December 15, 2016 Newsletter

Dear Friends,

Tangents:
Points of Progress:

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

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

PHOTOS OF THE DAY

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

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

International Markets

Bonds

Currencies

Commodities

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

Have a wonderful evening everyone.

Be magnificent!

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

As ever,

Carolann

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

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

Portfolio Manager &
Senior Vice-President

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

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