Ten of the 11 major industries advanced, with energy and raw-materials producers jumping at least 1.9 percent as oil stemmed a seven-day slide and copper climbed for a fourth day.
Fed officials raised their benchmark lending rate a quarter point and continued to project two more increases this year as inflation approaches the central bank’s target. Some investors had anticipated a faster pace of tightening after data from employment to manufacturing pointed to a strengthening economy.
Among movers:
* Valeant Pharmaceuticals International Inc. (VRX CN) pared some its 10 percent loss Tuesday.
* Empire Co. (EMP/A CN) climbed 4.7 percent after quarterly earnings topped analyst estimates.
* Quebecor Inc. (QBR/B CN) rose 4.2 percent. The media company posted a higher-than-expected quarterly profit.
US
By Oliver Renick
(Bloomberg) — U.S. stocks jumped after the Federal Reserve raised its benchmark lending rate a quarter point and maintained its expectation for two more increases this year. Utility and real estate shares led the late-day rally as 10-year Treasury yields fell the most in two months.
The S&P 500 Index extended earlier gains to a 0.8 percent advance by 4 p.m., the best single-day gain in two weeks. The Dow Jones Industrial Average added 112.73 points to 20,950.10 and the Russell 2000 Index added 1.5 percent.
* Utility shares jump 1.6% with real estate stocks up 1.9%
** 10-Year Treasury yield down 10 basis points to 2.5%
* Energy shares remain biggest winner on day, up 2.1% with oil up 2.5% for the first gain in eight sessions
* 10 of 11 sectors higher with financial stocks only group lower after erasing earlier gains after Fed announcement
* Traders in Fed funds futures had fully priced in a quarter- point hike in borrowing costs today
* VIX dips to 11.6
* About 7.7 billion shares traded hands, 23% more than on Tuesday
* With the earnings season nearing its end, about three-quarters of S&P 500 firms that have reported results exceeded profit estimates and about half beat sales forecasts, according to data compiled by Bloomberg
* Central bank updates from Japan, the U.K., Switzerland and Indonesia are also due this week — all are expected to stand pat with policy decisions
* ECONOMY:
** March New York Fed Empire Index at 16.4, Est. 15
** U.S. consumer prices show biggest annual increase since 2012
** Real avg. weekly earnings rose 0.1% M/m in Feb., according to BLS
** U.S. retail sales in February posted the smallest gain in six months, indicating a tempering of the consumer spending that’s been carrying the economy
* EARNINGS:
** After-market Wednesday: Oracle Corp (ORCL), Williams-Sonoma (WSM)
** Pre-market Thursday: Dollar General (DG), PTC Therapeutics (PTCT)
* The Stoxx Europe 600 Index added 0.4% as mining companies rallied 1.7%
** Goldman Sachs says miners’ valuations will improve on lower net debt

Have a wonderful evening everyone.

Be magnificent!

When the mind and intellect developed, man asked,
Who am I? Who is it before me?
The search for reality began.
Moving one step towards finding the answer to the question,
Who am I, we brought consciousness from outside to inside.
Wisdom turned the direction of the consciousness within and
we perceived our soul.
The journey of the soul in the outer world was over and the journey within had begun.
Acharya Mahaprajna

As ever,

Carolann

Courage is like a muscle. We strengthen it by use.
-Ruth Gordon, 1896-1985

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

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

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

March 15, 2017March 15, 2017

March 14, 2017 Newsletter

Dear Friends,

Tangents:
On March 14, 1900, Congress ratified the Gold Standard Act.
Go to article »

On March 14^th, 1826, Sir Walter Scott wrote in his Journal:

Also read again, and for the third time at least, Miss Austen’s very finely written novel of Pride and Prejudice. That young lady had a talent for describing the involvements and feelings and characters of ordinary life, which is to me the most wonderful I ever met with. The Big Bow-wow strain I can do myself like any now going; but the exquisite touch, which renders ordinary commonplace things and characters interesting, from the truth of the description and the sentiment, is denied to me. What a pity such a gifted creature died so early!
PHOTOS OF THE DAY

Sleet falls on cherry tree blossoms on Capitol Hill in Washington early Tuesday. A late-season storm is dumping a messy mix of snow, sleet, and rain on the mid-Atlantic, complicating travel, knocking out power and closing schools and government offices in the region. J. Scott Applewhite/AP

