January 5, 2017 Newsletter

Dear Friends,

Tangents:

Tonight is known to Orthodox Christians as the “Twelfth Night”, the eve of the Epiphany.  It is the twelfth day after Christmas.  Formerly, this was a time of great merrymaking when the Bean King (Rey de habas, the child who was  to play king on this night; the one who has found the bean in the Twelfth Night cake) was appointed, and the celebrations and festivities seemingly derive from the Saturnalia  (the ancient Roman festival of Saturn, celebrated on December 19^th and prolonged for seven days – a time of freedom from restraint, merrymaking and often debauchery.   During its continuance, public business was suspended, the law courts and schools were closed and no criminals were punished), of old Roman times, which were held at the same season.  By the Julian Calendar, Twelfth Day is Old Christmas Day.
Shakespeare’s play of this name, which he began writing in 1599, was so called because it was written for acting at the Twelfth Night revels.

If music be the food of love, play on;
Give me excess of it, that, suffering,
The appetite may sicken, and so die.
That strain again! it had a dying fall:
O!  it came o’er my ear like the sweet sound
That breathes upon a bank of violets,
Stealing and giving odour!  enough! No more:
‘Tis not so sweet now as it was before.
              from Twelfth Night, act I, sc.I.

On this day in 1933, construction begins on the Golden Gate Bridge.
PHOTOS OF THE DAY

A flock of birds is seen on a tree as the temperature dropped to minus 16 degrees Celsius (3.2 degrees Fahrenheit) in a field near the village of Khatenchitsy, Belarus, on Thursday. Vasily Fedosenko/Reuters

A horse-drawn carriage makes its way through the snow-covered landscape near Oberhof, eastern Germany, on Thursday. Martin Schutt/dpa/AP

Pulis Quastie and Gin-Gin run in the snow in their garden in Lautertal, southern Germany, on Thursday. Pulis are Hungarian sheepdogs and are rarely seen in Germany. Michael Probst/AP
Market Closes for January 5^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Joseph Ciolli
     (Bloomberg) — Rallies in Barrick Gold Corp., Royal Bank of Canada and Suncor Energy Inc. helped Canadian stocks extend their New Year’s winning streak, pushing the benchmark S&P/TSX Composite Index toward an all-time high as commodities climbed.
     The index rose 0.5 percent to 15,593 at 10:03 a.m. in Toronto, putting the benchmark within 70 points of a record and on pace for the highest close since September 2014. The gauge finished 2016 as the best-performing developed stock market and has risen in each of the last six months. Commodity and industrial stocks paced the gain on Thursday, adding 2.3 percent, while consumer discretionary shares fell 0.4 percent.
     Fairfax Financial Holdings Ltd. slipped 0.4 percent after a report said the company is in talks with the Ontario Municipal Employees Retirement System to see if the pension fund will help finance his $4.9 billion takeover of Allied World Assurance Co.
     In other moves:
* Torex Gold Resources Inc., Tahoe Resources Inc. and First Majestic Silver Corp. rose more than 6.9 percent as the Bloomberg Commodity Index climbed 0.5 percent, extending its two-day increase to 1.8 percent
* Kelt Exploration Ltd., Parkland Fuel Corp. and Enerplus Corp. gained at least 1.9 percent as the price of crude oil increased for a second straight day
US
By Oliver Renick
     (Bloomberg) — U.S. stocks erased most of their losses but ended lower to halt a two-day equity advance, as investors assessed mixed economic data and bank stocks posted their worst drop in almost a month.
     The S&P 500 slid less than 0.1 percent to 2,269 at 4 p.m. in New York after falling more than 0.4 percent earlier. The Dow Jones Industrial Average lost 43 points to 19,899. The S&P 500 rose 0.6 percent on Wednesday in a broad-based rally following the release of the Federal Reserve’s latest policy meeting minutes and is 1.4 percent higher in the first three days of 2017.                            
* Six of 11 sectors finish lower with declines steepest in financials, industrials and energy companies
* S&P banking index down 1.4%
* Energy shares down 0.3%; crude oil reverses loss, up 0.9%
* VIX down 1.5% for third straight day of gains
* The dollar extended losses, after dropping yesterday following minutes from the Fed’s December meeting that showed the central bank was more concerned about a strong currency
* S&P retail index pared earlier losses, ending day down less than 0.1%
** Kohl’s Corp. tumbled 19% after lowering its fiscal 2016 profit forecast; Macy’s Inc. slid 14% after the largest U.S. department-store company cut its earnings outlook and pledged to eliminate 6,200 jobs
* Companies added fewer jobs than forecast in December, data from the ADP Research Institute in Roseland, New Jersey, showed Thursday
* Filings for U.S. unemployment benefits declined to the lowest level in eight weeks, showing volatility typical around the holiday period
* In a weekly survey by the American Association of Individual Investors (AAII), bulls rose to more than 46%, the highest reading since late November and up from the previous week
* EARNINGS:
** After-market Thursday: PriceSmart (PSMT), Helen of Troy (HELE), Ruby Tuesday (RT)
     For related equity market news:
* European Stocks Hold Steady as Euro Rebound Gives Traders Pause
* Wall Street Says Capital Spending Is Finally Poised for Breakout
* Trace of Fear in Trump Stocks as Hedges Rise With Defensives
* Gold Miners, Biotech to Be Most Volatile in 2017, Goldman Says.

Have a wonderful evening everyone.

Be magnificent!

Contemplation is seeing the here and now.
Swami Prajnanpad

As ever,

Carolann

Truth exists, only lies have to be invented.
              -Georges Braque, 1882-1963

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