December 27, 2013 Newsletter

Dear Friends,

Tangents:

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

This Christmas season was my first year hosting dinner at our house.  Being the type of person who likes to keep everyone well fed, I made too much of everything, resulting in an abundance of leftovers.  I came across an article today in the Globe and Mail which shares different ideas for leftover turkey, which was a blessing for me.  Here are a few different ideas:

Turkey scotch broth Even if you don’t intend to make soup, make stock and freeze it

Turkey fritters No one will believe this treat was made with leftovers

Turkey cakes Serve these favourites, which are similar to crab cakes, with a southwestern-style mayonnaise

Turkey and artichoke pie A great alternative to the usual sandwiches

Turkey fried rice This quick and easy recipe really comes in handy

Turkey club The classic gets a seasonal twist with cranberry sauce

Turkey with rice noodles An Asian-inspired way with leftovers

Turkey casserole A classic, just like mom used to make

“Let us be grateful to people who make us happy, they are the charming gardeners who make our souls blossom.”
Marcel Proust

Photos of the Day:

People wait in a bus line to pay their respects to former South African President Nelson Mandela in Pretoria. Thousands of people lined up to say goodbye to Mandela, whose body lay in state in the building where the anti-apartheid hero was inaugurated in 1994 as South Africa’s first black president. Kevin Coombs/Reuters

Western Wall and the Dome of the Rock, some of the holiest sites for for Jews and Muslims, are covered in snow in Jerusalem. Early snow has surprised many Israelis and Palestinians as a blustery storm, dubbed Alexa, brought gusty winds, torrential rains and heavy snowfall to parts of the Middle East. Dusan Vranic/AP

Market Closes for December 27^th, 2013

International Markets

Bonds

Currencies

Commodities

Market Commentary:

Canada

By Eric Lam

Dec. 27 (Bloomberg) — Canadian stocks rose a sixth day, extending a two-year high, as oil and gold producers advanced amid a rally in commodities prices.

Lightstream Resources Ltd. rallied 6.5 percent as West Texas Intermediate topped $100 a barrel for the first time in two months. Iamgold Corp. and Detour Gold Corp. jumped more than 5.8 percent as gold climbed a third day. BlackBerry Ltd. Slumped 4.7 percent after co-founder Mike Lazaridis reduced his stake in the company.

The Standard & Poor’s/TSX Composite Index rose 69.96 points, or 0.5 percent, to 13,587.98 at 4 p.m. in Toronto, the highest close since May 2011. The benchmark equity gauge has risen 9.3 percent this year, the fourth-worst performer among developed markets ahead of Austria, Hong Kong and Singapore.

Canadian markets were closed Dec. 25 and 26 for the Christmas holiday. Trading volume today was 49 percent below the 30-day average.

“It’s the Santa Claus rally, I’m a big believer in seasonals,” said Keith Richards, fund manager with ValueTrend Wealth Management in Barrie, Ontario. The firm manages C$108 million ($101 million). “I’ve been bearish on commodities, but gold and oil, which had been down, will probably be all right for the next few months.”

The S&P/TSX has added 1.4 percent in the three sessions this week, for a second weekly advance. The gauge has climbed 1.4 percent in December, on track for a sixth straight monthly increase.

Eight of 10 main industries in the equities benchmark climbed today. Raw-materials producers gained 1.3 percent to pace advances.

Iamgold increased 6.6 percent to C$3.71 and Detour Gold rose 5.8 percent to C$4.19. Gold futures for February delivery added 0.1 percent to settle at $1,214 an ounce as the price of the metal posted the longest rally since August. A weaker U.S. dollar increased demand for gold as a haven.

Detour Gold is the worst-performing stock in Canada this year, slumping 83 percent. Air Canada, the best-performing stock, rose 1.1 percent to C$7.49 today. The nation’s largest airliner has soared 328 percent in 2013.

Fortuna Silver Mines Inc. climbed 6.7 percent to C$3.02 and First Majestic Silver Corp. increased 4.1 percent to C$10.32 as silver added 0.7 percent in New York.

Sherritt International Corp. dropped 3.5 percent to C$3.70 to snap four days of gains after agreeing to sell assets including its coal interests on Dec. 24.

Lightstream Resources rose 6.5 percent to C$5.84 and Bellatrix Exploration Ltd. gained 3.3 percent to C$7.88 as crude for February delivery advanced 0.8 percent to $100.32 a barrel in New York.

Oil futures extended gains after the U.S. Energy Information Administration said stockpiles decreased to the lowest level since September.

BlackBerry tumbled 4.7 percent to C$7.83 to snap four days of gains, after the company’s former Chief Executive Officer Lazaridis reduced his stake in BlackBerry to 4.99 percent of outstanding shares. The former BlackBerry executive earlier this year had considered making a bid for the Waterloo, Ontario-based company with Doug Fregin, another co-founder.

