Newsletters – Page 217 – Carolann Steinhoff

December 21, 2016

December 21, 2016 Newsletter

Dear Friends,

Tangents:

What is life? It is a flash of a firefly in the night. It is the breath of a buffalo in the wintertime.
It is the little shadow which runs across the grass and loses itself in the sunset.
-Crowfoot (last words).

In the bleak midwinter, frosty wind made moan,
Earth stood hard as iron, water like a stone… -Christina Rosetti
PHOTOS OF THE DAY

Mountain summits viewed from Rosshutte mountain in the western Austrian ski resort of Seefeld on Tuesday. Dominic Ebenbichler/Reuters

People skate on the ice rink at Hampton Court Palace in London on Tuesday. Eddie Keogh/Reuters
Market Closes for December 20^th, 2016

Market Index	Close	Change
Dow Jones	19974.62	+91.56 +0.46%

S&P 500	2270.76	+8.23 +0.36%

NASDAQ	5483.945	+26.504 +0.49%

TSX	15292.96	+23.11
		+0.15%

International Markets

Market Index	Close	Change
NIKKEI	19494.53	+102.93
		+0.53%
HANG SENG	21729.06	-103.62
		-0.47%
SENSEX	26307.98	-66.72
		-0.25%
FTSE 100	7043.96	+26.80
		+0.38%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.807	1.788
CND. 30 Year Bond	2.399	2.391
U.S. 10 Year Bond	2.5586	2.5382
U.S. 30 Year Bond	3.1396	3.1220

Currencies

BOC Close	Today	Previous
Canadian $	0.74792	0.74612
US $	1.33704	1.34027

Euro Rate 1 Euro=		Inverse
Canadian $	1.38945	0.71971
US $	1.03920	0.96227

Commodities

Gold	Close	Previous
London Gold Fix	1125.70	1136.25

Oil	Close	Previous
WTI Crude Future	52.23	52.12

Market Commentary:
Canada
By Eric Lam
(Bloomberg) — Canadian stocks extended their rally into a fourth day, led by gains among banks and raw-materials producers after copper advanced for the first time in four sessions.
The S&P/TSX Composite Index added 0.2 percent to 15,292.96 at 4 p.m. in Toronto, closing near the highest level since April 2015. The gauge has risen almost 18 percent in 2016, the top performer among developed markets tracked by Bloomberg, ahead of No. 2 market Norway’s 14 percent advance.
BlackBerry Ltd. lost 3.1 percent, erasing an earlier gain. The technology company boosted its 2017 earnings outlook and reported an adjusted profit for the third quarter, while total revenue declined and missed estimates. BlackBerry said it now expects to post a profit for the full year, up from a prior range of break even to a five-cent per share loss. BlackBerry has focused on its transition to a software company from its past as a legacy smartphone maker.
Financial services companies and raw-materials producers added at least 0.4 percent to lead five of 11 industries in the S&P/TSX higher. Copper futures rose as London Metal Exchange data showed a decline in copper stockpiles for the first time in seven days. Trading volume in the benchmark equity index was 15 percent lower than the 30-day average. Energy producers slipped 0.4 percent as crude closed near $52 a barrel in New York.
In other moves:
* CCL Industries Inc. surged a record 20 percent after agreeing Monday to buy Innovia Group of the U.K. for about C$1.13 billion, boosting the labels and packaging company’s 2017 sales to more than C$5 billion on a pro-forma basis, CCL said
* Amaya Inc. lost 2 percent after founder David Baazov withdrew his $4.1 billion bid to take the PokerStars owner private, saying the price sought by some shareholders was too high
US
By Oliver Renick
(Bloomberg) — U.S. stocks climbed as investors bought financial companies, extending the group’s advance to 22 percent since the presidential election.
The S&P 500 Index added 0.4 percent to 2,270.76 by 4 p.m. in New York. The Dow Jones Industrial Average rose 92 points to 19,974 to a record. The Russell 2000 Index of small-cap shares jumped 0.9 percent.
* Financial stocks add 1.1%, with Charles Schwab Corp. and Blackrock Inc. adding at least 2.2%; discretionary shares up 0.8% on Carmax Inc., TripAdvisor Inc.
* Dow gains in Nike Inc. and Goldman Sachs Group of at least 1.6%
* Industrial, telecom shares up at least 0.5%; consumer staples drop 0.3%
* The VIX dropped for a fourth session to 11.45, its lowest close since August
* Strategists on average expect the S&P 500 to end 2017 at 2,356, according to the mean of 15 estimates compiled by Bloomberg; that implies a 4.1% gain from Monday’s close.
* The gauge has advanced 11% this year, putting it among the top four developed-market benchmarks
* The Russell 2000 Index of small-cap firms has climbed almost 15% since the day of the U.S. election. All four major benchmarks reached all-time highs after the vote, with financial firms leading gains on bets higher borrowing costs will boost profitability
* EARNINGS:
** After market Tuesday: Steelcase Inc. (SCS), FedEx Corp. (FDX), NIKE Inc. (NKE)
** Before market Wednesday: Lindsay Corp (LNN), Accenture PLC (ACN), Winnebago Industries (WGO), Finish Line Inc. (FINL), Actuant Corp. (ATU), Paychex Inc (PAYX), Neogen Corp (NEOG)
By Jeremy Herron
(Bloomberg) — U.S. stocks rose with equities in Europe, while bonds and gold retreated in a demonstration of financial markets’ resilience to recent geopolitical events as investors focus on the prospects for increased government spending in the U.S.
The Dow Jones Industrial Average closed at a record after rallying within 13 points of 20,000. The Stoxx Europe 600 Index reached its highest level of the year. Treasuries and gold reversed gains from Monday following a probable terror attack in Berlin and the killing of Russia’s envoy to Turkey. The yen approached the weakest since February versus the dollar after Japan’s central bank kept its yield-curve and asset-purchase programs unchanged.
Markets have showed increasing immunity to terror incidents this year, with initial reactions to buy haven assets after attacks fading quickly. As trading volumes decrease before December holidays and year-end, investors may be loath to veer too far from the underlying market trends that have prevailed since the election of Donald Trump in November, namely favoring stocks and shunning bonds. A so-called fear gauge of volatility in European stocks was at the lowest since 2014.
Read here for our Markets Live blog.
“The market response to each new terror event is less and less pronounced,” said Mike van Dulken, head of research at Accendo Markets. The move in European stocks “confirms ever- thickening investor skin.”
* The S&P 500 Index rose 0.4 percent to 2,270.71 at 4 p.m. in New York, a point below its all-time high. The Dow rose 90.54 points to close at 19,973.60, a record.
* Trading in S&P 500 and Dow stocks was at least 20 percent lower than the 30-day average as investors prepare for the Christmas holiday.
* Caterpillar Inc. and Nike Inc. led advances in the blue-chip gauge. Bank shares resumed a rally, adding 0.9 percent.
* The Stoxx Europe 600 Index rose 0.5 percent, for the highest close in 2016. Analysts are upbeat about profit at its members next year, expecting earnings to grow 12.5 percent.
* The Bloomberg Dollar Spot Index resumed its rally, pushing its gain in the quarter toward 8 percent, the biggest three-month advance since the third quarter of 2008.
* The euro pared losses versus the dollar after plumbed another 2003 low at $1.0352. It was down 0.1 percent at 103.91.
* The yen fell 0.6 percent to 117.80 per dollar.
* Treasuries slumped with European debt, erasing most of Monday’s gains.
* Yields on 10-year Treasury notes climbed two basis points to 2.56 percent after dropping five basis points on Monday.
* German bunds of the same maturity fell, sending yields higher by two basis points to 0.26 percent.
* Gold closed near a 10-month low as the dollar climbed and concerns eased over geopolitical events that had briefly supported the price. Futures for February delivery fell 0.8 percent to $1,133.60.
* Copper rebounded from the lowest in almost month after London Metal Exchange data showed a drop in copper stockpiles for the first time in seven days. The metal settled 0.1 percent higher at $2.5025 a pound in New York.
* Oil was little changed and closed near $52 a barrel as Libya said it reopened two oil fields while analysts project government data to show U.S. crude stockpiles fell for a fifth week.

Have a wonderful evening everyone.

Be magnificent!

The whole universe is bound by the law of causation.
There cannot be anything, any fact – either in the internal or in the external world –
that does not have a cause; and every cause must produce an effect.
Swami Vivekananda

As ever,

Carolann

Intelligence is quickness to apprehend as distinct from ability, which is capacity to act
wisely on the thing apprehended.
-Alfred North Whitehead, 1861-1947

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

December 21, 2016

December 20, 2016 Newsletter

Dear Friends,

Tangents:

Market Index	Close	Change
Dow Jones	19974.62	+91.56 +0.46%

S&P 500	2270.76	+8.23 +0.36%

NASDAQ	5483.945	+26.504 +0.49%

TSX	15292.96	+23.11
		+0.15%

International Markets

Market Index	Close	Change
NIKKEI	19494.53	+102.93
		+0.53%
HANG SENG	21729.06	-103.62
		-0.47%
SENSEX	26307.98	-66.72
		-0.25%
FTSE 100	7043.96	+26.80
		+0.38%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.807	1.788
CND. 30 Year Bond	2.399	2.391
U.S. 10 Year Bond	2.5586	2.5382
U.S. 30 Year Bond	3.1396	3.1220

Currencies

BOC Close	Today	Previous
Canadian $	0.74792	0.74612
US $	1.33704	1.34027

Euro Rate 1 Euro=		Inverse
Canadian $	1.38945	0.71971
US $	1.03920	0.96227

Commodities

Gold	Close	Previous
London Gold Fix	1125.70	1136.25

Oil	Close	Previous
WTI Crude Future	52.23	52.12

Have a wonderful evening everyone.

Be magnificent!

