Category: Newsletters

Dear Friends,

Tangents:

On November 24^th, 1801, Dorothy Wordsworth wrote in her journal:

A rainy morning.  We all were well except that my head ached a little, and I took my breakfast in bed.  I read a little of Chaucer, prepared the goose for dinner, and then we all walked out. I was obliged to return for my fur tippet and spencer (a close-fitting jacket or bodice), it was so cold … As we were going along we were stopped at once, at the distance perhaps of fifty yards from our favourite birch tree. It was yielding to the gusty wind with all its tender twigs, the sun shone upon it, and it glanced in the wind like a flying sunshiny shower.  It was a tree in shape, with stem and branches, but it was like a spirit of water.  The sun went in, and it resumed its purplish appearance, the twigs still yielding to the wind, but not so visibly to us.  The other birch trees that were near it looked bright and cheerful, but it was a creature by its own self among them.  –from The Book of Days.

PHOTOS OF THE DAY

The moon sets behind a statue atop the facade of St. Peter’s Basilica at the Vatican before a Mass celebrated by Pope Francis on the occasion of the closing of the Holy Door on Sunday. The Holy Door closing marks the end of the Jubilee of Mercy. Gregorio Borgia/AP

A photographer stops to capture the early morning ground fog on the National Mall in Washington on Saturday. J. David Ake/AP
Market Closes for November 24^th, 2016

Market Index	Close	Change
Dow Jones	19083.18	Closed
S&P 500	2204.27	Closed
NASDAQ	5380.678	Closed
TSX	15075.20	-5.71
		-0.04%

International Markets

Market Index	Close	Change
NIKKEI	18333.41	+170.47
		+0.94%
HANG SENG	22608.49	-68.20
		-0.30%
SENSEX	25860.17	-191.64
		-0.74%
FTSE 100	6829.20	+11.49
		+0.17%

Bonds

Bonds		% Yield		Previous  % Yield
CND. 10 Year Bond		1.589		1.555
CND. 30 Year Bond		2.181		2.184
U.S.    10 Year Bond		2.3498		2.3552
U.S. 30 Year Bond		3.0207		3.0207

Currencies

BOC Close	Today	Previous
Canadian $	0.74127	0.74103
US $	1.34903	1.34947
Euro Rate 1 Euro=		Inverse
Canadian $	1.42420	0.70215
US $	1.05572	0.94722

Commodities

Gold	Close	Previous
London Gold Fix	1186.10	1185.35
Oil	Close	Previous
WTI Crude Future	46.66	46.66

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks ended the day little-changed as energy producers retreated to offset a rally in industrial metals led by First Quantum Minerals Ltd.
     The S&P/TSX Composite Index edged lower to 15,075.20 at 4 p.m. in Toronto on Thursday, erasing an earlier gain of as much as 0.3 percent. Trading volume in the Canadian equity benchmark was 68 percent lower than the 30-day average with U.S. markets closed for the Thanksgiving holiday. The equity benchmark is up 16 percent in 2016, the top performer among developed markets tracked by Bloomberg.
     First Quantum and Turquoise Hill Resources Ltd. climbed at least 2.9 percent as copper stocks led gains with the metal set for its biggest monthly gain in a decade with a 21 percent rally. TransAlta Corp. rose 7.8 percent, the most in seven months, after Alberta said utilities in the Western Canadian province will be compensated for the power-generation capacity they add under new rules to lure investment. Energy producers slipped to offset the advance.
     Among other moves:
* Sherritt International Corp. is up 54 percent during a four- day winning streak with nickel joining the wider rally in industrial metals.
* Diversified miner Teck Resources Ltd., the best-performing stock in the S&P/TSX this year with an almost six-fold gain, rose 0.3 percent, on a four-day rally to the highest in more than three years.
* Bombardier Inc. added 1.1 percent after winning a $620 million option order for 40 double-deck trains for the Normandy region of France.
* Energy stocks slipped 0.2 percent as crude ended little- changed, trading near $48 a barrel in New York. Iraq’s prime minister said the country will shrink production, while Russia said it would go no further than a freeze.
US

US MARKETS CLOSED FOR THANKSGIVING.
Have a wonderful evening everyone.

Be magnificent!

When a man has an idea of what he must be and how he must act,
and undermines this by not ceasing to act in the opposite way,
he must realize that his principles, his beliefs, his ideals,
will inevitably fall prey to hypocrisy and dishonesty.
It is the ideal that begets the opposite of itself.
Krishnamurti

As ever,

 

Carolann

 

I paint object as I think them, not as I see them.
                          -Pablo Picasso, 1881-1973

 

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

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

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

Dear Friends,

Tangents:

On November 23^rd, 1940, George Beardmore wrote in his journal: (Birmingham had been bomber the two previous nights.  He was there to meet his wife Jean and baby daughter and take them to his lodgings in Bromsgrove.)

In New Street Station itself chaos and old night were reigning, also complete ignorance of what was happening.  No trains were arriving from the south and I quickly discovered that no official lived who could tell me how long a passenger from Rugby would take to go to Stafford (for this was Jean’s roundabout route) and come back to Birmingham.  By 6 p.m. a small group of people like me had gathered in the lee of a tin-plate advertisement  on the bridge crossing the lines peering out into the darkness for the first sign of an approaching train.  My compassion was sufficiently roused to take a girl and young fellow, who were starving and seemed completely lost – they were waiting for the arrival of parents from Camden Town – across to the Midland Hotel and give them beef sandwiches and beer before returning to the pitchy hell of the station to meet a train that did not contain Jean…I telephoned the Cottage and heard that  Jean had just arrived at Bromsgrove…
   Jean’s story was characteristic of her.  She had been turned out of the Stafford train at Tamworth and she was wondering what one normally does in Tamworth on a dark night when the ticket inspector said:  “That post office van is going to Birmingham.  You can ask the driver and tell him Mr. Taylor sent you.”  Of course, the carrying of passengers in a mail van is as illegal as you can get, but presently Jean found herself sitting

With the baby among bags of letters and parcels in the rear of the van…” –from The Book of Days.

On Nov. 23, 1943, during World War II, United States forces seized control of the Tarawa and Makin atolls from the Japanese.

November 23, 1936: First Globe & Mail published.
PHOTOS OF THE DAY

From left, Jack, Nikki and Rae Forbes of Asheville, N.C., wear hats to fit the holiday as they head through the terminal after arriving at Denver International Airport early Wednesday. Travelers are criss-crossing the country Wednesday, clogging airport terminals in a rush to reach their Thanksgiving Day destinations. David Zalubowski/AP

Pavilions are seen on a lake during a snow day in Xi’an, Shaanxi province, China on Tuesday. Reuters

The rising sun casts a warm, glowing light where two swimmers are silhouetted near the island of Ruegen in Stralsund, Germany on Wednesday. Stefan Sauer/AP
Market Closes for November 23^rd, 2016

Market Index	Close	Change
Dow Jones	19083.18	+59.31   +0.31%
S&P 500	2204.27	+1.33   +0.06%
NASDAQ	5380.680	-5.670   -0.11%
TSX	15084.29	-16.09
		-0.11%

International Markets

Market Index	Close	Change
NIKKEI	18162.94	+56.92
		+0.31%
HANG SENG	22676.69	-1.38
		-0.01%
SENSEX	26051.81	+91.03
		+0.35%
FTSE 100	6817.71	-2.01
		-0.03%

Bonds

Bonds		% Yield		Previous  % Yield
CND. 10 Year Bond		1.555		1.541
CND. 30 Year Bond		2.184		2.180
U.S.    10 Year Bond		2.3552		2.3119
U.S. 30 Year Bond		3.0207		2.9996

Currencies

BOC Close	Today	Previous
Canadian $	0.74103	0.74391
US $	1.34947	1.34424
Euro Rate 1 Euro=		Inverse
Canadian $	1.42392	0.70228
US $	1.05517	0.94771

Commodities

Gold	Close	Previous
London Gold Fix	1185.35	1212.25
Oil	Close	Previous
WTI Crude Future	46.66	46.63

Market Commentary:
Canada
By Jeremy Herron
     (Bloomberg) — Canadian stocks fluctuated after a four-day rally, as a rout in gold futures sent miners tumbling while investors continued to pile into financial services shares.
     The S&P/TSX Composite Index fell 0.1 percent to 15,080.91 at 4 p.m. in Toronto, after closing Tuesday at the highest level since June 2015. The equity benchmark is up 16 percent in 2016, making it the top performer among developed markets tracked by Bloomberg. Canadian shares are about 11 percent more expensive than their peers in the S&P 500 Index.
     The runup in Canada’s equity benchmark faltered as global shares were little changed amid rising expectations for higher U.S. interest rates. Investors have sought riskier assets since the U.S. election fueled speculation the new administration will implement policies that bolster the world’s largest economy. Gold prices fell below $1,200 Wednesday as the metal’s appeal as a store of value wanes on bets inflation is set to rise.
     Financial stocks, which account for about a third of the S&P/TSX, climbed 0.5 percent, while gold miners led materials producers lower by 2.6 percent. Royal Bank of Canada and Toronto-Dominion Bank, the nation’s two largest banks, both gained at least 0.6 percent. Barrick Gold Corp. lost 4.5 percent
US
By Camila Russo
     (Bloomberg) — The Dow Jones Industrial Average added to its all-time high and the Russell 2000 Index extended a rally to 14 days as data fueled speculation that the world’s largest economy can withstand higher rates that the Federal Reserve has signaled may be imminent.
     Industrial stocks rose the most, with Caterpillar Inc. and United Technologies Corp. adding more than 1 percent on the durable goods data. American Express Co. led advances among financial shares as as the yield on 10-year Treasury notes surged. REITs, utilities and phone shares have struggled in the latest rally as the need for their high dividend yields has waned as bonds plunge. Microsoft Corp. slid 1.2 percent to weigh on technology shares.
     The S&P 500 Index rose 0.1 percent to a record 2,204.61 at 4 p.m. in New York. The Dow rose past 19,080, adding to an all- time high. The Russell 2000 Index of small caps climbed 0.5 percent to the most ever. It’s up 16 percent during its longest winning streak since 1996.
     Stock benchmarks have advanced on speculation Donald Trump’s pledges to cut taxes and increase fiscal spending will boost companies that benefit from economic growth. The fresh equity records also came as American companies ended a five- quarter decline in profits. U.S. markets will be closed on Thursday for the Thanksgiving holiday.
     “The market is quite bullish at the moment but we run into a holiday, so I think people will probably take some chips off the table,” said Christian Zogg, head of equity and fixed income at LLB Asset Management in Vaduz, Liechtenstein. “The market is basically waiting for some concrete measures on the tax side and fiscal spending. So far, there is not much concrete to calculate, so I think today will be rather quiet.”
     Traders are pricing in a 100 percent chance that the Fed will raise interest rates next month, compared with a 68 percent probability at the start of November. Fed officials saw a strengthening case to raise interest rates as the labor market tightened, with some saying a hike should happen in December, according to minutes of their November gathering released Wednesday in Washington.
     The S&P 500 has rallied 3 percent since the U.S. presidential election and is headed for its first monthly increase since July, led by commodity producers and financial companies.
     Among shares active, Deere & Co. jumped after the agricultural-equipment maker posted quarterly net income that was more than double the average analyst estimate. Peers CNH Industrial NV climbed.
     Eli Lilly & Co. tumbled after its Alzheimer’s drug failed to slow the progress of the disease in a final-stage trial. Biogen Inc. slid 8.8 percent.

