December 15, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.

1961: Former Nazi official Adolf Eichmann was sentenced to death by an Israeli court. – Go to article »
1989: General Augusto Pinochet defeated; democracy returns to Chile.

Sitting Bull, d. 1890
J. Paul Getty, b. 1892
Don Johnson, actor, b. 1949
Edna O’Brien, author, b. 1932

Bloomberg 50: The People Who Defined 2022: This is our sixth annual look at those in business, politics, science and technology, finance and entertainment whose accomplishments deserve recognition. No one story dominates the Bloomberg 50 this year more than Vladimir Putin’s war on Ukraine, and the effort by one man in particular to face him down, but there are a lot of people who managed shape the direction of yet another tumultuous year for the world.

Impatient dog drives off without owner: Watch this dog cause a fender bender after jumping behind the wheel. Who knows, maybe he was in a rush for his morning puppuccino…

Meet the world’s new richest person: Elon Musk is no longer the richest person on the planet, dropping to the second spot behind this French businessman who keeps a very low profile.

Ancient Egyptian ‘masterpiece’ is so realistic, researchers identified the exact bird species it depicts:  An ancient Egyptian “masterpiece” painting of birds flying and perching within a verdant marsh is so detailed, modern researchers can tell exactly which species artisans illustrated more than 3,300 years ago.  The painting was discovered about a century ago on the walls of the palace at Amarna, an ancient Egyptian capital located about 186 miles (300 kilometers) south of Cairo. Full Story: Live Science (12/14)

Aliens haven’t contacted Earth because there’s no sign of intelligence here, new answer to the Fermi paradox suggests: Why haven’t aliens gotten in touch? Maybe they think Earth is boring. A new preprint paper published to the arXiv database suggests that intelligent extraterrestrials might not find planets that host life particularly interesting. Full Story: Live Science (12/15)

The 52 new books that top business leaders are recommending.

The top 10 wines of 2022, from $35 to $35,000.

Fusion power could become a reality in the next decade.
PHOTOS OF THE DAY

Seoul, South Korea
Visitors wearing traditional Hanbok costume walk through the Gyeongbok Palace grounds
Photograph: Ahn Young-joon/AP

Washington DC, US:
House speaker, Nancy Pelosi, unveils her official portrait
Photograph: Anadolu Agency/Getty Images