As ever,

Carolann

Intelligence is quickness to apprehend as distinct from ability, which is capacity to act
wisely on the thing apprehended.
-Alfred North Whitehead, 1861-1947

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

December 21, 2016

December 19, 2016 Newsletter

Dear Friends,

Tangents:

The Poem

Become Water
By Thomas McCarthy

Like us, the tide is seeking a cove
Where it doesn’t need to be obliging. Love
in its secret cave may rise and fall
To its own moon: the beck and call
Of the sea won’t be heard. The cliff face
Runs its mascara, such tears of disgrace.

As leaves the rocks with purple stains.
It is clear the sky has taken pains
To shoo such clouds away as might
Freckle the foreshore from a great height.
The tide’s scandalous incompetence
Is complete: the sea runs out of patience.

With every form of rock and pool –
This tide of love has never bent to any school
But ebbs in its own petulant way:
The way art or water does, you say;
The way all things that are fought for
Settle in a hidden cove and accept water.

From “Pandemonium” (Carcanet).
PHOTOS OF THE DAY

The St. Joseph lighthouse and pier are covered in ice on the southeastern shoreline of Lake Michigan on Monday in St. Joseph, Mich. Robert Franklin/South Bend Tribune/AP

People skate on an ice rink built at 57 meters (188 feet) above the ground on the Eiffel Tower in Paris on Monday. The rink will be open until Feb. 19. Michel Euler/AP
A surfing instructor dressed as Santa Claus gives a lesson to orphans on Kuta Beach, Bali, Indonesia, on Monday. Nyoman Budhiana/Antara Foto/Reuters
Market Closes for December 19^th, 2016

Market Index	Close	Change
Dow Jones	19883.06	+39.65 +0.20%

S&P 500	2262.53	+4.46 +0.20%

NASDAQ	5457.441	+20.279 +0.37%

TSX	15269.85	+17.65
		+0.12%

International Markets

Market Index	Close	Change
NIKKEI	19391.60	-9.55
		-0.05%
HANG SENG	21832.68	-188.07
		-0.85%
SENSEX	26374.70	-114.86
		-0.43%
FTSE 100	7017.16	+5.52
		+0.08%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.788	1.833
CND. 30 Year Bond	2.391	2.425
U.S. 10 Year Bond	2.5382	2.5916
U.S. 30 Year Bond	3.1220	3.1741

Currencies

BOC Close	Today	Previous
Canadian $	0.74612	0.74978
US $	1.34027	1.33372

Euro Rate 1 Euro=		Inverse
Canadian $	1.39449	0.71711
US $	1.04045	0.96112

Commodities

Gold	Close	Previous
London Gold Fix	1136.25	1131.60

Oil	Close	Previous
WTI Crude Future	52.12	51.90

Market Commentary:
Canada
By Eric Lam
(Bloomberg) — Canadian stocks rose for a third day as BlackBerry Ltd. advanced to lead a gain in technology shares after announcing a new research center for self-driving cars in Canada.
The S&P/TSX Composite Index added 0.1 percent to 15,269.85 at 4 p.m. in Toronto, trading near the highest since April 2015. The gauge has risen 17 percent in 2016, the top performer among developed markets tracked by Bloomberg, ahead of No. 2 market Norway’s 14 percent advance.
BlackBerry added 2.3 percent to halt a three-day slide as technology companies gained 1.6 percent as a group, the most in the S&P/TSX. BlackBerry and Canada are opening a research center for self-driving cars, to be based at the company’s QNX headquarters near Ottawa. BlackBerry CEO John Chen has focused his efforts on shifting the company away from its smartphone legacy into new areas including software.
Fairfax Financial Holdings Ltd. slipped 1.5 percent after the financial services firm agreed to buy insurer Allied World Assurance Co. for $4.9 billion in cash and stock in CEO Prem Watsa’s largest purchase. Allied will operate as a wholly owned subsidiary, keeping its executive and senior management teams while Fairfax diversifies its business.
In other moves:
* Onex Corp. rose 0.3 percent, reversing an earlier loss, after agreeing to buy a U.K. caravan holiday park operator Parkdean Resorts for 1.35 billion pounds in a deal expected to close in the first quarter of next year
* Concordia International Corp. jumped 9.7 percent after reporting a cash balance of $410 million, and as much as $200 million available under its undrawn revolving credit line; the drugmaker said it has access to sufficient liquidity to meet all of its near-term financial obligations.
US
By Oliver Renick
(Bloomberg) — U.S. stocks inched higher as investors assessed a rally that has lifted equities to record levels in the past month.
The S&P 500 Index added 0.2 percent to 2,262.53 at 4 p.m. in New York. The benchmark gauge fell 0.2 percent Friday after a report that China seized a U.S. drone in international waters in the South China Sea sparked geopolitical concerns. The Dow Industrials added 0.2 percent Monday as small-cap shares jumped 0.6 percent.
European stocks closed little changed, after two straight weeks of gains, as investors kicked off the last full week of trading of the year. The Stoxx Europe 600 Index fell 0.1 percent at the close. In a reversal of the recent rotation into cyclical shares, banks and miners declined as defensive stocks including utilities, real estate and technology advanced.
* Phone and real estate shares gained as energy and health-care stocks fell
* Strategists on average expect the S&P 500 to end 2017 at 2356, according to the mean of 15 estimates compiled by Bloomberg; that’s 4.3% higher than the Friday close
* The benchmark gauge is poised for its fifth straight quarterly advance and is up more than 10% for the year
* All four major benchmarks reached all-time highs after the election; financials have led gains on bets higher borrowing costs will boost profitability
** S&P 500 Banks Index up 30% in the final quarter of 2016, the biggest advance among 24 industry groups
* After Federal Reserve officials said they expect three quarter-point rate increases next year, up from two seen in September, traders are pricing in a 73% chance of an increase in June 2017 — the first month with at least even odds for an increase
* EARNINGS
** After market Monday: Worthington Industries Inc. (WOR)
** Before market Tuesday: Patheon NV (PTHN), BlackBerry Ltd (BB CN), CarMax Inc (KMX), Darden Restaurants Inc (DRI), FactSet Research Systems Inc (FDS), General Mills Inc (GIS), Navistar International Corp (NAV), The Valspar Corp (VAL), Carnival Corp (CCL).
* The VStoxx Index of euro-area stock volatility was little changed near its lowest in more than two years, down 39% since the U.S. election, as speculation of stronger economic growth boosted equities
* The volume of Stoxx 600 shares traded on Monday was about a third lower than the 30-day average, data compiled by Bloomberg show
* Financials fell for a second day. Banca Monte dei Paschi di Siena SpA slid 11% after saying it will sell shares to institutional investors through Thursday, as it aims to complete raising funds by year-end to avoid a rescue by the Italian government
* Deutsche Bank AG slid 4.5% amid reports its settlement with the U.S. Department of Justice could come this week
* Barclays Plc declined 2.7% as the lender prepares to tell 7,000 clients to do more trading with the firm or find another bank, in a bid to boost returns
* The Stoxx 600 is on course for its first annual decline since the peak of the sovereign-debt crisis in 2011, while the FTSE 100 is poised for its best rally in three years as a post-Brexit slump in the pound boosted U.K. exporters
For related equity market news:
* S&P 500 to Climb to 2450 Next Year: Oppenheimer’s Stoltzfus
* Top Bull Says Equity Market Due for Pause, Buy on Pullbacks
* A $55b Manager Who Bought at Market Low Returns to Cash
* Volatility of Volatility Rises Even as VIX Signals Calm: Chart
* European Stocks Ignore Selloff in Emerging Markets: Chart

Have a wonderful evening everyone.

Be magnificent!

Knowledge relieves all suffering. Knowledge liberates.
Which knowledge? Chemistry? Physics? Astronomy? Geology?
They help a little, but only a little. The true knowledge is the knowledge of our own nature.
Know yourself. You must know who you are, understand your inner nature.
You must become conscious of this infinite nature in yourself. Then you will break free of your shackles.
Swami Vivekananda

As ever,

Carolann

The man who makes no mistakes does not usually make anything.
-Edward John Phelps, 1822-1900

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

December 16, 2016

December 16, 2016 Newsletter

Dear Friends,

Tangents:
December 16^th, 1773 – Boston Tea Party.

DECEMBER
-from A COUNTRYWOMAN’S NOTES by Rosemary Verey:
…Now the shortest days are on us and darkness descends soon after four o’clock. I can come in from the garden to the welcome of a warm fire and the prospect of a long peaceful evening spent with all those books which have been accumulating on my table. Some have inspired me to use more herbs in the kitchen or to experiment with old ideas like using saponaria leaves and roots as a gentle soap to revitalize old and faded fabrics. A satisfying occupation when hard frosts make outdoor activities unattractive, but you must have a suppy of roots ready dug and handy. Soapwort reminds me of a hot day in Ethiopia when we came upon a large patch of it growing beside a lake, and sure enough this was where the women did their laundry…
PHOTOS OF THE DAY

Seagulls sit on a bar above the river Main in Frankfurt, central Germany, Friday. Boris Roessler/dpa/AP
Russian President Vladimir Putin, center right, and Japanese Prime Minister Shinzo Abe, center left, watch the demonstration of an ancient form of judo when they visit the Kodokan Judo Institute, the headquarters of the worldwide judo community, in Tokyo, Japan, on Friday. Toru Yamanaka/AP
Market Closes for December 16^th, 2016

Market Index	Close	Change
Dow Jones	19843.41	-8.83 -0.04%

S&P 500	2258.07	-3.96 -0.18%

NASDAQ	5437.164	-19.690 -0.36%

TSX	15252.20	+33.89
		+0.22%

International Markets

Market Index	Close	Change
NIKKEI	19401.15	+127.36
		+0.66%
HANG SENG	22020.75	-38.65
		-0.18%
SENSEX	26489.56	-29.51
		-0.11%
FTSE 100	7011.64	+12.63
		+0.18%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.833	1.837
CND. 30 Year Bond	2.425	2.412
U.S. 10 Year Bond	2.5916	2.5967
U.S. 30 Year Bond	3.1741	3.1622