A man walks in front of a video projection in the exhibition ‘Monet 2 Klimt’ in Dresden Germany, on Tuesday. During the exhibition, paintings of Claude Monet, Vincent van Gogh and Gustav Klimt will be projected in a multimedia show. Sebastian Kahnert/dpa/AP

A couple walk through St. James’s Park in London on Tuesday. Toby Melville/Reuters

A horse and buggy drive through a winter snowstorm on Tuesday in Salisbury, Pa. Matt Slocum/AP
Market Closes for March 14^th, 2017

MarketIndex	Close	Change
DowJones	20837.37	-44.11 -0.21%

S&P 500	2365.45	-8.02 -0.34%

NASDAQ	5856.816	-18.967 -0.32%

TSX	15379.61	-165.21
		-1.06%

International Markets

MarketIndex	Close	Change
NIKKEI	19609.50	-24.25
		-0.12%
HANGSENG	23827.95	-1.72
		-0.01%
SENSEX	29442.63	+496.40
		+1.71%
FTSE 100*	7357.85	-9.23
		-0.13%

Bonds

Bonds	% Yield	Previous % Yield
CND.10 Year Bond	1.838	1.872
CND.30 Year Bond	2.489	2.524
U.S. 10 Year Bond	2.6002	2.6258
U.S.30 Year Bond	3.1780	3.2122

Currencies

BOC Close	Today	Previous
Canadian $	0.74171	0.74369
US$	1.34824	1.34465

Euro Rate1 Euro=		Inverse
Canadian $	1.43006	0.69927
US$	1.06069	0.94278

Commodities

Gold	Close	Previous
London GoldFix	1204.60	1204.20

Oil	Close	Previous
WTI Crude Future	47.72	48.40

Market Commentary:
On this day in 1907, the Dow Jones Industrial Average drops 8.3% to 76.23 as the Panic of 1907 begins to take hold.
Number of the Day
$4 billion
William Ackman’s Pershing Square sold its stake in struggling drugmaker Valeant Pharmaceuticals, taking a roughly $4 billion loss.
Canada
By Kristine Owram
(Bloomberg) — Canadian stocks fell to their lowest since December as a double-digit decline at Valeant Pharmaceuticals weighed on healthcare stocks and oil prices fell for the seventh day in a row.
The S&P/TSX Composite Index lost 1.1% to 15,379.61, its lowest close since Dec. 30, as health-care stocks fell 4.6 percent. Valeant plunged 10 percent after activist investor Bill Ackman, who once bet big on a turnaround at the drugmaker, sold his entire stake in the company. Short interest in Valeant peaked at the highest level in six years.
Materials stocks fell 2.4 percent as several gold producers, including Iamgold, New Gold and B2Gold lost more than 6 percent. The energy index fell 1.6 percent as West Texas Intermediate fell for the seventh consecutive day to close at $47.72.
In other moves:
* Alimentation Couche-Tard fell 4.8 percent after third-quarter profit missed estimates on lower U.S. fuel margins
* MEG Energy, Baytex Energy and NuVista Energy lost more than 6 percent
US
By Oliver Renick
(Bloomberg) — U.S. stocks declined ahead of the Federal Reserve’s interest-rate decision tomorrow as lower oil prices weighed on energy companies.
The S&P 500 Index lost 0.3 percent to 2,365.45 at 4 p.m. in New York, while the Dow Jones Industrial Average slipped 44 points to 20,837.37. The S&P 500 closed little changed on Monday, after last week ending a streak of six consecutive weekly gains.
* 10 of 11 sectors in S&P 500 down, with consumer discretionary stocks up less than 0.1%
* Russell 2000 Index down 0.6%
* Energy shares weighed on market, down 1.1% to lowest level since Nov. 4; oil down 0.9% for seventh straight decline — longest losing streak since Jan.
* Volume: 6.2 billion shares traded hands on U.S. exchanges, about 9% below 2017 average
* VIX up 1 point to 12.3 for biggest single-day advance in a month
* Snap down for fourth straight session to $20.58
* With the earnings season largely done, about three-quarters of S&P 500 members beat profit estimates, and about half have exceeded sales forecasts, according to data compiled by Bloomberg
* Central bank updates from Japan, the U.K., Switzerland and Indonesia are also due this week — all are expected to stand pat with policy decisions
* Major winter storm hitting U.S. East Coast early Tuesday has lost “blizzard” warning status
* ECONOMY:
** Feb. NFIB Small Business Optimism remains near highest since 2004 but falls to 105.3; Est. 105.6
** U.S. producer prices rose more than forecast in February, while costs increased from a year earlier by the most since March 2012
* EARNINGS:
** After-market Tuesday: Keane Group (FRAC)
** Pre-market Wednesday: none
* In Europe, stocks declined and the CAC 40 index of French companies dropped as French presidential candidate Francois Fillon was charged with misuse of public funds

Have a wonderful evening everyone.

