Category: Uncategorized

Dear Friends,

Tangents:

On this day in 1990, Nelson Mandela was released from prison.
Giving up is the ultimate tragedy.  –Robert J. Donovan

POEM

Teacher of reading, of “You will not” and “You shall,”
almighty Grammarian author of Genesis,
whether language holds three forms of the future
as Hebrew does or no future tense at all
like Chinese, may it perform a public service,
offer the protection of the Great Wall,
the hope and sorrow of the Western Wall.

-Stanley Moss

Photos of the day

A man offers memorial prayers in front of the main entrance of Okawa Elementary School where 74 of the 108 students went missing after the 2011 tsunami in Ishinomaki, Miyagi prefecture, northern Japan. Japan marks the third anniversary of the March 11, 2011 earthquake and tsunami that killed 15,884 people and left more than 2,600 unaccounted for in vast areas of its northern coast. Shizuo Kambayashi/AP

Decorated clay pots are displayed for sale at a road side in Kenya’s capital Nairobi, Kenya. Noor Khamis/Reuters

Market Closes for March 11^th, 2014

Market  Index	Close	Change
Dow  Jones	16351.25	-67.43    -0.41%
S&P 500	1867.63	-9.54    -0.51%
NASDAQ	4307.188	-27.260    -0.63%
TSX	14267.23	-34.83
		-0.24%

International Markets

Market  Index	Close	Change
NIKKEI	15224.11	+103.97
		+0.69%
HANG  SENG	22269.61	+4.68
		+0.02%
SENSEX	21826.42	-108.41
		-0.49%
FTSE 100	6685.52	-3.93
		-0.06%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.485	2.497
CND.  30 Year Bond	3.019	3.031
U.S.   10 Year Bond	2.7680	2.7770
U.S.  30 Year Bond	3.7092	3.7179

Currencies

BOC Close	Today	Previous
Canadian $	0.90034	0.90055
US  $	1.11070	1.11043
Euro Rate  1 Euro=		Inverse
Canadian  $	1.53927	0.64966
US  $	1.38586	0.72157

Commodities

Gold	Close	Previous
London Gold  Fix	1349.33	1340.08
Oil	Close	Previous
WTI Crude Future	100.03	101.12
BRENT	109.360	109.360

Market Commentary:

Canada
By Eric Lam

March 11 (Bloomberg) — Canadian stocks fell the most in two weeks as base-metal and energy companies declined after copper slumped to the lowest in three years on concerns that economic growth in China is slowing.

Teck Resources Ltd., Canada’s largest diversified miner, sank 3.5 percent as copper plunged to the lowest since 2010. Husky Energy Inc. lost 2.4 percent to pace declines among energy stocks. WestJet Airlines Ltd. slipped after analysts at RBC Capital Markets lowered their rating for the stock on concerns about the rate of fare increases. Torex Gold Resources Inc. and Centerra Gold Inc. climbed at least 1.4 percent as gold rallied.

The Standard & Poor’s/TSX Composite Index fell 34.83 points, or 0.2 percent, to 14,267.23 at 4 p.m. in Toronto. The index has risen about 4.7 percent this year.

“Stocks have been strong so we’re pausing a little bit here,” said Ian Nakamoto, director of research with MacDougall MacDougall & MacTier Inc. in Toronto. The firm manages C$4.7 billion ($4.2 billion). “It’s going to be more company-specific news that will move markets looking ahead. The situation in Ukraine, they will come back to the forefront if there is a bigger response from military forces. For now it’s psychological.”

Gold for April delivery climbed 0.4 percent to settle at $1,346.70 an ounce in New York as the standoff between Russia and Ukraine spurred demand for a haven. Germany told Russia it may face more sanctions if it doesn’t switch course in Crimea by next week and Ukraine’s deposed president warned of a possible civil war.

Torex Gold increased 2.5 percent to C$1.23 and Centerra Gold rose 1.4 percent to C$5.60 as gold shares gained 0.3 percent as a group. Trading volume for S&P/TSX companies was 15 percent lower than the 30-day average.

Teck Resources slumped 3.5 percent to C$22.97, the lowest since July, and First Quantum Minerals Ltd. retreated 2.6 percent to C$19.07 as copper plunged 2.6 percent to $2.952 a pound in New York. Copper prices have tumbled 13 percent this year on signs of slowing economic growth in China, the world’s biggest metals consumer.

China had its first onshore bond default after Shanghai Chaori Solar Energy Science & Technology Co., a solar-panel maker, last week missed an interest payment.

Toronto-Dominion Bank, the nation’s largest lender, advanced 1.1 percent to C$51.54, extending a record high.  Toronto-Dominion has climbed 2.5 percent in the past three days. Royal Bank of Canada, the second-largest lender, gained 0.9 percent to C$72.33 as the S&P/TSX Banks Index rallied 1.4 percent to a record high.

BlackBerry Ltd. retreated 3.5 percent to C$10.33 for a fifth day of losses, the longest streak since July. Shares of the smartphone maker have plunged 10 percent during that period.

Husky Energy declined 2.4 percent to C$33.06 and Ithaca Energy Inc. lost 1.4 percent to C$2.85. Crude fell to a one- month low, dropping 1.1 percent to $100.03 a barrel in New York. Stockpiles of crude oil are forecast to have gained 2 million barrels last week, according to a Bloomberg survey before an Energy Information Administration report tomorrow.

WestJet decreased 0.6 percent to C$25.52. Walter Spracklin, analyst at RBC Capital Markets, lowered his rating for the airline to sector perform, the equivalent of a hold, due to data pointing toward lower fare increases.

“Pricing gains have been more difficult to achieve on the domestic and vacation segments,” Spracklin said in a note to clients. Spracklin also lowered his price target to C$28 from C$34.   WestJet has 11 buy ratings from analysts and five holds, with a consensus 12-month target price of C$30.33, according to data compiled by Bloomberg.

USA
By Callie Bost and Nikolaj Gammeltoft

March 11 (Bloomberg) — U.S. stocks fell, after the Standard & Poor’s 500 Index climbed to a record last week, as commodity shares slumped with copper and oil prices amid concern over China’s economy.

Freeport-McMoRan Copper & Gold Inc. fell 2.1 percent. DuPont Co. slid 2 percent after it said results will be “challenged” by the unusually cold North American winter and disruptions in Ukraine. Urban Outfitters Inc. and American Eagle Outfitters Inc. dropped more than 4.2 percent as first-quarter forecasts disappointed investors. McDonald’s Corp. rose 3.8 percent after an executive said the company may look to cut costs and borrow more cash to return to investors.

The S&P 500 fell 0.5 percent to 1,867.63 at 4 p.m. in New York. The benchmark index closed at an all-time high of 1,878.04 on March 7. The Dow Jones Industrial Average lost 67.43 points, or 0.4 percent, to 16,351.25 today. About 7 billion shares changed hands on U.S. exchanges, 4.9 percent more than the three-month average.

“China is a big importer of copper and intraday that triggered a little bit of fear in equities,” Joe Bell, senior equity analyst at Cincinnati-based Schaeffer’s Investment Research Inc., said by phone. “Copper is somewhat related to the health of the global economy, so that could have pushed people to take some money off the table.”

Commodities shares declined at least 1 percent today, with Freeport-McMoRan dropping 2.1 percent to $30.71. Copper futures slid as much as 3 percent to the lowest level since July 2010 as signs of slowing economic growth in China sparked concern demand will slump.

China’s credit growth trailed analysts’ estimates in February, the People’s Bank of China said yesterday. China had its first onshore bond default after Shanghai Chaori Solar Energy Science & Technology Co., a solar-panel maker, last week failed to make an interest payment.

“People are starting to reevaluate the China demand scenario, not only from economic data, but also from this first ever corporate-debt default inside the country,” Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, said in a telephone interview. “How many more companies out there are going to default?”

The S&P 500 fell less than 0.1 percent yesterday as a report showed Chinese exports unexpectedly declined last month and Ukraine began military drills.

The S&P 500 rallied 4.3 percent in February after Federal Reserve Chair Janet Yellen said the U.S. economy was strong enough to withstand measured reductions to the central bank’s monthly bond purchases. Three rounds of Fed stimulus have helped push the S&P 500 up 176 percent from a 12-year low, as U.S. equities begin the sixth year of a bull market that started March 9, 2009.

The Fed is trying to determine how much of the recent economic cooling has been due to weather. U.S. employers added more workers than estimated in February, a Labor Department report showed last week. Other reports indicated manufacturing expanded faster than projected last month, while consumer spending rose more than estimated in January.

“The equity market is going to make continued progress in a two-steps-forward, one-step-back kind of progression,” Jim Russell, who helps oversee $115 billion as a senior equity strategist for U.S. Bank Wealth Management, said by phone. “We’re still evaluating how much of the economic weakness is weather related and how much of it is legitimate.”

Investors also continued to watch the situation in Ukraine.  Russia is wresting control of Ukraine’s Crimean peninsula, home to its Black Sea Fleet, sparking the worst crisis between Russia and the West since the Cold War. The European Union told Russia it must switch course in Crimea by next week or risk more sanctions as Ukraine’s deposed president warned of a possible civil war.

Ukraine’s Interior Minister Arsen Avakov said today the country may mobilize 20,000 people to protect its borders.  Ukraine says Russia has almost 19,000 soldiers in Crimea, which holds a referendum on March 16 on whether to secede.

Investors have added $13.1 billion to U.S. equity exchange- traded funds in the past five days and withdrawn $8.2 billion from bond ETFs, data compiled by Bloomberg show. Real-estate stocks absorbed the most money among industry ETFs, taking in $564 million during the past week.

The Chicago Board Options Exchange Volatility Index, a gauge for U.S. stock volatility, rose 4.2 percent to 14.80. The measure has climbed 7.9 percent this year.

Nine of 10 main industries in the S&P 500 declined today, with energy companies slipping 1.2 percent for the biggest loss. Oil prices dropped 1.1 percent, touching below $100 a barrel, on speculation a government report will show U.S. supplies rose last week. Exxon Mobil Corp. slid 1.6 percent to $94.01 and Chevron Corp. lost 1.2 percent to $114.51. Energy explorer Pioneer Natural Resources Co. tumbled 3.3 percent to $188.58.

DuPont slid 2 percent to $66.01. The largest U.S. chemical maker by market value said in a regulatory filing yesterday that first-quarter sales and earnings will be affected by winter weather and the situation in Ukraine. The company maintained its 2014 forecast for operating earnings, citing an improvement in global industrial production and lower agriculture input costs.

Urban Outfitters slipped 4.3 percent to $35.91. Chief Executive Officer Richard Hayne said he expects poor weather to contribute to lower sales and profit margins in the first quarter for its Urban Outfitters-branded shops. The clothing retailer also reported earnings of 59 cents a share for the fourth quarter, beating the average analyst estimate of 54 cents.

American Eagle Outfitters lost 7.8 percent to $13.10. The teen-apparel retailer seeking a new chief executive officer said it would break even in the current quarter. The average of analysts’ estimates compiled by Bloomberg was for profit of 12 cents a share. Same-store sales will fall by a high single-digit percentage, the company said, a worse performance than the 2.3 percent decline analysts projected.

General Motors Co. fell 5.2 percent, the most in two years, to $35.18. The U.S. Justice Department has started a preliminary investigation into how the carmaker handled the recall of 1.6 million vehicles with faulty ignition switches linked to at least 13 deaths, said a person familiar with the probe.

The inquiry is focusing on whether GM violated criminal or civil laws by failing to notify regulators in a timely fashion about the switch failures, said the person, who asked not to be named and isn’t authorized to discuss investigations.

Financial shares retreated 0.7 percent as a group. Goldman Sachs Group Inc. slid 2.1 percent to $169.89 and JPMorgan Chase & Co. declined 1.7 percent to $58.19.

Fannie Mae plunged 31 percent to $4.03 and Freddie Mac tumbled 27 percent to $4.04. The U.S.-owned mortgage financiers would be eliminated and private interests would be on the hook for the first 10 percent of mortgage losses under a bill that leaders of the Senate Banking Committee plan to introduce within days.

The bipartisan measure, drafted with input from President Barack Obama’s administration, would replace Fannie Mae and Freddie Mac with a government insurer behind private capital, Senate Banking Committee Chairman Tim Johnson and Senator Mike Crapo said in a statement. The bill would require most borrowers to make down payments of at least 5 percent in the new housing- finance system.

McDonald’s increased 3.8 percent to $98.78, for the largest gain in the S&P 500 and the company’s biggest advance since August 2011. Chief Financial Officer Pete Bensen said the world’s largest restaurant chain is “actively looking at ways to optimize our capital structure, while maintaining our long- term financial strength.”

That includes scrutinizing general and administrative expenses and selling stores to franchisees in countries such as China, South Korea and Taiwan, Bensen said at an investor conference.

J.C. Penney Co. jumped 3 percent to $8.67 after Citigroup Inc. upgraded the shares to buy from neutral, saying the company will meet its revenue and margin forecasts this year. The retailer predicted on Feb. 26 that gross margin will improve and same-store sales will increase by a mid-single digit percentage this year.

 

Have a wonderful evening everyone.

 

Be magnificent!

It is necessary that this be the aim of our entire life.

In all of our thoughts and actions,

we must be conscious of the infinite.

-Rabindranath Tagore, 1861-1901

As ever,

 

Carolann

 

Cannot people realize how large an income is thrift?

-Marcus Tullius Cicero, 106-43 B.C.

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

We went to the Joan Miró exhibit at the Seattle Art Museum this past weekend and found it worthwhile.  It is on until May 26^th, so there is still lots of time to take it in.  All the pieces are from the Museo Nacional Centro de Arte Reina Sofia, in Madrid.  They are mostly works – painting and sculpture – from the last two decades of his life when he lived in Palma de Mallorca.  We also found a new restaurant by celebrated chef Thierry Rautureau (Best chef in the Pacific Northwest from The James Beard Foundation, 1998; Chevalier de l’Ordre Du Mérite Agricole from the French Government, 2004) named Loulay Kitchen and Bar.  We liked it so much, we dined there Saturday and Sunday.  The interior is wonderful – high ceilings, floor to ceiling windows, whimsical light fixtures – and the food is terrific.  We knew Rautureau’s cooking from his old restaurant Rover’s, which is closed now.  The food at Rover’s was a little more pretentious; Loulay is more casual a’ la French bistro style.  And it is right downtown, so its location is a lot more convenient than where  Rover’s was.   We didn’t care for Seattle opera’s production of The Consul; but I don’t think it was the performance as much as the opera itself – sung in English and depressing subject matter – human oppression.  Ah well – it happens.