Currencies

BOC Close	Today	Previous
Canadian $	0.74978	0.74998
US $	1.33372	1.33337

Euro Rate 1 Euro=		Inverse
Canadian $	1.39394	0.71739
US $	1.04515	0.95680

Commodities

Gold	Close	Previous
London Gold Fix	1131.60	1126.95

Oil	Close	Previous
WTI Crude Future	51.90	50.90

Market Commentary:
Canada
By Eric Lam
(Bloomberg) — Canadian stocks rose for a second day as natural-resource producers advanced, with crude prices reversing a weekly loss and gold pushing back after taking a beating during a quarter dominated by the Federal Reserve’s decision to raise interest rates.
The S&P/TSX Composite Index added 0.2 percent to 15,252.20 at 4 p.m. in Toronto, for a second day of gains. The gauge has risen 17 percent in 2016, the top performer among developed markets tracked by Bloomberg, ahead of No. 2 market Norway’s 14 percent advance.
Energy producers rose 1.2 percent as a group as six of 11 industries in the S&P/TSX advanced. Crude futures rose for the first time in three days, up 2 percent in New York to reverse a weekly loss. Goldman Sachs Group Inc. increased its second- quarter oil price forecasts and predicted inventories would return to normal levels by the middle of 2017 as OPEC production cuts ripple through the market.
Franco-Nevada Corp. and Goldcorp Inc. added at least 2.3 percent. Gold edged higher in New York, pulling back from a 10- month low. Base-metals producers offset gold’s gains, as Teck Resources Ltd. tumbled 5.7 percent. Copper prices capped the worst slump since August.
In other moves:
* Eldorado Gold Corp. added 2.8 percent after the company said CEO Paul Wright is stepping down next year, to be replaced by Goldcorp Inc.’s Chief Operating Officer George Burns
* Bombardier Inc. climbed 5.1 percent. The company won two upgrades from analysts after forecasting improving 2017 results in guidance
* AlarmForce Industries Inc. rallied 4 percent, the most in two years, after the company said it will restate results for 2015 and the first two quarters of 2016, related to revenue previously gained from incorrectly charging customers who had canceled their service; the company said the revenue incorrectly earned not expected to exceed C$3.5 million.
US
By STAN CHOE
New York (AP) — Falling technology and financial stocks pulled U.S. indexes back from the edge of record highs on Friday. Bond yields gave up some of their big gains from the last few days, and the dollar downshifted from its sharp climb against other currencies.
The Standard & Poor’s 500 index fell 3.96 points, or 0.2 percent, to 2,258.07. It had wobbled up and down through the day, never rising by more than 0.3 percent or falling by more than 0.3 percent.
The Dow Jones industrial average fell 8.83 points, or less than 0.1 percent, to 19,843.41. The Nasdaq composite fell 19.69, or 0.4 percent, to 5,437.16 after climbing above its record closing level earlier in the day. All three indexes remain within 1 percent of their record highs.
Friday’s moves close a week where stocks slowed their sharp ascent since last month’s presidential election, and bond yields and the dollar continued their big gains. A driving force was the Federal Reserve’s move on Wednesday to raise interest rates for only the second time in a decade and indicate several more increases may be in store for 2017.
The dollar gave back a smidgen of its gains on Friday. The ICE U.S. Dollar index, which measures the dollar against six other currencies, dipped 0.2 percent. The index remains close to its highest level in 14 years.
The yield on the 10-year Treasury likewise regressed a bit Friday, dipping to 2.59 percent from 2.60 percent late Thursday. It’s still near its highest level since 2014.
Friday’s drop in yields helped drive stocks that pay big dividends higher. They often trade in the opposite direction of interest rates on expectations that income investors will buy them when bond yields are dropping. Those sectors had struggled in recent days.
Utility stocks and real-estate investment trusts both rose 1.2 percent on Friday, the largest gains among the 11 sectors that make up the S&P 500.
Banks and other financial stocks fell in a rare off-day. The sector has been cruising since last month’s election on expectations that higher interest rates will boost their profits.
Financial stocks in the S&P 500 fell 0.9 percent. Bank of America fell 50 cents, or 2.2 percent, to $22.66, and Regions Financial fell 32 cents, or 2.2 percent, to $14.20.
Technology stocks in the S&P 500 fell 0.8 percent. Software giant Oracle fell $1.76, or 4.3 percent, to $39.10 after reporting revenue for its latest quarter that fell short of analysts’ expectations.
Despite drops for the S&P 500 and other indexes, more stocks rose on the New York Stock Exchange than fell.
Among them was Chipotle Mexican Grill, which jumped $9.72, or 2.5 percent, to $392.07. The restaurant chain said four new directors will join its board as part of an agreement with activist investor Bill Ackman’s Pershing Square.
Jabil Circuit rose $2.58, or 12 percent, to $24.15 after reporting stronger earnings for its latest quarter than analysts expected.
Big gains since last month’s election mean stocks generally are more expensive relative to their earnings, a key gauge investors use to measure whether the market is overpriced.
The S&P 500 is trading at about 19 times its earnings per share over the last 12 months, according to FactSet. That compares with its average price-earnings ratio of 15.6 over the last 15 years and is an indication that stocks are, if not expensive, no longer cheap. And that, in turn, implies lower future returns than the big gains investors have enjoyed since the Great Recession’s end.
“I do think we’re in a low-return environment,” says Bernie Williams, chief investment officer for USAA’s Wealth Management Investment Solutions. “Of course, we thought that at the start of this year, too, and here we are up 10 percent.”
In foreign stock markets, Japan’s Nikkei 225 gained 0.7 percent, South Korea’s Kospi rose 0.3 percent and Hong Kong’s Hang Seng fell 0.2 percent. In Europe, Germany’s DAX rose 0.3 percent, France’s CAC 40 rose 0.3 percent and Britain’s FTSE 100 rose 0.2 percent.
Crude oil rose $1 to settle at $51.90 a barrel in New York. Brent crude, the international standard, rose $1.19 to close at $55.21 a barrel in London. Natural gas slipped nearly 2 cents to settle at $3.415 per 1,000 cubic feet, wholesale gasoline rose 1.5 cents to $1.56 a gallon and heating oil rose 3 cents to $1.67 a gallon.
Gold recovered a bit after falling to its lowest price in 10 months on Thursday. It rose $7.60 to settle at $1,137.40 an ounce. Silver rose nearly 26 cents to $16.22 an ounce, and copper fell 3.6 cents to $2.56 a pound.
The euro rose to $1.0433 from $1.0424, the British pound rose to $1.2476 from $1.2436 and the dollar climbed to 118.01 Japanese yen from 117.93 yen.

By Oliver Renick
(Bloomberg) — U.S. stocks slid as a report that China’s navy seized a U.S. drone in international waters in the South China Sea spurred geopolitical concern and financial companies dropped for the third day this week.
The S&P 500 fell 0.2 percent to 2,258.07 by 4 p.m. in New York. Oil prices rose and 10-year Treasury yields declined as the Pentagon demanded that China immediately return the underwater drone in a confrontation certain to exacerbate tensions in a region where the government in Beijing has sought to assert greater control.
U.S. Market
* Real estate and utility shares up 1.2%; phone companies add 0.6%
* Financial shares and tech drop at least 0.8%
* The Dow jumped 8.2% in the five weeks following Donald Trump’s U.S. election win, the biggest gain in the period that greeted any president since 1900
* Equity funds globally saw “huge” investment inflows in the latest week as the “great rotation” out of bonds and into riskier assets such as stocks accelerated, according to a note by Bank of America Corp.’s Merrill Lynch unit. Since the U.S. election, investors have poured $63 billion into equity funds, following outflows of $151 billion in the January-October period, the report showed
* The S&P 500’s pause near a record high shows little sign of trend exhaustion, and its next set of bullish objectives rest at the 2,285-2,296 area, JPMorgan Chase & Co.’s technical analyst Jason Hunter wrote in a note
* The expiration of some futures and options on stocks and indexes Friday, known as quadruple witching, added to stock volatility

Have a wonderful weekend everyone.

Be magnificent!

The question of whether or not there is a God or truth or reality, or whatever you like to call it,
can never be answered by books, by priests, philosophers or saviors.
Nobody and nothing can answer the question
but you yourself and that is why you must know yourself.
Immaturity lies only in total ignorance of self.
To understand yourself is the beginning of wisdom.
Krishnamurti

As ever,

Carolann

Probable impossibilities are to be preferred to improbable possibilities.
-Aristotle, 384BC-322BC

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

December 15, 2016

December 15, 2016 Newsletter

Dear Friends,

Tangents:
Points of Progress:

ANTARCTICA: The Ross Sea became the world’s largest marine protected area in October, after a multinational agreement to preserve one of the most pristine ecosystems on the planet. It will be designated a “no take” zone, putting everything from minerals to marine life off limits to extraction. The maritime region is a jewel of biodiversity and a refuge for many species whose numbers are in decline elsewhere. Negotiations between 24 United nations member nations and the European Union had dragged on for nearly five years.

SWEDEN: People are being paid to fix things, instead of throwing them away. As part of the country’s pursuit of a greener future, tax breaks are being introduced for repairs on various items, including refrigerators, washing machines, bicycles, and clothes. Someone who takes a household appliance to be repaired, for example, will be able to claim a partial tax refund for the bill. The aim is twofold: by buying fewer new products, a person’s environmental footprint should shrink; and by boosting the demand for repair services, jobs will be created for low-skilled workers.