 

Have  a wonderful evening everyone.

 

Be magnificent! 

As an individual, a specific entity, you have physical, mental, and nervous limits, among others.
If you know your own limits and try to stay within these limits,
you are free.
Swami Prajnanpad

As ever,

 

Carolann

 

Sometimes you will never know the value of a
moment until it becomes a memory.
                               –Dr. Seuss, 1904-1991

 

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

Dear Friends,

Tangents:
On Nov. 22, 1963, President John F. Kennedy was assassinated while riding in a motorcade in Dallas. Suspected gunman Lee Harvey Oswald was arrested. Vice President Lyndon B. Johnson was sworn in as the 36th president of the United States.
Go to article »

MEANWHILE IN MASSACHUSETTS
   –by Jacqueline Bouvier Kennedy

Meanwhile in Massachusetts Jack Kennedy dreamed

Walking the shore by the Cape Cod Sea
Of all the things he was going to be.

He breathed in the tang of the New England fall
And back in his mind he pictured it all…

He would heed that touch: he didn’t know how
Part he must serve, a part he must lead
Both were his calling, both were his need…

But now he was here with the wind and the sea
And all the things he was going to be.

He would build empires
And he would have sons
Others would fall
Where the current runs

He would find love
He would never find peace
For he must go seeking…

All of the things he was going to be
All of the things in the wind and the sea.
                                  -October 1953

 

PHOTOS OF THE DAY

Visitors look at humanoid robots depicting Katsushika Hokusai (r.) and his daughter Oei on Tuesday, in a life-sized model of Hokusai’s atelier on the opening day of the Sumida Hokusai Museum in Tokyo’s Sumida Ward. The museum, which is dedicated to Japanese woodblock print artist Katsushika Hokusai, creator of some of the most iconic art of the genre, opened Tuesday in the neighborhood he lived in some two centuries ago. Eugene Hoshiko/AP

Indigenous men from Pataxó occupy the entrance of the Planalto Palace during a protest against agribusinesses and in demand of the demarcation of their ancestral lands, in Brasilia, Brazil, Tuesday. Ueslei Marcelino/Reuters
Market Closes for November 22^nd, 2016

Market Index	Close	Change
Dow Jones	19023.87	+67.18   +0.35%
S&P 500	2202.94	+4.76   +0.22%
NASDAQ	5386.352	+17.492   +0.33%
TSX	15100.38	+60.51
		+0.40%

International Markets

Market Index	Close	Change
NIKKEI	18162.94	+56.92
		+0.31%
HANG SENG	22678.07	+320.29
		+1.43%
SENSEX	25960.78	+195.64
		+0.76%
FTSE 100	6819.72	+41.76
		+0.62%

Bonds

Bonds		% Yield		Previous  % Yield
CND. 10 Year Bond		1.541		1.570
CND. 30 Year Bond		2.180		2.204
U.S.    10 Year Bond		2.3119		2.3137
U.S. 30 Year Bond		2.9996		2.9916

Currencies

BOC Close	Today	Previous
Canadian $	0.74391	0.74553
US $	1.34424	1.34132
Euro Rate 1 Euro=		Inverse
Canadian $	1.42856	0.70000
US $	1.06273	0.94098

Commodities

Gold	Close	Previous
London Gold Fix	1212.25	1214.25
Oil	Close	Previous
WTI Crude Future	46.63	45.69

Market Commentary:
If you torture the data long enough, it will confess to anything
                                                       -Darrell Huff, 1913-2001
(How to Lie With Statistics, 1954)
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks rose a fourth day to reach the highest level in 17 months, as major banks and consumer staples advanced with retail sales posting the biggest one-month gain since April.
     The S&P/TSX Composite Index rose 0.4 percent to 15,100.38 at 4 p.m. in Toronto, trading at the highest level since June 2015. The equity benchmark is up 16 percent in 2016, making it the top performer among developed markets tracked by Bloomberg. Canadian shares are about 11 percent more expensive than their peers in the S&P 500 Index.
     Canada’s equity benchmark joined gains around the world as the Dow Jones Industrial Average topped 19,000 for the first time. The MSCI All-Country World Index of developed and developing markets is up 3.6 percent this year and is headed for its biggest annual increase since 2013. Copper posted the highest closing price in 16 months to pace gains in metals as emerging markets advanced.
     Canadian retail businesses posted a 0.6 percent rise in sales in September, the biggest gain since April and in line with forecasts, in what may be one of the first indications the government’s new child benefits are being spent. Retailer Hudson’s Bay Co. added 0.4 percent to halt a five-day slide.
     Alimentation Couche-Tard Inc., the gas station and convenience store operator, rose 0.9 percent for a second up day after boosting its quarterly dividend. Couche-Tard also reported second-quarter earnings and sales that were short of estimates.
     Financial services stocks, which account for about a third of the S&P/TSX, climbed 0.4 percent while raw-materials producers gained 1.2 percent to pace gains in the index. Gold prices advanced a second day.
     Gaming company Amaya Inc. retreated 6 percent, the biggest drop in five weeks. A Dubai investment firm, KBC Aldini Capital Ltd., denied it’s backing a $6.7 billion offer by Amaya founder David Baazov to take the gaming company private and said it has filed a complaint with U.S. securities regulators, the Globe and Mail reported.
     Energy producers slipped 0.2 percent, one of three industries lagging the index. Crude prices fell, trading near $48 a barrel in New York. Investors are awaiting the results of an official meeting of the Organization of Petroleum Exporting Countries Nov. 30 in Vienna discussing a deal to cut back on production to balance supply. Talks Tuesday didn’t resolve the question of whether Iraq and Iran will participate in any production cuts.
     Natural resource producers are the top-performing companies in the Canadian market this year, with materials stocks climbing 42 percent on a rebound in commodities prices from gold to crude. Investors have shrugged off a series of market surprises– from the U.K. Brexit vote in June to Trump’s surprise U.S. presidential win earlier in November — to propel global markets higher.
US
By Rita Nazareth and Lukanyo Mnyanda
     (Bloomberg) — All four major U.S. stock benchmarks rallied to records, with the Dow Jones Industrial Average topping 19,000 for the first time. Metals climbed, while oil was little changed.
     The Dow Average rose alongside the S&P 500 Index, the Nasdaq Composite Index and the Russell 2000 Index to all-time highs. The MSCI All Country World Index extended this month’s advance and emerging-market shares surged. Copper jumped to its highest since July 2015. Oil closed near $48 a barrel after an OPEC committee failed to agree on Iranian and Iraqi output levels. European bonds rallied on bets policy makers will extend their stimulus program.
     Equities rose on speculation the world’s largest economy is strong enough to withstand higher borrowing costs. The market- implied odds of a Federal Reserve hike in December reached 100 percent, according to Bloomberg calculations based on futures. A rate increase “could well become appropriate relatively soon,” Fed Chair Janet Yellen said last week. The fresh stock highs also came as American companies ended a five-quarter profit slump.
     “We’ve finally broken through to new records,” said Heinz- Gerd Sonnenschein, an equity strategist at Deutsche Postbank AG in Bonn, Germany. “We can move on to pricing in the improving outlook: there are strong signs that the U.S. economy is in good shape and that bodes well for corporate earnings.”
     Sales of previously owned U.S. homes unexpectedly climbed in October to the highest level since February 2007, a sign of momentum in the housing market a month before a jump in borrowing costs, National Association of Realtors data showed Tuesday. Reports on new home sales, durable goods and manufacturing are due Wednesday, as well as minutes from this month’s Fed meeting. U.S. markets will be closed Thursday for the Thanksgiving holiday.
     MSCI’s global gauge rose 0.3 percent at 4 p.m. in New York.
     The S&P 500 Index rose 0.2 percent to 2,202.94, the Dow Average and the Nasdaq added at least 0.3 percent. The Russell 2000 gained for a 13th day in the longest run since 1996.
     The Stoxx Europe 600 Index increased 0.2 percent as Anglo American Plc and BHP Billiton Ltd. rose at least 4.9 percent. Enel SpA led gains in utilities after announcing a plan to cut costs and dispose assets of about 3 billion euros ($3.2 billion).
     The MSCI Emerging Markets Index extended a two-day rally to 1.7 percent as benchmark gauges from Brazil to China and Russia advanced.
     The Bloomberg Commodity Index posted its biggest three-day advance since June. Goldman Sachs Group Inc. said Monday that investors should bet on higher prices in the next year as manufacturing picks up around the world, the first time the bank has recommended an overweight position for the asset class in more than four years.
     Gold extended a rebound from the lowest in more than five months, while copper paced gains in industrial metals. Iron ore and steel in China surged to their daily limits.
     Oil ended the session little changed after rising and falling about 2 percent. The talks in Vienna Tuesday haven’t resolved the question of whether the group’s second and third- largest members will participate in any production cuts, and the matter will be put off until the meeting of ministers on Nov. 30, according to two delegates. While Libya’s OPEC governor Mohamed Oun said the meeting ended with a consensus that will be presented to ministers, he didn’t comment on Iran and Iraq’s role.
     The dollar fluctuated against its major peers as traders looked beyond the Federal Reserve’s December policy meeting in search of fresh impetus.
     Before losing steam, the dollar had tracked Treasury yields higher as futures traders fully priced in an interest-rate hike for the Fed’s Dec. 14 policy decision partly on speculation that President-elect Donald Trump’s economic policies will fuel inflation.
     “The dollar is flying after Donald Trump’s victory, and the rally should continue into early 2017 — thereafter, the greenback could weaken,” Royce Mendes, an economist at CIBC World Markets, wrote in a note. “Although that’s fully priced into markets, the delivery of the first hike since 2015 could see markets add to expectations for further tightening, giving the dollar a temporary boost.”
     The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, rose 0.1 percent. The greenback gained 0.2 percent to 111.07 yen.
     China’s central bank raised its yuan fixing for the first time in 13 days as the dollar’s ascent eased. The rand climbed after the South African government said it would delay a plan to build new nuclear power plants, allaying concern that the cost of the program would strain fiscal targets.
     Bonds climbed across Europe, finding relief after weeks of being whipsawed by political headlines and speculation about higher U.S. interest rates. With the next ECB policy decision due in December, investors are looking for clues in a series of recent remarks from officials who pledged to maintain current levels of monetary stimulus.
     Officials from the ECB are signaling they “are not intending to reduce its monetary stimulus soon,” said Marius Daheim, a senior rates strategist at SEB AG in Frankfurt. “That points to divergence between monetary policy in the U.S., where we are looking for a rate hike in December by the Fed, and the ECB maintaining its steady hand and continuing with its ultra- loose monetary policy. That’s what is creating this payback.”
     ECB President Mario Draghi said on Monday that the central bank is “committed to preserving the very substantial degree of monetary accommodation necessary to secure a sustained convergence of inflation toward” the target of just under 2 percent. This followed comments from Governing Council members Benoit Coeure and Francois Villeroy de Galhau on Monday signaling the time to start scaling down the QE program has not yet arrived.
     The yield on 10-year Treasuries was little changed at 2.32 percent, according to Bloomberg Bond Trader Data.