Photos of the day

A horse and rider are silhouetted against the morning sun as they ride out on the gallops at the Cheltenham racecourse in western England. The four-day Cheltenham Festival 2014, culminating with the Gold Cup, will begin on Tuesday. Eddie Keogh/Reuters

The hands of Claudia Breidbach (r.) demonstrating her bionic hand that is steerable by a mobile phone or iPod via Bluetooth to German Chancellor Angela Merkel (l.) and British Prime Minister David Cameron during the opening day of the computer fair CeBIT in Hannover, Germany. Frank Augstein/AP

Market Closes for March 10^th, 2014

Market Index	Close	Change
Dow Jones	16418.68	-34.04   -0.21%
S&P 500	1877.17	-0.87   -0.05%
NASDAQ	4334.449	-1.773   -0.04%
TSX	14302.06	+2.98
		+0.02%

International Markets

Market Index	Close	Change
NIKKEI	15120.14	-153.93
		-1.01%
HANG SENG	22264.93	-395.56
		-1.75%
SENSEX	21934.83	+15.04
		+0.07%
FTSE 100	6689.45	-23.22
		-0.35%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.497	2.525
CND. 30 Year Bond	3.031	3.045
U.S. 10 Year Bond	2.7770	2.7897
U.S. 30 Year Bond	3.7179	3.7232

Currencies

BOC Close	Today	Previous
Canadian $	0.90055	0.90178
US $	1.11043	1.10891
Euro Rate 1 Euro=		Inverse
Canadian $	1.54103	0.64892
US $	1.38778	0.72058

Commodities

Gold	Close	Previous
London Gold Fix	1340.08	1340.21
Oil	Close	Previous
WTI Crude Future	101.12	102.58
BRENT	109.360	109.360

Market Commentary:

Canada
By Eric Lam

March 10 (Bloomberg) — Canadian stocks were little changed, closing near a five-year high, as commodity companies tumbled on weaker-than-estimated export data from China while health-care and bank shares advanced.

Teck Resources Ltd. and First Quantum Minerals Ltd. dropped at least 2.5 percent as copper prices posted the biggest two- session decline in 28 months. Legacy Oil & Gas Inc. and BlackPearl Resources Inc. retreated more than 2.1 percent as crude fell for the first time in three days. Canadian Imperial Bank of Commerce climbed to a six-year high as housing starts in Canada rose for the first time in four months.

The Standard & Poor’s/TSX Composite Index rose 2.98 points, or less than 0.1 percent, to 14,302.06 at 4 p.m. in Toronto. The index has gained 5 percent this year and closed at a five-year high on March 5.

“Most people are looking at China, which is a bit of a knee-jerk reaction given how unreliable the data is this time of the year due to the Chinese New Year,” said Bob Decker, fund manager at Aurion Capital Management in Toronto. The firm manages about C$6.6 billion ($5.9 billion). “We’re looking for a choppy market this year.”

China’s exports declined by 18.1 percent in February from a year earlier, the biggest drop since August 2009, according to a March 8 report from the General Administration of Customs.  Economists surveyed by Bloomberg had forecast a median 7.5 percent increase.  he S&P GSCI Index, which tracks prices for 24 commodities, retreated 1 percent for the first decline in three days, closing at a three-week low.

Canadian Imperial rose 0.7 percent to C$94.56, the highest level since November 2007, and Toronto-Dominion Bank added 1 percent to C$51, a record high.

Financial stocks rose 0.2 percent as a group with seven of 10 industries in the S&P/TSX advancing on trading volume 23 percent lower compared with the 30-day average.

Canadian housing starts climbed 6.4 percent to a seasonally adjusted annual pace of 192,100 units in February, Canada Mortgage & Housing Corp. said today. Economists forecast 190,000 starts. Multiple-unit starts rose 13 percent.

Catamaran Corp. jumped 2.8 percent to C$50.54 to pace gains among health-care stocks.

Bombardier Inc. rallied 4.6 percent to C$3.77 for a third day of gains.

Teck Resources, Canada’s largest diversified miner, slumped 2.5 percent to C$23.80, the lowest since July. First Quantum Minerals dropped 2.6 percent to C$19.58, a one-month low. Copper prices sank below $3 a pound for the first time since June today and the metal slumped 5.8 percent in the past two days, the most since October 2011.

Turquoise Hill Resources Ltd., which is developing the Oyu Tolgoi gold and copper mine in Mongolia, tumbled 3.1 percent to C$4.38 and Thompson Creek Metals Co. slumped 6.1 percent to C$2.75. Raw-materials stocks declined 0.8 percent as a group.

BlackPearl Resources decreased 4.3 percent to C$2.45 and Legacy Oil & Gas fell 2.1 percent to C$6.63 as crude retreated 1.4 percent to a three-week low.

USA

By Callie Bost and Jeremy Herron

March 10 (Bloomberg) — The Standard & Poor’s 500 index fell from a record, following declines in emerging-market equities and commodities, as a slowdown in China’s exports fueled concern the world’s second-largest economy is moderating.

The S&P 500 retreated 0.1 percent at 4 p.m. in New York, trimming an earlier decline of 0.6 percent. The MSCI Emerging Markets Index dropped 1.3 percent, the most in a week. China’s CSI 300 Index fell 3.3 percent to the lowest since February 2009. Copper had its biggest two-day drop in 28 months, while lead and zinc also retreated. Corn prices slid the most in three months and soybeans had the biggest decline in six weeks on an outlook for ample global supplies. U.S. Treasuries were little changed after four straight advances.

China’s exports dropped the most since 2009 in February, highlighting challenges facing Premier Li Keqiang in achieving this year’s economic-growth target of 7.5 percent as lawmakers meet to set economic policy. The country’s first onshore bond default last week underscored growing credit risks. Japan’s economy expanded less than estimated in the fourth quarter and the current-account deficit widened to a record in January. In Crimea, Ukraine began military drills as Russian forces tightened their hold on the peninsula and the Foreign Ministry in Moscow warned of “lawlessness” in the eastern provinces.

“We’re just waiting to see what goes on overseas with geopolitical situations and developments,” Stephen Carl, principal and head equity trader at New York-based Williams Capital Group LP, said by phone. “We need to keep an eye on overseas because we’re still waiting on a concise agreement in the Ukraine, but markets, as we saw last week, continue to grind higher despite that.”

The S&P 500 has surged more than 177 percent since reaching its bear-market low, which was five years ago yesterday. The measure rose 1 percent last week, buoyed by improving hiring and manufacturing data, and its ’s valuation rose to almost 16 times its companies’ projected earnings, the highest level of the year.

Industrial stocks paced declines today among U.S. equities. Boeing Co. dropped 1.3 percent after a 777-200 plane disappeared with 239 passengers and crew during a Malaysia Airlines flight to Beijing on March 8. Cliffs Natural Resources Inc. slid 3.8 percent and Freeport-McMoRan Copper & Gold Inc. lost 2.5 percent for among the biggest declines in the S&P 500.

Chiquita Brands International Inc. soared 11 percent after the owner of the namesake banana label agreed to buy Dublin- based Fyffes Plc in an all-stock transaction that values Fyffes at about $526 million.

China’s overseas shipments plunged 18.1 percent in February, customs data showed March 8. That compared with a median estimate of a 7.5 percent increase in a Bloomberg survey of economists. Premier Li announced the goal for 2014 gross domestic product growth last week at the opening of the annual meeting of the National People’s Congress in Beijing, a pace unchanged from last year.

“China is moderating but only very modestly,” Donna Kwok, a Hong Kong-based senior China economist at UBS AG, said in a Bloomberg TV interview. “Ultimately you need to wait for March data to really get a true sense of the underlying outlook. The PBOC is very consciously guiding the recent volatility. We see the default as a risk, as a shift in investors’ mindset.”

The Shanghai Composite Index fell 2.9 percent, the most since June and the lowest since Jan. 20, to pace losses in emerging-market indexes. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong slid 1.8 percent to a one-month low.

Malaysian Airline System Bhd. fell 4 percent in Kuala Lumpur trading after the disappearance of its jet.

Brazil’s Ibovespa fell 1.5 percent to the lowest since July as commodity exporters including iron-ore producer Vale SA tumbled. China is Brazil’s largest trading partner.

The S&P GSCI Index of commodities slid 1 percent. Copper dropped 1.7 percent in New York and touched the lowest level since June. The metal fell 5.8 percent in the past two sessions, the most since October 2011. Lead retreated 0.6 percent and zinc fell 0.8 percent. China is the biggest consumer of industrial metals.

Gold for April delivery rose 0.2 percent to settle at $1,341.50 an ounce in New York, trading near a four-month high.  Crude oil fell 1.4 percent to settle at $101.12 a barrel.

Corn futures for May delivery fell 2.2 percent to close at $4.7825 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest drop for a most-active contract since Nov. 18.

The U.S. Department of Agriculture raised its outlook for world corn inventories before the 2014 Northern Hemisphere harvests by 0.7 percent to 158.47 million metric tons, topping analyst estimates.

Soybean futures for May delivery fell 2.7 percent to $14.1875 a bushel, the biggest decline since Jan. 21. The price has climbed 9.8 percent this year.

The MSCI All-Country World Index lost 0.4 percent after completing a fifth weekly gain, the longest streak since August.

Investors are also watching developments in Ukraine. The country’s armed forces are testing the combat-readiness of troops, the Defense Ministry said today on its website, reiterating the government’s desire for a peaceful end to the standoff in Crimea.

Russia has vowed to defend the ethnic Russians that dominate the region. Crimea’s local government may use a March 16 referendum to leave Ukraine and join the country’s Soviet-era master.

The Stoxx 600 fell 0.5 percent after posting its first weekly decline since January. Rio Tinto Group, the world’s second-largest mining company, fell 1.9 percent and BHP Billiton Plc lost 1.4 percent. A gauge of mining stocks in the Stoxx 600 fell 2.2 percent for the biggest decline among 19 industry groups.

Iliad SA surged 11 percent after Bouygues SA said it is in talks to sell some of its mobile-phone assets to the operator of the Free brand. Bouygues jumped 8.7 percent.

The Australian dollar depreciated 0.5 percent to 90.19 U.S. cents after advancing to 91.33 cents on March 7, the strongest level since Dec. 11.

The People’s Bank of China weakened the yuan’s reference rate by 0.18 percent. The currency declined 0.2 percent to 6.1385 per dollar, according to China Foreign Exchange Trade System prices.

Spanish 10-year bonds advanced, pushing the yield six basis points lower to 3.30 percent, the least since January 2006. The yield on similar-maturity Portuguese securities tumbled for a fifth day to 4.45 percent.

The U.S. treasury 10-year note yield fell one basis point to 2.78 percent. Economists projected U.S. payrolls would rise by 149,000 last month, with the bigger-than-expected 175,000- worker increase indicating the economy is starting to bounce back from frigid winter weather.

Federal Reserve Bank of Philadelphia President Charles Plosser, who votes on policy this year, said recent encouraging economic data isn’t enough to change the pace of the central bank’s monthly bond purchases.

“The hurdle rate for change is pretty high in either direction,” Plosser said in a Bloomberg Television interview with Manus Cranny in Paris, referring to the Fed’s tapering of its stimulus program.

Fed Bank of Chicago President Charles Evans said in a speech today that he expects the U.S. economy to expand at a rate of 2.5 percent to 3 percent in 2014. Fed Chair Janet Yellen said last month the economy is robust enough to withstand measured cuts to monetary stimulus.

The U.S. equity rally that just turned five years old is starting to match the 1990s Internet bubble when it comes to its speed. That’s where most of the resemblances end.

Unlike then, when technology stocks drew 85 percent of the cash and surged four times as much as anything else, investors today are spreading their money around, sending $2 billion or more to exchange-traded funds tracking everything from drugmakers to oil drillers, data compiled by Bloomberg and Morningstar Inc. show. While gains are extending to almost every industry, they’ve only been enough to push valuations to close to half the level when the bubble popped in 2000.

While the S&P 500’s multiple of 17 times reported earnings is close to the average since 1937, it’s about 40 percent below where it was in 2000, data compiled by Bloomberg and S&P show.

 

Have a wonderful evening everyone.

 

Be magnificent!

Meditation is movement without any motive, without words, and the activity of thought.

It must be something that is not deliberately set about.

Only then is it a movement within the infinite, measureless to man, without a goal, without an end,

without a beginning.  And that has a strange action in daily life, because all life is one,

and then becomes sacred.

Krishnamurti,1895-1986

As ever,

 

Carolann

 

You only live once, but if you do it right,

once is enough.

-Mae West, 1893-1980

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

On this day in …

1869 – The Suez Canal opened.

1876 – Alexander Graham Bell received a patent for the telephone.  If only he could walk down a street in any city today to see the evolution of his invention.

1933 – Monopoly was invented.  I hear it and many other board games are enjoying a resurgence in popularity as people tire of solo screen games and seek social interaction with others.

Tomorrow, March 8^th, on TV, The Trip to Bountiful airs on Lifetime.  “It is that rare gem of a story that celebrates simple values in a quiet but powerful narrative about a matriarch determined to see her hometown one more time.  Starring Cicely Tyson in the lead role, the Lifetime special also includes Vanessa Williams and Blair Underwood.  Horton Foote originally wrote the play for television in 1953, and it went on to Broadway the following year.  It later became a feature film, starring Geraldine Page in a 1985 Oscar-winning performance.”

Photos of the day

Dave LeMote wipes down a post clock at Electric Time Company, Inc. in Medfield, Mass. Most Americans will set their clocks 60 minutes forward before heading to bed Saturday night, but daylight saving time officially starts Sunday at 2 a.m. local time (0700GMT) Elise Amendola/AP

Fishermen pull their net from the sea as the sun sets on Gampong Jawa beach in Banda Aceh, Aceh province, Indonesia. Heri Juanda/AP

Market Closes for March 7^th, 2014

Market Index	Close	Change
Dow Jones	16452.72	+30.83   +0.19%
S&P 500	1875.23	-1.80   -0.10%
NASDAQ	4336.223	-15.903   -0.37%
TSX	14298.13	+26.21
		+0.18%

International Markets

Market Index	Close	Change
NIKKEI	15274.07	+139.32
		+0.92%
HANG SENG	22660.49	-42.48
		-0.19%
SENSEX	21919.79	+405.92
		+1.89%
FTSE 100	6712.67	-75.82
		-1.12%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.525	2.504
CND. 30 Year Bond	3.045	3.018
U.S. 10 Year Bond	2.7897	2.7355
U.S. 30 Year Bond	3.7232	3.6864

Currencies

BOC Close	Today	Previous
Canadian $	0.90178	0.91021
US $	1.10891	1.09865
Euro Rate 1 Euro=		Inverse
Canadian $	1.53831	0.65006
US $	1.38723	0.72086

Commodities

Gold	Close	Previous
London Gold Fix	1340.21	1350.81
Oil	Close	Previous
WTI Crude Future	102.58	101.56
BRENT	109.360	109.360

Market Commentary:

Canada
By Nikolaj Gammeltoft and Callie Bost

March 7 (Bloomberg) — Canadian stocks rose, capping a fifth week of gains, on signs economic growth is strengthening after U.S. employers added more workers than forecast.

Constellation Software Inc. soared 12 percent after reporting fourth-quarter earnings that beat estimates. Secure Energy Services Inc. rallied 6.7 percent after the stock was recommended by RBC Capital Markets. Health care and technology stocks increased at least 1.4 percent for the biggest gains among 10 industries in the Standard & Poor’s/TSX Composite Index.

The benchmark gauge added 27.16 points, or 0.2 percent, to 14,299.08 at 4 p.m. in Toronto. The index has gained 5 percent this year and trades near the highest level since June 2008.

The 175,000 gain in U.S. employment last month followed a revised 129,000 increase in January that was bigger than initially estimated, Labor Department figures showed today. The median forecast of economists in a Bloomberg survey called for a 149,000 advance in February. The jobless rate unexpectedly climbed from a five-year low, rising to 6.7 percent from 6.6 percent.