PHOTOS OF THE DAY

The waning moon sets behind leafless sumac trees on a crisp, clear morning, Thursday, in Portland, Maine. Much of the northern Mid-Atlantic and Northeast will stay cold for the next couple of days as the arctic air remains stuck over the northern Appalachians, the National Weather Service said.Robert F. Bukaty/AP

People ice skate at the Grand Palais in Paris on Thursday. The Grand Palais skating rink opened to the public on Sunday and is the largest temporary ice rink created in France during holiday. Francois Mori/AP
Market Closes for December 15^th, 2016

Market Index	Close	Change
Dow Jones	19852.24	+59.71 +0.30%

S&P 500	2262.03	+8.75 +0.39%

NASDAQ	5456.855	+20.184 +0.37%

TSX	15218.31	+21.12
		+0.14%

International Markets

Market Index	Close	Change
NIKKEI	19273.79	+20.18
		+0.10%
HANG SENG	22059.40	-397.22
		-1.77%
SENSEX	26519.07	-83.77
		-0.31%
FTSE 100	6999.01	+49.82
		+0.72%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.837	1.790
CND. 30 Year Bond	2.412	2.393
U.S. 10 Year Bond	2.5967	2.5707
U.S. 30 Year Bond	3.1622	3.1876

Currencies

BOC Close	Today	Previous
Canadian $	0.74998	0.75277
US $	1.33337	1.32840

Euro Rate 1 Euro=		Inverse
Canadian $	1.38902	0.71993
US $	1.04174	0.95994

Commodities

Gold	Close	Previous
London Gold Fix	1126.95	1162.25

Oil	Close	Previous
WTI Crude Future	50.90	51.04

Market Commentary:
Canada
By Eric Lam
(Bloomberg) — Canadian stocks rose as the nation’s largest lenders gained, offsetting weakness in commodity producers after the Federal Reserve raised U.S. interest rates for the first time this year.
The S&P/TSX Composite Index added 0.1 percent to 15,218.31 at 4 p.m. in Toronto, after slumping the most in a month Wednesday after the Fed’s decision. The gauge has risen about 17 percent in 2016, the top performer among developed markets tracked by Bloomberg, ahead of No. 2 market Norway’s 13 percent advance.
The dollar extended gains against its global peers, pushing the Bloomberg dollar index to a record. Fed policy makers Wednesday raised the benchmark rate a quarter percentage point following a two-day meeting in Washington. New projections show central bankers expect three quarter-point rate increases in 2017, up from the two seen in the previous forecasts in September, based on median estimates.
Canadian raw-materials producers lost 2.2 percent as a group, offsetting a 0.8 percent gain in financial companies, including the big banks. Six of 11 industries in the S&P/TSX advanced. Toronto-Dominion Bank rose 1.1 percent to a record.
Barrick Gold Corp. and Agnico Eagle Mines Ltd. fell at least 3.3 percent, while silver producer Silver Wheaton Corp. sank 8.3 percent. Gold traded at a 10-month low, down 2.9 percent in New York as the Fed’s more hawkish stance on rate increases next year further reduced the attractiveness of gold as a hedge. After rallying to a 2016 peak in August, gold has since slumped 18 percent, paring gains for the year to 6.6 percent.
In other moves:
* Athabasca Oil Corp. jumped a record 23 percent after agreeing to buy Statoil ASA’s oil-sands operations in a deal worth as much as C$832 million, more than doubling the company’s production base to 40,000 barrels of oil equivalent a day
* Empire Co. sank a record 17 percent to the lowest in almost seven years after second-quarter earnings and revenue fell short of expectations, which the company described as “disappointing” due to continued weakness in western Canada
* Bombardier Inc. added 2.1 percent, the most in a month, as the aerospace manufacturer predicted sales and pretax profit will rebound in 2017 and cash drain will improve as cost-cutting bears fruit.
US
By Oliver Renick
(Bloomberg) — Banks and phone companies pushed U.S. stocks higher for the eighth time in 10 days as investors weighed a rising dollar and prospects of a steeper path for higher borrowing costs next year. DuPont Co., Goldman Sachs Group Inc., American Express Co., and JPMorgan Chase & Co. led the Dow Jones Industrial Average with advances in excess of 1 percent.
The S&P 500 Index rose 0.4 percent to 2,262.03 at 4 p.m. in New York, after the benchmark fell 0.8 percent Wednesday. The Dow Jones Industrial Average added about 60 points, or 0.3 percent, to 19,852.
* Financial shares up 1% as raw-materials producers and phone shares rally 0.7%
* Russell 2000 Index rises 0.8% after losing 1.3% Wednesday
* While most observers had expected that the Fed would hike interest rates, they did not think the Federal Open Market Committee would materially change its September projection for two increases in 2017, Richard Clarida, Pimco’s global strategic adviser, wrote in a note
* “So while the Fed did hike its target for the federal funds rate to a range of 0.5 percent to 0.75 percent, the real message was delivered by the ‘dot plot,’ which moved unmistakably in the hawkish direction for 2017,” Clarida wrote
* Stocks fell Wednesday after key benchmarks — the S&P 500, the Dow and the Nasdaq 100 — all reached fresh records
* The S&P 500 hasn’t been this overextended in 2 1/2 years, with the spread between the index and its 200-day moving average reaching the widest since July 2014. Investors are showing few signs of worry: hedging costs are near the lowest since July 2014, the options market has seen record call volume, and short interest sits below its one-year average
* EARNINGS:
** After market Thursday: Oracle Corp. (ORCLE), Jabil Circuit Inc.(JBL), Adobe Systems Inc (ADBE), Quanex Building Products Corp (NX), Enghouse Systems Ltd (ENGH CN)
** None expected Friday

Have a wonderful evening everyone.

Be magnificent!

Yoga is concerned with freedom from spiritual disturbance.
The first step in yoga is to engage in introspection,
and thereby understand the inner obstacles that must be overcome.
The purpose of yoga is to weaken the hindrances which obstruct knowledge of the soul.
There are five hindrances: ignorance, egoism, attachment, aversion and tenacity.
Patanjali

As ever,

Carolann

Judge a man by his questions, rather than by his answers.
-Voltaire, 1694-1778

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

December 14, 2016

December 14, 2016 Newsletter

Dear Friends,

Tangents:

The Poem
Sunrise Over Bethlehem

By Ruth Padel

Tell it how you like, it comes to the same
thing: a baby, displaced parents and their midnight
visitors from opposite walks of life.
Shepherds but also kings, the not-so-wise
wise men who brought rich gifts
and triggered a massacre.
All the children of Bethlehem
and the coasts thereof. The family became
refugees, seeking asylum.
Robin, listen closely in your sleep.
This touches you, doesn’t it? Christmas
is children, gift-giving, persecution – and lost sheep.

This is an extract of the poem from “Tidings”, published by Chatto & Windus.
PHOTOS OF THE DAY

A woman plays with dogs in a snow-covered park in Vilnius, Lithuania on Wednesday. Mindaugas Kulbis/AP

People enjoy ice skating on the black ice of Lake Seealpsee in Schwende, Switzerland, on Wednesday, with the peak of Saentis in the background. Gian Ehrenzeller/Keystone/AP
Market Closes for December 14^th, 2016

Market Index	Close	Change
Dow Jones	19792.53	-118.68 -0.60%

S&P 500	2253.28	-18.44 -0.81%

NASDAQ	5436.672	-27.157 -0.50%

TSX	15196.48	-188.79
		-1.23%

International Markets

Market Index	Close	Change
NIKKEI	19253.61	+3.09
		+0.02%
HANG SENG	22456.62	+9.92
		+0.04%
SENSEX	26602.84	-94.98
		-0.36%
FTSE 100	6949.19	-19.38
		-0.28%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.790	1.756
CND. 30 Year Bond	2.393	2.376
U.S. 10 Year Bond	2.5707	2.4713
U.S. 30 Year Bond	3.1876	3.1295