US

By Inyoung Hwang and Alexis Xydias

Dec. 27 (Bloomberg) — U.S. stocks fell, with the Standard & Poor’s 500 Index trimming a weekly gain, after benchmark indexes rallied to all-time highs yesterday amid optimism over the economic recovery.

Twitter Inc. slid 13 percent after Macquarie Group Ltd. downgraded the stock. Delta Air Lines Inc. retreated 3.1 percent after the airline said yesterday it will honor tickets sold at incorrect prices on its website. Textron Inc. rose 1.1 percent after the manufacturer of Cessna aircraft said it will buy Beechcraft Corp. for $1.4 billion. FirstEnergy Corp. added 2.3 percent after the utility company was upgraded at Wells Fargo & Co. to outperform from market perform.

The S&P 500 fell less than 0.1 percent to 1,841.40 at the close in New York. The Dow Jones Industrial Average slipped 1.47 points, or less than 0.1 percent, to 16,478.41. Both measures posted their second weekly gain. Volume has been lower-than- average amid the Christmas holiday this week. About 4 billion shares changed hands on U.S. exchanges today, 34 percent below the three-month average, according to data compiled by Bloomberg.

“A year-end rally like this is not usual, but we have to keep in mind trading volumes are light and corporate news is certainly sparse this week,” Robert Landry, the San Antonio- based executive director and money manager at USAA Investments, said by telephone. His firm oversees about $59 billion. “You can’t read too much into the market’s move. It’s somewhat of a Santa Claus rally and perhaps that’s attributed to some portfolios managers in the office making some year-end moves.”

The S&P 500’s retreat today halted a four-day rally that was fueled by improving economic data. A Labor Department report yesterday showed that jobless claims declined by more than forecast, boosting optimism in the world’s largest economy.

There are no economic reports scheduled for today.

The benchmark equity index has advanced 29 percent in 2013, putting it on course for its biggest annual rally since 1997.

The S&P 500 has gained 2 percent so far this month. December has been the second-best month for U.S. equity returns, according to data compiled by Bloomberg that starts in 1928. The average gain for the month is 1.5 percent, more than twice the overall monthly mean of 0.6 percent. The last December retreat for the S&P 500 was in 2007.

The Federal Reserve, which has made employment creation a determinant factor of its monetary stimulus, said on Dec. 18 that it will reduce the pace of bond buying amid faster-than- estimated economic growth. Three rounds of stimulus, known as quantitative easing, have sent the S&P 500 as much as up 172 percent from a 12-year low in 2009.

“I don’t see why stocks can’t have a reasonable year in 2014, given that the global economy does seem to very slowly improve and Fed has started a tapering program,” Landry said.

“There are some things in place to suggest it could be a decent year for stocks but not on the magnitude we’ve seen this year.”

The Chicago Board Options Exchange Volatility Index, the gauge of S&P 500 options known as the VIX, rose 1.1 percent to 12.46, halting a four-day retreat. The gauge has dropped 31 percent this year, the largest annual decline since 2009.

Six of 10 main S&P 500 groups fell today, with producers of consumer discretionary products falling 0.4 percent to lead losses.

Twitter dropped 13 percent, the most since it began trading in November, to $63.75. The microblogging service was cut to underperform from neutral at Macquarie Group Ltd., which cited the stock’s 40 percent surge from Dec. 11 through yesterday.

Delta retreated 3.1 percent to $27.03. The airline said yesterday it will honor tickets sold at incorrect prices on its website and through other booking channels after customers snapped up bargains like a round trip to Hawaii for $6.90.

Energy producers added 0.5 percent for the biggest advance out of 10 groups in the S&P 500, as the price of crude topped $100. Nabors Industries Ltd. rallied 2.8 percent to $16.84 for the biggest gain since Nov. 8. Newfield Exploration Co. added 2 percent to $24.54, while Peabody Energy Corp. jumped 3.3 percent to $19.25.

Textron rose 1.1 percent to $36.61. The company, seeking to counter a slump in business-jet sales, agreed to buy Beechcraft to boost its lineup of propeller-driven aircraft.

Providence, Rhode Island-based Textron will purchase all outstanding equity interests in Beech Holdings LLC, the parent of Beechcraft, it said in a statement yesterday. The deal, which includes the repayment of Beechcraft’s working capital debt, will be financed by a combination of available cash and as much as $1.1 billion in new debt.

FirstEnergy added 2.3 percent to $32.79. The Akron, Ohio- based company was upgraded by Wells Fargo analyst Neil Kalton, who said a potential dividend cut of 40 percent is “integral” to a positive view on the shares.

Have a wonderful weekend everyone!!

Be magnificent!

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

As ever,

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7