January 29, 2020 Newsletter

Dear Friends,

Tangents:
Some time ago, one of my clients sent me a revisionist ending to Aesop’s Fable concerning the Grasshopper and the Ants.  I recently came upon it again and it’s worth sharing:
“…But when the days grew short and the first snow fell, the grasshopper could find nothing to eat.  Shivering in the cold, he came to ask the ants for help.  ‘Please, can’t you spare me a seed or a leaf?’ he begged, ‘I’m too hungry even to sing!’
The ants said, ‘Sure, Great.  You lightened our load with your beautiful music all summer long.  Come on in and play for us to make the winter pass more quickly.  We’d be glad to share our seeds and leaves with you in return for some sweet tunes!’ “
Do what you love and it will all work out!

He also sent this, which is very beautiful:

Ten thousand flowers in the spring, the moon in autumn,
A cool breeze in the summer, snow in winter,
If your mind isn’t clouded by unnecessary things,
This is the best season of your life.
                                           -Wu-Men

PHOTOS OF THE DAY

A stockbreeder carries a goat on his back at a countryside following snowfall during winter season in Van, Turkey.
CREDIT: OZKAN BILGIN/ANADOLU AGENCY VIA GETTY IMAGES

Snow fell overnight at Princetown, Devon, as the UK prepares for more cold weather.
CREDIT: SWNS

The Koala ComeBack Fund, David Yarrow launches worldwide campaign to highlight the devastating effect of Australia’s wildfires by releasing harrowing photograph and aims to raise $2 million.
CREDIT: DAVID YARROW

Market Closes for January 29^th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1886, Karl Benz received German patent DRP No. 37435 for his “motorwagen,” a frail and ungainly vehicle with three wheels and a wooden chassis. It was the world’s first automobile.

Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite advanced slightly to 17,511.75 in Toronto. Barrick Gold Corp. contributed the most to the index gain, increasing 2.3 percent. Seabridge Gold Inc. had the largest increase, rising 5.9 percent. Today, 123 of 233 shares rose, while 103 fell; 5 of 11 sectors were higher, led by materials stocks.

Insights
* This month, the index rose 2.6 percent
* The index advanced 13 percent in the past 52 weeks. The MSCI AC Americas Index gained 23 percent in the same period
* The S&P/TSX Composite is 0.9 percent below its 52-week high on Jan. 22, 2020 and 13.6 percent above its low on Jan. 29, 2019
* The S&P/TSX Composite is down 0.5 percent in the past 5 days and rose 2 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18 on a trailing basis and 15.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.69t
* 30-day price volatility fell to 4.55 percent compared with 4.59 percent in the previous session and the average of 4.60 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 23.5791| 1.3| 33/12
Industrials | 6.9865| 0.4| 20/10
Energy | 5.5731| 0.2| 16/13
Utilities | 2.8098| 0.3| 12/4
Real Estate | 0.9298| 0.1| 15/10
Consumer Staples | -0.2316| 0.0| 4/7
Consumer Discretionary | -0.4680| -0.1| 5/11
Health Care | -1.7026| -0.8| 2/8
Communication Services | -6.4872| -0.7| 1/7
Financials | -7.0456| -0.1| 12/15
Information Technology | -13.0721| -1.2| 3/6

* The benchmark 10-year bond rose and the yield fell 6.3basis points to 1.312 percent
* The S&P 500 Index declined slightly, down 0.1 percent

US
By Rita Nazareth
(Bloomberg) — U.S. stocks struggled near record highs on speculation that a recent rally outpaced the risks to global economic growth. Bonds climbed. The S&P 500 Index wiped out an early advance after Federal Reserve Chairman Jerome Powell said that uncertainties about the outlook remain — including those around trade policy and the coronavirus. Treasuries extended gains after he noted that the committee revised its language about inflation to clarify that policy makers aren’t comfortable with it below 2%. In a highly anticipated decision, the Fed kept its key interest rate unchanged and continued to signal policy would stay on hold for the time being. As the earnings season continued to roll in Apple Inc.’s strong results sent the iPhone maker to a record while General Electric Co.’s outlook topped Wall Street’s estimates. Boeing Co. rallied on news the plane-maker burned less cash than expected.

Some other corporate highlights:
* McDonald’s Corp.’s sales in its home market beat expectations.
* Mastercard Inc., Dow Inc. and T. Rowe Price Group Inc. reported better-than-estimated results.
* AT&T Inc. topped earnings estimates as cost cuts helped offset steep TV-subscriber losses and higher spending on its media business.
* EBay Inc., Advanced Micro Devices Inc. and Xilinx Inc. gave lackluster guidance.

     Elsewhere, oil fell after a government report showed the biggest jump in U.S. crude stockpiles since November. The European Parliament approved Prime Minister Boris Johnson’s Brexit deal, clearing the way for the U.K. to leave the EU on Jan. 31 with an agreement that, for the time being, will avoid a chaotic rupture.
Here are some events to watch out for this week:
* Samsung Electronics, International Paper, Unilever and Shell report on Thursday, followed by South Korean chip maker SK Hynix, Chevron, Caterpillar and Exxon Mobil all on Friday.
* The Bank of England meeting on Thursday is highly anticipated after a series of dovish comments raised speculation policy makers could lower interest rates.
* The U.S. reports fourth-quarter GDP Thursday.
* The U.K. is scheduled to leave the European Union Friday.

These are some of the main moves in markets:
Stocks
* The S&P 500 fell 0.1% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index climbed 0.4%.
* The MSCI Emerging Market Index dipped 0.5%.
Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro dipped 0.1% to $1.1006.
* The Japanese yen strengthened 0.1% to 109.06 per dollar.
Bonds
* The yield on 10-year Treasuries dipped seven basis points to 1.59%.
* Germany’s 10-year yield fell four basis points to -0.38%.
* Britain’s 10-year yield decreased four basis points to 0.516%.
Commodities
* The Bloomberg Commodity Index dipped 0.6%.
* West Texas Intermediate crude dipped 0.6% to $53.15 a barrel.
* Gold rose 0.4% to $1,582 an ounce.

–With assistance from Andreea Papuc, Adam Haigh, Robert Brand,
Todd White, David Wilson, Sarah Ponczek, Sophie Caronello, Vildana Hajric and Katherine Greifeld.
Have a great night.

Be magnificent!

As ever,

Carolann

Coming together is a beginning; keeping together is progress; working together is success.
                                                                                       -Edward Everett Hale, 1822-1909

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