Currencies

BOC Close	Today	Previous
Canadian $	0.75277	0.76117
US $	1.32840	1.31378

Euro Rate 1 Euro=		Inverse
Canadian $	1.39711	0.71576
US $	1.05172	0.95093

commodities

Gold	Close	Previous
London Gold Fix	1162.25	1158.55

Oil	Close	Previous
WTI Crude Future	51.04	52.98

Market Commentary:
Canada
By Eric Lam
(Bloomberg) — Canadian stocks fell the most in a month as energy producers dropped with crude and banks retreated from a record after the Federal Reserve raised rates for the first time this year.
The S&P/TSX Composite Index lost 1.2 percent to 15,197.18 at 4 p.m. in Toronto, resuming its day-long slide after a brief spike higher in the minutes after the release of the Fed decision. The gauge has risen about 17 percent in 2016, the top performer among developed markets tracked by Bloomberg, ahead of No. 2 market Norway’s 14 percent advance.
Fed policy makers raised the benchmark rate a quarter percentage point following a two-day meeting in Washington. New projections show central bankers expect three quarter-point rate increases in 2017, up from the two seen in the previous forecasts in September, based on median estimates.
“There is some optimism built into the outlook, as the dot forecast now projects one more rate hike in 2017 than was previously the case,” Avery Shenfeld, chief economist at CIBC World Markets, said in a note to clients. “The higher dot forecast will have markets adding a bit to expectations for rate hikes ahead.”
Energy producers lost 1.8 percent as a group as all 11 industries in the S&P/TSX fell on trading volume 20 percent higher than the 30-day average. Canadian Natural Resources Ltd. and Encana Corp. declined at least 2.4 percent. Crude futures in New York lost 3.7 percent, retreating from the highest closing price since July 2015. Supplies at the biggest U.S. storage hub at Cushing, Oklahoma rose to a six-month high.
Royal Bank of Canada and Bank of Nova Scotia slipped at least 0.6 percent to lead lenders lower. North American markets sold off after the Fed’s announcement. Gold fell, erasing earlier gains and sliding to the lowest level since February as the dollar advanced against major peers.
Raw-material stocks have risen the most among 11 industry groups in the S&P/TSX this year with a 35 percent advance, followed by a 31 percent gain in energy shares. Teck Resources Ltd., Canada’s largest diversified mining company, is up more than five-fold on a resurgence in commodities from metallurgical coal to zinc.
In other moves:
* Valeant Pharmaceuticals International Inc. lost 3.3 percent after Wells Fargo senior analyst David Maris warned that there may be some “instability” at the drugmaker following the departure of three executives, making the sale of business units less likely; investor Bill Ackman’s Pershing Square also sold shares of the drugmaker for tax-loss purposes
* Merus Labs International Inc. sank 21 percent to a three-year low as fourth-quarter results missed expectations; the company said 2017 will be a transition year, with the second half expected to be “significantly stronger” than the first
* Street Capital Group Inc. surged 17 percent, to the highest close since August 2015, after its subsidiary Street Capital Financial Corp. received a Schedule I bank license from Canadian regulators.
US
By Oliver Renick
(Bloomberg) — U.S. stocks slipped as all 11 groups in the S&P 500 Index turned negative after the Federal Reserve raised interest rates and forecast a steeper path for borrowing cost increases next year.
The S&P 500 Index fell 0.8 percent to 2,253.28 at 4 p.m. in New York after setting a record Tuesday. The Dow Jones Industrial Average dropped 118.68 points to 19,792.53. The Russell 200 Index fell 1.3 percent.
* Financial shares down 0.6% after briefly jumping in the wake of the Fed news
* Tech stocks erase earlier gains as leaders from the industry head to Trump Tower to meet with the president-elect
* Energy shares down 2.1% as crude fell after a report that showed supplies at the biggest U.S. storage hub rose to a six- month high
* Futures traders had priced in higher borrowing costs as a virtual certainty at today’s meeting
* Utilities and consumer-staples stocks had been leading intraday market gains until the hike; ended down 2% and 1%, respectively
** Utilities had climbed 4% in the past week before today as phone shares and staples stocks also rallied; financial and industrial companies were down at least 0.4% in past week
* New projections show central bankers expect three quarter- point rate increases in 2017, up from the two seen in the September forecast
** More on expectations from the central bank here
* For Stephane Barbier de la Serre, strategist at Makor Capital Markets in Geneva, whatever the outcome of the Fed meeting, any signs of dovishness by the central bank would increase the risk of a drop in bond prices
* The recent rally in stocks has sent the Dow to its most “overbought” level since 1996. A pullback for the relative strength index below 70 could spur more declines, according to technical analysis
* The Nasdaq 100 also rallied on Tuesday, reaching a fresh record
* EARNINGS:
** Before market Thursday: Sanderson Farms Inc. (SAFM), Scholastic Corp (SCHL)
** After market Thursday: Oracle Corp. (ORCLE), Jabil Circuit Inc. (JBL), Adobe Systems Inc (ADBE), Quanex Building Products Corp (NX), Enghouse Systems Ltd (ENGH CN)

Have a wonderful evening everyone.

Be magnificent!

The only way to achieve consciousness is by concentrating on the physical, the mental, and the spiritual.
Concentration on the powers of the spirit to discover unity in diversity is called consciousness.
All that draws on unity is moral; all that draws on diversity is immoral.
Swami Vivekananda.

As ever,

Carolann

You can never leave footprints that last if you are always walking on tiptoe.
-Leymah Gbowee, b. 1972

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

December 13, 2016

December 13, 2016 Newsletter

Dear Friends,

Tangents:

Full moon tonight!

HOLIDAY TODAY: Saint Lucia Day/Luciadagen
Lucia was a Sicilian girl caught up in the persecutions of Diocletian c. 304. One legend relates that a nobleman wanted to marry her for the beauty of her eyes, so she tore them out and gave them to him, saying “Now let me live to God.” Her name derives from Latin lux, or light; she is the patron saint of sufferers of eye trouble (as well as writers, known to be susceptible to eye strain!).
In Sicily, Lucia is still honored by bonfires and torchlight parades. In Sweden the observance of her day begins before sunrise. The eldest daughter of the house is the Lussibruden, or Lucia Bride. She wears a white dress with a red sash, and an evergreen wreath with lighted candles atop her head. She serves saffron buns and coffee to the household. She is followed by her sisters, carrying candles, and by her brothers – all decorated. All sing carols offering thanks to the Queen of Light.
Lucia’s attributes may derive from pagan traditions. The feminine elements of midwinter and night are complemented by the starboys who follow her. Like the moon, she brings radiance amidst the darkness. Her evergreens are proof of life amidst winter’s bleakness. She wears white to show the virtue becoming a bride. But, as the eldest girl, she is ready for marriage and childbearing, hence her red sash. Her gifts of food and drink give evidence of earth’s abundance.
However one may understand Luciadagen, the spectacle is breathtaking and the ritual is particularly joyful for children.
PHOTOS OF THE DAY

The ‘Kongl. Teknologkoren’ choir performs in Seglora church, at the open-air museum Skansen, on Saint Lucy’s Day in Stockholm, Sweden on Tuesday. Henrik Montgomery/News Agency/Reuters

Villagers wait to take part in the Divina Pastora procession, as part of a festival to honor the Virgin of Los Rondeles, in the southern Spanish village of Casarabonela, near Malaga, late Monday. Villagers celebrate the festival on the eve of St. Lucia’s Day and hold torches during the procession to represent light and vision. St. Lucia is the patron saint of vision. Jon Nazca/Reuters

A Nepalese Buddhist woman lights butter lamps on full moon day at the Boudhanath Stupa in Kathmandu, Nepal on Tuesday. The Boudhanath Stupa is an important pilgrimage site for Buddhists. Niranjan Shrestha/AP
Market Closes for December 13^th, 2016

Market Index	Close	Change
Dow Jones	19911.21	+114.78 +0.58%

S&P 500	2271.72	+14.76 +0.65%

NASDAQ	5463.828	+51.289 +0.95%

TSX	15385.27	+97.57
		+0.64%

International Markets

Market Index	Close	Change
NIKKEI	19250.52	+95.49
		+0.50%
HANG SENG	22446.70	+13.68
		+0.06%
SENSEX	26697.82	+182.58
		+0.69%
FTSE 100	6968.57	+78.15
		+1.13%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.756	1.753
CND. 30 Year Bond	2.376	2.382
U.S. 10 Year Bond	2.4713	2.4731
U.S. 30 Year Bond	3.1295	3.1554

Currencies

BOC Close	Today	Previous
Canadian $	0.76117	0.76168
US $	1.31378	1.31288

Euro Rate 1 Euro=		Inverse
Canadian $	1.39599	0.71634
US $	1.06258	0.94111

Commodities

Gold	Close	Previous
London Gold Fix	1158.55	1156.10

Oil	Close	Previous
WTI Crude Future	52.98	52.83

Market Commentary:
Canada
By Eric Lam
(Bloomberg) — Canadian stocks rose for the seventh time in eight days, resuming their climb after a pause on Monday, as big banks and energy producers helped push the benchmark index to the highest close since April 2015.
The S&P/TSX Composite Index rose 0.6 percent to 15,385.27 at 4 p.m. The gauge has risen 18 percent in 2016, the top performer among developed markets tracked by Bloomberg, ahead of No. 2 market Norway’s 15 percent advance.
Royal Bank of Canada and Toronto-Dominion Bank each added at least 0.9 percent as financial services stocks hit a fresh record. Seven of 11 industries in the S&P/TSX advanced, with utilities, consumer staples and information technology shares also climbing.
Canadian equities joined a rally in U.S. markets amid anticipation of increasing Federal Reserve interest rates and greater economic growth under President-elect Donald Trump’s policies. Traders are pricing in a 100 percent chance of a Fed rate hike Wednesday, according to data compiled by Bloomberg.
Energy producers climbed 1.9 percent, to the highest since June 2015, as oil closed at a 17-month high. In the U.S., crude stockpiles probably fell last week, a Bloomberg survey showed.
Raw-material stocks are the top industry among 11 in the S&P/TSX this year with a 38 percent advance, followed by a 33 percent gain in energy shares. The rallies have been driven by rebounding gold and crude prices in 2016. Teck Resources Ltd., Canada’s largest diversified mining company, is up more than five-fold on a resurgence in commodities from metallurgical coal to zinc.
In other moves:
* Canopy Growth Corp. rose 7.9 percent, the most since Nov. 23, after the government released a highly anticipated report providing a road map for legalizing and regulating marijuana, including more than 80 recommendations
* Husky Energy Inc. ended down 1.3 percent, reversing an earlier gain, after the company said it plans to conduct a partial turnaround for its Lima, Ohio refinery that will last five weeks, CFO Jonathan McKenzie said in a 2017 guidance conference call.
US
By Oliver Renick
(Bloomberg) — U.S. stocks rallied to new highs as investors turned their focus to the Federal Reserve’s first policy decision and outlook since the U.S. elections due on Wednesday. The Dow Jones Industrial Average climbed for a seventh straight session and is fewer than 90 points from crossing 20,000.
The S&P 500 Index added 0.7 percent at 2,271.72 at 4 p.m. in New York. The Dow rose 0.6 percent to 19,911.21 while the Nasdaq 100 jumped 1.3 percent to 4,935.84, the highest ever. Small-cap shares were little changed, trailing S&P 500 for the second day in a row.
* Nine of 11 S&P 500 industry groups rose, with industrial and materials shares down no more than 0.2%
* Tech companies up 1.3%, with gains of at least 2.1% in Facebook Inc. (FB), Intel Corp. (INTC), Red Hat Inc. (RHT), CA Inc. (CA) and Seagate Technology Plc (STX)
* High-dividend groups including phone and utility companies gained at least 0.6%; consumer staples reversed earlier losses to add 0.4%
* WTI crude futures were little changed after rallying earlier.
Contracts at the U.S. equity close traded around $52.81 a barrel, as the International Energy Agency said global oil markets will swing from surplus to deficit in the first half of 2017 as OPEC and other producers follow through on an accord to cut supply
* A U.S. interest-rate increase is seen as a virtual certainty by traders, with market-implied probabilities standing at 100% for the decision Wednesday and all 77 Bloomberg-surveyed economists expecting a 25 basis-point increase
* Investors will focus on how policy makers may change their 2017 forecasts, and what Fed Chair Janet Yellen will say about the economic outlook
* EARNINGS:
** Before market Wednesday: Joy Global Inc (JOY)
** After market Wednesday: Arrowhead Pharmaceuticals Inc (ARWR), Ocean Rig UDW Inc. (ORIG), Civitas Solutions Inc. (CIVI), Pier 1 Imports Inc. (PIR), Apogee Enterprises Inc. (APOG), Empire Co Ltd (EMP/A CN)

Have a wonderful evening everyone.