 

Have  a wonderful evening everyone.

 

Be magnificent!

The absurd denial of the truth is natural in man.
Man does not want to be, but to appear to be.
He does not want to see what he is, but tries only to see himself as the person
other people take him for, when they talk about him.
Swami Prajnanpad

As ever,

 

Carolann

 

 

Design is not just what it looks like and feels like.  Design is how it works.
                                                                 -Steve Jobs, 1955-2011

 

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

Dear Friends,

Tangents:

Just back from attending the World Business Forum in New York.   Very informative; outstanding business and academic presenters; many  held the view that the US economy will continue to  improve and that the outlook for the US dollar is to continue strengthening relative to world currencies, especially given Janet Yellen’s guidance for a rate hike in December.  I stayed close to 5^th Ave. & Central Park South, so witnessed the unrelenting protesters in front of the Trump Tower.  Most of the Americans I spoke with at the business forum were reticent to express any opinion on the President-Elect.   It’s the US Thanksgiving on Thursday – a holiday with more significance for Americans than any other.  Given how divisive this election was, I’m sure there will be many contentious dinner conversations when families aggregate on the holiday.

On this day…
November 21, 1976 – World premiere of the movie Rocky.  Cost only a million to make, with virtually unknown actors and went on to be one of the biggest grossing films of all time.
Nov. 21, 1995, the presidents of three rival Balkan states agreed to make peace in Bosnia, ending nearly four years of terror and ethnic bloodletting that have left a quarter of a million people dead in the worst war in Europe since World War II.
November 21, 1988 – Brian Mulroney wins second majority for PCs with 170/295 seats (43.3% pop vote); the Free Trade election.
PHOTOS OF THE DAY

Alex Carrillo Quito of Ecuador imitates the character Rocky Balboa from the 1976 movie “Rocky,” on the steps of the Philadelphia Museum of Art, in Philadelphia, Monday. Four decades after the Nov. 21, 1976, premiere of “Rocky,” the movie’s reach is international, and the title character’s underdog tale of determination, grit, and sleepy-eyed charm still resonates with fans. Matt Rourke/AP

Children enjoy yellow leaves of ginkgo trees at Jingu Gaien, the outer garden of Meiji Jingu Shrine, on Monday in Tokyo. Shizuo Kambayashi/AP
Market Closes for November 21^st, 2016

Market Index	Close	Change
Dow Jones	18956.69	+88.76   +0.47%
S&P 500	2198.18	+16.28   +0.75%
NASDAQ	5368.859	+47.346   +0.89%
TSX	15039.87	+175.84
		+1.18%

International Markets

Market Index	Close	Change
NIKKEI	18106.02	+138.61
		+0.77%
HANG SENG	22357.78	+13.57
		+0.06%
SENSEX	25765.14	-385.10
		-1.47%
FTSE 100	6777.96	+2.19
		+0.03%

Bonds

Bonds		% Yield		Previous  % Yield
CND. 10 Year Bond		1.570		1.579
CND. 30 Year Bond		2.204		2.212
U.S.    10 Year Bond		2.3137		2.3548
U.S. 30 Year Bond		2.9916		3.0296

Currencies

BOC Close	Today	Previous
Canadian $	0.74553	0.74040
US $	1.34132	1.35062
Euro Rate 1 Euro=		Inverse
Canadian $	1.42549	0.70151
US $	1.06275	0.94095

Commodities

Gold	Close	Previous
London Gold Fix	1214.25	1211.00
Oil	Close	Previous
WTI Crude Future	47.49	45.69

Market Commentary:
On November 21, 1995 – Dow Jones tops 5000 for the first time.
Number of the Day
$1.06
The level the euro against the dollar, rekindling an old debate: Will the common currency reach parity with the dollar?
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks advanced for a third day to their highest level in 17 months as natural resources producers rallied with oil on continued optimism of an OPEC production cut and gold rebounded from the lowest level in five months.
     The S&P/TSX Composite Index rose 1.2 percent to 15,039.87 at 4 p.m. in Toronto, and is trading at the highest level since June 2015. The equity benchmark is up almost 16 percent in 2016, making it the top performer among developed markets tracked by Bloomberg. Canadian shares are about 11 percent more expensive than their peers in the S&P 500 Index.
     Energy companies picked up 2.5 percent, also hitting 17- month high, and raw-materials producers gained 1.7 percent to lead advances in 10 of 11 industries in the S&P/TSX. Telecommunications stocks were the only laggards. Trading volume was 4.4 percent lower than the 30-day average.
     Suncor Energy Inc. and Canadian Natural Resources Ltd. increased more than 2.2 percent as energy stocks jumped for a third day with the price of oil at a three-week high. Crude prices rose 3.9 percent in New York, adding to last week’s 5.3 percent gain, as Iran signaled optimism that the Organization of Petroleum Exporting Countries will reach a consensus. Iraq said it will offer new proposals to help reach a deal at the Nov. 30 meeting in Vienna.
     Teck Resources Ltd., the nation’s largest diversified miner, added 3.9 percent as industrial metals were led by a rally in copper while nickel rebounded from the lowest in two weeks. The London Metal Exchange’s index of metal prices slid the most since August last week. Copper producer First Quantum Minerals Ltd. jumped 7.2 percent.
     Natural resource producers are the top-performing companies in the Canadian market this year, with materials stocks climbing 40 percent on a rebound in commodities prices from gold to crude. Investors have shrugged off a series of market surprises — from the U.K. Brexit vote in June to Donald Trump’s surprise U.S. presidential win earlier in November — to propel global markets higher. The MSCI All-Country World Index of developed and developing markets is up 3.3 percent this year and is headed for its biggest annual gain since 2013.
     Teck Resources is the top stock in the S&P/TSX, up almost six-fold this year as prices for coking coal and zinc have also surged. Energy producers have jumped 30 percent, led by Bonavista Energy Corp. and Encana Corp.
     Goldcorp Inc. rose 1.3 percent as gold advanced from the lowest level in more than five months as the Bloomberg Dollar Spot Index snapped three days of gains. Silver also rose after nearing a bear market.
US
By Lu Wang and Rebecca Spalding
     (Bloomberg) — U.S. stocks rose, pushing four major benchmark indexes to simultaneous records for the first time since 1999, as investors added to a post-election advance spurred by speculation the incoming administration’s policies will incite brisker economic growth.
     The S&P 500 Index rose 0.8 percent to 2,198.19 at 4 p.m. in New York, for its first record since Aug. 15. The Dow Jones Industrial Average advanced 88.62 points to 18,956.55 to a fresh high, while the Russell 2000 Index capped a 12th day of gains in its longest rally since 2003. The Nasdaq Composite Index added 0.9 percent to its highest level ever.
     “It’s a push on the upper end of the equity markets due to this renewed belief that there’s tax cuts and stimulus spending coming in 2017 and 2018,” said Chad Morganlander, a money manager at Stifel, Nicolaus & Co. in Florham Park, New Jersey, where he helps oversee about $172 billion. “The overall equity markets are taking a cue from that and they are trading on the belief that earnings will move higher as well as revenues in 2017.”
     The new milestone for the S&P 500 arrived as companies ended a five-quarter profit slump and Donald Trump’s election fueled optimism that his plans to cut taxes and boost fiscal spending will benefit industries more geared toward economic growth. Acknowledging the strength in the economy, Federal Reserve Chair Janet Yellen said Thursday that the central bank is close to lifting interest rates, comments that sent Treasuries lower and yields on the 10-year note toward 2.25 percent.
     “There’s optimism that it’s more likely that Trump is going to put us on an economic fast track versus Clinton,” said Terry Morris, manager director of equities at BB&T Institutional Investment Advisors in Wyomissing, Pennsylvania. “The election had something to do with this, and I also think there’s some short covering going on. People that were hedging the election had to rush to cover after the news, and I think generally the perception is the economy is starting to pick up as the Fed is likely to raise rates in December.”
     Investors have boosted bets for tighter monetary policy since Donald Trump’s election win, on speculation his policies will spur growth and increase inflation. After Federal Reserve Chair Janet Yellen said last week the central bank is close to raising rates, traders are now pricing in a 98 percent chance of a move in December. If the Fed doesn’t act as expected, it may bring on more market turmoil, says Seven Investment Management’s Ben Kumar.
     Most-hated stocks are among the biggest winners since Trump’s victory. A Goldman Sachs Group Inc. basket of 50 companies that have the highest short interest in the Russell 3000 Index has climbed 11 percent since Nov. 8, four times the gain in the broad market measure.
     Financial shares have done the heavy lifting since the last record, rising 14 percent since the August high. Energy producers are up 3.9 percent, while groups coveted for their high dividend yields have tumbled with bonds. Real-estate investment trusts and phone companies have tumbled more than 11 percent.
     Energy shares rallied 2.2 percent Monday, following crude higher, after Iran signaled optimism OPEC will agree to a supply-cut deal and Iraq said it will offer new proposals to help bolster the group’s unity before members meet next week. Chesapeake Energy Corp. and Murphy Oil Corp. led gains.
     Tyson Foods Inc. tumbled 14 percent after posting earnings that missed estimates and appointing Tom Hayes to succeed Donnie Smith as chief executive officer.

 

Have a wonderful evening everyone.

 

Be magnificent!