Canadian employment fell for the second time in three months in February, a surprise decline led by a drop in government workers. Employment fell by 7,000 and the jobless rate was unchanged at 7.0 percent, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg News projected a 15,000 job increase and an unchanged jobless rate, according to median forecasts.

Nine of 10 sectors in the S&P/TSX advanced. Health-care companies surged 3 percent and technology stocks rose 1.4 percent. Consumer-discretionary shares added 0.7 percent.

Constellation Software jumped 12 percent to a record C$265.48. Earnings for the quarter were $3.26 per share, higher than the $2.50 profit per share analysts predicted.

Energy companies increased 0.7 percent. Penn West Petroleum Ltd. soared 8.2 percent to C$9.41, while Paramount Resources Ltd. surged 3.4 percent to C$45.84. Birchcliff Energy Ltd. rose 2.7 percent to C$10.24.

Secure Energy climbed 6.7 percent to a record C$18.70. RBC Capital Markets analyst Dan Macdonald raised the stock’s rating to outperform, the equivalent of buy, from sector perform, with a target price of C$21.00 a share.

Canexus Corp. plunged 13 percent to C$5.24, the lowest level since December 2009. National Bank of Canada Financial Inc. analyst Patrick Kenny cut the chemical manufacturer’s rating to underperform, similar to sell, from sector perform. Kenny’s 12-month target price for the shares is C$5.

USA
By Nikolaj Gammeltoft and Callie Bost

March 7 (Bloomberg) — U.S. stocks rose, with the Standard & Poor’s 500 Index erasing losses to close at a record, as data showing stronger-than-forecast jobs growth overshadowed concern the situation in Ukraine could worsen.

Nike Inc. rose 1.6 percent on a report the company signed quarterback Johnny Manziel to a marketing deal. Foot Locker Inc. jumped 8.8 percent after fourth-quarter adjusted profit and sales topped estimates. Safeway Inc. slid 2.2 as investors weighed potential antitrust hurdles to an offer for the company. Peabody Energy Corp. plunged 5.3 percent for the biggest drop in the benchmark index.

The S&P 500 rose 0.1 percent to a record 1,878.04 at 4 p.m. in New York. The index erased losses of as much as 0.3 percent in the final hour of trading. The Dow Jones Industrial Average added 30.83 points, or 0.2 percent, to 16,452.72. About 6.9 billion shares changed hands on U.S. exchanges, 4 percent above the three-month average.

“The economy is continuing to gradually improve,” Chad Morganlander, a Florham Park, New Jersey-based fund manager at Stifel Nicolaus & Co., which oversees about $150 billion of assets, said in a telephone interview. “We’ve had very good market performance over the last several weeks in spite of great uncertainty on the geopolitical front.”

The S&P 500 added 1 percent this week. The gauge recorded its biggest drop in a month on March 3 as the Ukraine situation flared. Signs of easing tensions the next day gave the index its best advance this year. It rose 0.2 percent yesterday after unemployment claims fell to a three-month low.

Today’s jobs report showed the 175,000 gain in employment last month followed a revised 129,000 increase in January that was bigger than initially estimated. The median forecast of economists in a Bloomberg survey called for a 149,000 advance in February. The jobless rate unexpectedly climbed from a five-year low, rising to 6.7 percent from 6.6 percent.

The data “is obviously good news and it suggests the economy remains on an upward track,” Alan Gayle, a senior strategist at RidgeWorth Capital Management in Richmond, Virginia, which oversees $50 billion, said in a telephone interview. “This report is going to be very supportive for those who think the growth slowdown is temporary.”

The Federal Reserve is trying to determine how much of the recent economic cooling has been due to weather. The jobs figures today showed 601,000 Americans weren’t at work because of weather during the survey week, the most since 2010.

Fed Bank of New York President William C. Dudley today said he sees a “reasonably favorable” outlook for the U.S. economy, even as elevated joblessness and too-low inflation warrant a high level of stimulus for a “considerable time.”

Three rounds of Fed stimulus have helped push the S&P 500 up 178 percent from a 12-year low, as U.S. equities are set to enter the sixth year of a bull market that started March 9, 2009.

In Europe, Russia said Ukraine must pay off almost $2 billion its cash-strapped neighbor owes for natural gas by today and signaled it may cut supplies, ratcheting up the pressure as the two nations scrap over the future of the Black Sea Crimea region.

The country, a key transit nation for east-west energy supplies, is struggling to keep hold of Crimea after pro-Russian forces seized control of the peninsula. The West has urged Russia to pull back, and began yesterday to impose sanctions.

“It’s a big deal from a geopolitical and humanitarian perspective, but not so much economically,” Richard Slinn, a San Francisco-based investment specialist at JPMorgan Private Bank, which oversees $977 billion, said by phone. “We’re watching that closely, but you can’t manage portfolios on geopolitical issues.”

The Chicago Board Options Exchange Volatility Index, a gauge for U.S. stock volatility, fell 0.7 percent to 14.11 today, trimming its advance for the week to 0.8 percent.

Five of 10 main S&P 500 groups rose. Financials added 0.5 percent to extend a five-year high. JPMorgan Chase & Co. gained 0.9 percent to $59.40 for a fourth day of gains.

Prudential Financial Inc. rose 2.1 percent to $88.58. Bank of America Corp. raised its rating on the financial services provider to buy from neutral.

Foot Locker jumped 8.8 percent to $46.49. The retailer reported fourth-quarter adjusted profit of 82 cents a share, better than the 76 cents estimated by analysts. Sales also topped forecasts.

Nike rose 1.6 percent to $79.46 for the biggest advance in the Dow. Manziel, projected to be one of the top picks in the National Football League draft in May, has signed a shoe and marketing contract with Nike Inc., ESPN reported.

An index of raw-materials producers dropped 0.5 percent to pace losses in the S&P 500. Peabody Energy fell 5.3 percent to $16.69.

Regeneron Pharmaceuticals Inc. plunged 3.1 percent to $328.11. Sanofi and Regeneron must assess the effect of their experimental cholesterol drug on brain function after U.S. regulators learned of adverse events associated with this new class of medicines.

Safeway slid 2.2 percent to $38.60. Cerberus Capital Management LP’s Albertsons agreed to buy the grocery-store operator for about $40 a share in a deal that may face federal antitrust review. State attorneys general may also request information, CEO Robert Edwards said. The government might require that some of the stores be divested, he said.

H&R Block Inc. dropped 1.8 percent to $30.39 for a fourth straight loss. The tax-preparation company reported third- quarter loss from continuous operations of 77 cents a share. Analysts on average had projected loss of 11 cents a share.

 

Have a wonderful weekend everyone.

 

Be magnificent!

Man cannot be broken down into emotions, intellect, or action.

Man is a whole.

When these three element of intellect, feeling, and action are in harmony, they make up man.

Swami Prajnanpad, 1891-1974

As ever,

 

Carolann

 

Genius is eternal patience.

-Michelangelo, 1475-1564

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

March 6,1475, Michelangelo was born.
1806, poet Elizabeth Barrett Browning was born.
March 6, 1899, Bayer patents Aspirin.
Also on this day in 1912, Nabisco made the first Oreo cookie.
1928, writer Gabriel Garcia Marquez was born.

-from A Drama of Exile
Elizabeth Barrett Browning

Thy love
Shall chant itself its own beatitudes,
After its own life-working.  A child’s kiss,
Set on thy sighing lips, shall make thee glad:
A poor man, served by thee, shall make thee rich;
An old man, helped by thee, shall make thee strong;
Thou shalt be served thyself by every sense
Of service which thou renderest.

Photos of the day

A group of people pose for pictures with Wayne Garrett and Caitlind Brown of Canada’s light installation ‘CLOUD’ during a media preview of the i Light Marina Bay festival in Singapore. A total of twenty-eight groups of local and international artists took part in the biennial sustainable light art festival.Edgar Su/Reuters

Mars’s northern-most sand dunes are seen as they begin to emerge from their winter cover of seasonal carbon dioxide (dry) ice in this image acquired by the HiRISE camera aboard NASA’s Mars Reconnaissance Orbiter January 16, 2014. The steep lee sides of the dunes are also ice-free along the crest, allowing sand to slide down the dune. Dark splotches are places where ice cracked earlier in spring, releasing sand, according to a NASA news release. JPL-Caltech/Univ. of Arizona/NASA/Reuters

Market Closes for March 6^th, 2014

Market Index	Close	Change
Dow Jones	16418.36	+58.18   +0.36%
S&P 500	1878.35	+4.54   +0.24%
NASDAQ	4350.016	-7.958   -0.18%
TSX	14287.25	-16.92
		-0.12%

International Markets

Market Index	Close	Change
NIKKEI	15134.75	+237.12
		+1.59%
HANG SENG	22702.97	+123.19
		+0.55%
SENSEX	21513.87	+237.01
		+1.11%
FTSE 100	6788.49	+13.07
		+0.19%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.504	2.468
CND. 30 Year Bond	3.018	2.981
U.S. 10 Year Bond	2.7355	2.6977
U.S. 30 Year Bond	3.6864	3.6421

Currencies

BOC Close	Today	Previous
Canadian $	0.91021	0.90643
US $	1.09865	1.10323
Euro Rate 1 Euro=		Inverse
Canadian $	1.52317	0.65653
US $	1.38640	0.72129

Commodities

Gold	Close	Previous
London Gold Fix	1350.81	1337.28
Oil	Close	Previous
WTI Crude Future	101.56	101.45
BRENT	109.360	109.360

Market Commentary:

Canada
By Eric Lam

March 6 (Bloomberg) — Canadian stocks fell, after reaching a five-year high yesterday, as investors weighed developments in Ukraine and assessed U.S. economic data before a jobs report tomorrow.

SNC-Lavalin Group Inc. dropped 4.1 percent after quarterly profit fell. Valeant Pharmaceuticals International Inc. plunged 5.3 percent for its biggest slide in almost two years. Air Canada jumped 8 percent for a third day of gains. Pretium Resources Inc. added 3.2 percent as gold rallied. Royal Bank of Canada fell 0.7 percent to pace declines among the nation’s biggest lenders.

The Standard & Poor’s/TSX Composite Index fell 32.25 points, or 0.2 percent, to 14,271.92 at 4 p.m. in Toronto. The index has gained 4.8 percent this year. Trading was 9.7 percent below the 30-day average.

“We’re flipping around a bit here,” said Andrew Pyle, fund manager at ScotiaMcLeod Inc. in Peterborough, Ontario. He manages about C$220 million ($200 million). “This market is treading softly right now. No one is going to make an aggressive bet. You’re going to see a meandering market going into payrolls tomorrow, and then awaiting further developments in the Ukraine.”

U.S. and European leaders intensified diplomatic efforts to defuse the crisis in Ukraine, after Russia’s foreign minister evaded a U.S. attempt to get him to talk to his counterpart in Kiev. Crimean lawmakers called a March 16 referendum to return Ukraine’s Black Sea peninsula to Russia.

Data from the U.S. today showed that fewer Americans than projected filed applications for unemployment benefits last week, an indication companies are holding on to staff even as cold weather threatens to slow the world’s largest economy. The Labor Department will release its February jobs report tomorrow.

“The claims data provides some early evidence of a modest improvement in the employment picture heading into March,” said Josh Nye, economist at RBC Capital Markets, in a note to clients. “We expect more robust employment growth in the coming months as firms become more confident in hiring.”

Mario Draghi, European Central Bank president, said inflation in the euro region will accelerate over the next 2 1/2 years, as he maintained the bank’s commitment to keeping interest rates low for “an extended period of time.” Gold, seen by investors as a hedge against inflation, rallied 0.9 percent in New York.

Five of 10 main groups in the S&P/TSX fell today, led by a  4.5 percent drop among health-care companies. Valeant Pharmaceuticals International Inc. slumped 5.3 percent to C$151.53, the biggest decline since May 2012.

Royal Bank of Canada slipped 0.7 percent to C$71.87 and Bank of Montreal lost 0.4 percent to C$72.29 as the S&P/TSX Financials Index retreated 0.3 percent as a group.

SNC dropped 4.1 percent to C$46.39, the biggest decline since October. Canada’s largest engineering company reported a fall in fourth-quarter profit and said earnings would be less than analysts were estimating in 2014 due to a slump in commodity markets and unprofitable road projects.

An index of materials producers advanced 0.6 percent, a fourth straight gain that left the gauge with the highest close since April.

Novagold Resources Inc. climbed 6 percent to C$4.75 for a sixth day of gains. Pretium Resources added 3.2 percent to C$7.42.

Sherritt International Corp., which owns an interest in a nickel and cobalt metals business, jumped 7.6 percent to C$3.54 for a third day of gains. Nickel reached a nine-month high amid concern that the U.S. will impose trade sanctions on Russia, exacerbating supply constraints.

Air Canada, the nation’s largest airline, jumped 8 percent to C$6.48, the biggest increase in six weeks. The stock, the best performer in the S&P/TSX last year with a 323 percent advance, has rallied 12 percent in the past three days.

USA
By Callie Bost

March 6 (Bloomberg) — U.S. stocks rose, sending the Standard & Poor’s 500 Index to an all-time high, as data showed jobless claims fell to the lowest level in three months and investors watched developments in Ukraine.

Yum! Brands Inc. gained 3.3 percent after Robert W. Baird & Co. raised the stock’s rating. Pluristem Therapeutics Inc. climbed 4.2 percent after getting regulatory approval for manufacturing stem-cell therapy products. Costco Wholesale Corp. slipped 2.8 percent after posting fiscal second-quarter profit that missed analysts’ estimates. Staples Inc. plunged 15 percent after saying it will close as many as 12 percent of its North American stores.

The S&P 500 gained 0.2 percent to a record 1,877.03 at 4 p.m. in New York. The Dow Jones Industrial Average added 61.71 points, or 0.4 percent, to 16,421.89. About 6.5 billion shares changed hands on U.S. exchanges, in line with the three-month average.

“We need to get away from the latest noise and headlines and look at the fundamental trends in place,” Rob Stein, chief executive officer at Chicago-based Astor Investment Management, which manages $700 million, said by phone. “We’ve been adding jobs, GDP growth is positive, earnings are showing a positive trend, inflation is relatively low and while a lot of the stuff could be much, much better, the trend is still productive.”

The S&P 500 fell less than one point yesterday as investors assessed weaker-than-estimated data on payrolls and services. The gauge rallied the most this year to close at a record on March 4 as concern eased that Russia’s intervention in the Crimean peninsula would lead to a broader conflict and disrupt markets.

Fewer Americans than projected filed applications for unemployment benefits last week, an indication companies are holding on to staff even as cold weather threatens to slow the world’s largest economy. The Labor Department will release its February jobs report tomorrow.

Separate data indicated factory goods orders in January fell 0.7 percent compared with a forecast for a decline of 0.5 percent.

The Federal Reserve said yesterday in its Beige Book business survey that the economy in most regions grew last month even as harsh winter weather impeded hiring. Investors have been speculating that recent weakness in data from housing to jobs was caused by inclement weather.

Three rounds of Fed stimulus have helped push the S&P 500 up 177 percent from a 12-year low, as U.S. equities are set to enter the sixth year of a bull market that started March 9, 2009.