Be magnificent!

What is the object of jnâna yoga? Freedom.
Freedom from what? Freedom from our imperfections, freedom from the suffering of life.
Why are we unhappy? We are unhappy because we are enslaved. And what are we enslaved by?
The enslavement of nature. Who enslaves us?
We do, ourselves.
Swami Vivekananda

As ever,

Carolann

Nothing is more responsible for the good old days than a bad memory.
-Franklin P. Adams, 1881-1960

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

December 12, 2016

December 12, 2016 Newsletter

Dear Friends,

Tangents:
1901 – December 12 – Communications – Italian scientist and engineer Guglielmo Marconi receives the first transatlantic radio message on Signal Hill, from 3,200 km away across the Atlantic Ocean from Poldhu, Cornwall; on December 16, he is officially notified by the Anglo-American Telegraph Company that it will take legal action against him unless he immediately ceases his wireless experiments and removes his equipment from Newfoundland. St. John’s, Newfoundland.

In his journal, Guglielmo Marconi describes the first transatlantic radio communication received by him in St John’s, Newfoundland from Poldhu in Cornwall, December 12^th,1901:

Shortly before midday I placed the single earphone to my ear and started listening. The receiver on the table before me was very crude – a few coils and condensers and a coherer – no valves, no amplifiers, not even a crystal. But I was at last on the point of putting the correctness of all my beliefs to the test. The answer came at 12:30 when I heard, faintly but distinctly, pip-pip-pop. I handed the phone to Kemp: “Can you hear anything?” I asked. “Yes, “ he said, “the letter S” – he could hear it. I knew then that all my anticipations had been justified. The electric waves sent out into space from Poldhu had traversed the Atlantic – the distance, enormous as it seemed then, of 1,700 miles – unimpeded by the curvature of the earth. The result meant much more to me than the mere successful realization of an experiment….I now felt for the first time absolutely certain that the day would come when mankind would be able to send messages without wires not only across the Atlantic bit between the farthermost ends of t
he earth.
PHOTOS OF THE DAY

People enjoy a stroll on the ice of Lago Bianco on Monday, near Poschiavo, Switzerland. Gian Ehrenzeller/Keystone/AP

People tour a Christmas attraction featuring a display of more than 800,000 light bulbs in Universal Studios Singapore on Monday. Edgar Su/Reuters
Market Closes for December 12^th, 2016

Market Index	Close	Change
Dow Jones	19796.43	+39.58 +0.20%

S&P 500	2256.97	-2.56 -0.11%

NASDAQ	5412.539	-31.958 -0.59%

TSX	15298.31	-13.89
		-0.09%

International Markets

Market Index	Close	Change
NIKKEI	19155.03	+158.66
		+0.84%
HANG SENG	22433.02	-327.96
		-1.44%
SENSEX	26515.24	-231.94
		-0.87%
FTSE 100	6890.42	-63.79
		-0.92%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.753	1.730
CND. 30 Year Bond	2.382	2.342
U.S. 10 Year Bond	2.4731	2.4675
U.S. 30 Year Bond	3.1554	3.1529

Currencies

BOC Close	Today	Previous
Canadian $	0.76168	0.75891
US $	1.31288	1.31767

Euro Rate 1 Euro=		Inverse
Canadian $	1.39646	0.71610
US $	1.06366	0.94015

Commodities

Gold	Close	Previous
London Gold Fix	1156.10	1163.60

Oil	Close	Previous
WTI Crude Future	52.83	51.50

Market Commentary:
Canada
By Eric Lam
(Bloomberg) — Canadian stocks fell for the first time in seven days, halting the longest streak of gains since March, as railway operators led industrial shares lower.
The S&P/TSX Composite Index lost 0.2 percent to 15,287.70 at 4 p.m., pulling back from the highest level since May 2015. The benchmark gauge has risen almost 18 percent in 2016, the top performer among developed markets tracked by Bloomberg, ahead of No. 2 market Norway’s 15 percent advance.
Canadian National Railway Co. lost 2.3 percent, the most in six weeks, after Roddy Boyd’s Southern Investigative Reporting Foundation mentioned the stock cautiously, discussing Ontario auditors’ accusations in November that Canadian National and competitor Canadian Pacific Railway Ltd. overcharged the province’s transit agency. The pair drove a 1.7 percent loss in industrial stocks.
Canadian National said in an e-mailed statement that the report’s allegations are false and based on information from fired employees terminated for alleged fraud and subject to ongoing litigation.
Energy producers added 0.4 percent, paring an earlier gain. Oil jumped to the highest price since July 2015 after Saudi Arabia signaled it’s ready to cut output more than earlier agreed and non-OPEC countries including Russia pledged to pump less next year. Canadian Natural Resources Ltd. and Cenovus Energy Inc. each rose at least 0.7 percent.
Raw-materials producers are the top industry among 11 in the S&P/TSX this year with a 39 percent advance, followed by a 31 percent gain in energy shares, driven by rebounding gold and crude prices in 2016. Teck Resources Ltd., Canada’s largest diversified mining company, is up almost six-fold on a resurgence in commodities from metallurgical coal to zinc.
In other moves:
* Open Text Corp. slipped 2 cents to the lowest level in a month after proposing an offering of shares to raise $500 million to finance a portion of the purchase price for its previously announced deal to buy Dell’s enterprise content business for $1.62 billion
* WestJet Airlines Ltd. added 1.8 percent to a two-month high after reporting a November load factor of 80 percent, up 1.4 percent from year-ago levels.
US
By Oliver Renick
(Bloomberg) — U.S. stocks fell as financial shares dropped and a rally in energy companies faded after crude oil pared some gains on expectations for a supply cut.
The S&P 500 Index slipped 0.1 percent to 2,259.96 at 4 pm. in New York, the first decline in seven sessions. The S&P 500 Index, Dow Jones Industrial Average and Russell 2000 Index all closed at records on Friday. The Dow Jones added 0.2 percent to 19,769.43 Monday.
* Financial stocks down 0.9 percent, weighed by 3.5 percent drop in Navient (NAVI) and declines of at least 2.6 percent in Ameriprise Financial (AMP) and People’s United Financial Inc.
(PBCT)
* Phone and utilities companies extend Friday’s rally with 10- year Treasury little changed as bond proxy stocks including REITs rallied after gaining last week
* Energy stocks up 1.4 percent after climbing as much as 2.5 percent, with all but 11 companies in 36-member index advancing
* Dow lifted by gains of at least 2.2 percent in Pfizer (PFE), Johnson & Johnson (JNJ), Exxon (XOM)
* Goldman Sachs basket of most-shorted companies lost 1.3 percent; up 15 percent since election
*       WTI futures up 2.6 percent after Saudi Arabia signaled it’s ready to cut output more than earlier agreed and non-OPEC countries including Russia pledged to pump less next year
*       The Shanghai Composite Index fell 2.5 percent, the most in six months
*       The U.S. is primed for a rate hike this week, with the Federal Reserve set to announce its decision on Wednesday
* EARNINGS:
** After market: VeriFone Systems Inc (PAY), Peregrine Pharmaceuticals Inc. (PPHM), Investors Real Estate Trust (IRET)
** After market Tuesday: ABM Industries Inc. (ABM), HEICO Corp.
(HEI), Nordson Corp. (NDSN)
By David Goodman and Jeremy Herron
(Bloomberg) — Most U.S. stocks retreated as a rally that took crude oil to the highest price in 17 months eased, with the focus shifting to the Federal Reserve’s forthcoming policy meeting. Treasuries pared declines that pushed 10-year yields above 2.5 percent for the first time since 2014.
While energy stocks jumped with utilities, losses in bank shares saw the S&P 500 Index slip in afternoon trading Monday. A gauge of small-cap companies retreated by more than 1 percent as benchmark indexes in the U.S. fell from record highs, even as blue-chip shares advanced. Oil climbed 2.6 percent, paring a rally that exceeded 5 percent on a deal to cut output between OPEC and other producers. Chinese shares sank the most since June amid concern the nation’s property market is in poised to decline. Gold increased.
The oil deal lit a fire under crude prices, fueling an increase in investors’ expectations for global inflation and exacerbating a bond rout that had been supercharged by Donald Trump’s victory in the U.S. election. The prospect of increased price pressures is coloring the market’s outlook for central- bank policy, with traders seeing 100 percent odds of a rate hike from the Fed this week, and a two-in-three chance of additional policy tightening by June, according to Bloomberg calculations based on Fed fund futures.
Stocks
* The S&P 500 Index fell 0.1 percent to 2,2256.96 as of 4 p.m. in New York, after rising 3.1 percent last week.
* The Dow Jones Industrial Average climbed 0.2 percent and briefly topped 19,800, while the Nasdaq 100 Index slumped 0.6 percent.
* The Stoxx Europe 600 Index fell 0.5 percent in the wake of its steepest weekly rally in almost two years. Still, commodity producers and miners gained, with the Stoxx 600 Oil & Gas Index up 2.2 percent.
* The MSCI Emerging Market Index dropped 0.5 percent for a second straight day of declines.
* Most Asian index futures signaled losses for Tuesday, with Nikkei 225 Stock Average futures down 0.8 percent in Osaka.

