December 20, 2021 Newsletter

Dear Friends,

Tangents:
On Dec. 20, 1989, the United States launched Operation Just Cause, sending troops into Panama to topple the government of General Manuel Noriega. Go to article »

Bugs are evolving to eat plastic.

The hottest dishes of 2021, according to our resident foodie. –Bloomberg.

PHOTOS OF THE DAY
A woman holds a child as they stand inside a Christmas tree made of lights
CREDIT: Lalo Villar/AP
A rainbow in the sky above the Israeli settlement of Eli, south of Nablus in the occupied West Bank
CREDIT: Jaafar Ashtiyeh/AFP/Getty Images
Pedestrians walk through the snow
CREDIT: Dimitar Dilkoff/AFP/Getty Images

Market Closes for December 20^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1968, the era of “go-go” mutual funds came crashing to a halt when the SEC suspended trading in Omega Equities, an unregistered “letter stock” that almost single-handedly powered the Mates Investment Fund to its 72.2% return. Within days, it turned out that manager Fred Mates had cooked his fund’s books, using unofficial markups on Omega stock to enhance his returns.
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian equities declined for a third straight day as industrial, information technology and real estate stocks weighed down the market. The S&P/TSX Composite dropped 1%, or 200.97, to 20,538.22 in Toronto, the biggest move since Nov. 30. Today, industrials stocks led the market lower, as 9 of 11 sectors lost; 170 of 241 shares fell, while 64 rose. Canadian National Railway Co. contributed the most to the index decline, decreasing 5.9%. Lundin Mining Corp. had the largest drop, falling 16.9%.
Insights
* In the past year, the index had a similar or greater loss 12 times. The next day, it advanced eight times for an average 1.1% and declined four times for an average 0.8%
* This year, the index rose 18%, poised for the best year since 2019
* This quarter, the index rose 2.3%
* This month, the index fell 0.6%
* The index advanced 17% in the past 52 weeks. The MSCI AC Americas Index gained 20% in the same period
* The S&P/TSX Composite is 5.8% below its 52-week high on Nov. 16, 2021 and 18.7% above its low on Jan. 29, 2021
* The S&P/TSX Composite is down 1% in the past 5 days and fell 4.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.5 on a trailing basis and 15.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.31t
* 30-day price volatility rose to 14.20% compared with 14.02% in the previous session and the average of 12.86% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Industrials | -65.6786| -2.6| 2/28
* Financials | -58.4283| -0.9| 0/28
* Information Technology | -46.9307| -2.1| 1/15
* Real Estate | -12.7385| -2.0| 0/21
* Materials | -10.7420| -0.5| 25/27
* Consumer Discretionary | -7.3656| -1.0| 2/12
* Health Care | -2.6542| -1.6| 1/7
* Consumer Staples | -1.5352| -0.2| 2/10
* Utilities | -0.8378| -0.1| 10/6
* Communication Services | 1.6294| 0.2| 3/3
* Energy | 4.3074| 0.2| 18/13
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Canadian National | -40.0700| -5.9| 175.0| 10.4
* Shopify | -33.6000| -2.5| -35.0| 15.6
* Bank of Montreal | -11.4100| -1.9| 35.2| 35.9
* Bausch Health | 2.4630| 3.9| 7.8| 25.9
* Couche-Tard | 2.4750| 0.9| 53.3| 11.0
* Agnico Eagle Mines | 2.6660| 2.5| -2.9| -25.7

US
By Emily Graffeo
(Bloomberg) — Investor sentiment sagged as concern about President Joe Biden’s economic agenda and the omicron coronavirus surge dragged down stocks. Traders said lower volume ahead of the holidays exacerbated market moves. The S&P 500 had its biggest three-day drop since September, led by losses in financial and material shares.
Bonds fell. The dollar was little changed. “There’s kind of two dynamics going on. Probably the most important one is the imminent reduction in liquidity,” said Jay Hatfield, chief executive officer at Infrastructure Capital Management. “On top of that, you have the omicron concern.” Goldman Sachs Group Inc. economists cut their U.S. growth forecasts after Democratic Senator Joe Manchin blindsided the White House by rejecting Biden’s roughly $2 trillion tax-and-spending package. Meanwhile, Europe’s biggest nations weighed more Covid-19 restrictions.

What to watch this week:
* Reserve Bank of Australia releases minutes of its December rate meeting. Tuesday
* EIA oil inventory report Wednesday
* U.S. consumer income, new home sales, U.S. durable goods, University of Michigan consumer sentiment, initial jobless claims. Thursday
* Friday: U.S. markets are closed. European markets close earlier

Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.1% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.1%
* The Dow Jones Industrial Average fell 1.2%
* The MSCI World index fell 1.4%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro rose 0.3% to $1.1278
* The British pound fell 0.3% to $1.3209
* The Japanese yen was little changed at 113.67 per dollar
Bonds
* The yield on 10-year Treasuries advanced two basis points to 1.42%
* Germany’s 10-year yield advanced one basis point to -0.37%
* Britain’s 10-year yield advanced one basis point to 0.77%
Commodities
* West Texas Intermediate crude fell 3.7% to $68.23 a barrel
* Gold futures fell 0.9% to $1,789.40 an ounce
–With assistance from Andreea Papuc and Abigail Moses.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

If any man seeks greatness, let him forget greatness and ask for truth, and he will find both. –Horace Mann, 1796-1859.

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