Be magnificent!

Perceive the souls through the soul and you will become the Supreme soul…
There are two sides of the consciousness: the soul and the Supreme Soul…
one the seed and the other, entirety. You must have seen how small the seed of the banyan tree is.
You must also have seen how expansive the tree is.
It is difficult to even imagine that such a small seed can become so big.
The soul is the seed of a banyan tree and the Supreme Soul its development.
Acharya Mahaprajna

As ever,

Carolann

Tact is the knack of making a point without making an enemy.
-Isaac Newton, 1643-1727

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

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

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

March 13, 2017

March 13, 2017 Newsletter

Dear Friends,

Tangents:

Commonwealth Day today.
Planet Uranus was discovered on March 13, 1781.

Out beyond ideas of wrongdoing
RUMI

Out beyond ideas of wrongdoing and rightdoing,
there is a field. I’ll meet you there.

When the soul lies down in that grass,
the world is too full to talk about it.
Ideas, language, even the phrase each other
doesn’t make any sense.
PHOTOS OF THE DAY

Following a Commonwealth Day service at Westminster Abbey, Prince Harry smiles with school children as he walks through Dean’s Yard in London, Monday. Kirsty Wigglesworth/AP

A couple observe a rain storm over Sydney, Australia, as a supercell hits Australia’s most populous city on Monday. Jason Reed/Reuters

A woman demonstrates AquaCAVE, a system that augments swimming environment with immersive surrounded-screen virtual reality to enhance the swimming experience, during an demonstration event organized by Sony Corp.’s human augmentation research project with the University of Tokyo, in Tokyo, Japan on Monday. Issei Kato/Reuters
Market Closes for March 13^th, 2017

Market Index	Close	Change
Dow Jones	20881.48	-21.50 -0.10%

S&P 500	2373.47	+0.87 +0.04%

NASDAQ	5875.785	+14.060 +0.24%

TSX	15544.82	+38.14
		+0.25%

International Markets

Market Index	Close	Change
NIKKEI	19633.75	+29.14
		+0.15%
HANG SENG	23829.67	+261.00
		+1.11%
SENSEX	28946.23	+17.10
		+0.06%
FTSE 100*	7367.08	+24.00
		+0.33%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.872	1.815
CND. 30 Year Bond	2.524	2.483
U.S. 10 Year Bond	2.6258	2.5745
U.S. 30 Year Bond	3.2122	3.1614