The spiritual can never be attained,
until the material has been extinguished.
Swami Vivekananda

As ever,

 

Carolann

 

Nothing is impossible, the word itself says “I’m possible!”
                                                 -Audrey Hepburn, 1929-1993

 

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

 

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Visitors stand in front of an illuminated object during the Christmas Garden event at a botanic garden in Berlin, Germany on Friday. Stefanie Loos/Reuters

Huge waves crash on the San Esteban de Pravia seafront in the northern Spanish region of Asturias on Friday. Eloy Alonso/Reuters
Market Closes for November 18^th, 2016

Market Index	Close	Change
Dow Jones	18867.93	-35.89   -0.19%
S&P 500	2181.90	-5.22   -0.24%
NASDAQ	5321.513	-12.459   -0.23%
TSX	14864.03	+37.94
		+0.26%

International Markets

Market Index	Close	Change
NIKKEI	17967.41	+104.78
		+0.59%
HANG SENG	22344.21	+81.33
		+0.37%
SENSEX	26150.24	-77.38
		-0.30%
FTSE 100	6775.77	-18.94
		-0.28%

Bonds

Bonds		% Yield		Previous  % Yield
CND. 10 Year Bond		1.579		1.562
CND. 30 Year Bond		2.212		2.181
U.S.    10 Year Bond		2.3548		2.2901
U.S. 30 Year Bond		3.0296		3.0004

Currencies

BOC Close	Today	Previous
Canadian $	0.74040	0.73941
US $	1.35062	1.35243
Euro Rate 1 Euro=		Inverse
Canadian $	1.43024	0.69918
US $	1.05895	0.94433

Commodities

Gold	Close	Previous
London Gold Fix	1211.00	1226.75
Oil	Close	Previous
WTI Crude Future	45.69	45.42

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks rose a second day, capping the biggest weekly gain in a month, as energy producers advanced with crude on growing optimism OPEC nations will secure an output deal.
     The S&P/TSX Composite Index rose 0.3 percent to 14,864.03 at 4 p.m. in Toronto, trading at the highest level in more than three weeks. The equity benchmark is up 14 percent in 2016, making it the top performer among developed markets tracked by Bloomberg. Canadian stocks are about 10 percent more expensive than their peers in the S&P 500 Index.
     Energy producers advanced 0.8 percent Friday to contribute most to gains as five of 11 industries in the S&P/TSX advanced. Trading volume was 10 percent lower than the 30-day average. Encana Corp. added 3.1 percent.
     Crude capped a weekly gain of its own in New York as futures rose 0.6 percent, recouping earlier losses after OPEC member Algeria said the organization’s meeting with Russia gave it confidence a deal can be reached. Russian Energy Minister Alexander Novak said a consensus is emerging and Russia is considering an output freeze of six months. Crude prices have whipsawed between gains and losses this week as the outcome of the meeting remains murky.
     Natural resource producers are the top-performing companies in the Canadian market this year, with materials stocks rallying 38 percent year-to-date on a rebound in commodities prices from gold to crude. Teck Resources Ltd., the nation’s largest diversified miner, is the top stock in the index, up almost six- fold this year as prices for coking coal and zinc have also surged.
     Financial services stocks edged higher, adding 0.6 percent as a group. The head of Canada’s housing agency warned the country may need further changes to mortgage rules to further reduce risks to the real-estate market and protect the financial system.
     Canadian inflation meanwhile quickened for a second month in October, advancing 1.5 percent from year-ago figures. The data are in line with expectations inflation is poised to rebound as the drag of cheaper gasoline fades and economic growth accelerates.
     Brookfield Asset Management Inc. added 0.6 percent. The alternative asset manager said it was prepared to offer $13 a share to acquire TerraForm Power Inc., valuing the company at about $1.8 billion.
US
By Oliver Renick
     (Bloomberg) — U.S. stocks added to the rally sparked by Donald Trump’s surprise election, rising for a second week on speculation the president-elect will introduce policies that will spark brisker economic growth.
     The biggest beneficiary has been small caps, with the Russell 2000 Index rallying 11 straight days to cap its longest winning streak since 2003 as the dollar strengthened. The gauge ended the five days higher by 2.6 percent. The S&P 500 Index rose 0.8 percent, with financials again contributing the most to the advance. Technology shares joined the rally after concerns over trade policies faded. The Dow Jones Industrial average edged up for the week after touching a fresh high on Nov. 15.
     The benchmark for American equity has added 2 percent since president-elect Donald Trump won the U.S. election, led by a surge in financial stocks and shares of industrial companies. While the former added to its rally in the week with a 2.2 percent advance, shares in companies that build bridges and make equipment were little changed. Health-care stocks that rallied 5.8 percent last week pared those gains with a 1.2 percent decline.
     Since the election losses remain the biggest in dividend- paying groups like utilities, real estate and consumer staples shares that had led the market in the first half of the year.
     The variation in returns among sectors has created an opportunity that some investors have seized upon, according to record flows into exchange-traded funds that track financial and industrial companies. That’s happened as dispersion within the stock market reached levels unseen since the start of the bull market — a good sign for active managers.
  

Have a wonderful weekend everyone.

 

Be magnificent!
 

 “My mission in life is not merely to survive, but to thrive; and to do so with some passion, some compassion, some humor, and some style”. Maya Angelou

As ever,
 

Karen

“In order to carry a positive action we must develop here a positive vision.” Dalai Lama

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

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

A girl looks into the mouth of a polar bear head ice sculpture at the launch of Hyde Park Winter Wonderland’s Magical Ice Kingdom in London on Thursday. This year’s Winter Wonderland starts on Nov. 18, 2016 and lasts until Jan. 2, 2017. Frank Augstein/AP

The International Space Station (ISS) crew member Thomas Pesquet of France gestures as he sits in a bus before boarding spacecraft at the Baikonur cosmodrome, Kazakhstan, Thursday. Kirill Kudryavtsev/Reuters
Market Closes for November 17^th, 2016

Market Index	Close	Change
Dow Jones	18903.82	+35.68   +0.19%
S&P 500	2187.12	+10.18   +0.47%
NASDAQ	5333.973	+39.389   +0.74%
TSX	14826.09	+92.87
		+0.63%

International Markets

Market Index	Close	Change
NIKKEI	17862.21	+0.42
		—
HANG SENG	22262.88	-17.65
		-0.08%
SENSEX	26227.62	-71.07
		-0.27%
FTSE 100	6794.71	+44.99
		+0.67%

Bonds

Bonds		% Yield		Previous  % Yield
CND. 10 Year Bond		1.562		1.504
CND. 30 Year Bond		2.181		2.125
U.S.    10 Year Bond		2.2901		2.2101
U.S. 30 Year Bond		3.0004		2.9135

Currencies

BOC Close	Today	Previous
Canadian $	0.73941	0.74501
US $	1.35243	1.34227
Euro Rate 1 Euro=		Inverse
Canadian $	1.43714	0.69583
US $	1.06263	0.94106

Commodities

Gold	Close	Previous
London Gold Fix	1226.75	1229.20
Oil	Close	Previous
WTI Crude Future	45.42	45.57

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks rose for the third time in four sessions, to the highest close in three weeks, joining gains around the world as the Federal Reserve signaled the pace of interest rate increases will be gradual while energy producers advanced with crude.
     The S&P/TSX Composite Index rose 0.6 percent to 14,826.09 at 4 p.m. in Toronto. The equity benchmark is up 14 percent in 2016, making it the top performer among developed markets tracked by Bloomberg. Canadian stocks are about 10 percent more expensive than their peers in the S&P 500 Index.
     Global equity markets rallied after Fed chair Janet Yellen said a rate hike could come “relatively soon” in prepared text for testimony she’s scheduled to deliver before Congress’s Joint Economic Committee in Washington. Traders are now pricing in 98 percent probability of a rate hike next month, from 68 percent at the start of November, according to data compiled by Bloomberg. 
     Energy producers rallied 0.5 percent as 10 of 11 industries in the S&P/TSX posted gains. Trading volume was 12 percent higher than the 30-day average. Suncor Energy Inc. added 0.5 percent.
     Crude futures declined 0.3 percent in New York, erasing earlier gains after dropping 0.5 percent Wednesday. Saudi Arabia’s minister of energy and industry said he’s optimistic producers will reach a deal at OPEC’s highly anticipated meeting in Vienna Nov. 30. Crude prices have whipsawed between gains and losses this week as the outcome of the meeting remains murky.
     Natural resource producers are the top-performing companies in the Canadian market this year, with materials stocks rallying 39 percent year-to-date on a rebound in commodities prices from gold to crude. Teck Resources Ltd., the nation’s largest diversified miner, is the top stock in the index, up almost six- fold this year as prices for coking coal and zinc have also surged.
     Valeant Pharmaceuticals International Inc. added 1.1 percent, reversing an earlier loss of as much as 7.8 percent. The head of the drugmaker’s mail-order pharmacy affiliate and a former Valeant manager were indicted on federal charges that they defrauded shareholders. The executives Andy Davenport and Gary Tanner were charged by federal prosecutors in Manhattan on multiple counts including wire fraud and conspiracy to launder money.
     Great Canadian Gaming Corp. slumped 8.4 percent, the most in more than four years, after insider Neil Baker agreed to sell as much as eight million shares of the company. Prior to the deal, Baker owned or controlled almost 11 million shares, or about 18 percent of the casino company’s issued and outstanding stock.
US
By Rita Nazareth, John Hyland and Stephen Kirkland
     (Bloomberg) — The S&P 500 Index neared an all-time high, rising with the dollar as Treasuries fell after Federal Reserve Chair Janet Yellen signaled the central bank is close to raising interest rates.
     The U.S. stock benchmark rose to within four points of a record, and the Russell 2000 Index of smaller companies capped its longest rally since March 2013, while the Dow Jones Industrial Average gained despite a disappointing sales forecast from Cisco Systems Inc. U.S. government bonds slid after Yellen’s comments and a wave of data that pointed to U.S. economic strength. The greenback’s gains helped oil fall below $45 a barrel.
     In her first public comments since the U.S. election, Yellen told lawmakers that the Fed is close to boosting borrowing costs as the economy continues to gain traction. The comments weighed on Treasuries, with yields on 10-year notes slipping to 2.29 percent. Bank stocks pushed their rally since Donald Trump’s presidential victory back above 10 percent, while energy shares retreated. Speculation that Trump’s administration will carry out fiscal stimulus continues to lift industries that are perceived to benefit from economic growth.
     “A Trump victory could herald higher inflation, a roll back of financial regulation, higher spending and renewed attacks on the Fed’s independence,” said Michael Ingram, a market strategist at BGC Partners in London. “Having made some apocalyptic predictions in the event of Trump’s victory, markets quickly took a ‘glass half-full’ view. The more appropriate question is ‘What’s in the glass — champagne or cyanide?”’
     Traders are betting a Trump presidency will quicken the pace of interest-rate increases, pricing in a 98 percent chance that the Fed will act next month, compared with odds of about 80 percent before the election. Reports Thursday showed U.S. housing starts jumped to a nine-year high in October, while jobless claims fell to the lowest level in four decades.
     The S&P 500 added 0.5 percent to 2,187.12 as of 4 p.m. in New York, the highest close since Aug. 15, when the gauge closed at a record 2,190.15. The Russell 2000 jumped 0.6 percent to a record, while the Dow Average gained 0.2 percent.
     Earnings reports were also in focus. Best Buy Co. jumped 14 percent after its profit surpassed expectations, while Cisco slid 4.8 percent after predicting worse-than-estimated earnings and unexpectedly forecasting a decline in sales. Wal-Mart Stores Inc. and Staples Inc. dropped after reporting sales that missed estimates.
     The Stoxx Europe 600 Index climbed 0.6 percent, the most in a week and erasing a slide of as much as 0.3 percent.
     Longer-dated U.S. government bonds led losses as Yellen told U.S. lawmakers Thursday that a rate hike could come relatively soon. The economy continues to create jobs at a healthy clip and is inflation inching higher, she said.
     Benchmark Treasury 10-year yields climbed six basis points, or 0.06 percentage point, according to Bloomberg Bond Trader data. Thirty-year Treasury yields jumped eight basis points to 3 percent. Two-year yields added two basis points to 1.03 percent.
     A bond-market gauge of expectations for U.S. consumer prices over the next decade climbed this week to the highest since April 2015. The measure, known as the break-even rate, which represents the extra yield investors demand on regular 10- year notes over similar-maturity TIPS, reached 1.97 percentage points. The difference has risen from below 1.2 percentage points in February. The debt pays interest on a principal amount that rises with consumer prices.
     The dollar climbed to a five-month high versus the yen as Japanese Prime Minister Shinzo Abe prepared to meet President- elect Trump in New York.
     Traders are watching for any comments from Trump, who’s accused Japan of currency manipulation. He and Abe will meet at 5 p.m. New York time, according to a Trump adviser. The U.S. currency was buoyed after Fed Chair Yellen said a rate hike could come “relatively soon.”
     “The fact that she didn’t push back against market expectations for a December hike is perhaps the most significant takeaway,” said Jack Spitz, managing director for foreign exchange at National Bank of Canada in Toronto. “The dollar is higher as a result.”
     The dollar rose 0.8 percent to 109.99 yen, after reaching 108.56 yen, the strongest level since the start of June. The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, extended gains at its highest level since February. The gauge surged 2.8 percent last week, the most since September 2011.
     West Texas Intermediate oil for December delivery declined 0.3 percent to $45.42 a barrel on the New York Mercantile Exchange.
     “The only that’s changed from earlier today is that the dollar is stronger,” said Tim Evans, an energy analyst at Citi Futures Perspective in New York. “The rising dollar appears to be triggering selling of commodities.”
     Copper rebounded, ending a two-day slide, amid signs of resilient demand from U.S. home builders.
     On the London Meal Exchange, copper, zinc, lead and tin rose, while aluminum and nickel slipped. Meanwhile, a gauge of 18 base-metals producers tracked by Bloomberg Intelligence climbed 0.7 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

