December 30, 2022 Newsletter
Tangents: Happy Friday.
1927: The Ginza Line, the first subway line in Asia, opens in Tokyo, Japan.
On Dec. 30, 1972, the United States halted its heavy bombing of North Vietnam. Go to article »
Rudyard Kipling, b.1865.
Patti Smith, b. 1946.
Tiger Woods, b. 1975.
On December 31st, 1850, Edward FitzGerald wrote to Frederick Tennyson:
I have written enough for tonight: I am now going to sit down and play one of Handel’s overtures as well as I can –
Semele, perhaps, a very grand one – then lighting my lantern trudge through the mud to Pardon Crabbe’s. Before I take my pen again to finish this letter the New Year will have dawned on some of us. “Thou fool! this night thy soul may be required of thee!” Very well: while it is in this body I will wish my dear old F.T. a happy New Year. And now to drum out the Old with Handel. Goodnight.
PHOTOS OF THE DAY
New York, US
Photographers record a confetti test run in preparation for New Year’s Eve celebrations in Times Square
Photograph: Timothy A Clary/AFP/Getty Images
Sandbar sharks swim next to a snorkeller in the Mediterranean Sea
Photograph: Ariel Schalit/AP
Rio de Janeiro, Brazil
The Christ the Redeemer statue is illuminated in the colours of the Brazilian national flag in honour of the footballer Pelé, who has died at 82
Photograph: Mauro Pimentel/AFP/Getty Images
Market Closes for December 30th, 2022
|Bonds||% Yield||Previous % Yield|
10 Year Bond
10 Year Bond
30 Year Bond
|WTI Crude Future||80.26||78.40|
The stock market is a device for transferring money from the impatient to the patient. -Warren Buffett.
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.5% at 19,384.92 in Toronto.
The move follows the previous session’s increase of 1%.
Royal Bank of Canada contributed the most to the index decline, decreasing 1.1%.
First Quantum Minerals Ltd. had the largest drop, falling 3.9%.
Today, 137 of 236 shares fell, while 94 rose; 8 of 11 sectors were lower, led by financials stocks.
* This year, the index fell 8.7%, poised for the worst year since 2018
* This quarter, the index rose 5.1%
* This month, the index fell 5.2%
* So far this week, the index fell 0.6%
* The index declined 9% in the past 52 weeks. The MSCI AC Americas Index lost 20% in the same period
* The S&P/TSX Composite is 12.7% below its 52-week high on April 5, 2022 and 8.5% above its low on Oct. 13, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 12.8 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$3.15t
* 30-day price volatility rose to 12.96% compared with 12.92% in the previous session and the average of 14.25% over the past month
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
Financials | -52.6886| -0.9| 6/23
Materials | -20.8676| -0.9| 9/38
Industrials | -19.3963| -0.7| 11/15
Information Technology | -8.6507| -0.8| 5/9
Utilities | -8.0485| -0.9| 1/15
Consumer Staples | -6.9190| -0.8| 4/7
Consumer Discretionary | -4.7457| -0.7| 8/7
Real Estate | -0.4115| -0.1| 10/12
Health Care | 0.2988| 0.4| 5/2
Energy | 7.3727| 0.2| 31/7
Communication Services | 13.1104| 1.4| 4/2
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
RBC | -13.0700| -1.1| 27.0| -5.2
TD Bank | -10.9000| -1.0| 106.6| -9.6
Canadian National | -9.2400| -1.4| -50.8| 3.5
Suncor Energy | 4.0980| 1.0| -82.6| 35.7
Rogers Communications| 5.7820| 3.9| 52.3| 5.2
Shaw Communications | 10.0300| 9.1| 797.6| 1.6
By Stephen Kirkland
(Bloomberg) — US stocks fell on the last trading day of 2022, closing out the worst year in more than a decade for global equities and bonds.
Even after a surge in dip-buying in the last hour of trading, the S&P 500 ended lower for a third day in the holiday shortened week, leaving the benchmark down 20% in 2022.