The European Central Bank kept interest rates unchanged at a record low of 0.25 percent today, as stronger inflation and economic output reduced the need for officials to take action. The decision was forecast by 40 out of 54 economists in a Bloomberg News survey.

President Barack Obama said the U.S. and its allies will keep raising pressure on Russia to back down in Ukraine and held open the possibility of further sanctions if Vladimir Putin’s government doesn’t respond. His administration earlier banned visas for Ukrainian officials and others, including Russians, who it says are threatening Ukraine’s sovereignty. Obama also authorized the imposition of financial sanctions.

Crimean lawmakers called a March 16 referendum to return Ukraine’s Black Sea peninsula to Russia. European Union governments halted trade and visa negotiations with Russia and prepared sanctions against selected Russian officials.

“It’s one of those things that could come back and become the most important event at any time,” James Paulsen, the Minneapolis-based chief investment strategist at Wells Capital Management, which oversees about $360 billion in assets. “The concern is still there but it’s rapidly losing its focus. At least it’s gotten itself to a situation where it won’t have an affect economically until it flares up again.”

The tensions sent the Chicago Board Options Exchange Volatility Index, a gauge for U.S. stock volatility, surging 14 percent on March 3. The VIX tumbled 12 percent the next day. The index rose 2.3 percent to 14.21 today.

Investors have added $9 billion to U.S. equity exchange- traded funds in the past five days and withdrawn $7.3 billion from bond ETFs, data compiled by Bloomberg show. Real-estate stocks absorbed the most money among industry ETFs, taking in nearly $900 million during the past week.

Seven of 10 main S&P 500 groups advanced. Financial shares rallied 0.7 percent to lead the gains and close at the highest level since September 2008. JPMorgan Chase & Co. jumped 1.3 percent to $58.90 for a third day of gains.

Yum climbed 3.3 percent to $77.29. Robert Baird analyst David Tarantino upgraded the stock’s rating to outperform, the equivalent of buy, from neutral, with a 12-month target price of $87 a share.

Sangamo Biosciences Inc. jumped 17 percent to $22.96 after the company said its experimental treatment lowered the amount of HIV in some AIDS patients.

Pluristem rose 4.2 percent to $4.23. The Food and Drug Administration gave its approval for the company to manufacture placenta-based cell therapies at its new production unit.

Pixelworks Inc. soared 88 percent to $9.00, the highest since October 2006. The semiconductor company’s sales to Apple Inc. represented more than 10 percent of its annual revenue, according to a March 5 regulatory filing. The previous year’s filing did not list the iPhone maker under customers that contribute at least 10 percent to total sales.

An index of pharmaceutical and biotechnology stocks fell 1 percent for the biggest drop among 24 S&P 500 groups. Actavis Plc slid 4.7 percent and Celgene Corp. dropped 4.1 percent for the steepest slides. The gauge is up 8.2 percent this year.

Costco Wholesale slipped 2.8 percent to $113.26. The largest U.S. warehouse-club chain said net income in the quarter ended Feb. 16 fell 15 percent to $1.05 a share from $1.24 a year earlier. Analysts projected profit of $1.17, the average of estimates compiled by Bloomberg.

Staples plunged 15 percent to $11.35 for the biggest drop in the S&P 500. The largest office-supplies chain will close as many as 225 stores in North America and reduce costs by as much as $500 million by the end of 2015, as it forecast sales to drop for a fifth consecutive quarter.

 

Have a wonderful evening everyone.

 

Be magnificent!

Meditation is one of the greatest arts in life, perhaps the greatest,

and one cannot possibly learn it from anybody else,

that is the beauty of it.

It has no technique and therefore no authority.

When you learn about yourself, watch yourself, watch the way you walk,

how you eat, what you say, the gossip, the hate, the jealousy –

if you are aware of all that in yourself, without any choice,

that is part of meditation.

Krishnamurti, 1895-1986

As ever,

 

Carolann

 

The inevitable has always found me

ready and hopeful.

-Amelia Barr, 1831-1919

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

On this day in 1946, Winston Churchill delivered his famous “Iron Curtain” speech at Westminster College in Fulton, Mo., marking the beginning of the Cold War.

The Vancouver Sun reported today that Chinese artist Ai Weiwei will be among the major names contributing to the third public art exhibition known as the Vanouver Biennale.  Starting later this month, about 20 sculptures will be installed in parks and open spaces in Vancouver, more in New Westminster, North Vancouver and Squamish.  Art works created by a roster of 92 major international artists and 12 Canadian artists will be showpieced.  The first public event will take place on March 12^th at Emily Carr University.  Should be exciting…

Photos of the day

Wayne Garrett of Canada makes some final touches to his art installation ‘CLOUD,’ made up of 5000 new and recycled lightbulbs, along the Marina Bay in Singapore. Garrett and compatriot Caitlind Brown are part of the 28 groups of local and international artists who are taking part in the i Light Marina Bay biennial sustainable light art festival. Edgar Su/Reuters

A giant storm cloud can be seen in the sky above swimmers near Mollymook Beach, south of Sydney, Australia. The storm generated heavy rain and high gusts of wind. David Gray/Reuters

Market Closes for March 5^th, 2014

Market Index	Close	Change
Dow Jones	16360.18	-35.70   -0.22%
S&P 500	1873.81	-0.10   -0.01%
NASDAQ	4357.973	+6.001   +0.14%
TSX	14304.17	+14.31
		+0.10%

International Markets

Market Index	Close	Change
NIKKEI	14897.63	+176.15
		+1.20%
HANG SENG	22579.78	-77.85
		-0.34%
SENSEX	21276.86	+67.13
		+0.32%
FTSE 100	6775.42	-48.35
		-0.71%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.468	2.469
CND. 30 Year Bond	2.981	2.989
U.S. 10 Year Bond	2.6977	2.6977
U.S. 30 Year Bond	3.6421	3.6473

Currencies

BOC Close	Today	Previous
Canadian $	0.90643	0.90131
US $	1.10323	1.10950
Euro Rate 1 Euro=		Inverse
Canadian $	1.51546	0.65986
US $	1.37366	0.72798

Commodities

Gold	Close	Previous
London Gold Fix	1337.28	1334.44
Oil	Close	Previous
WTI Crude Future	101.45	103.33
BRENT	109.360	109.360

Market Commentary:

Canada
By Eric Lam

March 5 (Bloomberg) — Canadian stocks rose, extending a five-year high for the benchmark index, as gains among raw- material producers offset a decline in oil prices amid negotiations over the Ukraine crisis.

NovaGold Resources Inc. and Iamgold Corp. increased more than 2.2 percent to pace gains among gold companies. Avigilon Corp. jumped 5.8 percent after an analyst at Raymond James Ltd. raised his rating for the stock. TransGlobe Energy Corp. sank 1.3 percent as net income slumped on writedowns.

The Standard & Poor’s/TSX Composite Index rose 14.31 points, or 0.1 percent, to 14,304.17, the highest level since June 2008, at 4 p.m. in Toronto. The index has gained 5 percent this year.

“The environment we’re in right now is a mix, you can argue we’re recovering but we have also seen mixed economic data so the market is taking a pause to see which argument has more weight,” said Kash Pashootan, portfolio manager at First Avenue Advisory of Raymond James Ltd. in Ottawa. He manages about C$200 million ($181 million).

The Institute for Supply Management’s non-manufacturing index fell to 51.6 in February, the slowest pace in four years, reflecting a plunge in hiring that shows the biggest part of the U.S. economy is struggling with a combination of limited income gains and harsh weather impacting consumers. Readings greater than 50 indicate expansion.

The S&P/TSX jumped 0.5 percent yesterday after comments from Russian President Vladimir Putin spurred speculation that the Ukraine crisis won’t immediately worsen. U.S. Secretary of State John Kerry met Russian Foreign Minister Sergei Lavrov in Paris today to discuss the crisis. The U.S. has considered sanctions against Russia and aid to the government in Kiev.

NovaGold climbed 6.4 percent to C$4.48 and Iamgold increased 2.2 percent to C$4.27. Gold futures rose 0.2 percent.

Sherritt International Corp., which owns interests in nickel mines, jumped 6.5 percent to C$3.29 for a fourth gain in five days. Nickel advanced to a nine-month high in London, after China retained its goal for economic growth of 7.5 percent in 2014.

Avigilon, the surveillance equipment maker, rallied 5.8 percent to C$32.38, the biggest increase since November. Steven Li, analyst at Raymond James, raised his rating for the stock to outperform from market perform and increased his price target to C$35.

“We expect strong revenue growth to continue in 2014,” Li said in a note to clients. He forecasts a 57 percent increase in year-over-year sales as the company increases its sales force and introduces new products.

Torstar Corp., the print publishing company, surged 13 percent to C$5.67 after posting fourth-quarter revenue and adjusted earnings ahead of analyst projections.

Lightstream Resources Ltd. declined 3.9 percent to C$5.67 to pace losses among energy stocks as six of 10 industries in the S&P/TSX retreated. Trading volume was 16 percent below the 30-day average.

TransGlobe Energy lost 1.3 percent to C$8.56. The company reported net income fell to $58.5 million last year, from $87.7 million a year earlier, as results were hurt by $30.1 million in impairment losses.

Cenovus Energy Inc. slipped 0.6 percent to C$29.12 as natural gas for March delivery fell 3.1 percent in New York.

Trican Well Service Ltd. slipped 2.9 percent to C$13.50 and Trilogy Energy Corp. retreated 2.5 percent to C$28.11 as crude for April delivery dropped 1.8 percent to $101.45 a barrel in New York.

Valeant Pharmaceuticals International Inc. lost 1.3 percent to C$160.08 to snap two days of gains. Health-care stocks dropped 1.3 percent, the most in the S&P/TSX.

Magna International Inc. fell 1.7 percent to C$104.94 to retreat from a record. The stock climbed 12 percent over the previous five days. The auto-parts maker posted better-than- forecast earnings on March 3.

USA
By Trista Kelley and Callie Bost

March 5 (Bloomberg) — U.S. stocks were little changed, after the Standard & Poor’s 500 Index rose the most this year yesterday, as investors assessed the Ukraine crisis and weaker- than-estimated data on payrolls and services.

Exxon Mobil Corp. dropped 2.8 percent, the most since 2012, to lead energy producers lower. Target Corp. fell 1.2 percent after the retailer’s chief information officer resigned. Smith & Wesson Holding Corp. jumped 16 percent after the gun maker raised its profit forecast. GameStop Corp. added 3.8 percent after boosting its quarterly dividend.

The S&P 500 fell less than one point to 1873.81 at 4 p.m. in New York after yesterday closing at a record. The Dow Jones Industrial Average fell 35.70 points, or 0.2 percent, to 16,360.18. About 6.5 billion shares changed hands on U.S. exchanges, in line with the 30-day average.

“I think Ukraine is certainly on the market’s radar screens and certainly still in the headlines,” Jeffrey Kleintop, chief market strategist at LPL Financial LLC, which manages $414.7 billion, said by phone from Boston. “Markets are continuing to give a free pass to any weak economic number because of the weather. That could be the case for much of the data we’re going to get through February. Stocks will ignore the data if it’s bad and rally on the number if it’s good.”

The S&P 500 jumped 1.5 percent yesterday after comments from Russian President Vladimir Putin spurred speculation that the Ukraine crisis won’t immediately worsen. The index had dropped the most in a month on March 3 and a gauge of volatility spiked 14 percent on concern that Russia’s military presence in the Crimea region could lead to a larger conflict.

Secretary of State John Kerry met Russian Foreign Minister Sergei Lavrov in Paris today to discuss the crisis. Lavrov said the western-backed government in Kiev no longer rules over Crimea and control has shifted to armed “self-defense” groups.  Kerry warned Russia against violating “very clear legal obligations” to uphold Ukraine’s unity.

The U.S. has considered sanctions against Russia and aid to the government in Kiev. Putin said yesterday he saw no immediate need to invade Ukraine, though he reserved the right for military action to defend ethnic Russians in the region.

“Markets globally are very resilient to these types of events,” Patrick Spencer, head of equity sales at Robert W. Baird & Co. in London, said in a phone interview, referring to the tensions in Ukraine. “The volatility certainly for this geopolitical situation is noisy but I don’t think it’s the key. Far more important is policy on interest rates. The macro direction and economic growth environment has been strong.”
U.S. companies added 139,000 workers in February, fewer than the 155,000 advance estimated by economists, a sign that employers were waiting for a pickup in demand before boosting headcount, a report from the ADP Research Institute in Roseland, New Jersey showed today.

Separate data indicated that service industries in the U.S. expanded in February at the slowest pace in four years, reflecting a plunge in hiring that shows the biggest part of the economy is struggling as harsher weather weighs on consumers and businesses. The Institute for Supply Management’s non- manufacturing index slipped to 51.6 in February from 54 the previous month.

Investors have been speculating that recent weakness in data from housing to jobs was caused by inclement weather. The Labor Department will release its February jobs report on March 7. Economists estimate employers increased the pace of hiring to 150,000 workers after adding 113,000 in January, according to a Bloomberg survey.

The Federal Reserve said the economy in most regions grew last month even as harsh winter weather impeded hiring, disrupted supply chains, and kept customers away from stores and auto dealerships. Eight of the Fed’s 12 districts “reported improved levels of activity, but in most cases the increases were characterized as modest to moderate,” the central bank said today in its Beige Book business survey.

The Fed has been slowing its monthly asset purchases while pledging that it will keep interest rates near zero percent. Three rounds of stimulus have helped push the S&P 500 up 177 percent from a 12-year low, as U.S. equities are set to enter the sixth year of a bull market that started March 9, 2009.

The Chicago Board Options Exchange Volatility Index, a gauge for U.S. stock volatility, fell 1.5 percent to 13.89 today. The gauge plunged 12 percent yesterday.

Investors have added $4.8 billion to U.S. equity exchange- traded funds in the past five days and withdrawn $5.8 billion from bond ETFs, data compiled by Bloomberg show. Energy and real-estate stocks absorbed the most money among industry ETFs, with each taking in more than $700 million during the past week.

Five of 10 S&P 500 groups retreated today, with energy stocks falling 1.1 percent to pace declines. Financial shares rallied 0.7 percent for the biggest gain.

Exxon lost 2.8 percent to $93.80 for the steepest drop in the Dow. The company’s biggest international exploration opportunity may be imperiled by Russian President Vladimir Putin’s Ukrainian foray, as U.S.-based companies could face restrictions on doing business in Russia.

Exxon, under the terms of a 2011 contract with state- controlled OAO Rosneft, owns drilling rights across 11.4 million acres of Russian land, its biggest exploration holding outside the U.S.

Target fell 1.2 percent to $60.60. The retailer, still reeling from a security breach that exposed the personal information of tens of millions of customers, is seeking a new top technology executive to help prevent future attacks after Beth Jacob resigned today.

Smith & Wesson added 16 percent to $13.74 for its biggest advance since June 2012. The maker of handguns forecast annual earnings will be between $1.39 a share and $1.42, up from a previous projection of as much as $1.35.

GameStop jumped 3.8 percent to $38.75. The video-game retailer said it will raise its quarterly payout to 33 cents from 27.5 cents.

Brown-Forman Corp. rose 3.7 percent to a an all-time high of $87.11. The maker of whiskey and other spirits raised its full-year profit forecast after third-quarter earnings surpassed estimates.