 

“Your present circumstances don’t determine where you can go; they merely determine where you start.” Nido Qubein

As ever,
 

Karen

 
“Education is the most powerful weapon which you can use to change the world.” Nelson Mandela

 

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

Dear Friends,

Tangents:

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

PHOTOS OF THE DAY

Storm clouds gather above Perch Rock lighthouse in New Brighton, northern England on Wednesday. Phil Noble/Reuters
A purebred Spanish horse is seen during the Sicab International PRE Horse Fair, which is dedicated exclusively to the purebred Spanish horse, in the Andalusian capital of Seville, southern Spain on Wednesday. Marcelo del Pozo/Reuters
Market Closes for November 16^th, 2016

Market Index	Close	Change
Dow Jones	18868.14	-54.92   -0.29%
S&P 500	2176.94	-3.45   -0.16%
NASDAQ	5294.586	+18.964   +0.36%
TSX	14733.22	-22.88
		-0.16%

International Markets

Market Index	Close	Change
NIKKEI	17862.21	+194.06
		+1.10%
HANG SENG	22280.53	-43.38
		-0.19%
SENSEX	26298.69	-5.94
		-0.02%
FTSE 100	6749.72	-43.02
		-0.63%

Bonds

Bonds		% Yield		Previous  % Yield
CND. 10 Year Bond		1.504		1.537
CND. 30 Year Bond		2.125		2.166
U.S.    10 Year Bond		2.2101		2.2207
U.S. 30 Year Bond		2.9135		2.9595

Currencies

BOC Close	Today	Previous
Canadian $	0.74501	0.74512
US $	1.34227	1.34206
Euro Rate 1 Euro=		Inverse
Canadian $	1.43720	0.69580
US $	1.07069	0.93397

Commodities

Gold	Close	Previous
London Gold Fix	1229.20	1226.95
Oil	Close	Previous
WTI Crude Future	45.57	45.81

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks fell after climbing the most in seven weeks, as material producers retreated with metals and banks slipped a second day on speculation gains had gone too far too quickly in the past week.
     The S&P/TSX Composite Index lost 0.2 percent to 14,733.22 at 4 p.m. in Toronto, paring earlier losses of as much as 0.6 percent while halting a two-day advance. The equity benchmark is up 13 percent in 2016, making it the top performer among developed markets tracked by Bloomberg. Canadian stocks are about 9 percent more expensive than their peers in the S&P 500 Index.
     Global equity markets retreated and the dollar rose against most major peers amid rising speculation the Federal Reserve will raise interest rates in December. Traders are now pricing in 94 percent probability of a rate hike next month, from 68 percent at the start of November, according to data compiled by Bloomberg. 
     Financial shares tumbled after leading a rally in equities in the week following Donald Trump’s election win, on speculation his policies will goose domestic economic growth.
     Financial services stocks, which make up about a third of the S&P/TSX, fell 0.2 percent to pace declines while six of 11 industries in the index retreated. Trading volume was 4.6 percent higher than the 30-day average. Fairfax Financial Holdings Ltd. and Sun Life Financial Inc. fell at least 1 percent. Bank of Montreal slipped 0.2 percent, falling for the first time in three sessions.
     Materials and energy producers lost at least 0.3 percent as crude slipped 24 cents to settle at $45.57 a barrel in New York after a government report showed U.S. supplies rose.
     Natural resource producers are the top-performing companies in the Canadian market this year, with materials stocks rallying 40 percent year-to-date on a rebound in commodities prices from gold to crude. Teck Resources Ltd., the nation’s largest diversified miner, is the top stock in the index, up almost six- fold this year as prices for coking coal and zinc have also surged.
     Marijuana grower Canopy Growth Corp. ended a heavy day of trading down 15 percent, reversing an earlier gain of as much as 33 percent to halt a seven-day winning streak. Smaller peers Aphria Inc. and OrganiGram Holdings Inc. retreated at least 8.4 percent.
US
By Rita Nazareth, Yun Li and John Hyland
     (Bloomberg) — U.S. stocks retreated, while the dollar advanced as investors assessed the potential implications of President-elect Donald Trump’s policy outlook. Crude oil fell.
     Banks led losses as the S&P 500 Index swung back to declines, while Apple Inc. paced a rally in technology companies. The Treasury yield curve flattened, with 30-year bonds outperforming shorter-dated debt as traders moved toward a consensus that the Federal Reserve will raise interest rates next month. The dollar returned to a nine-month high versus major peers. Crude slipped even as Russia’s oil minister expressed optimism that OPEC would reach a deal, with government data showing an increase in American supplies.
     The expectation Trump would expand fiscal stimulus to boost U.S. growth sparked a bond-market rout that this week pushed 30- year Treasury yields to their highest level this year, while buoying bank and industrial stocks. Central-bank officials, including Boston Fed President Eric Rosengren, have said more fiscal support would bolster the case for tightening. Rate-hike odds were above 90 percent, even after a report today indicated inflation remains muted, with wholesale prices unexpectedly weak in October.
     “Sometimes we have to sit back and take a breath and say ‘we’ve gone too far too fast,”’ said Art Hogan, chief market strategist and director of research for Wunderlich Securities in Boston. “As much as we love to believe that all the pro-business things that the new administration and the Republican Congress is going to move forward with, that’s still next year’s business. You have to look at a market that in the short term is getting stretched.”
     The S&P 500 fell 0.2 percent to 2,176.94 as of 4 p.m. in New York, after closing Tuesday within 0.5 percent of an all- time high set in August. The Dow Jones Industrial Average halted its longest rally in almost four months, slipping 0.3 percent, while the Nasdaq Composite Index advanced 0.4 percent.
     “Overall it seems the market has to pause a little bit to assess how far it’s gone since Trump’s win,” said Benno Galliker, a trader at Luzerner Kantonalbank AG in Lucerne, Switzerland. “We haven’t seen this kind of sector dispersion in a long time. Now everything has changed — it’s a paradigm shift.”
     The Stoxx Europe 600 Index has alternated between gains and losses for seven straight days. The gauge slipped 0.2 percent Wednesday after earlier jumping and falling as much as 0.6 percent. Bayer AG was one of the biggest contributors to the move, dragging down chemical companies after issuing 4 billion euros ($4.3 billion) of convertible bonds.
     The MSCI Emerging Markets Index rose for a second day, adding 0.6 percent.
     In the Asia-Pacific region, stocks in New Zealand extended gains into Thursday, rising for a fourth straight session. Futures on equity benchmarks elsewhere in the region signaled losses, with Nikkei 225 Stock Average futures in Osaka slipping at least 0.2 percent with contracts on indexes in Australia, South Korea and Hong Kong.
     Thirty-year Treasury yields fell four basis points, or 0.04 percentage point, to 2.92 percent, according to Bloomberg Bond Trader data. U.S. two-year yields rose less than one basis point to 1 percent. The gap between two- and 30-year yields declined to about 1.92 percentage points. It touched as low as 140 basis points in August.
     “The market is firming in its expectations that the Fed is going to go,” said Aaron Kohli, a fixed-income strategist in New York at BMO Capital Markets Corp., one of 23 primary dealers that trade with the central bank. “I don’t think the economic data is good this morning, but it also wasn’t bad enough to deter the Fed. We sold off very sharply in the last week and a half, and there’s some money that’s being put to work.”
     Traders assign about a 94 percent probability, the highest level this year, to the Fed boosting rates at its final meeting for the year on Dec. 13-14, futures contracts indicate.
     European bonds fell, with yields on Portugal’s 10-year bonds rising by 18 basis points to 3.65 percent. Italy’s 10-year yield increased seven basis points to 2.03 percent, while the rate on similar-maturity German bunds dropped to 0.30 percent.
     The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, rose 0.3 percent. The gain built on a 2.8 percent surge from last week, which was the most since 2011.
     “The medium-term outlook for the dollar is still solid, and we expect it to strengthen well into the first quarter of next year,” said Ned Rumpeltin, the European head of currency strategy at Toronto-Dominion Bank in London. “But some in the market might adopt a cautious near-term stance ahead of the testimony and during the shaping of the new administration.”
     Currencies of commodity-producing nations, including the Australian dollar and South African rand, were among the biggest losers Wednesday. The MSCI Emerging Markets Currency Index fell 0.3 percent as the yuan slid to its weakest point since December 2008.
     The yen was little changed early Thursday at 109.10 per dollar after slipping 2.4 percent over the past two sessions.
     West Texas Intermediate crude for December delivery dropped 24 cents, or 0.5 percent. to settle at $45.57 a barrel on the New York Mercantile Exchange, while Brent for January settlement retreated 32 cents to $46.63 a barrel in London.
     Stockpiles climbed by 5.27 million barrels last week, according to the Energy Information Administration, with a 1.5 million barrel gain forecast by analysts surveyed by Bloomberg. Refiners used 16.1 million barrels a day of crude, up 309,000 barrels from a week earlier. Russia is ready to support an OPEC decision to stabilize the market, Energy Minister Alexander Novak said, with OPEC ministers due to meet Nov. 30 to discuss how to implement production cuts.
     “You would have expected to see more selling after such a big build in crude,” said Gene McGillian, manager of market research for Tradition Energy in Stamford, Connecticut. “There’s a feeling that OPEC will come to some sort of an agreement later this month, which makes selling risky.”
     Copper and aluminum declined in London, extending their retreats from one-year highs reached last week, while zinc retreated from its highest close since 2010. Metals rallied last week on a combination of increased speculative interest in China and optimism President-elect Trump’s pledge to spend as much as $1 trillion on infrastructure will boost demand.
     Gold fell 0.3 percent Wednesday to $1,225.28 an ounce.

