January 10, 2022 Newsletter

Dear Friends,

Tangents: Coming of Age Day, Japan.
2000 America Online agreed to buy Time-Warner for $162 billion. (Time-Warner decided to spin off AOL in 2009.)  Go to article »

1920: League of Nations founded.

$8M tourist attraction to close after just six disappointing months.  A massive grass mound in the middle of the city wasn’t London’s cup of tea. 

Winners of the Golden Globes announced.  Netflix and HBO were the big winners. Too bad there was no audience or celebrities there to cheer them on.

The world’s best-performing airline has been revealed.  Hint: SkyMiles!

PHOTOS OF THE DAY

Women in kimonos leave a coming-of-age ceremony at Yokohama Arena. Coming of Age Day is a Japanese holiday held every January to celebrate those who have reached 20, the official age of adulthood in Japan
CREDIT: Carl Court/Getty Images

Momix Dance Theater performers at the Brown Theatre
CREDIT: Stephen J Cohen/Getty Images

Pope Francis delivers what has come to be known as his ‘state of the world’ address to diplomats from more than 180 countries
CREDIT: Vatican Media/Reuters

Market Closes for January 10^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1910, Joyce C. Hall, a teenage boy from Norfolk, Neb., opened a new business, storing his inventory in a room at the YMCA in Kansas City.  He began selling illustrated postcards by mail-order, but soon hit on the idea of what he called “greeting cards.” He did $200 in business his first two months, and Hallmark was born—making prepackaged emotion and good wishes a part of American life.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities fell slightly, weighed down by losses in industrials and real estate stocks.
The S&P/TSX Composite declined 0.06% to 21,072.32 in Toronto.
The move follows the previous session’s increase of 0.1 percent.
Shopify Inc. contributed the most to the index decline, decreasing 0.9 percent.
Goeasy Ltd. had the largest drop, falling 4.7 percent.
Today, 149 of 241 shares fell, while 91 rose; 7 of 11 sectors were lower, led by industrials stocks.
Insights
* The index advanced 17 percent in the past 52 weeks. The MSCI AC Americas Index gained 19 percent in the same period
* The S&P/TSX Composite is 3.3 percent below its 52-week high on Nov. 16, 2021 and 21.8 percent above its low on Jan. 29, 2021
* The S&P/TSX Composite is down 0.7 percent in the past 5 days and rose 0.9 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.1 on a trailing basis and 15 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.38t
* 30-day price volatility fell to 15.43 percent compared with 15.47 percent in the previous session and the average of 14.96 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Industrials | -23.6705| -0.9| 4/26
* Financials | -17.7606| -0.3| 6/22
* Information Technology | -12.0154| -0.6| 3/13
* Real Estate | -4.1723| -0.7| 3/21
* Consumer Discretionary | -1.5903| -0.2| 5/9
* Utilities | -0.8420| -0.1| 3/13
* Communication Services | -0.7176| -0.1| 5/2
* Consumer Staples | 1.9682| 0.3| 3/8
* Health Care | 2.5966| 1.6| 4/4
* Energy | 8.0807| 0.3| 16/15
* Materials | 36.0038| 1.5| 39/16
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Shopify | -9.5780| -0.9| 25.0| -17.7
* Brookfield Asset Management | -7.3090| -1.0| 29.1| -6.0
* TD Bank | -5.1250| -0.4| 42.4| 2.8
* Franco-Nevada | 7.5920| 3.6| -9.6| -4.7
* Royal Bank of Canada| 7.6230| 0.6| 40.1| 6.2
* Barrick Gold | 8.5380| 3.1| 49.1| -1.9

US
By Rita Nazareth and Katie Greifeld
(Bloomberg) — Stocks rebounded as dip buyers emerged to blunt a five-day selloff — the longest losing streak since September.
After sinking 2% earlier Monday, the S&P 500 almost wiped out its losses, buoyed by signs that the omicron coronavirus variant may be peaking in New York.
The Nasdaq 100 turned green after the gauge of giants like Apple Inc. and Microsoft Corp. dropped as much as 8.5% from its November record.
Investors have been on edge as the Federal Reserve prepares to raise rates and the resurgent virus threatens economic growth.
“There are some real risks around rate hikes and whatnot, but if you look at some of the major tech companies that are falling, these companies have a massive cash moat,” Sylvia Jablonski, chief investment officer for Defiance ETFs, said on Bloomberg’s “QuickTake Stock” streaming program. “We’re in a fairly good spot, and these are great buy-on-the-dip opportunities right now.”

The Fed will likely raise rates four times this year and will start its balance-sheet runoff process in July, if not earlier, according to Goldman Sachs Group Inc.
A key measure of U.S. inflation — set to be released Wednesday — is anticipated to have increased further in December, putting additional pressure on the central bank to tighten policy.
In the past three decades, there have been four distinct periods of rate-hike cycles by the Fed.
On average, technology, which has been under pressure amid prospects of earlier and faster rate increases, is among the best-performing sectors during those cycles, according to Strategas Securities.
Here are some key events this week:
* Fed Chair Jerome Powell’s confirmation hearing in the Senate Banking Committee on Tuesday.
* Kansas City Fed President Esther George and St. Louis Fed President James Bullard speak on Tuesday.
* EIA crude oil inventory report on Wednesday.
* China PPI, CPI on Wednesday.
* U.S. CPI, Fed Beige Book on Wednesday.
* U.S. initial jobless claims, PPI on Thursday.
* U.S. Senate Banking Committee hearing for Lael Brainard, nominated as Fed vice-chair on Thursday.
* Richmond Fed President Thomas Barkin, Philadelphia Fed President Patrick Harker,
* Chicago Fed President Charles Evans speak on Thursday.
* Bank of Korea policy decision and briefing on Friday.
* Wells Fargo, Citigroup, JPMorgan due to report earnings on Friday.
* U.S. business inventories, industrial production, University of Michigan consumer sentiment, retail sales on Friday.
* New York Fed President John Williams speaks Friday.

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.1% as of 4 p.m. New York time
* The Nasdaq 100 rose 0.1%
* The Dow Jones Industrial Average fell 0.4%
* The MSCI World index fell 0.2%
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%
* The euro fell 0.3% to $1.1329
* The British pound was little changed at $1.3577
* The Japanese yen rose 0.3% to 115.23 per dollar
Bonds
* The yield on 10-year Treasuries was little changed at 1.76%
* Germany’s 10-year yield advanced one basis point to -0.03%
* Britain’s 10-year yield advanced one basis point to 1.19%
Commodities
* West Texas Intermediate crude fell 0.7% to $78.33 a barrel
* Gold futures rose 0.2% to $1,800.90 an ounce
–With assistance from Andreea Papuc, Cecile Gutscher, Emily Graffeo and Vildana Hajric.
Have a nice evening.

Be magnificent!
As ever,

Carolann

We sought the essential source of strength in every great historical figure – and discovered ten super-powers. 
Simplicity.  Humility.  Humor.  Creativity.  Courage.  Love.  Gratitude.  Fun.  Authenticity.  Optimism.  Throughout world history,
no great people were pessimists, no one who consumed himself with all the things that were wrong with the world
ever achieved anything of lasting value. -Eric Peters, Weekend Notes, December 296, 2021.

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