Facebook Inc. advanced 4 percent to a record $71.57 for the biggest gain in the S&P 500. Stifel Nicolaus & Co analyst Jordan Rohan raised his 12-month price target on the social-networking company to $82 from $72, citing Facebook’s growing share of marketing spending. Rohan has a buy rating on the stock.

 

Have a wonderful evening everyone.

 

Be magnificent!

The healing of the mind takes place gradually on contact with nature,

with the orange on the branch, the blade of grass eating its way into the cement,

and the hills hidden by the clouds.

Krishnamurti,1895-1986

As ever,

 

Carolann

 

If I see an ending, I can work backward.

-Arthur Miller, 1915-2005

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

This is Shrove Tuesday, otherwise known as Pancake Day, when many Christians around the world eat pancakes for dinner this night, ahead of the long period of Lenten fasting which begins tomorrow on Ash Wednesday.  The custom derives from the ingredients for pancakes: eggs, symbols of creation, flour for the staff of life, salt for wholesomeness and milk for purity.  Shrove Tuesday is a day of revelry, sounded off by the ringing of the Pancake Bell in many parts of the world, which was originally a signal for villagers to cease work and go home to make pancakes or join in the games and merrymaking.  It is the last day of Carnival in many Latin countries, including Brazil where Rio Carnival is a spectacular annual event that pits the city’s twelve best samba schools against one another in  showcasing ornate costumes and parades.

We watched the Oscars on Sunday night at  Elton John’s party and a good time was had by all.  He had Gordon Ramsay for the chef for the evening’s food.  Turns out my selection for best picture was a miss – I thought for sure American Hustle would win.  I got best actress right with Cate Blanchette – her  incredible acting performance in Blue Jasmine is difficult to top, and most of the other categories.  I was sort of surprised by how many Oscars Gravity scored.  Well that’s it for another year…

I am always reminded what a small world it really is.…I ran into one of my clients who lives in Toronto at the LA airport yesterday!

The secret of success is sincerity.
Once you can fake that, you’ve got it made.  –Samuel Goldwyn.

Photos of the day

Colored lights shine on the American section of the partially frozen Niagara Falls, during sub-freezing temperatures. Mark Blinch/Reuters

Revellers from the Unidos da Tijuca samba school participate in the annual Carnival parade in Rio de Janeiro’s Sambadrome, Brazil. Sergio Moraes/Reuters

Market Closes for March 4^th, 2014

Market  Index	Close	Change
Dow  Jones	16395.88	+227.85    +1.41%
S&P 500	1873.91	+28.18    +1.53%
NASDAQ	4351.973	+74.672    +1.75%
TSX	14289.86	+77.12
		+0.54%

International Markets

Market  Index	Close	Change
NIKKEI	14721.48	+69.25
		+0.47%
HANG  SENG	22657.63	+156.96
		+0.70%
SENSEX	21209.73	+263.08
		+1.26%
FTSE 100	6823.77	+115.42
		+1.72%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.469	2.402
CND.  30 Year Bond	2.989	2.929
U.S.   10 Year Bond	2.6977	2.6012
U.S.  30 Year Bond	3.6473	3.5542

Currencies

BOC Close	Today	Previous
Canadian $	0.90131	0.90268
US  $	1.10950	1.10782
Euro Rate  1 Euro=		Inverse
Canadian  $	1.52453	0.65594
US  $	1.37407	0.72777

Commodities

Gold	Close	Previous
London Gold  Fix	1334.44	1350.17
Oil	Close	Previous
WTI Crude Future	103.33	104.92
BRENT	109.360	109.360

Market Commentary:

Canada
By Eric Lam

March 4 (Bloomberg) — Canadian stocks rose, for the highest close since 2008, as global markets rebounded from the biggest drop in a month after Russia stepped back from escalating the crisis in Ukraine.

Magna International Inc. added 2.9 percent after analysts with Goldman Sachs Group Inc. and JPMorgan Chase & Co. raised their ratings for the company. Tourmaline Oil Corp. lost 1.1 percent after agreeing to buy Santonia Energy Inc. to increase its exploration properties in Alberta. Lundin Mining Corp. rallied 3 percent as copper prices rose for the first time in two weeks.

The Standard & Poor’s/TSX Composite Index rose 77.12 points, or 0.5 percent, to 14,289.86 at 4 p.m. in Toronto. The index has gained 4.9 percent this year.

“This is a very macro-driven tape with the Russia-Ukraine situation and whether or not it was going to break out,” said Brian Huen, managing partner at Red Sky Capital Management Ltd. in Toronto. He helps manage about C$225 million ($203 million).  “Putin’s commentary this morning has helped to stabilize things and you’re seeing broad gains. Gold, which people use as a protective trade, is selling off.”

Russian President Vladimir Putin said today he’s not considering taking control of Crimea and would send in troops to Ukraine only in an extreme case. The worst stand-off between Russia and the West since the Cold War ended sent stocks tumbling around the world yesterday. The MSCI All-Country World Index rebounded 1.3 percent today.

The S&P GSCI Index of 24 raw materials declined 0.8 percent after surging to the highest since Sept. 6 yesterday on speculation the threat to commodities from the Crimea tensions was exaggerated. Gold for April delivery fell 0.9 percent to settle at $1,337.90 an ounce in New York.

AuRico Gold Inc. declined 4.7 percent to C$5.27 and China Gold International Resources Corp. lost 1.8 percent to C$3.35.

Tourmaline Oil fell 1.1 percent to C$49.74 after agreeing to buy Santonia Energy for C$189.1 million in stock. The board of Santonia has approved the deal, with shareholders to vote on the sale in late April.

Major Drilling Group International Inc. jumped 8 percent to C$9.68, the biggest gain since September 2012, after Kam Mangat with Salman Partners Inc. raised the stock’s rating to buy from hold, citing the company’s improving gross margins and strong balance sheet.

Lundin Mining rallied 3 percent to C$5.22 and First Quantum Minerals Ltd. added 1.8 percent to C$21.34 as copper prices rebounded from a three-month low.

Valeant Pharmaceuticals International Inc. added 2.1 percent to C$162.20 as health-care stocks added 1.8 percent as a group. Nine of 10 industries in the S&P/TSX advanced on trading volume 16 percent lower compared with the 30-day average.

Valeant’s Bausch & Lomb unit has sued Novartis AG’s Sandoz unit claiming a generic-drug application violates a patent for the Bepreve eye drug.

Magna International, the auto-parts maker, rallied 2.9 percent to a record C$106.71. The stock has advanced for five days and posted better-than-forecast earnings yesterday. Patrick Archambault, an analyst with Goldman Sachs, and Ryan Brinkman of JPMorgan raised their ratings on the stock to neutral.

USA
By Inyoung Hwang and Callie Bost

March 4 (Bloomberg) — U.S. stocks rose, with the Standard & Poor’s 500 Index rebounding to a record after its biggest loss in a month, as comments from Russian President Vladimir Putin signaled the Ukraine crisis won’t immediately escalate.

Qualcomm Inc. gained 3.4 percent after raising its dividend and boosting its buyback plan. Abercrombie & Fitch Co. advanced 6.7 percent after Credit Suisse Group AG lifted its rating on the teen-apparel retailer. RadioShack Corp. plunged 17 percent after sales missed analysts’ estimates.

The S&P 500 jumped 1.5 percent, its largest gain this year, to an all-time high of 1,873.91 at 4 p.m. in New York. The Dow Jones Industrial Average advanced 227.85 points, or 1.4 percent, to 16,395.88. The Nasdaq Composite Index climbed to the highest since April 2000 and the Russell 2000 Index advanced the most in a year. About 7.7 billion shares changed hands on U.S. exchanges, 17 percent higher than the 30-day average.

“On a very short-term basis, everything you’ve seen in the market has everything to do with the Ukraine,” Kevin Caron, a Florham Park, New Jersey-based market strategist at Stifel Nicolaus & Co., which oversees about $160 billion, said by phone. “But over last 2 weeks, the market has moved higher with the exception of yesterday. The bet has been made that the economy continues to expand and most of the disruption we’ve seen has been from the weather.”

The S&P 500 fell 0.7 percent from a record yesterday, the most since Feb. 3, joining a global selloff in equities on concern that Russia’s military presence in Ukraine could lead to a larger conflict. Stocks rallied today after Putin said he’s not considering taking control of Crimea and would send in troops to Ukraine only in an extreme case.

The MSCI All-Country World Index increased 1.3 percent, rebounding from its biggest drop in a month. The Europe Stoxx 600 jumped 2.1 percent and Russia’s Micex Index climbed 5.3 percent after $55 billion was erased from the value of the country’s equities yesterday. The yen weakened against all of its 16 major peers and gold fell 1.1 percent.

In his first public remarks since Ukraine said its Crimean peninsula had been taken over by Russian forces, President Putin said he reserved the right to use force to defend ethnic Russians while there’s “no such necessity” at present. U.S. Secretary of State John Kerry arrived in Kiev to offer an aid package to Ukraine’s interim government, as President Barack Obama challenged Putin’s rationale for intervening.

“The drop yesterday and the bounce today are indicative of a lot of nervous investors who are trying to rationalize their long positions,” Tom Stringfellow, president and chief investment officer of San Antonio-based Frost Investment Advisors LLC, which manages about $10 billion, said by phone. “Our investment process thesis long-term has not changed. I am still an optimist that GDP growth will be higher than what downward revisions are. There are underpinnings in the economy that are churning along.”

The S&P 500 yesterday erased its gain for the year after the gauge rallied 4.3 percent in February. Investors have been speculating that recent weakness in data from housing to jobs was caused by inclement weather and that the Federal Reserve will continue to support the economy.

The Labor Department will release its February jobs report on March 7. Economists estimate employers increased the pace of hiring to 150,000 workers after adding 113,000 in January, according to a Bloomberg survey.

Data yesterday showed manufacturing expanded at a faster pace than projected in February, a sign the industry was beginning to overcome bad weather across much of the country. A separate report showed consumer spending rose in January at a faster rate than forecast.

“As far as economic releases go, yesterday was pretty good, and of course everybody is looking toward the job report this Friday,” Walter Todd, who oversees about $990 million as chief investment officer of Greenwood Capital Associates LLC in Greenwood, South Carolina, said by phone. “Perhaps investors ignored the releases yesterday and are now taking a look at them.”

Stocks are set to enter the sixth year of a bull market that started March 9, 2009. Three rounds of stimulus have helped push the S&P 500 up 177 percent from a 12-year low.

The Chicago Board Options Exchange Volatility Index, a gauge for U.S. stock volatility, plunged 12 percent to 14.10 today. Europe’s VStoxx Index dropped 15 percent to 18.65 after jumping 30 percent yesterday, its biggest gain since the European debt crisis in August 2011.

All 10 main industries in the S&P 500 advanced at least 0.8 percent. Health-care and financial shares rose at least 1.9 percent to lead gains. American Express Co. jumped 2.9 percent to $92.61 for the biggest advance in the Dow. Pfizer Inc. gained 2.2 percent to $32.69, the highest since 2004.

Facebook Inc. climbed 2.1 percent to $68.80, snapping a five-day streak of declines. The social-network site owner may buy Titan Aerospace for $60 million, according to TechCrunch, which cited an unidentified person with access to information about the deal.

Qualcomm jumped 3.4 percent to $76.11. The biggest provider of mobile-phone chips boosted its quarterly dividend by 20 percent to 42 cents a share, while giving itself leeway to buy back an additional $5 billion in shares.

J.C. Penney Co. climbed 4.2 percent to $8.29. Standard & Poor’s changed  the retailer’s outlook to stable from negative, citing “modest improvements during the fourth quarter.” S&P also said the company’s revised strategy is “beginning to stabilize the business.”

Abercrombie & Fitch added 6.7 percent to $41.68. Credit Suisse raised its recommendation on the New Albany, Ohio-based company to outperform, similar to a buy rating, from neutral, saying a more competitive pricing strategy, tighter cost controls and inventory management, among other initiatives, will help boost earnings.

SunEdison Inc. gained 12 percent to $20.89, the highest since July 2009. Morgan Stanley raised the St. Peters, Missouri- based provider of solar energy technology to overweight, similar to a buy rating.

RadioShack tumbled 17 percent, the biggest drop since October, to $2.25. The electronics chain posted fourth-quarter sales that missed analysts’ estimates and said it would close as many as 1,100 locations.

 

Have a wonderful evening everyone.

 

Be magnificent!

Watching and listening are a great art.

By watching and listening we learn infinitely more than we do from any books.

Books are necessary, but watching and listening sharpen your senses.

Krishnamurti, 1895-1986

As ever,

 

Carolann

 

Listen to many, speak to a few.

-William Shakespeare, 1564-1616.

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

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

Who watched the Oscar’s last night? What did you think of Ellen’s performance as the host this year?  Even though I did not have a chance to watch all the movies nominated, I always like to watch the red carpet and look at all the beautiful dresses the actress’ wear. So many amazing films to choose from this year, but 12 Years a Slave stole best picture.  For the first, a film directed by a black filmmaker (Steve McQueen), won best picture.  Steve McQueen dedicated his award to “all of the people who endured slavery and the 21 million people who still suffer slavery today”.  This is one film that has definitely been added to my “must watch” list.

Happy Monday Everyone!

“We must use time wisely and forever realize that the time is always ripe to do right.”

Nelson Mandela

Photos of the day

A partially frozen Niagara Falls is seen on the American side during sub freezing temperatures in Niagara Falls, Ontario. Mark Blinch/Reuters

A tourist boat, decorated with green lights, travels on the Pearl River amid heavy haze in Guangzhou, Guangdong province. China’s environment ministry has vowed to ‘harshly punish’ factories and power plants that contributed to a hazardous smog which enveloped much of Northern China, official state media reported. Alex Lee/Reuters

Market Closes for March 3^rd, 2014

Market Index	Close	Change
Dow Jones	16168.03	-153.68   -0.94%
S&P 500	1845.73	-13.72   -0.74%
NASDAQ	4277.301	-30.818   -0.72%
TSX	14212.74	+3.15
		+0.02%

International Markets

Market Index	Close	Change
NIKKEI	14652.23	-188.84
		-1.27%
HANG SENG	22500.67	-336.29
		-1.47%
SENSEX	20946.65	-173.47
		-0.82%
FTSE 100	6708.35	-101.35
		-1.49%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.402	2.428
CND. 30 Year Bond	2.929	2.941
U.S. 10 Year Bond	2.6012	2.6494
U.S. 30 Year Bond	3.5542	3.5847

Currencies

BOC Close	Today	Previous
Canadian $	0.90268	0.90396
US $	1.10782	1.10625
Euro Rate 1 Euro=		Inverse
Canadian $	1.52178	0.65712
US $	1.37361	0.72801

Commodities

Gold	Close	Previous
London Gold Fix	1350.17	1326.00
Oil	Close	Previous
WTI Crude Future	104.92	102.59
BRENT	109.360	109.360

Market Commentary:

Canada
By Eric Lam and Callie Bost

March 3 (Bloomberg) — Canadian stocks were little changed, erasing an earlier loss in the last minutes of trading, as a rally in gold companies offset a global equities selloff from the escalating Crimea conflict.

