December 5, 2022 Newsletter

Dear Friends,

Tangents: Happy Monday.

Walt Disney, b.1901.
Joan Didion, b. 1934

Where on Earth does the sun rise first?  On our rotating, spherical planet, the sun is endlessly creeping over the horizon.
But where does the first sunrise of the day happen? And with the sun quickly setting on 2022, which place experiences the first moments of light in the New Year?  Full Story: Live Science (12/5)

Gold tongues found in 2,000-year-old mummies in Egypt: Archaeologists in Egypt have uncovered the remains of several mummies with tongues made of gold in an ancient cemetery near Quesna, a city located about 35 miles (56 kilometers) north of Cairo, according to Egypt’s Ministry of Tourism and Antiquities.
Some of the mummies were buried in wooden coffins with grave goods that included necklaces, pottery, and gold artifacts in the shape of lotus flowers and beetles known as scarabs, the ministry reported in a statement posted to Facebook on Nov. 24. Full Story: Live Science (12/1)

Best places to go for Christmas:  These 15 cities are sprucing up their streets with more than just a few lights. View the photo gallery here.

PHOTOS OF THE DAY

Giza, Egypt
Models on the catwalk during the Dior autumn 2023 menswear show
Photograph: Stéphane Cardinale/Corbis/Getty Images

Lumajang, Indonesia
People stand with Mount Semeru in the background after a volcanic eruption
Photograph: Juni Kriswanto/AFP/Getty Images

Jammu, India
Farmers thrash wheat crop after harvest early in the morning
Photograph: Channi Anand/AP
Market Closes for December 5^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1856, Jacob Little, one of Wall Street’s biggest speculators, went bust with unfunded liabilities of $10 million.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 1.2%, or 243.4 to 20,242.26 in Toronto.
The move was the biggest since falling 1.6% on Nov. 9.
Canadian Natural Resources Ltd. contributed the most to the index decline, decreasing 3.7%.
Energy Fuels Inc/Canada had the largest drop, falling 7.6%.
Today, 198 of 236 shares fell, while 37 rose; 8 of 11 sectors were lower, led by energy stocks.
Insights
* This year, the index fell 4.6%, poised for the worst year since 2018
* This quarter, the index rose 9.7%, heading for the biggest advance since the second quarter of 2020
* The index declined 1.9% in the past 52 weeks. The MSCI AC Americas Index lost 13% in the same period
* The S&P/TSX Composite is 8.9% below its 52-week high on April 5, 2022 and 13.3% above its low on Oct. 13, 2022
* The S&P/TSX Composite is little changed in the past 5 days and rose 4.1% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.4 on a trailing basis and 12.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.27t
* 30-day price volatility rose to 14.87% compared with 14.38% in the previous session and the average of 17.94% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -79.4512| -2.1| 0/38
Financials | -60.9024| -1.0| 2/27
Materials | -38.1817| -1.5| 2/48
Information Technology | -36.6370| -3.0| 0/14
Industrials | -22.3143| -0.8| 5/22
Consumer Discretionary | -10.7446| -1.4| 1/13
Real Estate | -6.0161| -1.2| 3/19
Consumer Staples | -1.8699| -0.2| 3/8
Health Care | 0.0671| 0.1| 4/3
Utilities | 5.1617| 0.6| 13/3
Communication Services | 7.5141| 0.8| 4/3
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
Canadian Natural Resources | -23.0500| -3.7| 52.3| 48.5
Shopify | -20.4200| -4.3| -21.3| -68.2
TD Bank | -12.9400| -1.1| 10.5| -5.8
BCE | 2.2600| 0.6| 73.7| -2.7
Rogers Communications| 2.2680| 1.5| 261.8| 4.9
Telus | 4.2950| 1.5| 0.0| -2.5
US
By Rita Nazareth
(Bloomberg) — Stocks kicked off the week with losses and bond yields climbed as a US services gauge unexpectedly rose, fueling speculation the Federal Reserve will keep its policy tight to tame stubborn inflation.
The selloff spread throughout all major S&P 500 sectors, with about 95% of the gauge’s companies in the red.
Tesla Inc. tumbled almost 6.5% as Bloomberg News reported the electric-vehicle giant plans to lower production at its Shanghai factory.
A slide in the Russell 2000 of small caps approached 3%.
Treasuries slumped across the curve, driving 10-year yields to 3.6%.
Swaps showed higher expectations on where the Fed terminal rate will be, with the market indicating a peak above 5% in the middle of 2023.
The current benchmark sits in a range between 3.75% and 4%.
The dollar halted a four-day rout.
“Good economic news is bad news for stocks as it will keep the risk elevated that rates might have to end up higher later next year,” said Ed Moya, senior market analyst at Oanda.
Equities also came under pressure on the view that a rally that drove the S&P 500 above a key technical indicator last week would be overdone given the current set of economic risks.
Morgan Stanley’s Michael Wilson, one of the US stock market’s most-vocal skeptics, says investors are better off booking profits. “We are now sellers again,” the strategist and his colleagues wrote.
Traders are also anxiously awaiting Friday’s report US producer prices — one of the final pieces of data Fed officials will see before their Dec. 13-14 policy meeting.
Inflation numbers over the past month have indicated pressures are slowly cooling, but remain very elevated.
An analysis of every S&P 500 bear market since 1960 suggests it could easily take over two years to recoup the index’s prior high, especially if recession plagues the near-term outlook, Bloomberg Intelligence strategists Gina Martin
Adams and Michael Casper said.
“Markets are likely to remain volatile, and we do not think the economic conditions for a sustained upturn are yet in place,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “In our view, economic growth is likely to slow further next year as the cumulative impact of Fed rate hikes weighs on activity.”
Meantime, a majority of 291 respondents to the latest MLIV Pulse survey said leveraged loans would be the canary in the coal mine to indicate that corporate credit quality is getting worse.
About 28% of survey respondents expect defaults to jump significantly if US rates peak at or below 5%, which is about where the market bets the Fed will stop hiking.
Another 63% see defaults surging if rates peak above 5%.
Elsewhere, oil erased gains as risk-averse investors pared crude positions ahead of the end of the year.
Key events this week:
* US trade, Tuesday
* EIA crude oil inventory report, Wednesday
* Euro zone GDP, Wednesday
* US MBA mortgage applications, Wednesday
* ECB President Christine Lagarde speaks, Thursday
* US initial jobless claims, Thursday
* US PPI, wholesale inventories, University of Michigan consumer sentiment, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.8% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.7%
* The Dow Jones Industrial Average fell 1.4%
* The MSCI World index fell 1.2%
Currencies
* The Bloomberg Dollar Spot Index rose 0.8%
* The euro fell 0.5% to $1.0486
* The British pound fell 0.8% to $1.2180
* The Japanese yen fell 1.9% to 136.80 per dollar
Cryptocurrencies
* Bitcoin fell 1% to $16,938.17
* Ether fell 1.6% to $1,256.18
Bonds
* The yield on 10-year Treasuries advanced 11 basis points to 3.60%
* Germany’s 10-year yield advanced two basis points to 1.88%
* Britain’s 10-year yield declined five basis points to 3.10%
Commodities
* West Texas Intermediate crude fell 3.3% to $77.36 a barrel
* Gold futures fell 1.6% to $1,780.20 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Vildana Hajric, Emily Graffeo, Isabelle Lee and Michael MacKenzie.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

A simple rule in dealing with those who are hard to get along with is to remember that this person is striving to assert his superiority;
and you must deal with him from that point of view. –Alfred Adler,  1870-1937.

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