January 20, 2017 Newsletter

Dear Friends,

Tangents:
On this day in 1909, General Motors buys a 50% stake in Oakland Motor Car Corp., which will eventually become GM’s Pontiac division.

Her is another page from the book The TAO  of CHARLIE MUNGER – A COMPILATION OF QUOTES FROM BERSHIRE HATHAWAY’S VICE CHAIRMAN ON LIFE, BUSINESS, AND THE PURSUIT OF WEALTH, WITHCOMMENTARY BY DAVID CLARK
#99 MAKING MISTAKES
“There’s no way that you can live an adequate life without many mistakes.  In fact, one trick in life is to get so you can handle mistakes.  Failure to handle psychological denial is a common way for people to go broke.” –Charlie Munger

It’s comforting to hear – that it’s okay to make a mistake.  Charlie is a better investor today because he rode a bull market way too long and got slaughtered in the crash of 1973-74.  He is also a better investor because of the problems Berkshire faced after it purchased Dexter Shoe.  And let’s not forget the nightmare Charlie had with Salomon Brothers, which almost cost Berkshire its entire $700 million investment in the company.  Then there were problems with the Baltimore department store Hochschild Kohn and, as we said, US Airlines.  Those were huge mistakes in business judgment, often costing millions of dollars.  But they set the stage for a greatly improved investment strategy that later paid off in billions. –David Clark
PHOTOS OF THE DAY

An aircraft passes by the moon over Frankfurt, Germany, on Friday. Michael Probst/AP

Roe deer (Capreolus capreolus) move across a snowy field at sunset near Nagyhegyes, Hungary, on Friday. Zsolt Czegledi/MTI/AP

A mother and her child walk through a mustard field in Munshiganj, Bangladesh, on Friday. Mohammad Ponir Hossain/Reuters
Market Closes for January 20^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Lu Wang
     (Bloomberg) — Canadian stocks advanced, with the benchmark index rising the most in two months, as bullish analyst comments on nitrogen prices lifted raw-materials produces and weaker- than-expected data on inflation and retail sales bolstered expectations for economic stimulus.
     The S&P/TSX Composite Index added 0.9 percent to 15,547.88 at 4 p.m. in Toronto, with all but two of the 11 industry groups rising. The broad market gauge is up 0.3 percent over five days for its third straight weekly gain.
     Retail sales and inflation readings came in weaker than expected on Friday, suggesting Canada’s recovery still has a long way to go. Earlier this week, the central bank kept its benchmark interest rate at 0.5 percent and said a rate cut remains on the table even as they look for another year of “solid” consumer spending to prop up growth.
     In other moves:
     * Potash Corporation of Saskatchewan Inc. (POT CN) climbed 4.8 percent while Agrium Inc. (AGU CN) advanced 4.1 percent after BofAML analysts led by Steve Byrne said nitrogen’s five- year downturn may be nearing an end. Western Potash Corp. (WPX CN) surged 32 percent.
     * ShaMaran Petroleum Corp. (SNM CN) fell 8 percent after saying it plans to sell shares at C$0.10 a share in a private placement.
US
By Joseph Ciolli
     (Bloomberg) — U.S. stocks rose as an increase in crude oil spurred gains in energy companies. The benchmark index pared earlier gains as President Donald Trump delivered his inauguration address. Consumer staples shares climbed as Procter & Gamble Co. reported quarterly earnings that topped estimates.
     The S&P 500 Index added 0.3 percent to 2,271.29 at 4 p.m. in New York as the Dow Jones Industrial Average increased 95 points to 19,826.97, led by a 3.7 percent gain in shares of Merck & Co. Both gauges rose after declining more than 0.3 percent on Thursday.
* Eight of 11 industry groups higher
* Telecom shares rise 0.9 percent, led by AT&T Inc., which signed up new pay-TV customers for the first time in seven quarters thanks entirely to its new live online video service
* VIX declined 9.2 percent, its first loss in four days
* Analysts estimate profit at S&P 500 companies rose 4.3 percent in the fourth quarter of 2016, and see profit jumping 12 percent this year
* The Bloomberg Dollar Spot Index decreased 0.4 percent. The gauge declined for a fourth straight week
* General Electric Co. fell as much as 2.9 percent, biggest intraday decline since Sept. 9, after missing fourth-quarter sales estimates

Have a wonderful weekend everyone.

Be magnificent!

The Hindu believes that he is a spirit.
He believes that the sword cannot dissolve him, that the air cannot dry him out.
He believes that the soul is a circle whose circumference has no limits, but whose center is situated in the body.
Death signifies the transference of this center of a body to another.
We are the children of God.
Matter is our servant.
Swami Vivekananda

As ever,

Carolann

Laughter is the sun that drives winter from the human face.
                                         -Victor Hugo, 1802-1885

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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
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www.carolannsteinhoff.com