OceanaGold Corp. and Detour Gold Corp. climbed at least 2.9 percent as the metal’s price surged. Osisko Mining Corp. advanced 6.4 percent after settling a lawsuit against Goldcorp Inc. related to the latter’s hostile bid for the company. Magna International Inc. jumped to a record after reporting better- than-estimates profit. National Bank of Canada and Bank of Montreal each lost 1 percent as financial shares slumped. Lundin Mining Corp. dropped 3.6 percent as copper fell.

The Standard & Poor’s/TSX Composite Index rose 3.15 points, or less than 0.1 percent, to 14,212.74 at 4 p.m. in Toronto, after dropping as much as 0.3 percent earlier in the day. The index has gained 4.3 percent this year.

“People are looking for a safe haven as a result of the conflict in Ukraine so investors are looking at gold,” said Anish Chopra, fund manager at TD Asset Management Inc. in Toronto. The firm manages C$218.3 billion ($196.9 billion). “There’s always a geopolitical risk premium when it comes to the pricing of oil, and this is playing a part as well.”

Ukraine put its forces on combat readiness over the weekend after Russian President Vladimir Putin got parliamentary approval to send troops into its southern neighbor. Ukraine said Russia’s navy ordered two of its ships in Crimea to surrender amid the worst standoff between the West and Russia since the end of the Cold War. A Russian Defense Ministry official denied the claim.

Canadian Prime Minister Stephen Harper, speaking at a mining conference in Toronto, said the situation in Ukraine was “extremely serious” and Putin’s military action in Ukraine may mean Russia would leave the Group of Eight nations.

The tensions sent stocks tumbling around the world, with the MSCI All-Country World Index sliding 1.2 percent, the biggest decline in a month.

The S&P GSCI Index of 24 raw materials climbed 1.6 percent, the biggest increase in six months, paced by gains in oil on concern supplies will be disrupted by the conflict. Russia is the world’s largest energy exporter, and more than half of the country’s gas exports to the European Union flow through Ukraine.

Gold for April delivery rose 2.2 percent to $1,350.30 an ounce in New York, the highest settlement in more than four months. Gold is seen by many investors as a haven in times of increased market volatility.

Raw-materials stocks jumped 0.7 percent as a group. Trading volume in the benchmark index was 12 percent lower compared with the 30-day average.

OceanaGold rose 4.5 percent to C$2.77 and Detour Gold rallied 2.9 percent to C$9.90 as 18 of 23 members of the S&P/TSX Gold Index advanced. The gauge of gold mining stocks increased 1.4 percent.

Fortuna Silver Mines Inc. jumped 3.1 percent to C$4.92 as silver for May delivery rose 1.1 percent.

Magna, the auto-parts manufacturer, soared 5.3 percent to C$103.75, a record high, after posting adjusted earnings of $2.33 a share. Analysts surveyed by Bloomberg had forecast $1.55.

Osisko Mining jumped 6.4 percent to C$7.50, the highest in a year, after settling a lawsuit against Goldcorp, which added 1.9 percent to C$30.32.

Goldcorp, which is trying to acquire Osisko for C$2.96 billion, said it has agreed to put its hostile bid on hold until April 15. As part of the agreement, Osisko will allow Goldcorp “full due diligence access to its business and assets” by April 1 and will not apply its shareholder rights plan.

Trilogy Energy Corp. gained 2.5 percent to C$28.80 and Canadian Natural Resources Ltd. rose 0.8 percent to C$40.83 as crude for April delivery climbed 2.3 percent to $104.92, the highest since September.

Industrial shares lost 0.6 percent as Air Canada decreased 2.8 percent to C$5.81. The carrier soared 323 percent last year, the biggest gain in the S&P/TSX.

Financial companies in the index tumbled 0.3 percent. Bank of Montreal slipped 1 percent to C$72.23 and National Bank of Canada dropped 1 percent to C$44.

Lundin Mining slumped 3.6 percent to C$5.07 and Teck Resources Ltd., Canada’s largest diversified miner, lost 1.3 percent to C$24.31 as copper fell to the lowest in 14 weeks in New York on weakening manufacturing in China, the world’s biggest consumer. An official Chinese manufacturing gauge released March 1 fell in February to an eight-month low of 50.2. Levels above 50 signal expansion.

US
By Callie Bost

March 3 (Bloomberg) — U.S. stocks sank the most in a month, joining a global selloff in equities, as investors sought havens on concern that Russia’s military presence in Ukraine could lead to a larger conflict.

General Electric Co. and 3M Co. plunged at least 1.4 percent to pace declines among large industrial shares. Financial shares tumbled, as Visa Inc. and American Express Co. slid more than 1.4 percent. The Market Vectors Russia ETF tracking companies from Gazprom OAO to OAO Lukoil dropped 6.9 percent. Yandex NV, a U.S.-listed online search engine operating in Russia, slumped 14 percent. Reynolds American Inc. rallied 4.8 percent after a report said the company might bid for Lorillard Inc.

The Standard & Poor’s 500 Index fell 0.7 percent to 1,845.73 at 4 p.m. in New York. Today’s drop was the biggest since Feb. 3 and erased a gain for the year after the index finished last week at a record. The Dow Jones Industrial Average dropped 153.68 points, or 0.9 percent, to 16,168.03. About 6.9 billion shares traded hands on U.S. exchanges today, 5.4 percent above the three-month average.

“Global markets typically sell off on news of an escalated geopolitical crisis like we’re seeing in Ukraine; how deep it goes depends on the effectiveness of diplomacy,” Frederic Dickson, chief investment strategist who helps oversee $44.5 billion at D.A. Davidson & Co. in Lake Oswego, Oregon, said in a telephone interview. “We’re in a camp that this is not a black swan event that will mark the end of the five year bull market for stocks in the U.S. and globally, but a modest correction event.”

The tensions sent stocks tumbling around the world, with the MSCI All-Country World Index sliding 1.3 percent. Russian stocks had their biggest decline in five years and the Europe Stoxx 600 plunged 2.3 percent, its biggest slide in five weeks. Emerging-market stocks dropped 1.7 percent. Gold soared 2.2 percent and Treasuries rallied.

Ukraine said Russia’s navy ordered two of its ships in Crimea to surrender amid the worst standoff between the West and Russia since the end of the Cold War. A Russian Defense Ministry official denied the claim.

The head of Russia’s Black Sea fleet gave the ships, located near the port of Sevastopol, until 5 a.m. local time tomorrow to give up weapons and capitulate, Oleksiy Kirchkov, deputy commander of the Ternopil, told Ukraine’s Channel 5 by phone.

Western diplomats are seeking to calm tensions in Ukraine, with U.S. Secretary of State John Kerry arriving in Kiev today.

“The Ukraine news is troubling, but there are always global risks and short-term fluctuations because of these risks,” Karyn Cavanaugh, a market strategist at ING U.S.Investment Management in New York, said in a phone interview. Her firm oversees about $200 billion. “I see this being short-term unless it escalates. If we do see some market gyrations and volatility, it could be a buying opportunity.”

The geopolitical tension comes after the S&P 500 rose 4.3 percent in February, the most since October, to end the month at a record 1,859.45. Investors have been speculating that recent weakness in data from housing to jobs was caused by inclement weather and that the Federal Reserve will continue to support the economy.

U.S. equities are set to enter the sixth year of a bull market that started March 9, 2009. Three rounds of stimulus have helped push the S&P 500 up 173 percent from a 12-year low.

Investor concerns of weakness in emerging markets sent the S&P 500 plunging 5.8 percent from Jan. 15 to Feb 3, amid signs that growth was slowing in China and a rout of currencies from the Turkish lira to the Argentine peso as the Fed began to reduce stimulus. Reports today showed two gauges of Chinese manufacturing in February signaled slower growth.

Data in the U.S. today showed manufacturing expanded at a faster pace than projected in February, a sign the industry was beginning to overcome bad weather across much of the country. The Institute for Supply Management’s manufacturing index rose to 53.2 in February from 51.3 a month earlier. Readings above 50 signal expansion.

A separate report indicated consumer spending rose 0.4 percent in January after a 0.1 percent gain the prior month. The median forecast of 76 economists in a Bloomberg survey called for a 0.1 percent rise. Incomes advanced 0.3 percent.

“There are other worries already built into this market,” Todd Salamone, director of research at Schaeffer’s Investment Research in Cincinnati, said by phone. “Whether it’s China or the U.S. slowing down or the Fed, we have had a market that has marched higher amid a lot of scary headlines. The good news for the bulls is that there’s a lot of fear already built into this market as is.”

The Chicago Board Options Exchange Volatility Index, a gauge for U.S. stock volatility, jumped 16 percent to 16.02 today, its biggest advance since Feb. 3. Options tied to gains in the VIX reached the highest prices in six years last week, reflecting bets that the calm prevailing in equities for the last year won’t last.

A series of calls that appreciate in tandem with the VIX climbed to the highest level since May 2007 relative to puts last week, according to data compiled by Bloomberg.

“It should be an enormous advantage for investors in stocks to have those wildly fluctuating valuations placed on their holdings,” Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc., said in his annual letter to investors last week.

All 10 main groups in the S&P 500 retreated at least 0.2 percent today. Utility and consumer-discretionary stocks fell the most, losing 0.9 percent.

Industrial shares slid 0.7 percent as a group. General Electric lost 1.4 percent to $25.12 and 3M dropped 1.9 percent to $132.21.

Banks and other financial firms tumbled 0.9 percent. American Express sank 1.4 percent to $89.97 while Visa had the steepest slide in the Dow, dropping 2 percent to $221.44.

Yandex, whose market share in Russia is twice that of Google Inc.’s, plunged 14 percent to $32.23. The shares have lost 25 percent this year, compared with a gain of 0.7 percent for a gauge of technology stocks listed on the S&P 500. The Russian ETF dropped 6.9 percent to $22.76, the lowest since August 2009.

Ford Motor Co. slid 1.2 percent to $15.20 after the carmaker said February light-vehicle sales fell 6.1 percent. Analysts had estimated a drop of 5.3 percent.

Airline stocks declined after a report from industry data tracker MasFlight estimated that cancellations caused by severe winter weather from Dec. 1 through Feb. 28 may have cost carriers as much as $500 million. American Airlines Group Inc. tumbled 2.3 percent to $36.10 and Delta Air Lines Inc. dropped 1.9 percent to $32.59.

Newmont Mining Corp. advanced 1.6 percent to $23.63 after gold jumped to a four-month high in New York as investors bought the metal as a haven.

Reynolds American gained 4.8 percent to $53.29 after the Financial Times reported the company hired an investment bank to explore a deal for its rival in cigarette sales. Lorillard jumped 9.3 percent to $53.61.

 

Have a fabulous evening everyone!

 

Be magnificent!

 

“A gentle word, a kind look, a good-natured smile can work wonders and accomplish miracles.”

William Hazlitt

 

As ever,

 

Amanda Parnham

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

 

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7

 

Dear Friends,

Tangents:

Remember that Monday, March 3^rd is the deadline for RRSP contributions for the 2013 tax year.  For those of you living in other provinces or elsewhere in BC, please call our office if you need instructions on how to deposit funds into your account online, if you haven’t done so already.

It’s Oscar weekend and I’m off to LA tonight for the weekend – back Monday.  There were so many fabulous movies this past  year, it’s hard to choose, but I think American Hustle is a top contender for best picture.  It was a great movie.

Photos of the day

An Oscar statue is covered in plastic as preparations are made for the March 2 awards ceremony in Los Angeles Feb. 26. Matt Sayles/Invision/AP

Hand-crafted envelopes by Marc Friedland for the 86th Oscars are displayed at the Governors Ball Press Preview on Feb. 20. Chris Pizzello/Invision/AP

Market Closes for February 28^th, 2014

Market  Index	Close	Change
Dow  Jones	16321.71	+49.06    +0.30%
S&P 500	1859.45	+5.16    +0.28%
NASDAQ	4308.117	-10.815    -0.25%
TSX	14209.59	-5.15
		-0.04%

International Markets

Market  Index	Close	Change
NIKKEI	14841.07	-82.04
		-0.55%
HANG  SENG	22836.96	+8.78
		+0.04%
SENSEX	21120.12	+133.13
		+0.63%
FTSE 100	6809.70	-0.57
		-0.01%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.428	2.414
CND.  30 Year Bond	2.941	2.939
U.S.   10 Year Bond	2.6494	2.6387
U.S.  30 Year Bond	3.5847	3.5916

Currencies

BOC Close	Today	Previous
Canadian $	0.90396	0.89897
US  $	1.10625	1.11238
Euro Rate  1 Euro=		Inverse
Canadian  $	1.52753	0.65465
US  $	1.38082	0.72421

Commodities

Gold	Close	Previous
London Gold  Fix	1326.00	1330.93
Oil	Close	Previous
WTI Crude Future	102.59	102.40
BRENT	109.360	109.360

Market Commentary:

Canada
By Eric Lam

Feb. 28 (Bloomberg) — Canadian stocks erased gains in the final hour of trading, paring the longest monthly winning streak in three years, as drop among miners offset gains in industrial and energy shares amid an unexpected acceleration in growth.

Mega Brands Inc., the world’s second-largest maker of snap- together blocks after Lego A/S, surged 36 percent after Mattel Inc. agreed to buy the toymaker. Atlantic Power Corp., which runs electricity generation stations, jumped 3.9 percent after posting the first per-share profit in three quarters. OceanaGold Corp. slumped 3.3 percent as gold fell for the second time in three days. Valeant Pharmaceuticals International Inc. dropped the most since June.

The Standard & Poor’s/TSX Composite Index fell 5.15 points, or less than 0.1 percent to 14,209.59 at 4 p.m. in Toronto, erasing an earlier gain of as much as 0.5 percent. The benchmark equity gauge advanced 3.8 percent in February, an eighth straight monthly gain. The index earlier surpassed its highest closing level since 2008.

“We’ve seen some choppiness on both sides so far this year, some volatility,” said Youssef Zohny, portfolio manager at Stenner Investment Partners of Richardson GMP Ltd. from Vancouver. Richardson GMP manages C$26 billion ($23 billion). “It’s possible there was some portfolio rebalancing and some profit-taking today at the end of a very good month.”

Canada’s economy grew 2.9 percent in the fourth quarter compared with 2.7 percent in the prior three months as consumer spending increased and companies added to inventories. Economists had projected growth to slow to 2.6 percent.

Bank of Canada Governor Stephen Poloz has said there is “significant slack” in the economy and that it will take about two years to reach full output. Economists predict he will keep his benchmark interest rate at 1 percent at a March 5 policy announcement.

“You have an economy that’s growing but not growing so fast that the central bank has to take away the punchbowl. Growth of 2.5 percent to 3 percent isn’t bad, and there are no worries about rising interest rates,” said Michael O’Brien, fund manager at TD Asset Management Inc. in Toronto. He helps manage C$218.3 billion with the firm.

Information technology stocks tumbled 1.2 percent as a group as four of 10 industries declined on trading volume 4 percent below the 30-day average.

BlackBerry Ltd. dropped 5.4 percent to C$11.05, the biggest decline in the S&P/TSX. A company spokesman said BlackBerry has no current plans to release a new tablet, in response to a report from the website Pocket-Lint.

Valeant fell 4.2 percent to C$6.90, paring its advance this year to 27 percent.

