January 28, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday.
On Jan. 28, 1986, space shuttle Challenger exploded 73 seconds after liftoff from Cape Canaveral, killing all seven crew members.  Go to article »

The Poem:

At Last There is Yesterday
-by Wang Yin, translated by Andrea Lingenfelter

at last there is yesterday
at last there is fury
dreams now have a core
revolution resembles something like normal life at last
this day and last night are buried together entwined at last

youth gone from this world
the idea of youth gone from this world
the horn of the storm looks like a tilted cup
evening’s mirror no longer sketches me as ghost
a world washes clean is useless to me
silent stones, my teachers
those gentle talents
who comply with the fate arranged for them b
owing to this angry prophecy
setting out on a journey they will never complete

I, we, this mutable era of ours
each star follows its own god
as it turns its head.

PHOTOS OF THE DAY

Vehicles including a Port Authority bus are left stranded after a bridge collapsed along Forbes Avenue in Pittsburgh. At least 10 people were reportedly injured in the early-morning collapse, hours ahead of a scheduled visit by President Joe Biden to promote his infrastructure plan.
CREDIT: Jeff Swensen/Getty Images

Shetlanders in Viking costumes celebrate the annual Up Helly Aa festival. Their torch-lit march through Glasgow marked the opening of the Celtic Connections music festival. Performances are taking place in person this year after Covid restrictions were eased.
CREDIT: Jane Barlow/PA

A person walks behind the gate of the Sachsenhausen Nazi death camp with the phrase ‘Arbeit macht frei’ (work sets you free) in Oranienburg. This week marked the International Holocaust Remembrance Day on the day that the Auschwitz Nazi death camp was liberated, 27 January 1945.
CREDIT: Markus Schreiber/AP|

Market Closes for January 28^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1905, Luther George Simjian, the inventor of the automatic teller machine (ATM), was born in Ainteb, Turkey.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities rallied to cap off a week of volatility as 10 out of 11 sectors climbed.
The S&P/TSX Composite rose 1% to 20,741.75 in Toronto.
The move was the biggest since rising 1.9% on Dec. 21 and follows the previous session’s decrease of 0.3%.
Today, information technology stocks led the market higher; 186 of 241 shares rose, while 50 fell.
Shopify Inc. contributed the most to the index gain, increasing 7.1%.
Hut 8 Mining Corp. had the largest increase, rising 8%
Insights
* In the past year, the index had a similar or greater gain 19 times. The next day, it advanced 12 times for an average 0.6% and declined seven times for an average 0.6%
* This month, the index fell 2.3%
* So far this week, the index rose 0.6%
* The index advanced 17% in the past 52 weeks. The MSCI AC Americas Index gained 14% in the same period
* The S&P/TSX Composite is 4.8% below its 52-week high on Nov. 16, 2021 and 19.9% above its low on Jan. 29, 2021
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.7 on a trailing basis and 14.4 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.7% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.29t
* 30-day price volatility rose to 12.41% compared with 12.19% in the previous session and the average of 13.47% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | 87.2314| 5.5| 16/0
* Financials | 26.2399| 0.4| 20/6
* Energy | 25.8460| 0.8| 25/7
* Industrials | 18.6709| 0.8| 27/3
* Communication Services | 13.9693| 1.4| 7/0
* Consumer Staples | 9.1495| 1.2| 11/0
* Real Estate | 7.7300| 1.3| 24/0
* Utilities | 7.2588| 0.8| 12/4
* Consumer Discretionary | 6.3979| 0.9| 11/2
* Health Care | 5.1893| 3.8| 8/0
* Materials | -10.0326| -0.4| 25/28
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Shopify | 57.6300| 7.1| 6.6| -36.0
* Brookfield Asset Management | 12.5200| 1.9| 6.3| -11.1
* Royal Bank of Canada | 10.2600| 0.7| 28.9| 6.7
* Teck Resources | -4.6830| -3.6| 76.5| 7.7
* TD Bank | -6.0010| -0.5| -57.8| 3.3
* Canadian Pacific | -9.8780| -1.7| 70.1| 1.4