Commodities
* West Texas Intermediate crude climbed to $52.83 a barrel after earlier climbing above $53. Brent oil futures added $1.36 to $55.69. Both contracts settled at their highest prices since July last year.
* The deal between OPEC members and outside nations, including Russia, was agreed at a meeting in Vienna at the weekend. It should usher in the first global petroleum cuts in 15 years and covers about 60 percent of the world’s output.
* Copper futures slumped 1.5 percent, erasing a gain of as much as 1.4 percent after data showed London Metal Exchange inventories rose the most since June.
* Gold futures rebounded after sliding to a 10-month low as the Fed prepares to raise rates, damping the metal’s appeal as a store of value.

Bonds
* Ten-year Treasury yields rose as much as six basis points before paring the advance to be up one basis point at 2.48 percent.
* Hedge funds and other large speculators raised bearish bets on 10-year Treasuries to the highest level in almost two years last week, more than doubling them to a net 228,604 contracts, according to the latest Commodity Futures Trading Commission data.
* Germany’s yield curve, as measured by the spread between two- and 30-year bonds, reached its widest point since 2014, based on closing prices, while a similar gauge for Japan expanded for a fifth day.
* Ten-year U.K. bond yields climbed four basis points, or 0.04 percentage point, to 1.49 percent.

Currencies
* Oil-exporting currencies lead gains against the dollar, with the Russian ruble gaining 2.4 percent and the Norwegian krone and Mexican peso advancing at least 0.8 percent
* The euro gained 0.7 percent to $1.0633, after dropping 1 percent last week.
* Japan’s yen gained 0.3 percent to 115 per dollar, halting a two-day retreat.

Have a wonderful evening everyone.

Be magnificent!

What we are about to undertake is an expedition together, a journey of discovery
into the most secret recesses of our consciousness.
And for such an adventure we must travel light, we cannot burden ourselves
with opinions, prejudices, conclusions that is, with all the baggage that we have collected
over the past two thousand years or more. Forget everything you know about yourself;
forget everything that you have thought about yourself;
we are going to set off as if we know nothing.
Krishnamurti

As ever,

Carolann

We know what we are, but know not what we may be.
-William Shakespeare, 1564-1616

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

December 12, 2016

December 9, 2016 Newsletter

Dear Friends,

Tangents:

We had our annual office Christmas party last night which began with dinner prepared by Rob Cassels, executive Chef at Saveur restaurant. We tried the five course tasting menu and we all raved about it last night as it unfolded and today as we remembered how wonderful it was. Cassels is an incredible chef and if you haven’t been to Saveur yet – you must plan a visit. Chef Cassels worked for a while in Charlie Trotter’s kitchen from where he surely derives some of his culinary talent. Gary and I went to Trotter’s famous restaurant in Chicago after it was awarded two Michelin stars in 2010. It was an amazing experience! It received two Michelin stars the following year as well in 2011. In 2013, Trotter deservedly was inducted into the Culinary Hall of Fame. Unfortunately, he died prematurely later that year at only 54 years of age. Fortunately, he published many cook books during his life and I use them all the time. You can probably still order them on Amazon too.

STREET VIEW
In Hanoi, Vietnam, street vendors carry goods from flowers to bananas on their bicycles. Photographer Loes Heerink captured images of these vendors from a bird’s-eye view and presents an intriguing portrait of everyday life in Vietnam. Find her series at http://loesheerink.com.
PHOTOS OF THE DAY

The Eiffel Tower and the Tour Montparnasse emerge from the haze in a photo taken from an airplane window on Thursday, as Paris suffers a pollution spike. Milos Krivokapic/AP

Japan’s H-IIB rocket with a capsule called Kounotori, or stork, lifts off at the Tanegashima Space Center in Tanegashima, southern Japan on Friday evening. The Japanese capsule contains nearly 5 tons of food, water and other supplies, including new lithium-ion batteries for the International Space Station’s solar power system. Ryosuke Uematsu/Kyodo News/AP

Snow falls around the Space Needle on Thursday in Seattle. Grant Hindsley/seattlepi.com/AP
Market Closes for December 9^th, 2016

Market Index	Close	Change
Dow Jones	19756.85	+142.04 +0.72%

S&P 500	2259.53	+13.34 +0.59%

NASDAQ	5444.498	+27.141 +0.50%

TSX	15312.20	+17.00
		+0.11%

International Markets

Market Index	Close	Change
NIKKEI	18996.37	+230.90
		+1.23%
HANG SENG	22760.98	-100.86
		-0.44%
SENSEX	26747.18	+52.90
		+0.20%
FTSE 100	6954.21	+22.66
		+0.33%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.730	1.663
CND. 30 Year Bond	2.342	2.278
U.S. 10 Year Bond	2.4675	2.4071
U.S. 30 Year Bond	3.1529	3.1053

Currencies

BOC Close	Today	Previous
Canadian $	0.75891	0.75778
US $	1.31767	1.31964

Euro Rate 1 Euro=		Inverse
Canadian $	1.39148	0.71866
US $	1.05602	0.94696

Commodities

Gold	Close	Previous
London Gold Fix	1163.60	1171.05

Oil	Close	Previous
WTI Crude Future	51.50	50.84

Market Commentary:
Canada
By Eric Lam
(Bloomberg) — Canadian stocks rose for a sixth day, the longest stretch of gains since March, as big banks continued their record rally and energy producers climbed with crude.
The S&P/TSX Composite Index added 0.1 percent to 15,312.20, the highest level since May 2015. The benchmark gauge has risen almost 18 percent in 2016, the top performer among developed markets tracked by Bloomberg, ahead of No. 2 market Norway’s 15 percent advance.
A gauge of Canada’s largest lenders rose 0.7 percent, gaining for a fourth straight day toward a record high. The gauge has advanced 20 percent this year. Canadian Western Bank and Bank of Nova Scotia have been among the top performers, each gaining at least 34 percent. Canadian Western operates primarily in oil-rich western Canada.
Financial services stocks overall are up 20 percent this year. Raw-materials producers are the top industry among 11 in the S&P/TSX with a 39 percent advance, followed by a 30 percent gain in energy shares, driven by rebounding gold and crude prices in 2016. Teck Resources Ltd., Canada’s largest diversified mining company, is up six-fold on a resurgence in commodities from metallurgical coal to zinc.
In other moves:
* Energy producers rose 0.4 percent Friday, resuming their advance after a two-day slide as oil sold for more than $51 a barrel in New York; Saudi Arabia was said to have informed its customers it will stand by its commitment to cut production as OPEC meets with non-members to discuss output reductions
* Internet network company Sandvine Corp. sank 11 percent to the lowest level since July after reporting preliminary fourth- quarter sales short of estimates due to weakness in cable market
* Retailer Sears Canada Inc. lost 2.1 percent as third-quarter comparable sales tumbled 7.1 percent while revenue also retreated from year-ago levels
US
By Joseph Ciolli
(Bloomberg) — Gains in consumer staples stocks, health- care companies and tech firms sent U.S. equities higher for a sixth day as the S&P 500 Index, Dow Jones Industrial Average and Russell 2000 Index all closed at records Friday.
The S&P 500 climbed 0.6 percent to 2,259.53 at 4 p.m. in New York, posting its biggest weekly gain since the presidential election in November, while the Dow added 142 points to 19,756.85. Global equities rose as crude oil gained for a second straight day ahead of an OPEC meeting in Vienna on Saturday where production cuts are expected to be discussed.
* VIX decreases 7.4 percent; biggest weekly decline since the U.S. presidential election outcome
* Officials at the Federal Reserve are set to announce a decision on interest rates on Dec. 14. Traders are pricing in a 100 percent chance they’ll raise borrowing costs, compared with 68 percent odds at the start of November.
* The European Central Bank’s decision Thursday to expand its quantitative-easing program at a reduced monthly pace is giving global equities a boost, as it continues to depress borrowing costs for companies. The ECB expanded its stimulus program to exceed 2 trillion euros by the end of 2017, saying that it can step up or prolong purchases if necessary.
(Bloomberg) — The S&P 500 extended its rally to the longest since June 2014 as benchmark indexes added to all-time highs, with health-care shares and consumer staples taking a turn pacing gains. Oil powered above $51 a barrel on signs producers are following through with agreed production cuts.
The post-election rally in American equities plowed ahead even as the Federal Reserve looks certain to raise interest rates next week. Makers of household products led gains Friday after lagging behind for much of the post-election rally that’s added more than $1 trillion to the value of U.S. equities. Bank shares pushed gains in the past month to 18 percent.U.S. crude rose before OPEC meets in Vienna with non-member representatives. The dollar headed toward an 18-month high, supported by wagers on higher rates.
Speculation that Donald Trump’s policies will boost the economy enough to withstand the effects of higher interest rates lifted consumer confidence to the most in almost two years. At the same time, the European Central Bank’s pledge to expand its limits on asset purchases to include shorter-dated securities is expected to drive down borrowing costs for banks even though the central bank has announced it will curtail monthly additions after March, and is being interpreted as a buy signal in many quarters of the financial markets.
Stocks
* The S&P 500 rose 0.4 percent to 2,255.31 at 4 p.m. in New York, to cap a 3 percent rally in the week. The gauge closed at a record and is up 5.3 percent since the Nov. 8 election.
* The Dow Jones Industrial Average jumped 131.61 points to a record 19,746.42, concluding a weekly gain of 3 percent. Goldman Sachs Group Inc. pushed its gain since the Nov. 8 election to 33 percent.
* The Stoxx Europe 600 Index climbed 1 percent, for its best week since January 2015. Drugmakers, media and real estate companies were the best performers.
* Emerging-market equities fell 0.3 percent to pare a weekly gain to 2.7 percent, the most since September.

Commodities
* West Texas Intermediate crude advanced 1.3 percent to settle at $51.50 a barrel, the highest close since Monday.
* Saudi Arabia was said to have informed its customers it will stand by its commitment to cut production before OPEC meets with producers from outside the group to discuss reductions.
* Gold futures closed at the lowest level since February as the Federal Reserve gears up to raise rates. The metal lost 0.9 percent to settle at $1,161.90 an ounce.
* Copper and zinc both gained.