OceanaGold lost 3.3 percent to C$2.65 and Agnico Eagle Mines slipped 3 percent to C$35.53 as gold futures dropped 0.8 percent to $1,321.60 an ounce in New York. The metal price has rallied 9.9 percent this year, rebounding from the worst loss since 1981 last year.

Mega Brands soared 36 percent to C$17.72, the biggest gain since December 2009, after Mattel agreed to buy the company for $460 million. The board of Montreal-based Mega Brands unanimously approved the deal and investors holding 39 percent of the stock, including Chief Executive Officer Marc Bertrand and Fairfax Financial Holdings Ltd., have agreed to the sale.

Surge Energy Inc. rallied 3.5 percent to C$5.90 after buying a 20 percent block of shares in Longview Oil Corp. for C$41.4 million. Surge would like to pursue a “mutually beneficial business combination” with Longview, the company said in a statement. Longview advanced 4.7 percent to C$5.38.

Atlantic Power rose 3.9 percent to C$2.90 after posting adjusted earnings of 4 cents a share, following losses of 32 cents and 2 cents in the two previous quarters.

The company decided to defer a decision on whether to reduce its dividend, which may cause shares to temporarily rise, Nelson Ng, analyst with RBC Capital Markets, said in a note to clients. Ng said a cut is “much needed.”

US
By Lu Wang and Callie Bost

Feb. 28 (Bloomberg) — U.S. stocks rose to a record, capping the best month since October, as improving consumer confidence and speculation that the Federal Reserve will support the economy offset concern over escalating conflict in Ukraine.

Principal Financial Group Inc. rose 1.6 percent after Keefe, Bruyette & Woods Inc. raised its rating on the stock. Monster Beverage Corp. advanced 4 percent after reporting sales that beat analysts’ estimates. Apple slid 0.3 percent as shareholders approved the company’s proposals and rejected those that the board opposed at its annual meeting. Deckers Outdoor Corp., the maker of Ugg boots, dropped 12 percent after forecasting an unexpected first-quarter loss.

The Standard & Poor’s 500 Index climbed 0.3 percent to 1,859.45 at 4 p.m. in New York, capping a 1.3 percent gain for the week that left the gauge 4.3 percent higher in February. The Dow Jones Industrial Average gained 49.06 points, or 0.3 percent, to 16,321.71. About 7.7 billion shares changed hands on U.S. exchanges, 19 percent higher than the 30-day average.

“We continue to be in an environment of recovery and modest growth, but not at a point of excessive strength that would cause a reversal in Federal Reserve policy when it came to raising interest rates,” James Abate, who oversees about $1 billion as chief investment officer at Centre Asset Management in New York, said by phone. “It’s positive for stocks.”

U.S. equities are set to enter the sixth year of a bull market that started March 9, 2009. Three rounds of stimulus have helped push the S&P 500 up 175 percent from a 12-year low.

The index briefly erased gains in the afternoon after Ukrainian acting President Oleksandr Turchynov said Russia has invaded Ukraine’s southern region of Crimea as gunmen seized airports and other facilities on the peninsula.

Russian forces are trying to provoke a conflict similar to the 2008 war with Georgia over a breakaway region, Turchynov said today in a speech broadcast by the parliamentary television channel.

“Markets greet uncertainty with selling, especially entering a weekend,” Joe Bell, senior equity analyst at Cincinnati-based Schaeffer’s Investment Research Inc., said by phone. “Technically, the market is kind of overextended as well. It’s just an overbought situation. You’re having people take profits.”

Federal Reserve Chair Janet Yellen said yesterday that the central bank may consider changing its strategy for reducing asset purchases should the economy weaken. Earlier this month, she said that the economy can withstand stimulus cuts, adding that only a notable change to the outlook would prompt the central bank to slow the pace of tapering.

Her latest comments helped the S&P 500 close at a record yesterday, ending three days of failing to sustain all-time highs throughout the trading session. The index closed up 1.3 percent this week, capping its third weekly gain this month.

“Although they don’t expect to change tapering, Yellen did give a nod to if the economic data tells us that over the next couple months it’s not just weather, then they will re- evaluate,” Andres Garcia-Amaya, global market strategist at JPMorgan Chase & Co.’s mutual funds unit in New York, said by phone. The firm oversees $400 billion. “The market took it on a stride and says, ‘All right, the Fed still supports us.’”

U.S. consumer confidence improved in February from a month earlier as more consumers grew optimistic about the outlook for the economy. The Thomson Reuters/University of Michigan final index of sentiment rose to 81.6 this month from 81.2 in January. The median estimate in a Bloomberg survey of economists called for the measure to hold at its preliminary reading of 81.2.

The economy in the U.S. grew at a slower pace in the fourth quarter than previously estimated, giving the expansion less momentum heading into 2014. Gross domestic product grew at a 2.4 percent annualized rate from October through December, compared with the 3.2 percent gain issued last month, revised figures from the Commerce Department showed. The median forecast of 85 economists surveyed by Bloomberg called for a 2.5 percent increase.

Investors are favoring smaller companies, with exchange- traded funds that hold small-cap stocks attracting almost $400 million yesterday, according to data compiled by Bloomberg. More than $530 million was withdrawn from large-cap ETFs and overall equity funds lost $36 million.

The Chicago Board Options Exchange Volatility Index slipped 0.3 percent today to 14. The gauge of S&P 500 options known as the VIX fell 4.6 percent this week.

Eight of 10 S&P 500 main industries gained. Consumer- staples and utilities stocks rose the most, climbing at least 0.6 percent. Kroger Co. jumped 4.5 percent to $41.94, the most in the S&P 500, and Archer-Daniels-Midland Co. increased 1.8 percent to $40.60.

Principal Financial climbed 1.6 percent to $45.35. The life insurer was boosted to outperform from market perform at Keefe, Bruyette & Woods. Concern over the company’s business in emerging markets has been overdone, analyst Jeffrey Schuman wrote in a note to clients.

Monster Beverage surged 4 percent to $74. The distributor of energy drinks and fruit juices reported fourth-quarter sales of $540.8 million, beating the average analyst estimate of $526.3 million.

Jos. A. Bank Clothiers Inc. rose 3 percent to a record $62.08 as the retailer agreed to meet with Men’s Wearhouse Inc. to discuss a potential merger. Jos. A. Bank rejected a $1.78 billion bid from Men’s Wearhouse late yesterday because it failed to meet the interests of investors. The prospect of talks marks the latest twist in an almost five-month takeover battle between the two purveyors of discount suits.

Men’s Wearhouse climbed 6.7 percent to $53.79.

Apple slipped 0.3 percent to $526.24 as shareholders showed support for Chief Executive Officer Tim Cook at its annual meeting. Apple recently faced down activist investor Carl Icahn, who had called on the company to increase its share buybacks.

Earlier this month, Icahn dropped a plan to force a vote over the issue, saying he was satisfied with statements by Cook that Apple had bought back $14 billion of its own shares in two weeks, bringing its repurchases to more than $40 billion in a year.

Deckers Outdoor dropped 12 percent to $74.35 after projecting a loss of 16 cents a share for the current quarter.  Analysts had estimated a profit of 10 cents on average, according to data compiled by Bloomberg.

Southwestern Energy Co. fell 4.2 percent to $41.34 for the third-biggest decline in the S&P 500. The natural gas producer’s results from the Brown Dense holdings in the U.S. were disappointing, Tim Rezvan, an analyst with Sterne Agee & Leach Inc. in New York, wrote in a note to clients.

Salesforce.com Inc. slipped 5.8 percent to $62.37. The biggest maker of customer-management software forecast fiscal first-quarter earnings of 9 cents to 10 cents a share. Analysts, on average, estimated 10 cents.

KBR Inc. declined 14 percent to $27.62. The military contractor forecast earnings per share of $1.75 to $2.10 in 2014, less than the $2.49 that analysts had estimated. It also reported fourth-quarter revenue of $1.7 billion, missing the $1.93 billion average analyst projection.

 

Have a wonderful weekend everyone.

 

Be magnificent!

To conquer the subtle passions

seems to me to be far harder than the

physical conquest of the world by the force of arms.

Mahatma Gandhi, 1869-1948

As ever,

 

Carolann

 

Not all of us can do great things.

But one can do small things with great love.

-Mother Teresa, 1910-1997

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

Poet Henry W. Longfellow was born on this day in 1807.  We always think of Paul Revere’s Ride when we think of Longfellow.  This poem is lesser known:

Mezzo Cammin

Half of my life is gone, and I have let

The years slip from me and have not fulfilled

The aspiration of my youth, to build

Some tower of song with lofty parapet.

Not indolence, nor pleasure, nor the fret

Of restless passions that would not be stilled,

But sorrow, and a care that almost killed,

Kept me from what I may accomplish yet;

Though, half-way up the hill, I see the Past

Lying beneath me with its sounds and sights, –

A city in the twilight dim and vast,

With smoking roofs, soft bells, and gleaming lights, –

And hear above me on the autumnal blast

The cataract of Death far thundering from heights.

-Henry Wadsworth Longfellow

Photos of the day

Revelers dressed in carnival costumes celebrate the start of the street-carnival with its tradition of entering the town halls and women cutting off men’s ties with scissors on carnival’s so called ‘Old Women’s Day’ in Dusseldorf, Germany. Frank Augstein/AP

A man holding flowers walks at a memorial for the people killed in clashes with the police, at Kiev’s Independence Square, the epicenter of the country’s current unrest, Ukraine. Emilio Morenatti/AP

Market Closes for February 27^th, 2014

Market  Index	Close	Change
Dow  Jones	16272.65	+74.24    +0.46%
S&P 500	1854.29	+9.13    +0.49%
NASDAQ	4318.934	+26.870    +0.63%
TSX	14214.74	+26.16
		+0.18%

International Markets

Market  Index	Close	Change
NIKKEI	14923.11	-47.86
		-0.32%
HANG  SENG	22828.18	+390.74
		+1.74%
SENSEX	20986.99	+134.52
		+0.65%
FTSE 100	6810.27	+11.12
		+0.16%

Bonds

Bonds	% Yield	Previous % Yield
CND.  10 Year Bond	2.414	2.442
CND.  30 Year Bond	2.939	2.964
U.S.   10 Year Bond	2.6387	2.6620
U.S.  30 Year Bond	3.5916	3.6249

Currencies

BOC Close	Today	Previous
Canadian $	0.89897	0.89830
US  $	1.11238	1.11321
Euro Rate  1 Euro=		Inverse
Canadian  $	1.52477	0.65584
US  $	1.37073	0.72954

Commodities

Gold	Close	Previous
London Gold  Fix	1330.93	1329.64
Oil	Close	Previous
WTI Crude Future	102.40	102.59
BRENT	109.360	109.360

Market Commentary:

Canada
By Callie Bost and Eric Lam

Feb. 27 (Bloomberg) — Canadian stocks rose, with the benchmark index near a three-year high, as banks rallied on better-than-forecast earnings and U.S. Federal Reserve Chair Janet Yellen said stimulus cuts could slow if growth weakens.

Toronto-Dominion Bank climbed 0.8 percent after Canada’s largest lender raised its dividend and reported better-than- estimated profit. Valeant Pharmaceuticals International Inc. added 1.6 percent after the company reported earnings that surpassed analysts’ forecasts. Catamaran Corp. plunged 11 percent after giving forecasts for 2014 that missed estimates.

The Standard & Poor’s/TSX Composite Index rose 25.77 points, or 0.2 percent, to 14,214.35 at 4 p.m. in Toronto. The benchmark equity gauge has advanced 3.8 percent in February and is 0.4 percent below its high from April 2011. Trading volume is 7.2 percent below the 30-day average.

“The bank earnings are front and center for a lot of investors, coming in a little better than expected,” Bob Decker, a fund manager with Aurion Capital Management Inc. who helps manage about C$6 billion ($5.39 billion), said by phone from Toronto. “Most of the debate now is how temporary is the weather-induced weakness in the economy and how much snapback there will be from that.”

TD Bank and Canadian Imperial Bank of Commerce raised their dividends after posting record first-quarter profit that beat analysts’ estimates. The two lenders join Royal Bank of Canada and Montreal-based National Bank of Canada in posting net income that topped forecasts as contributions from acquisitions helped lift earnings. Bank of Nova Scotia will report earnings March 4.

Yellen said today in the testimony on monetary policy before the Senate that the Fed is likely to maintain its strategy of gradually trimming asset purchases, even as policy makers monitor data to determine if recent weakness in the economy is temporary.

She repeated that it would take a “significant” change in the economic outlook for the Fed to alter its strategy of gradually reducing asset purchases, while adding that the reductions are “not on a preset course.”

Investors have also been watching events in Ukraine after Russia said it has begun military exercises near the Crimean border. Gunmen occupied Ukraine’s Crimea regional parliament and raised the Russian flag as lawmakers in the capital meet to approve a new cabinet after last week’s ouster of Viktor Yanukovych as leader.

“I’m sitting here, trying to get my arms around this if it’s a flash in the pan or signaling a more material threat to the western interests,” David Bianco, chief U.S. equity strategist at Deutsche Bank Securities Inc., said in an interview with Michael McKee and Tom Keene on Bloomberg Radio’s “Bloomberg Surveillance.”

Seven of 10 main industries in the S&P/TSX advanced today, with technology and phone companies rising at least 0.6 percent to pace gains. BlackBerry Ltd. climbed 1.7 percent to C$11.68, boosting its gains this week to 15 percent.

Telus Corp. increased 0.8 percent to C$38.89 to snap two days of losses and BCE Inc. added 0.7 percent to C$48.17, the highest close since May.

Financial stocks in the index increased 0.5 percent. TD Bank rose 0.8 percent to C$49.80. Canadian Imperial added 1 percent to C$91.47, the highest price since November.

Valeant Pharmaceuticals climbed 1.6 percent to a record C$164.96. The drugmaker posted cash fourth-quarter earnings of $2.15 per share, higher than analysts’ estimates of $2.06. Valeant reaffirmed its outlook for sales of as much as $8.6 billion this year, exceeding analysts’ forecasts of $8.4 billion in revenue for the period.

Catamaran plunged 11 percent to C$51.26, the biggest drop since October 2011, after the pharmacy technology services company forecast adjusted earnings of $2.04 to $2.19 a share in 2014, short of the average $2.38 projection of analysts surveyed by Bloomberg.

USA
By Lu Wang and Callie Bost

Feb. 27 (Bloomberg) — U.S. stocks rose, sending the Standard & Poor’s 500 Index to a record, as Federal Reserve Chair Janet Yellen said the central bank may change its strategy for reducing asset purchases should the economy weaken.

Phone stocks rallied the most among the 10 main industries in the S&P 500 as JPMorgan Chase & Co. added Verizon Communications Inc. to its focus list. J.C. Penney Co. surged 25 percent after predicting an increase in annual revenue and wider margins. Sears Holdings Corp. rose 6.5 percent after reporting a narrower fourth-quarter loss. Transocean Ltd. fell 1.1 percent as sales missed analysts’ forecasts at the world’s largest offshore rig contractor.

The S&P 500 increased 0.5 percent to 1,854.29 at 4 p.m. in New York. The Dow Jones Industrial Average added 74.24 points, or 0.5 percent, to 16,272.65. About 6.5 billion shares changed hands on U.S. exchanges, in line with the three-month average.