The Nasdaq 100 closed down, shedding a third of its value this year as tech stocks emerged as some of the most vulnerable to rising rates.
In an all-to-familiar playbook for 2022, Treasury yields rose on the final trading day of the year, with 10-year rate touching a seven-week high.
The dollar extended its slide, with the Bloomberg Dollar Spot Index falling to a six-month low.
Losses this week scuppered hopes for a rally to close out 2022 — a year when inflation reasserted itself to wipe a fifth in value from global stocks, the worst run since the financial crisis.
Bonds lost 16% of value, the biggest decline since at least 1990 for one leading measure, as central banks raced to slow rising consumer prices by hiking interest rates around the world.
“We’ve never seen a market environment like this where both stocks and bonds were down simultaneously,” said Art Hogan, chief market strategist at B. Riley Wealth. “The good news is that we will soon put the year in the rearview mirror. The bad news is that 2023 could be a bumpy ride, at least for the first few months. Weaker economic trends will likely form heading into 2023 as the Fed battles inflation, but a mild recession may help set stocks up for a better second half of the year.”
Concern about the spread of Covid-19 that surfaced this week also weighed on markets, with The Times reporting the UK will require all travelers arriving from China test negative for Covid.
The European Commission has asked EU member states to review Covid testing and sequencing procedures and to consider scaling them back up amid increased concern about the virus spreading from China.
After a banner year for stocks in 2021 that saw the S&P 500 climb to consecutive record highs, few foresaw the selloff that ensued. But after rising to yet another all-time high on Jan. 3, fortunes quickly turned as the Federal Reserve signaled determination to rein in inflation.
That foreshadowed the onset of the most aggressive rate-hike path in decades, leaving stocks and bonds tumbling in its wake.
With US stocks dragged into a bear-market, the drop in Treasuries sent benchmark 10-year yields to 3.8% from 1.5% at the start of the year.
That could present a different outlook for fixed income in 2023 and a revival of the widely followed 60/40 portfolio that got hammered in 2022.
“While stocks will struggle with slowing economic activity and the loss of inflated earnings from inflation, bonds are earning a decent income with the potential for price appreciation as yields come off their peak,” said Bryce Doty,
senior portfolio manager for Sit Investment Associates. “The Fed is nearly done raising rates – we expect no raise at the Fed’s May meeting – and inflation is slowing.”
Elsewhere, emerging-market stocks were set for the first weekly advance in three, though the benchmark index remains on track for a decline of more than 20% in 2022.
Oil dipped, adding to a three-day run of declines on worries about a rise in crude stockpiles and concerns that rising Covid-19 infections in China would slow demand in one of the world’s top oil importers.
Bitcoin is ending the year limply, slipping about 0.8% to bring its decline in 2022 to more than 64%.
Some of the main moves in markets:
* The S&P 500 fell 0.3% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.1%
* The Dow Jones Industrial Average fell 0.2%
* The MSCI World index fell 0.2%
* The Bloomberg Dollar Spot Index fell 0.4%
* The euro rose 0.4% to $1.0705
* The British pound rose 0.3% to $1.2088
* The Japanese yen rose 1.3% to 131.25 per dollar
* Bitcoin was little changed at $16,598.9
* Ether rose 0.4% to $1,199.1
* The yield on 10-year Treasuries advanced six basis points to 3.87%
* Germany’s 10-year yield advanced 13 basis points to 2.57%
* Britain’s 10-year yield advanced one basis point to 3.67%
* West Texas Intermediate crude rose 2.6% to $80.41 a barrel
* Gold futures rose 0.2% to $1,829.90 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Jan-Patrick Barnert, Richard Henderson, Vildana Hajric, Robert Brand and Peyton Forte.
Have a wonderful weekend everyone. Happy New Year!
For last year’s words belong to last year’s language
And next year’s words await another voice.
And to make an end is to make a beginning. -T.S. Eliot, 1888-1965.
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
Toll Free: 1.877.430.5895