Have a wonderful evening everyone.

 

Be magnificent!

 

“Do not go where the path may lead, go instead where there is no path and leave a trail.” Ralph Waldo Emerson

As ever,
 

Karen

“In order to carry a positive action we must develop here a positive vision.” Dalai Lama

 

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

Dear Friends,

Tangents:
Shichi-Go-San Day in Japan today:
Shichi–Go–San (七五三 ^?, lit. “Seven-Five-Three”) is a traditional rite of passage and festival day in Japan for three- and seven-year-old girls and three- and five-year-old boys, held annually on November 15 to celebrate the growth and well-being of young children.

Good to Know:  CITY GUIDE
If you’re traveling and don’t know the city, the Citymapper app has everything you need to get around, from information on available bicycles, to a path to your destination that keeps you out of the rain, to transportation schedules.  You’ll look as though you’ve lived there for years.  Citymapper is free for iOS and Android and is available for cities all over the world.

A quiet mind is able to hear intuition over fear.
PHOTOS OF THE DAY

A man walks through a garden on an autumn day in Srinagar, India on Tuesday. Danish Ismail/Reuters

A dirt road is illuminated by the supermoon at night at the Sierra de las Nieves (Mountain range of Snows) nature park and biosphere reserve in Parauta, southern Spain, on Monday. Jon Nazca/Reuters
Market Closes for November 15^th, 2016

Market Index	Close	Change
Dow Jones	18923.06	+54.37   +0.29%
S&P 500	2180.39	+16.19   +0.75%
NASDAQ	5275.621	+57.225   +1.10%
TSX	14756.10	+157.66
		+1.08%

International Markets

Market Index	Close	Change
NIKKEI	17668.15	-4.47
		-0.03%
HANG SENG	22323.91	+101.69
		+0.46%
SENSEX	26304.63	-514.19
		-1.92%
FTSE 100	6792.74	+39.56
		+0.59%

Bonds

Bonds		% Yield		Previous  % Yield
CND. 10 Year Bond		1.537		1.550
CND. 30 Year Bond		2.166		2.192
U.S.    10 Year Bond		2.2207		2.2632
U.S. 30 Year Bond		2.9595		3.0133

Currencies

BOC Close	Today	Previous
Canadian $	0.74357	0.73901
US $	1.34486	1.35316
Euro Rate 1 Euro=		Inverse
Canadian $	1.44189	0.69353
US $	1.07215	0.93271

Commodities

Gold	Close	Previous
London Gold Fix	1226.95	1213.60
Oil	Close	Previous
WTI Crude Future	45.81	43.32

Market Commentary:
On this day in 1867, the first stock ticker is unveiled in New York City.
Number of the Day
6.8660
The value of one dollar rose as high as 6.8660 yuan in China’s tightly controlled domestic market during the Asian trading morning, its highest point since Dec. 9, 2008
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks rose for a second day, surging the most in seven weeks, as energy producers advanced with the price of oil rebounding from an eight-week low.
     The S&P/TSX Composite Index rose 1.1 percent to 14,756.28 at 4 p.m. in Toronto. The equity benchmark is up 13 percent in 2016, making it the top performer among developed markets tracked by Bloomberg. Canadian stocks are about 10 percent more expensive than their peers in the S&P 500 Index.
     Global market gyrations sparked by the surprise election of Donald Trump as president of the U.S. calmed Tuesday, as a rout in bonds and emerging-market assets eased. Crude surged on the prospects of OPEC reaching a deal to curb output. Gold and silver advanced after a four-day rout fueled by demand for riskier assets at the expense of perceived safe havens.
     The reversals benefited Canadian equities, where energy and raw materials account for about one-third of the market. Energy producers rallied 2.8 percent Tuesday to lead gains across nine of 11 industries. Trading volume was 19 percent higher than the 30-day average. Financial services companies lagged 0.3 percent, with Manulife Financial Corp. dropping 0.4 percent to halt a four-day winning streak.
     Suncor Energy Inc. climbed 3.9 percent, the most in two weeks, even after Warren Buffett’s Berkshire Hathaway Inc. exited its stake in the energy producer. Oil futures climbed 5.8 percent in New York, the biggest gain in seven months, as prices seesawed from the lowest close in eight weeks Monday after dropping 4.3 percent in three sessions.
     Raw-materials producers climbed 2.7 percent as a group, for a second day of gains following a two-day slide. Gold snapped its biggest three-day drop in more than a year amid signs that prices fell too far and too fast. The dollar also fell for the first time since last week’s U.S. presidential election.
     Barrick Gold Corp. added 5.3 percent, the most in a month, as billionaire investor George Soros more than doubled his holdings in the mining company in the third quarter after earlier selling 94 percent of his position in the previous quarter.
     Natural resource producers are the top-performing companies in the Canadian market this year, with materials stocks rallying 41 percent year-to-date on a rebound in commodities prices from gold to crude. Teck Resources Ltd., the nation’s largest diversified miner, is the top stock in the index, up almost six- fold this year as prices for coking coal and zinc have also surged.
US
By Oliver Renick
     (Bloomberg) — Donald Trump’s election has caused the biggest dispersion among U.S. equities in almost eight years. Professional stock pickers couldn’t be happier.
     Lockstep moves on the equities markets have been torn asunder while investors pour in cash as they dissect the potential implications from Trump policies. The Dow Jones Industrial Average and Russell 2000 Index have roared to records since his election, while technology-heavy indexes had slumped. In the S&P 500, the financial group’s 10 percent surge through Monday outpaced the worst-performing group — utilities — by almost 17 percentage points, a degree of divergence last seen in April 2009.
     For active managers who’ve seen their reputation battered this year amid some of the tightest trading ranges in history, the split along industry lines represents an opportunity to put to work skills some say are growing arcane in the era of passive investing. At the same time, Tuesday brought with it a reminder in the danger of rushing to judgment — financial shares slid as much as 1.7 percent before closing little changed, while tech stocks cut their post-election losses by nearly half.
     “You’re seeing money trying to chase the growth that’s perceived,” said Scott Colyer, chief executive officer of Advisors Asset Management in Monument, Colorado, where he oversees $18.5 billion. “This is a market where stock picking works and will reward people for buying some of the things that have been out of favor.”
     The S&P 500 rose 0.8 percent to 2,180.39 at 4 p.m. in New York, pushing its advance since Nov. 8 to 1.9 percent as tech shares paced gains after lagging behind. The Dow erased an early slide, climbing 0.3 percent to a fourth consecutive record close. The Nasdaq 100 Index jumped 1.3 percent, and the Russell 2000 Index added 0.3 percent to an all-time high for a second day. About 8.4 billion shares traded hands on U.S. exchanges, 22 percent more than the three-month average.
     The pre-election jitters that pushed cash levels among money managers to near records gave way to bullish euphoria as investors added more than $14 billion to the biggest exchange- traded fund tracking the S&P 500 in the past week. That the stock market is suddenly making distinctions between winners and losers is a bonus to active managers who have seen money under their oversight shifted to passive ETFs and mutual funds that have outperformed for most of the year.
     What’s unusual about the level of dispersion within the equity market since the election is that recent instances of such disparity have come when the market’s been falling. The degree now being seen last occurred during the height of the financial crisis and the bottom of the dot-com bust 16 years ago. Most recently, measures of dispersion jumped during the selloff after Brexit, as the S&P 500 plunged at the start of the year and during a correction in August 2015.
     “This stands in contrast to the behavior following prior macro events over the last 18 months that were accompanied with correlations spiking in their aftermath,” analysts at Strategas Research Partners LLC wrote in a note to clients Tuesday. “Historically, declining correlations are consistent with a more supportive market backdrop.”
     Investors seem to agree, as they bolstered the SPDR S&P 500 ETF since Tuesday with the biggest five days of inflows since September 2015. The $14 billion surge was more than three times the net amount they had invested from the start of the year through the election.
     Flows into funds tracking specific industries showed enthusiasm for financial and health-care companies. More than $2 billion was added to the SPDR exchange-traded fund tracking financial companies on Thursday, the biggest single-day inflow in the product’s history. A fund tracking health care set a simultaneous record with more than $1 billion added the same day.
     Some of the biggest losers since Trump’s win reversed direction today, as Alphabet Inc. and Microsoft Corp. added at least 1.9 percent to pace a tech rebound. Utilities rose after a four-day rout and energy producers rallied the most in seven weeks as crude surged nearly 6 percent, the most since April. The CBOE Volatility Index fell to a three-week low. An index of banks in the S&P 500 erased a selloff in the final minutes, after falling 2.2 percent, to close little changed.
     For investors like hedge fund manager Trip Miller, the ups and downs of 2016 have provided an opportunity to win on both the short and the long side of trades.
     “It hasn’t been one single thing this year, it’s been positions from top to bottom contributing,” Miller, founder and managing partner at Gullane Capital LLC in Memphis, said in an interview. His firm manages about $57 million. “Even though the market is up, we’ve also been able to buy names that were down that have been on our wish list. You have to be patient and be willing to sit on cash at a zero interest rate.”
     The main U.S. equity benchmark gained 3.8 percent last week on wagers Trump will enact a pro-business agenda, including loosening regulations and boosting infrastructure spending. The president-elect’s appointment of Republican National Committee Chairman Reince Priebus as his White House chief of staff signaled a willingness to work with GOP lawmakers to pass significant legislation, though the specifics of the administration’s near-term agenda remain open to speculation.
     Investors are also considering what a Trump presidency might mean for Federal Reserve policy and the path for interest rates. Richmond Fed President Jeffrey Lacker said yesterday that easier fiscal policy may require higher rates, but it’s too early to react to potential policy changes by the incoming administration. Chair Janet Yellen is scheduled to testify on the economic outlook before lawmakers on Thursday. Odds for an increase in borrowing costs next month have risen to 96 percent from 80 percent a week ago.

 

Have a wonderful evening everyone.

 

Be magnificent!