“Yellen said that they would consider pulling back on their tapering schedule if the economy slowed in a meaningful manner,” Matt Maley, an equity strategist with Miller Tabak & Co., said in an interview from Boston. “She seems to be more willing to step back on the accelerator than she was when she last spoke to Congress.”  The S&P 500’s close at a record ended three days of the index failing to sustain all-time highs throughout the sessions. The benchmark gauge is up 4 percent in February, poised for the best monthly gain since October.

Investors continue to favor equities over bonds. They added $971.8 million to U.S. equity exchange-traded funds yesterday, compared with deposits of $49.8 million to domestic bond ETFs, data compiled by Bloomberg show.

Yellen said today in the testimony on monetary policy before the Senate that the Fed is likely to keep trimming asset purchases, even as policy makers monitor data to determine if recent weakness in the economy is temporary. The S&P 500 has rallied 6.5 percent since a low on Feb. 3 amid speculation that severe winter weather explains the weakness in reports such as housing and hiring.

Reports today showed orders for U.S. durable goods fell 1 percent in January, less than forecast, a sign manufacturing was beginning to emerge from the harsh winter weather. In the labor market, more Americans than forecast filed applications for unemployment benefits last week.

Stocks in Europe declined as Russia said it has begun military exercises near the Crimean border. Gunmen occupied Ukraine’s Crimea regional parliament and raised the Russian flag as lawmakers in the capital meet to approve a new cabinet after last week’s ouster of Viktor Yanukovych as leader.

“The story today is the unfolding situation in Ukraine and whether the S&P 500 can break above the 1,840 to 1,850 level,” Ryan Larson, the Chicago-based head of U.S. equity trading at RBC Global Asset Management (U.S.) Inc., said in an interview.  His firm oversees $290 billion.  Jobless “claims are taking a backseat to broader geopolitical and technical levels,” he said.

Benchmarks tracking smaller companies also made new highs.  The Russell 2000 Index climbed 0.5 percent while the S&P Midcap 400 Index gained 0.3 percent today. The Dow is still about 2 percent below its record.       The Chicago Board Options Exchange Volatility Index slipped 2.2 percent to 14.03. The gauge of S&P 500 options known as the VIX is up 2.3 percent this year.

Phone stocks rose the most among the S&P 500’s 10 main industries, rallying 1.7 percent. Verizon climbed 2.5 percent to $47.50 as JPMorgan said shares of the wireless carrier may reach $57 over the next six to 12 months. Morgan Stanley resumed the coverage of the stock with a rating of overweight, the equivalent to buy.

J.C. Penney surged 25 percent to $7.47. Same-store sales will increase by a mid-single digit percentage and gross margin will “significantly” improve this year, the company said. Chief Executive Officer Mike Ullman forecast that the retailer’s turnaround will be completed this year.

Sears added 6.5 percent to $43.01. The retailer run by hedge fund manager Edward Lampert said its net loss narrowed to $3.37 a share from $489 million, or $4.61 a share, a year earlier. Revenue fell 14 percent to $10.6 billion.

Mylan Inc. climbed 9.4 percent to $56.27. The generic-drug maker forecast 2014 revenue of at least $7.8 billion, exceeding the average analyst estimate of $7.72 billion.

3M Co. gained 1.1 percent to $134.34. The company is working with Goldman Sachs Group Inc. to sell components of its electronics business that the industrial- and consumer-products maker has decided are underperforming, people with knowledge of the matter said.

Transocean declined 1.1 percent to $42.55. The company reported fourth-quarter revenue of $2.33 billion. Analysts on average estimated $2.36 billion, according to data compiled by Bloomberg.

 

Have a wonderful evening everyone.

 

Be magnificent!

There will have to be rigid and iron discipline

before we achieve anything great and enduring,

and that discipline will not come by mere academic argument

and appeal to reason and logic.

Discipline is learnt in the school of adversity.

Mahatma Gandhi,1869-1948

 

As ever,

 

Carolann

 

Everything you can imagine is real.

–Pablo Picasso, 1881-1973

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

 

Dear Friends,

Tangents:

On February 26^th, 1919, the Grand Canyon National Park was established.

45 years ago today, Golda Meir became the first female Prime Minister of Israel.

Imagination is everything.  It is the preview of life’s coming attractions.  – Albert Einstein.

Photos of the day

A man walks with an umbrella down California Street in San Francisco. Jeff Chiu/AP

People walk past crocuses and winter aconites in the Great Garden in Dresden, Germany. Jan Woitas/dpa/AP

Market Closes for February 26^th, 2014

Market Index	Close	Change
Dow Jones	16198.41	+18.75   +0.12%
S&P 500	1845.16	+0.04   —
NASDAQ	4292.063	+4.475   +0.10%
TSX	14188.58	-0.40
		—

International Markets

Market Index	Close	Change
NIKKEI	14970.97	-80.63
		-0.54%
HANG SENG	22437.44	+120.24
		+0.54%
SENSEX	20986.99	+134.52
		+0.65%
FTSE 100	6799.15	-31.35
		-0.46%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	2.442	2.486
CND. 30 Year Bond	2.964	2.995
U.S. 10 Year Bond	2.6620	2.7014
U.S. 30 Year Bond	3.6249	3.6595

Currencies

BOC Close	Today	Previous
Canadian $	0.89830	0.90213
US $	1.11321	1.10849
Euro Rate 1 Euro=		Inverse
Canadian $	1.52299	0.65660
US $	1.36822	0.73091

Commodities

Gold	Close	Previous
London Gold Fix	1329.64	1341.06
Oil	Close	Previous
WTI Crude Future	102.59	102.13
BRENT	109.360	109.360

Market Commentary:

Canada
By Eric Lam

Feb. 26 (Bloomberg) — Canadian stocks rose, with the benchmark index trading near a three-year high, as uranium miners rallied and corporate earnings topped forecasts.

MacDonald Dettwiler & Associates Ltd. added 4.7 percent after the company reported sales and earnings that surpassed estimates. Uranium miners Cameco Corp. and Denison Mines Corp. rallied at least 3.9 percent after Japan’s government indicated the country would continue to rely on nuclear generation for its power needs. Detour Gold Corp. dropped 4.7 percent as gold prices retreated from a 17-week high.

The Standard & Poor’s/TSX Composite Index rose 26.43 points, or 0.2 percent, to 14,215.41 at 2:04 p.m. in Toronto.  The benchmark equity gauge has advanced 3.8 percent in February and is 0.4 percent below its high from April 2011.

“People are pretty excited about uranium, it’s a positive for the sector,” said Matt Skipp, chief investment officer with Sw8 Asset Management Inc. in Toronto. He manages about C$40 million ($36 million). “We will take our cues from the U.S. as usual. If there’s continued weakness in base metals, that might create a lag.”

U.S. stocks advanced today, sending the S&P 500 above its record closing level, as purchases of new homes unexpectedly climbed and retailers rallied.

Japan’s government yesterday presented its draft energy policy showing nuclear as an important component in the nation’s future. Prime Minister Shinzo Abe is seeking to restart the nation’s 48 nuclear reactors, three years after a meltdown at the Fukushima Dai-Ichi power plant.

Ten Canadian companies are scheduled to report quarterly results today and another 15 plan to disclose earnings tomorrow.

Six of 10 groups in the S&P/TSX advanced, with health-care and technology stocks rising at least 1.7 percent for the biggest gains. Trading volume was 13 percent below the 30-day average at this time of day.

MacDonald Dettwiler increased 4.7 percent to C$83.84, leading industrial stocks to a 0.7 percent gain. The technology company, which makes satellites and other space equipment including the International Space Station’s Canadarm2 robotic arm, reported fourth-quarter adjusted earnings of C$1.34 a share, ahead of analysts’ estimates for C$1.28.

Denison Mines soared 9 percent to C$1.82, headed for the highest close in almost three years. The stock has rallied 30 percent in the past four days. Cameco climbed 3.9 percent to C$26.42.

“Reactor restarts remain the most important near-term catalyst for the uranium space,” said David Sadowski, analyst at Raymond James Ltd., in a note to clients.

Uranium concentrate, or yellowcake, will rise to $42 a pound by the end of this year, from the current $35.50 level, Sadowski said.

An index of materials producers lost 0.1 percent, headed for a fourth day of declines. Gold fell 1 percent in New York as a stronger dollar trimmed demand. Copper dropped 0.5 percent.

Detour Gold slid 4.7 percent to C$9.75 and OceanaGold Corp. lost 2.5 percent to C$2.70.

Royal Bank of Canada slipped 0.8 percent to C$65.05. The country’s second-largest lender by assets posted a 2.2 percent increase in profit, helped by lower provisions and credit recoveries. Earnings from personal and commercial banking fell 3 percent due to costs from its Caribbean operations.

USA
By Callie Bost and Lu Wang

Feb. 26 (Bloomberg) — U.S. stocks were little changed, after the Standard & Poor’s 500 Index erased earlier gains and failed to hold above its record closing level for a third straight day.

Chesapeake Energy Corp. slid 4.9 percent after profit fell short of estimates. First Solar Inc. tumbled 9.1 percent after posting a 58 percent drop in quarterly profit. Lowe’s Cos. and Abercrombie & Fitch Co. jumped more than 5.4 percent after announcing buyback plans. Target Corp. gained 7 percent as profit topped analysts’ estimates. An S&P index of homebuilders climbed 3 percent as Lennar Corp. and PulteGroup Inc. increased at least 2.8 percent.

The S&P 500 rose less than one point to 1,845.16 at 4 p.m. in New York. The Dow Jones Industrial Average added 18.75 points, or 0.1 percent, to 16,198.41. About 6.9 billion shares changed hands on U.S. exchanges, 7 percent above the 30-day average.

“The market in the short term is a little tired,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said in a phone interview. “Sure, we have problem breaking through it, setting new all-time highs. But I think that’s temporary. I don’t think there is going to be any material downside from these levels because there isn’t really anything that’s fundamentally driven, it’s more sentiment driven.”

The S&P 500 rose as much as 0.4 percent earlier today as sales of new homes unexpectedly climbed and retailers rallied. The gauge topped its previous closing high of 1,848.38 reached on Jan. 15, something it has done each day this week, only to retreat from that level by the end of the session.  The index came within six points of the record each day last week.  It reached an interday high of 1,858.71 on Feb. 24.

Today marks the fourth straight day the S&P 500 pared or erased gains in the afternoon. The index has lost 0.06 percent in the last hour of trading this year through yesterday, the worst hourly performance of the day, according to data from Bespoke Investment Group LLC.

The gauge has rallied 5.9 percent since a low on Feb. 3 as investors speculated that severe winter weather explains the weakness in reports such as housing and hiring. Federal Reserve Chair Janet Yellen said this month that the economy can withstand stimulus cuts, adding that only a notable change to the outlook would prompt the central bank to slow the pace of tapering. Yellen will testify tomorrow on monetary policy before the Senate.

Three rounds of stimulus have helped push the S&P 500 up as much as 173 percent from a 12-year low in 2009. The index tumbled as much as 5.8 percent from its Jan. 15 record on concern that growth was slowing in China and amid a rout in emerging-market currencies.

“We went through a snapback rally and got right back to the all-time highs,” James W. Gaul, a portfolio manager at Boston Advisors LLC, which oversees about $2.5 billion from Boston, said by phone. “Nothing has changed from a month ago, so what’s the fuel to keep pushing stocks higher. Earnings are almost over and we need news to move higher.”

Money is beginning to return to ETFs with the S&P 500 trading near record levels. About $21 billion has been added to ETFs that buy and sell American shares in the past two weeks as stock prices recovered, according to data compiled by Bloomberg.  The deposits compare with about $407 million sent to fixed income since Feb. 11.

Earnings beat analysts’ estimates at about 70 percent of the 471 companies in the S&P 500 that have posted results so far this season, according to data compiled by Bloomberg. Analysts estimate earnings for S&P 500 companies grew by 8.6 percent in the fourth quarter of 2013, according to a survey of analysts.

Data today showed sales of new U.S. homes increased 9.6 percent to a 468,000 annualized pace in January, exceeding the highest estimate of economists surveyed by Bloomberg and the most since July 2008.

The Chicago Board Options Exchange Volatility Index advanced 5 percent today to 14.35, its first increase in five days. The gauge of S&P 500 options known as the VIX is up 4.6 percent for the year.

Six of 10 main S&P 500 groups retreated, with energy and utilities stocks falling at least 0.5 percent for the biggest drops. Exxon Mobil Corp. retreated 0.5 percent for the second- largest drop in the Dow.

First Solar sank 9.1 percent to $52.74. The largest U.S. solar-panel manufacturer said profit in the fourth quarter slid as revenue slumped from the utility-scale power plants it is building in the southwest of the U.S. Net income fell to $65.3 million from $154.2 million, First Solar said in a statement.

Chesapeake Energy plunged 4.9 percent to $25.61. The second-largest U.S. natural-gas producer missed analysts’ profit estimates by the biggest margin in almost two years as energy prices fell and costs to exit leases and cut jobs rose.

Natural gas futures fell in New York, bringing the three- day slide to 20 percent, as forecast showed a less-intense cold front across the U.S. East.

DreamWorks Animation SKG Inc. plunged 12 percent to $30.91.  The independent animation studio reported that fourth-quarter revenue slumped 23 percent after home-video sales of “Turbo”  missed estimates.

Retailers had the biggest gain among 24 major industries in the S&P 500, rallying 1.4 percent.

Lowe’s advanced 5.4 percent to $50.72. The second-largest U.S. home-improvement chain announced a plan to buy back $5 billion in shares. The company also said fourth-quarter profit rose 6.3 percent as the housing rebound spurred renovation spending.

Home Depot Inc. added 0.9 percent to $81.70. The company climbed 4 percent yesterday after it posted fourth-quarter profit that topped analysts’ estimates, marking six straight years of meeting or exceeding projections.

Wal-Mart Stores Inc. had the biggest increase in the Dow, advancing 2 percent to $74.78.

Abercrombie & Fitch increased 11 percent to $40.04 after posting fourth-quarter profit that topped analysts’ estimates and saying it would buy back $150 million in shares in the current quarter.

Target Corp. added 7 percent to $60.49. The retailer posted fourth-quarter profit that topped analysts’ estimates, signaling that it’s regaining customer loyalty after a data breach affected tens of millions of shoppers at the peak of the holiday season.

Aeropostale Inc., the teen apparel retailer under pressure from an activist investor to sell itself, increased 7.1 percent to $7.43. The company is working with Barclays Plc to explore options such as the sale of a convertible note or preferred stock to a private-equity firm, people with knowledge of the matter said.

Homebuilders climbed, with all 11 members of the S&P Supercomposite Homebuilding Index advancing. Lennar added 3.6 percent to $43.78 and PulteGroup rose 2.8 percent to $21.25.

Cablevision Systems Corp. jumped 3.9 percent to $17.26 as fourth-quarter revenue topped analysts’ estimates and its operating cash flow for the period grew 49 percent.

 

Have a wonderful evening everyone.

 

Be magnificent!

All things are linked together through cause and effect.  There is no such thing as an accident.

When we cannot find the link between cause and effect in an event, we call it an accident.

Swami Prajnanpad, 1891-1974

As ever,

 

Carolann

 

Everything in moderation, including moderation.

-Julia Child, 1912-2004.

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

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7