Currencies
* The dollar advanced 0.6 percent to $1.0557 per euro, having jumped 1.3 percent on Thursday.
* The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, rose 0.5 percent to finish the week higher.* Investors see a 100 percent probability of an increase in U.S. interest rates on Dec. 14, according to pricing in federal funds futures contracts.

Bonds
* U.K. government bonds slid, with the 10-year gilt yield jumping three basis points to 1.41 percent after the Bank of England said U.K. consumers’ inflation expectations jumped to the highest in more than two years.
* Treasuries with a similar due date extended their fifth weekly drop, with the yield rising nine basis points in the period to 2.47 percent.

Have a wonderful weekend everyone.

Be magnificent!

Fear comes from the selfish idea
of cutting one’s self off from the universe.
Swami Vivekananda

As ever,

Carolann

Failure will never overtake me if my determination
to succeed is strong enough.
-Og Mandino, 1923-1996

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

December 8, 2016

December 8, 2016 Newsletter

Dear Friends,

Tangents:

From the New York Times last Sunday:
C.D. Wright (1949-2016) died suddenly earlier this year. Whether she was writing about social issues, like the life of prisoners in Louisiana, or the personal, her poetry was always marked by intelligence, passion and a genuine inquiry. This poem sets a vivid scene then seems to take the words of an unnamed rambler – “we’ll pick up at the next chapter/my beloved” – as emblematic for the thrilling and troubling distances in a relationship.

Light Bulb Poem
By C.D. Wright

at 4 o’clock I am at the door
with a bare hand of snow
laughing shamelessly
I undo my shirt
we’ll pick up at the next chapter
my beloved are the words
of the rambler
if not the words the substance
the snow smeared across my front
warm to the touch
though we remain separated
as if by a chair
and I unwilling to read ahead.
PHOTOS OF THE DAY

A rainbow shines in the sky above the city following a rainstorm, in Beit Lahiya City, Gaza Strip on Thursday. Adel Hana/AP

Aaron from San Francisco, wearing a Hillary Clinton mask, gives a thumbs up as he walks through the lobby of Trump Tower in New York on Thursday. Andrew Harnik/AP
Market Closes for December 8^th, 2016

Market Index	Close	Change
Dow Jones	19614.81	+65.19 +0.33%

S&P 500	2246.19	+4.84 +0.22%

NASDAQ	5417.355	+23.594 +0.44%

TSX	15295.20	+57.45
		+0.38%

International Markets

Market

Index

Close

Change

NIKKEI

18765.47

+268.78

+1.45%

HANG

SENG

22861.84

+60.92

+0.27%

SENSEX

26694.28

+457.41

+1.74%

FTSE 100

6931.55

+29.32

+0.42%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	1.663	1.602
CND. 30 Year Bond	2.278	2.211
U.S. 10 Year Bond	2.4071	2.3473
U.S. 30 Year Bond	3.1053	3.0305

Currencies

BOC Close	Today	Previous
Canadian $	0.75778	0.75553
US $	1.31964	1.32358

Euro Rate 1 Euro=		Inverse
Canadian $	1.40100	0.71377
US $	1.06166	0.94192

Commodities

Gold	Close	Previous
London Gold Fix	1171.05	1177.65

Oil	Close	Previous
WTI Crude Future	50.84	49.77

Market Commentary:
Canada
By Eric Lam
(Bloomberg) — Canadian stocks headed for their longest streak of gains since October as big banks extended a rally to record-high levels after reporting quarterly earnings that exceeded analysts’ estimates.
The S&P/TSX Composite Index added 0.4 percent to 15,295.20 at 4 p.m. in Toronto, the highest close since May 2015. The index has risen almost 18 percent in 2016, the top performer among developed markets tracked by Bloomberg, well ahead of No. 2 market Norway’s 13 percent advance.
A measure of financial stocks advanced 1 percent, leading to a record close for the third day in a row. Bank of Nova Scotia, the best-performing of Canada’s six major lenders this year, added 0.8 percent. Bond desks at the six biggest Canadian banks are the big revenue winners this year, as trading from fixed-income products including bonds, currencies and commodities soared 26 percent to C$7.34 billion this fiscal year — the most in at least six years.
Scotiabank, Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada reported financial results that beat analysts’ estimates for the fourth quarter, while Toronto-Dominion Bank matched expectations and Royal Bank of Canada missed. Bank of Montreal rose 2 percent to extend an advance after surging to a record as the lender boosted its dividend.
Financial services stocks overall are up 19 percent this year. Raw-materials producers are the top industry among 11 in the S&P/TSX with a 42 percent advance, followed by energy, fueled by rebounding gold and crude prices in 2016. Teck Resources Ltd., Canada’s largest diversified mining company, is up six-fold on a resurgence in commodities from metallurgical coal to zinc.
In other moves:
* Financial services firm DH Corp. added 3.4 percent for a fourth day of gains, after jumping a record 14 percent yesterday after disclosing it has formed a committee to evaluate a possible sale; stock raised to a buy at Industrial Alliance, with the analyst estimating DH could be worth C$36.52 a share in a takeout
* Energy producers ended flat as crude settled above $50 a barrel in New York. Futures rose in New York, paring a 3.9 percent loss over the previous two sessions as investors shifted their focus to whether OPEC will be able to persuade other producers to commit to output cuts
* Questerre Energy Corp. soared 46 percent, the most since 2008, with the rise possibly linked to the prospect of an energy bill in Quebec coming into force, CEO Michael Binnion said in an interview with Bloomberg
US
By Jeremy Herron and Stephen Kirkland
(Bloomberg) — U.S. stock benchmarks set new records, rising amid a renewed selloff in bonds after Mario Draghi signaled he will bolster stimulus in the euro area if a proposed reduction in the current level of asset purchases fails to shore up the economy.
The European Central Bank’s pledge to cut bond buying, while extending quantitative easing until the end of 2017, initially propelled gains in the euro. The common currency reversed its climb after President Draghi kept the option open to add to asset purchases. The S&P 500 Index tracked gains in European stocks as emerging-market equities also rallied. Treasuries slipped with sovereign debt across Europe, while oil rose above $50 a barrel in New York.
The ECB fueled gains in an equity market still trading off the boost provided by Donald Trump’s election as U.S. president. The S&P 500 is breaking records with the Dow Jones Industrial Average amid speculation Trump will boost fiscal spending, shoring up growth in the world’s largest economy. The attention now shifts to the Federal Reserve, with traders all but convinced policy makers will end the year with an interest-rate hike. The debt market, meanwhile, has been the chief casualty of Trump exuberance, with about $2 trillion rotated out of bonds and into equities since his victory.
The ECB has “left themselves a degree of wiggle room between now and the end of March to say that if conditions are sufficient” they will maintain the current stimulus, said Jeremy Stretch, head of Group-of-10 foreign-exchange strategy at Canadian Imperial Bank of Commerce in London. “There was clearly a degree of surprise in terms of the reference” to the cut from April, he said.
Stocks
* The S&P 500 Index climbed 0.2 percent to 2,246.19 as of 4 p.m. in New York, reaching a new peak and swelling its post-election rally to more than 5 percent. The Dow Average added 65 points to a record 19,614.81, its seventh gain in eight days.
* Financials shares and commodity producers led gains Thursday, with both groups rising at least 0.7 percent, while utilities slipped as the increase in Treasury yields damped demand for their payouts.
* The Stoxx Europe 600 Index added 1.2 percent for a fourth day of gains that took the measure to a one-month high. Banks and resource producers led gains.
* Emerging-market equities climbed 1.3 percent in a fourth straight advance.
* Asian index futures signaled further gains, as contracts on the Nikkei 225 Stock Average climbed at least 0.2 percent with futures on benchmarks in Australia, Hong Kong and South Korea.

Bonds
* Yields on Treasuries due in a decade rose by seven basis points, or 0.07 percentage point, to 2.41 percent after falling almost six basis points in the prior two days.
* Italian sovereign debt securities due in a decade tumbled, sending the nation’s 10-year bond yield up by 11 basis points.

Commodities
* West Texas Intermediate crude jumped 2.2 percent to $50.84 a barrel, with investors pivoting to prospects for the OPEC-led output deal despite a surge in U.S. stockpiles.
* The Organization of Petroleum Exporting Countries has invited 14 producers from outside the group to discuss further curbs at a meeting in Vienna on Saturday.
* “The market seems to be optimistic about this weekend’s meeting and about OPEC’s compliance with its agreement to cut output,” said Rob Haworth, a senior investment strategist in Seattle at U.S. Bank Wealth Management, which oversees $133 billion of assets. “The market has turned positive and price declines will be followed by speculators building and rebuilding positions.”
* Copper futures retreated 0.6 percent, while gold lost 0.3 percent.

Currencies
* The euro slumped 1.3 percent to $1.0615, after earlier gaining as much as 1.1 percent.
* Draghi’s mixed message — reducing bond buying while extending the current purchase program by three more months than economists had expected — initially sent investors scattering in different directions as they struggled to digest its implications.
* The yen dropped 0.2 percent to 114 per dollar, swinging back to losses amid a retreat from haven currencies.
* The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, advanced 0.5 percent, rising for the second time in four days.

Have a wonderful evening everyone.

Be magnificent!

When a man begins to have a vision larger than his own truth,
when he realizes that it is much larger than it at first seemed, he begins to become conscious of his moral nature.
His perspective on life necessarily changes, and his will takes the place of his desires.
So comes about the conflict between our inferior self and our superior self,
between our desires and our will, between our greed for objects that appeal to our senses
and the purpose that comes from the bottom of our heart.
Rabindranath Tagore

As ever,

Carolann

In most things success depends on knowing how long it takes to succeed.
-Charles de Montesquieu, 1689-1755

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