As long as you pursue pleasure, you are attached to the sources of pleasure;
and as long as you are attached to the sources of pleasure,
you cannot escape pain and sorrow.  The soul shines in the hearts of all living beings.
When you see the soul in others, you forget your own desires and fears,
and lose yourself in the service of others.
The soul shines equally in people on the farthest island, and in people close at hand.
Mundaka Upanishad

As ever,
 

Carolann

 

Only when he has ceased to need things can a  man
truly be his own master and so really exist.
–Anwar Sadat, 1918-1981

 

 

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

Dear Friends, 

Tangents:

ELEGY

 -by Leonard Cohen 

Do not look for him

In brittle mountain streams:

They are too cold for any god;

And do not examine the angry rivers

For shreds of his soft body

Or turn the shore stones for his blood;

But in the warm salt ocean

He is descending through cliffs

Of slow green water

And the hovering coloured fish

Kiss his snow-bruised body

And build their secret nests

In his fluttering winding-sheet.

That poem comes from one of Leonard Cohen’s books of poetry, Let Us Compare Mythologies.  A friend gave it to me after we had been to see Leonard Cohen during his last concert tour.   The concert consisted of  three straight hours of uninterrupted magic.

Gary and I were reminiscing on the weekend about what a great inspiration he was. I had friends in Montreal when I was growing up who used to run into him from time to time on the streets or in a deli and they always found him self-effacing;  unfortunately, I never did meet him in person in Montreal.  Gary remembers hearing Suzanne for the first time: he was in grade 12, and he decided to make a courageous visit to  a university (it happened to be Guelph) coffee-house (this was the sixties) and there was a folk musician at the coffee-house singing Suzanne and he thought he had never heard such a beautiful song before.  During university, Gary played guitar and sang in a folk band in any bar where they could find work – Suzanne remained a permanent part of the repertoire.   He can still recite the lyrics by heart.  Such beautiful lyrics…

And Jesus was a sailor 
When he walked upon the water 
And he spent a long time watching 
From his lonely wooden tower 
And when he knew for certain 
Only drowning men could see him 
He said “All men will be sailors then 
Until the sea shall free them” 
But he himself was broken 
Long before the sky would open 
Forsaken, almost human 
He sank beneath your wisdom like a stone 
And you want to travel with him 
And you want to travel blind 
And you think maybe you’ll trust him 
For he’s touched your perfect body with his mind….

Now Suzanne takes your hand 
And she leads you to the river 
She is wearing rags and feathers 
From Salvation Army counters 
And the sun pours down like honey 
On our lady of the harbour 
And she shows you where to look 
Among the garbage and the flowers 
There are heroes in the seaweed 
There are children in the morning 
They are leaning out for love 
And they will lean that way forever… 

Probably an inspiration for Gary to become a sailor.

RIP, Leonard.

PHOTOS OF THE DAY

A ‘supermoon’ sets behind Ocean Beach Pier Monday morning, while dozens of photographers who got up early observe it. The moon appears about 7% larger than normal and about 15% brighter during its full phase through Monday night, although the human eye is barely able to discern that difference. The moon hasn’t been this close to the Earth since 1948. It won’t be this close again until November 25, 2034. Peggy Peattie/San Diego Union-Tribune/AP

People release floating lanterns during the festival of Yee Peng in the northern capital of Chiang Mai, Thailand on Monday. Athit Perawongmetha/Reuters

A man takes a photo of post-election Post-it notes pasted along a tiled walk at Union Square subway station in New York on Monday.Shannon Stapleton/Reuters

Market Closes for November 14, 2016

Market Index	Close	Change
Dow Jones	18868.69	+21.03   +0.11%
S&P 500	2164.20	-0.25   -0.01%
NASDAQ	5218.395	-18.719   -0.36%
TSX	14598.45	+43.04
		+0.30%

International Markets

Market Index	Close	Change
NIKKEI	17672.62	+297.83
		+1.71%
HANG SENG	22222.22	-308.87
		-1.37%
SENSEX	26818.82	-698.86
		-2.54%
FTSE 100	6753.18	+22.75
		+0.34%

Bonds

Bonds		% Yield		Previous  % Yield
CND. 10 Year Bond		1.550		1.429
CND. 30 Year Bond		2.192		2.070
U.S.    10 Year Bond		2.2632		2.1501
U.S. 30 Year Bond		3.0133		2.9549

Currencies

BOC Close	Today	Previous
Canadian $	0.73901	0.74234
US $	1.35316	1.34708
Euro Rate 1 Euro=		Inverse
Canadian $	1.45687	0.68640
US $	1.07668	0.92878

Commodities

Gold	Close	Previous
London Gold Fix	1213.60	1267.50
Oil	Close	Previous
WTI Crude Future	43.32	44.66

Market Commentary:

On Nov. 14, 1972, the Dow Jones Industrial Average closed above 1,000 for the first time, ending the day at 1,003.16.

Go to article »

On this day in 1986, the Securities and Exchange Commission fines Ivan Boesky $100 million for insider trading.

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose Monday, after tumbling the most in two months last week, bolstered by gains among gold producers, financial services companies and consumer discretionary shares.

     The S&P/TSX Composite Index rose 0.3 percent to 14,598.51 at 4 p.m. in Toronto, after plunging 1.3 percent on Nov. 11. Only five of 11 industries in the S&P/TSX advanced on trading volume 34 percent higher than the 30-day average. The equity benchmark remains up 12 percent in 2016, making it the top performer among developed markets tracked by Bloomberg. Canadian stocks are about 9 percent more expensive than their peers in the S&P 500 Index.

     Toronto-Dominion Bank rose 2 percent while Royal Bank of Canada added 0.8 percent to lead the nation’s largest lenders higher. Manulife Financial Corp. advanced 3.3 percent to extend a four-day rally and was trading at the highest level in more than a year. The company, Canada’s largest life insurer, posted third-quarter profit that almost doubled on gains from its life insurance business and investments.

     Amaya Inc. jumped 14.4 percent, the most since February, to lead consumer shares higher after its founder made a cash offer to take the Canadian owner of the PokerStars online gambling service private in a deal valued at about $6.7 billion including debt. The offer, at C$24 for each outstanding common share, represented a 31 percent premium to Friday’s close at C$18.34 in Toronto. Amaya also reported third-quarter earnings and full- year projections that topped analysts’ estimates.

     Gildan Activewear Inc. added 5.1 percent for its biggest gain in 18 months after agreeing to buy the American Apparel Inc. brand for about $66 million. Gildan won’t be taking on any retail stores. American Apparel filed for bankruptcy Monday, less than a year after ending its first stint under court protection.

     Raw-materials producers added 0.6 percent as a group, rebounding from a two-day slide. Gold was down 0.8 percent, paring an earlier loss of as much as 1.3 percent. The precious metal has whipsawed after topping $1,300 an ounce in the immediate aftermath of Donald Trump’s surprise presidential victory. Investors initially seeking a haven from volatility have instead warmed to the idea of a Trump presidency that favors tax cuts and infrastructure spending to boost U.S. growth.

US

By Lu Wang

     (Bloomberg) — The stock market’s post-election bifurcation sharpened Monday as technology shares extended their worst performance since the start of the bull market on speculation Donald Trump’s trade and immigration policies will translate into lower earnings.

     Apple Inc., Facebook Inc. and Alphabet Inc. led the S&P 500 Information Technology Index down 1.7 percent for the biggest retreat since September. The group stands out as the only industry that normally benefits from a rising economy not to rally on speculation Trump’s policies will stoke domestic growth. Tech stocks in the benchmark equity gauge have slumped 3.1 percent over four days, trailing the S&P 500 Index by 4.2 percentage points, the most since May 2009. Small caps in the Russell 2000 Index surged 1.2 percent to an all-time high.

     No single fact explains the tech rout though everything from trade and immigration policy to industry rotation to flat- out campaign retaliation have been cited. Technology is the biggest group in the S&P 500 by far and one of the only ones to consistently post earnings growth over the last 18 months.

     “Technology provides the productivity gains for the global economy and many of the large-cap names like Apple and Amazon were carrying the torch for the market,” Channing Smith, a managing director at Capital Advisors Inc. in Tulsa, Oklahoma, said by phone. The firm oversees about $1.8 billion. “Without their participating, that’s definitely going to create a headwind for the market.”

     The S&P 500 slipped less than one point for a second day of losses, with tech giants bearing the worst of the rout. The FANG block of Facebook, Amazon.com Inc., Netflix Inc. and Google parent Alphabet each fell more than 2.4 percent. The group has dropped every day since Trump’s victory, sinking 8 percent for the worst retreat since February amid concern about the impact of Trump’s policies on trade overseas, where U.S. technology companies thrive.

     The industry, which largely supported Hillary Clinton during her presidential campaign, may also face higher hurdles for expanding their footprints after some high-profile business leaders including Amazon Chief Executive Officer Jeff Bezos clashed with Trump during the election. Trump, responding to negative coverage in the Washington Post, which is owned by Bezos, maintained Bezos purchased the news organization to gain political influence and avoid antitrust scrutiny. Shares of the online retailer have lost more than $30 billion in value since Tuesday’s vote.

     “It’s a big deal with what potentially Trump could do,”said Blake Harper, an analyst that covers internet stocks at Loop Capital Markets LLC in Chicago. “If you look at investors in Alphabet, Facebook and Amazon, they’re stacking some type of operationality for them to continue to expand internationally and also expand into other different categories outside their core markets,” he said. “He definitely indicated he would pursue antitrust measures against companies like Amazon. You’d have more restrictive policies to prohibit expansion.”

     Any slowdown in tech earnings may deal a blow to a market that just emerged from a five-quarter profit slump, the longest since the global financial crisis. While S&P 500 income rose 2.7 percent in the third quarter, profit at tech firms expanded almost 8 percent, actual results and analyst estimates compiled by Bloomberg show.

     The decline in tech shares came after they extended their leadership at the fastest rate in four years, raising their representation in the S&P 500 by more than 1 percentage point to a 15-year high of 21.4 percent in the third quarter. From Apple to Facebook, mega techs now occupy half of the top 10 spots in ranks of the most valuable American companies, matching the number at the peak of internet mania.

     For now, the market seems to be holding up, with S&P 500 trading within 1.2 percent of an all-time high, as the retreat in tech stocks has been countered by rallies in financial and industrial companies, shares expected to benefit from Trump’s plans to boost fiscal spending and ease regulations. Banks climbed 2.3 percent Monday, extending their gains since Trump’s victory to 11 percent, while industrial stocks have added 5.2 percent in that time.

     “The market is getting ahead of itself here and selling off and being hard on tech,” said Timothy Ghriskey, who helps manage $1.5 billion as chief investment officer at Solaris Asset Management LLC in New York. “Tech is where a lot of gains were, so as money gets shifted around to different sectors, meaning into financials and into health care and industrials, it has to come out of somewhere and a lot of it has come out of tech.”

 Have a wonderful evening everyone.

Be magnificent!