Rome, Italy
Visitors view artworks at the Bob Dylan Retrospectrum exhibition at the Maxxi museum
Photograph: Gregorio Borgia/AP
Market Closes for December 15^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1886, for the first time, total daily trading volume on the New York Stock Exchange exceeded 1 million shares.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 1.5%, or 291.02 to 19,600.63 in Toronto.
The move was the biggest since falling 1.6% on Nov. 9.
Today, materials stocks led the market lower, as all sectors lost; 201 of 237 shares fell, while 32 rose.
First Quantum Minerals Ltd. contributed the most to the index decline, decreasing 14.7%.
TransAlta Renewables Inc. had the largest drop, falling 17.0%.
Insights
* In the past year, the index had a similar or greater loss 20 times. The next day, it declined 13 times for an average 0.8% and advanced seven times for an average 1.2%
* This year, the index fell 7.6%, poised for the worst year since 2018
* This quarter, the index rose 6.3%, heading for the biggest advance since the second quarter of 2021
* So far this week, the index fell 1.7%
* The index declined 5.6% in the past 52 weeks. The MSCI AC Americas Index lost 18% in the same period
* The S&P/TSX Composite is 11.8% below its 52-week high on April 5, 2022 and 9.7% above its low on Oct. 13, 2022
* The S&P/TSX Composite is down 1.8% in the past 5 days and fell 2% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 12.9 on a trailing basis and 12.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.3% on a trailing 12-month  basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.22t
* 30-day price volatility rose to 15.19% compared with 14.77% in the previous session and the average of 16.07% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -79.6578| -3.3| 2/48
Financials | -56.0952| -0.9| 3/27
Energy | -43.5757| -1.2| 12/25
Industrials | -43.0080| -1.6| 4/23
Information Technology | -25.0117| -2.2| 1/13
Consumer Staples | -13.2351| -1.5| 1/10
Communication Services | -11.6525| -1.2| 0/7
Utilities | -6.7697| -0.8| 4/12
Consumer Discretionary | -5.9718| -0.8| 1/13
Real Estate | -4.7440| -0.9| 3/18
Health Care | -1.2897| -1.6| 1/5
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
First Quantum Minerals | -18.3600| -14.7| 241.4| -8.9
Shopify | -17.2400| -4.1| 3.0| -71.5
Canadian Pacific | -11.9100| -1.8| 30.9| 14.7
Northland Power | 1.5080| 2.4| 64.5| 5.0
Restaurant Brands | 1.8960| 1.0| 183.6| 20.1
Fairfax Financial | 2.0790| 1.7| 110.3| 29.3
US
By Vildana Hajric
(Bloomberg) — Stocks dropped and the dollar rallied after a wave of rate hikes from central banks this week, with the Federal Reserve and the European Central Bank warning of more pain to come.
The S&P 500 fell more than 2%, closing at its lowest level in more than a month.
The tech-heavy Nasdaq 100 dropped more than 3%.
Stocks in Europe also closed Thursday lower after the ECB’s upward revision to 2024 inflation projections.
Oil snapped a three-day rally.
Commodities from oil to copper were under pressure as fears of a global economic slowdown and waning demand mounted.
The dollar climbed the most since September as investors sought haven assets.
Risk assets have been on the back foot since Fed Chair Jerome Powell reiterated his hawkish stance on Wednesday and policymakers signaled a peak rate that was above market expectations.
The ECB and the Bank of England were among major central banks that followed suit with hikes of half a percentage point.
The BOE tempering its pace of monetary tightening was interpreted as a sign that rates could peak at a lower level than expected.
While the Fed and ECB also slowed the tempo of their hikes, Powell and ECB President Christine Lagarde hammered home their resolve to remain persistent as they battle inflation.
This didn’t sit well with investors, who hoped for a dovish shift in tone.
Traders are also digesting a bevy of US data Thursday showing the economy cooling, even as a labor market stays strong.
Softening in the labor market remains a big target for the Fed.
“The pullback in the market today — we aren’t surprised by it,” Nadia Lovell, UBS Global Wealth Management senior US equity strategist, told Bloomberg Television on Thursday. “This is a market that has traded on the hope that the Fed will not do what they say they will do. Yesterday they sent a clearly different message.”
Lovell doesn’t think a recession is already priced in and said she expects repricing in the first half of 2023 to account for slower growth.
Key events this week:
* Eurozone S&P Global PMI, CPI, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 2.5% as of 4:03 p.m. New York time
* The Nasdaq 100 fell 3.4%
* The Dow Jones Industrial Average fell 2.2%
* The MSCI World index fell 0.2%
Currencies
* The Bloomberg Dollar Spot Index rose 1%
* The euro fell 0.6% to $1.0623
* The British pound fell 2% to $1.2176
* The Japanese yen fell 1.6% to 137.68 per dollar
Cryptocurrencies
* Bitcoin fell 2.3% to $17,423.09
* Ether fell 3% to $1,271.7
Bonds
* The yield on 10-year Treasuries declined three basis points to 3.45%
* Germany’s 10-year yield advanced 14 basis points to 2.08%
* Britain’s 10-year yield declined seven basis points to 3.24%
Commodities
* West Texas Intermediate crude fell 1.5% to $76.12 a barrel
* Gold futures fell 1.7% to $1,787 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Isabelle Lee and John McCorry.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

Don’t mind anything anyone tells you about anyone else.  Judge everyone and everything for yourself. –Henry James, 1879-1947.

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

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

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