Currencies

BOC Close	Today	Previous
Canadian $	0.74369	0.74253
US $	1.34465	1.34675

Euro Rate 1 Euro=		Inverse
Canadian $	1.43256	0.69805
US $	1.06540	0.93862

Commodities

Gold	Close	Previous
London Gold Fix	1204.20	1202.65

Oil	Close	Previous
WTI Crude Future	48.40	48.49

Market Commentary:
Canada
By Oliver Renick
(Bloomberg) — Canadian stocks climbed as gains in materials stocks and financial companies offset declines in consumer shares.
The S&P/TSX Composite Index rose 0.3 percent to 15,549.03 at 11:09 a.m. in Toronto. The measure declined 0.7 percent last week, reducing its gain in 2017 to 1.7 percent. Energy companies were little changed Monday as crude fell for a sixth straight session. Toronto-Dominion Bank climbed 2 percent as Bank of Montreal analysts said concern over reports of illegal sales practices at the bank may be an overreaction.
* Seven of 11 sectors higher in early trading with phone companies down 0.9% for biggest drop
* Materials companies 0.6% higher as Bloomberg Commodity Index up 0.2%; poised to snap five days of losses
* Energy shares little changed with crude oil down 0.1%
* DH Corp up 8.9% as Vista Equity Partners LLC says it will buy the company that values the financial services provider at C$2.73 billion
* IAMGOLD Corp and New Gold Inc. down at least 3.5% for biggest losses in index as gold falls for fifth time in six sessions.
US
By Oliver Renick
(Bloomberg) — U.S. stocks held steady as they kicked off a week dominated by central-bank updates including the Federal Reserve’s rate decision.
The S&P 500 added less than 0.1 percent to 2,373.47 at 4 p.m. in New York. The benchmark ended a streak of six consecutive weekly gains last week, falling 0.4 percent and paring this year’s gain to 6 percent. The Dow Jones Industrial Average lost 0.1 percent to 20,881.48 on Monday.
* Materials stocks lead market higher with a 0.3% gain as Bloomberg Commodity Index gains for first time in six sessions
* Financial stocks pare losses, close less than 0.1% higher
* Utility stocks up 0.2%, real estate shares little changed as 10-year Yield adds four basis points
* 6.2 billion shares traded hands — lowest volume in more than a month
* VIX down three points to 11.35
* “Fed officials have sent clear signals about their intention to raise the federal funds rate at the March FOMC meeting,” according to Kevin Logan, chief U.S. economist at HSBC. “Yellen may also take this opportunity to discuss the outlook for the Fed’s balance sheet policy”
* Central bank updates from Japan, the U.K. and Switzerland are also due this week
* ECONOMY:
** Fed funds futures traders are certain the Fed will hike rates at its meeting on Wednesday
* EARNINGS:
** None after-market Monday or pre-market Tuesday
* In Europe, gains in commodity producers and auto parts makers lifted stocks; Stoxx Europe 600 Index adds 0.4% for the fourth straight advance
By Lu Wang
(Bloomberg) — The alarm bells over potential bouts of stock volatility surrounding the Federal Reserve’s anticipated interest rate hike this week may be misplaced.
The current tranquility in U.S. equities is unprecedented by some measures, but it’s in line with Fed tightenings since the early 1990s, where the S&P 500 Index has shown growing stability about half way into a cycle, according to a research report on March 8 from Bank of America Corp. rates strategists led by Carol Zhang and Vadim Iaralov.
The monetary environment looks good for stocks, the strategists wrote, as the central bank is all but guaranteed to raise rates Wednesday, following an increase in December, and with more hikes likely to come this year.
“Based on where we’re historically, the risk is falling,’’ Iaralov said by phone. “Part of it is the aligning of expectations. It’s like you get on a train and you’re half way to your destination, it’s easier to expect what’s going to happen. When you arrive or are trying to catch a train, things can be a little different.’’
That’s how it has occurred this time. After posting three weeks of at least a 1.5 percent drop in the first seven weeks following the initial rate hike in December 2015, the S&P 500 has since posted only three declines of that size. In total, the number of weekly pullbacks was less than all others at this point in a hiking cycle.
“Because the correlation between the stock market and bond yields is unusually positive today, even though the Fed is finally starting to increase interest rates, rather than stumble soon, the stock market may just continue to rumble,” Jim Paulsen, chief investment officer at Wells Fargo Capital Management, wrote in a note Monday.
Not everyone agrees that the equity market can remain calm following another rate hike. Last week, UBS Group AG strategist Julian Emanuel cited the Fed as one likely catalyst for a selloff that may send the S&P 500 to as low as 2,192. MKM Holdings derivatives strategist Jim Strugger urged investors to use options to hedge against potential losses in stocks.
“It would be a mistake to pooh-pooh the impact of Fed tightening surprising markets with its pace and magnitude,” Strugger wrote in a note last week.
Options traders are gearing up for rising volatility ahead of the meeting of Fed policy makers tomorrow and Wednesday. The Credit Suisse Fear Barometer, which measures the relative cost of S&P 500 bearish options over bullish ones three months from now, jumped 36 percent last week, the most since 1997.
The stock market has shown little signs of budging even as the options-implied probability of a Wednesday Fed hike increased to a virtual certainty from about 50 percent at the end of February. The S&P 500 has gone without a 1 percent decline for 104 days, the longest stretch since 1995, data compiled by Bloomberg show.
“The equity market has grown more comfortable over time,” the Bank of America strategists wrote.

Have a wonderful evening everyone.

Be magnificent!

The human soul travels from the law to love,
from discipline to freedom,
from the moral plane to the spiritual plane.
Rabindranath Tagore

As ever,

Carolann

It is a funny thing about life; if you refuse to accept anything but the best, you very often get it.
-W. Somerset Maugham, 1874-1965

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

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

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com