When a man is deprived of the foundation that provides him everything,

his poverty loses its best virtue, simplicity, to become no more than disgraceful and sordid.

His wealth is no longer splendid, but becomes merely extravagant.

His appetites no longer remain within natural limits; they no longer have the one goal

of meeting the needs of his life; they become an end in themselves,

setting fire to his existence, and dancing madly by the light of the flames.

Rabindranath Tagore

 

As ever,

Carolann

 

Deciding what not to do is as important as

deciding what to do.

                  -Steve Jobs, 1955-2011

 

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

Dear Friends,

Tangents:

On November 10^th, 1782, King George III wrote to Lord Shelburne:

Knavery seems to be so much the striking feature of its [America’s] inhabitants that it may not in the end be an evil that they will become aliens to this kingdom. 

November 11:  Martinmas/Veterans Day/Armistice Day:

St. Martin of Tours, France, was a popular bishop in the Middle Ages.  The English shortened the name of his feast day from Martin’s Mass to Martinmas, and the day fell at a time when people wanted to celebrate harvesting and wine making, it became a day for feasting and celebration.  A goose was often roasted for the occasion.  November II became Armistice Day in 1918 to mark the armistice between the Allies and the Central Powers that ended World War I.  The United States, England, and France celebrated the day jubilantly; many were sure there’d never be another war.  Now in England, France, and Canada, in particular, the day commemorates those who died in both World War I and II.  In 1954, the United States changed the day to Veterans’ Day, to commemorate those who have served in the armed forces during all the country’s wars.   
                                                                                                                          
from The Book of Holidays Around the World.

On November 11, 1918, Virginia Woolf wrote in her Diary:

Twenty-five minutes ago the guns went off, announcing peace.  A siren hooted on the river.  They are hooting still.  A few people ran to look out of windows.  The rooks wheeled round, and wore for a moment the symbolic look of creatures performing some ceremony, partly of thanksgiving, partly of valediction over the grave.  A very cloudy still day, the smoke toppling over heavily toward the east; and that too wearing for a moment a look of something floating, waving, drooping.  So far neither bells nor flags, but the wailing of sirens and intermittent guns. 

Also on this day in….

1951 – Direct-dial, coast-to-coast telephone service began with a call between the mayors of Englewood, N.J., and Alameda, Calif.

1954 – The U.S. Marine Corps Memorial, depicting the raising of the American flag on Iwo Jima in 1945, was dedicated in Arlington, Va.
1969 – “Sesame Street” debuted on PBS.

1997 – A judge in Cambridge, Mass., reduced Louise Woodward’s murder conviction to manslaughter and sentenced the English au pair to time served in the death of 8-month-old Matthew Eappen.

1997 – WorldCom Inc. and MCI Communications Corp. agreed to a $37 billion merger.

1982 – Soviet leader Leonid Brezhnev died at age 75.

PHOTOS OF THE DAY

Prince William, Duke of Cambridge, watches children planting seeds during a visit to the Living Memory and Centenary Fields Projects in London on Thursday. Launched by the prince in 2014 and in partnership with the Royal British Legion, Centenary Fields helps remember those who lost their lives during WWI by securing and protecting outdoor recreational space in perpetuity for the benefit of future generations. Stuart C. Wilson/AP

A rider and his horse, from the Spanish Riding School of Vienna, perform a dress rehearsal for the media at the SSE Arena in London on Thursday. Peter Nicholls/Reuters

Market Closes for November 10, 2016

Market Index	Close	Change
Dow Jones	18807.88	+218.19   +1.17%
S&P 500	2167.48	+4.22   +0.20%
NASDAQ	5208.797	-42.275   -0.81%
TSX	14744.25	-15.66
		-0.11%

International Markets

Market Index	Close	Change
NIKKEI	17344.42	+1092.88
		+6.72%
HANG SENG	22839.11	+423.92
		+1.89%
SENSEX	27517.68	+265.15
		+0.97%
FTSE 100	6827.98	_83.86
		-1.21%

Bonds

Bonds		% Yield		Previous  % Yield
CND. 10 Year Bond		1.429		1.371
CND. 30 Year Bond		2.070		2.020
U.S.    10 Year Bond		2.1501		2.0644
U.S. 30 Year Bond		2.9549		2.8541

Currencies

BOC Close	Today	Previous
Canadian $	0.74234	0.74507
US $	1.34708	1.3421
Euro Rate 1 Euro=		Inverse
Canadian $	1.46679	0.68176
US $	1.08876	0.91847

Commodities

Gold	Close	Previous
London Gold Fix	1267.50	1281.40
Oil	Close	Previous
WTI Crude Future	44.66	45.27

Market Commentary:

Canada

By Anna-Louise Jackson

     (Bloomberg) — Canadian stocks fell slightly after a three- day rally, bucking broader gains in global financial markets amid optimism that U.S. President-Elect Donald Trump’s fiscal- stimulus plans will boost economic growth.

     The S&P/TSX Composite Index lost 0.1 percent, dropping to14,744.18 in Toronto Thursday despite gains among industrial, financial and health-care stocks. The index gyrated up-and-down throughout the session. First Quantum Minerals Ltd. gained 4.2 percent and Cott Corp. rose 5.2 percent.

     The move ran counter to large-cap U.S. stocks, which rose with the Dow Jones Industrial Average briefly hitting an all- time high before paring, while the S&P 500 Index came within 10 points of its previous record. Meanwhile the technology-heavy Nasdaq 100 Index fell 1.6 percent, its biggest retreat since Sept. 9.

     Canadian industrial stocks jumped 2.5 percent to the highest level since March 2015, buoyed by a 10.1 percent rally for Bombardier Inc. The company forecast today that its annual profits will reach the high end of its previous outlook and reported a narrower-than-expected quarterly loss. Ritchie Bros. Auctioneers Inc. and Russel Metals Inc. both added more than 5 percent.

     Shares of health-care companies rose 2.3 percent, bolstering a two-day rally of 6.4 percent. Valeant Pharmaceuticals International Inc. jumped 5.6 percent on news Blackstone Group LP, Carlyle Group LP and KKR & Co. are among buyout firms in talks with banks for financing to back their bids for the company’s Australian drug unit.

     Raw-materials stocks slumped 3.8 percent, led by a 16.2 percent decline for Silver Wheaton Corp. and a 11.4 percent tumble for Torex Gold Resources Inc. Meanwhile, shares of consumer-staples companies fell 3.1 percent to the lowest level since July.

US

By John Hyland

     (Bloomberg) — The Dow Jones Industrial Average’s first record close in three months comes amid a market drawing increasingly bright lines between what it views as winners and losers in a Donald Trump presidency.

     Consider that the 30-stock gauge’s 218-point ascent Thursday happened the same day the Nasdaq 100 Index dropped the most since September, their biggest divergence since the internet bubble burst. Weakness in technology stocks and a handful of defensive industries that soared in the first half held the S&P 500 Index’s gain to roughly a fifth of the Dow’s.

     The surge in stocks following a presidential election echoed 1996 and 1972, when the blue-chip index made fresh highs just after victories by Bill Clinton and Richard Nixon.

     On the upside were financial shares, perceived beneficiaries should Trump make good on threats to dismantle the Dodd-Frank Act, as well as industrial and materials stocks in anticipation of infrastructure spending. Along with technology shares, pain was felt in high-dividend industries such as household product makers, utilities and phone companies as bond yields surged.

     “People are going through the possibilities about what Washington looks like today and what Washington can do or not do for them,” said John Manley, who helps oversee about $233 billion as chief equity strategist for Wells Fargo Funds Management in New York. “Corporations feel there’s a less restrictive hand. People may take that as a positive. It’s the end of the uncertainty.”

     The Dow rose 218.19 points, or 1.2 percent, to 18,807.88 at 4 p.m. in New York, topping its Aug. 15 record. The Nasdaq 100 Index lost 1.6 percent. The S&P 500 Index advanced 0.2 percent and the small-cap Russell 2000 Index jumped 1.6 percent and is up 4.7 percent since Trump’s election.

     Amazon.com Inc. fell 3.8 percent to lead the rout in technology. JPMorgan Chase & Co. jumped 4.6 percent and Goldman Sachs Group Inc. climbed 4.3 percent. Drugmakers advanced, led by Pfizer Inc.’s 4.3 percent rally. Caterpillar Inc. added 2.5 percent. Procter & Gamble Co. plunged 3.5 percent.

     Financial and health-care industries have surged since Trump’s surprise win on Tuesday, rallying on expectations that the president-elect and Republican-controlled Congress will roll back regulations. Trump’s promise to revive American infrastructure means commodities used to build everything from airports to bridges will benefit under his presidency, according to Goldman Sachs Group Inc.

     “Yields are moving their way higher, that’s good for banks,” said Art Hogan, chief market strategist and director of research for Wunderlich Securities in Boston. “If there’s going to be a friendlier regulatory environment that’s going to be good for banks. That’s the tailwind behind financials we haven’t seen for a long time.”

     While opinions vary about what’s behind the tech rout, one possibility was concern about the impact of Trump’s policies on trade overseas, where U.S. technology companies thrive. Others saw a rational retreat for a group that through Election Day had surged 11 percent in 2016, or even the potential for retaliation by the president-elect against an industry that didn’t exactly cozy up to him during the campaign.

     Department-store stocks rallied. Kohl’s Corp. jumped 12 percent after saying back-to-school sales were strong. Macy’s Inc. surged 5.6 percent after hiring Brookfield Asset Management to squeeze more money out of its real estate holdings. The largest U.S. department-store company posted another quarter of declining sales. Nordstrom Inc. surged 7.2 percent and Urban Outfitters Inc. added 5.6 percent.

     The CBOE Volatility Index rose 3.7 percent on Thursday. The measure of market turbulence known as the VIX reached a four- month high on Friday. U.S. stocks had been heavily hedged as volatility surged leading up to the vote on speculation a Trump win had the potential to rattle markets as he had pledged to clamp down on international trade deals, while adopting divisive rhetoric throughout his campaign.

     In the 22 elections going back to 1928, the S&P 500 has fallen 15 times the day after polls close, for an average loss of 1.8 percent. Stocks reversed course and moved higher over the next 12 months in nine of those instances, according to data compiled by Bloomberg.

     With the election uncertainty out of the way, investors are also weighing prospects for the timing of the Federal Reserve’s next rate increase. Odds for a December move have increased to 82 percent from 78 percent a week ago. A report today showed jobless claims declined from an almost three-month high ahead of the election.

 

Have  a wonderful evening everyone.

 

Be magnificent!

Those who are focused on the objects of the senses, become attached to those objects.

From attachment comes desire; and from desire comes anger; from anger comes confusion of mind;

from confusion of mind comes loss of memory; from loss of memory comes loss of intelligence;

and from loss of intelligence comes destruction.

The Bhagavad Gita

As ever,

 

Carolann

 

A generation which ignores history has no past and no future.

                                               -Robert Heinlein, 1907-1988                      

 

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