US
By Rita Nazareth
(Bloomberg) — Stocks rallied at the end of a week marked by intense gyrations as strong earnings from Apple Inc. lured dip buyers, overshadowing fears that the Federal Reserve will have to act aggressively to thwart the fastest inflation since the 1980s.
The S&P 500 notched its biggest rally since June 2020, erasing its weekly losses.
The tech-heavy Nasdaq 100 — which is still set for its worst month since 2008 — jumped more than 3%.
The iPhone maker soared on results that sailed past Wall Street estimates, marking a victory against a supply-chain crunch fueled by the pandemic.
Bitcoin rallied.
“Given recent volatility, there is a hope corporate earnings can stabilize markets,” said Lindsey Bell, chief markets and money strategist at Ally. “Investors hope that market fundamentals, like earnings results, can shift the focus away from fears of central bank policy changes and inflation. It might take a lot of good news to change the tone on Wall Street, though.”
Markets have whipsawed since Fed Chair Jerome Powell signaled faster tightening, adding to investor concerns about geopolitical tensions and a slowdown in earnings.
BlackRock Inc.’s strategist Scott Thiel warned that the central bank risks a hawkish policy mistake as it strives to extinguish price pressures largely caused by the chaos in supply chains.
Meantime, Bank of America Corp. strategists led by Michael Hartnett cited “zero capitulation in equity positioning.”
The analysts, who track EPFR Global data, said stock mutual funds and exchange-traded products took in $17.1 billion in the week to Jan. 26 — the day when the Fed announced its policy decision.
Equities are still the best game in town, according to Goldman Sachs Group Inc.
That’s because stock valuations are “nowhere near” where they were at the height of the dotcom bubble two decades ago, said Sharmin Mossavar-Rahmani, head of the bank’s investment strategy group. Unlike in the late-90s, the U.S. equity market today has broad-based returns and its corporate earnings are fundamentally strong, she said.
Despite the fears that Fed tightening will snuff out growth, earnings sentiment has stayed firm.
Analysts have raised their 2022 profit estimates by roughly $1 to $221.4 a share this year.
About 80% of companies that have reported earnings so far this season have beaten projections.
While S&P 500 profits were estimated to expand 22% in the fourth quarter — half the rate seen in the previous period — that’s still more than twice as fast as the 10-year average, according to data compiled by
Bloomberg Intelligence.
Meanwhile, a slew of U.S. inflation measures out Friday underscored the breadth of price pressures and reinforced the Fed’s urgency to begin boosting rates.
The two biggest U.S. banks raised their forecasts on how quickly the central bank will hike this year, with Bank of America predicting a move at every meeting.
JPMorgan Chase & Co. separately lifted its call to five increases in 2022 from four previously.
Other corporate highlights:
* Visa Inc. reported earnings that topped the average analyst estimate.
* Caterpillar Inc.’s earnings beat estimates as surging demand and higher prices for diggers, bulldozers and trucks muted the impact of rising raw-materials costs.
* Chevron Corp. posted disappointing profits after slumping values for some long-held fields hurt the oil giant’s ability to take full advantage of surging energy prices.
* Robinhood Markets Inc.’s revenue that fell short of Wall Street estimates as equities trading declined and gave a disappointing outlook.

In geopolitical news, the Biden administration held discussions with the country’s largest banks on possible sanctions against Russia as part of its efforts to ensure such actions
won’t disrupt the global financial system.
Tensions have soared after Russia amassed tens of thousands of troops on Ukraine’s border.
While officials in Moscow have repeatedly said they have no intention of invading the country, Western allies are discussing a variety of measures should activity escalate.
Some of the main moves in markets:
Stocks
* The S&P 500 rose 2.4% as of 4 p.m. New York time
* The Nasdaq 100 rose 3.2%
* The Dow Jones Industrial Average rose 1.7%
* The MSCI World index rose 1.5%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was little changed at $1.1149
* The British pound was little changed at $1.3394
* The Japanese yen was little changed at 115.26 per dollar
Bonds
* The yield on 10-year Treasuries declined two basis points to 1.78%
* Germany’s 10-year yield advanced one basis point to -0.04%
* Britain’s 10-year yield advanced two basis points to 1.24%
Commodities
* West Texas Intermediate crude rose 0.7% to $87.21 a barrel
* Gold futures fell 0.3% to $1,789.20 an ounce
–With assistance from Sunil Jagtiani, Namitha Jagadeesh, Vildana Hajric and Emily Graffeo.
Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann

It takes years and maturity to make the discovery that the power of faith is nobler than the power of doubt;
and that there is a celestial wisdom in the ingenuous propensity to trust,
which belongs to honest and noble natures. –Harriet Beecher Stowe, 1811-1896.

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