July 14, 2015 Newsletter

Dear Friends,

Tangents: 

Found this in The New Yorker today….thought it might interest you!

FIT BODIES, FIT BRAINS

It seems everyone’s got a favorite workout these days, but this fitness regime isn’t about building six-pack abs or killer quads. It’s about your brain.

Fit Brains is the free, online, mobile-friendly brain training app from Rosetta Stone, the people who redefined language learning. The idea is to game your way to greater strength in cognitive areas like memory, logic, speed, focus, and of course, language.

In practice, Fit Brains games are fun, challenging, and a little addictive—the more you advance, the further you want to go. Competitive types (you know who you are) will appreciate the ability to compare your performance with other Fit Brains users in your age group and gender. With more than 60 games to choose from so far, you and your brain will never run short of new challenges.

So, does it really work? The science is solid. Fit Brains has been developed under the supervision of Dr. Paul Nussbaum, a neuropsychologist and leader in the field of Brain Health. And Fit Brains users report improved memory, enhanced focus, and a whole lot of fun thanks to the program.

Fit Brains is online and mobile, so you can treat your brain to a good workout practically anywhere (while on the treadmill at the gym, even)—and on whatever device works for you.

Of course, if you’re a regular reader, your brain may be fitter than most already. It’s easy enough to find out—just go to FitBrains.com to start playing.

Today is Bastille Day in France.

PHOTOS OF THE DAY

Alphajets from the French Air Force Patrouille de France fly over the pyramid of the Louvre in the formation of a Croix de Lorraine, releasing trails of red, white, and blue during the traditional Bastille Day military parade in Paris, Tuesday. Bastille Day, also known as the 14th of July, is the national holiday of France, commemorating the beginning of the revolution that overthrew the king Louis XVI in 1789. Gonzalo Fuentes/Reuters

Solar powered lights are pictured along Hoernli Ridge on the Matterhorn in Zermatt, Switzerland, Tuesday. Zermatt celebrates the first ascent of the Matterhorn, made along the Hoernli Ridge by Briton Edward Whymper on July 14, 1865, with six other roped team members. All mountaineering activities will be halted on July 14 on the Swiss and Italian side of the Alpine summit in remembrance of the more than 500 people who have perished attempting to reach the top. Denis Balibouse/Reuters

Market Closes for July 14^th, 2015

International Markets

Bonds

Currencies

Commodities

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks extended the biggest rally since February, as energy shares rebounded from the worst week in six months and materials producers jumped before the Bank of Canada meets to determine interest-rate policy.

     Bankers Petroleum Ltd. and Penn West Petroleum Ltd. surged at least 8.4 percent to pace an advance in oil companies. Potash Corp. of Saskatchewan Inc. added 1.2 percent for a third straight day of gains. Fairfax Financial Holdings Ltd. added 2.8 percent after one of its units offered to buy a position in an Indian brokerage for $255 million.

     Even with the recent rebound, energy producers are the worst performers this year among 10 groups in the benchmark for Canadian equities, as a rout in oil prices has weakened domestic producers. The slide is spreading to a manufacturing sector already struggling to capitalize on a rebound in U.S. growth and a weaker currency, adding to concerns Canada may have slipped into recession as the central bank meets Wednesday.

     The Standard & Poor’s/TSX Composite Index rose 66.18 points, or 0.5 percent, to 14,599.40 at 4 p.m. in Toronto. The benchmark equity gauge has gained 2.3 percent in the past three days, the most since February. The rally has trimmed its decline in 2015 to 0.2 percent, one of the worst performances among 24 developed markets tracked by Bloomberg.

     The threat of a contracting economy may prompt Bank of Canada Governor Stephen Poloz to cut his policy interest rate for the second time this year. Sixteen of the 29 economists surveyed by Bloomberg said the benchmark rate will be reduced by a quarter point to 0.5 percent.

     The BOC will announce the rate decision at 10 a.m. in Ottawa.                     

     The recent run in Canada’s stock market comes as Toronto- Dominion Bank, Bank of America Merrill Lynch, BNP Paribas SA and Citigroup Inc. all have said Canada probably fell into recession in the first half of 2015.

     All 10 industries in the S&P/TSX rose on trading volume in line with the 30-day average today.

     Energy shares jumped 1.2 percent for a second day of gains. The group plunged 3.9 percent last week, the most since January. Suncor Energy Inc. jumped 1.9 percent and Encana Corp. rose 4.3 percent.

     West Texas Intermediate crude for August delivery added 1.6 percent to $53.04 a barrel in New York, erasing an earlier loss. Iran agreed to curb its nuclear program in return for the removal of sanctions on its exports including crude in a historic accord with world powers. Restrictions on Iran will remain in place at least until United Nations monitors report on the country’s compliance with the deal in December.

US

By Oliver Renick and Annelise Alexander

     (Bloomberg) — U.S. stocks posted their first four-day winning streak since January, as semiconductor and biotechnology shares rallied while weaker-than-expected retail sales spurred speculation on timing for higher interest rates.

     Micron Technology Inc. jumped 11 percent, leading chipmakers higher, amid talk of a buyout. The Nasdaq Biotechnology Index increased 2.3 percent to a record. Apache Corp. and Chesapeake Energy Corp. rose more than 2.1 percent as oil gained. JPMorgan Chase & Co. advanced 1.4 percent after its quarterly profit beat analysts’ estimates as expenses fell.

     The Standard & Poor’s 500 Index rose 0.5 percent to 2,108.95 at 4 p.m. in New York, and closed at a three-week high. The Dow Jones Industrial Average added 75.90 points, or 0.4 percent, to 18,053.58, while the Nasdaq Composite Index climbed 0.7 percent. About 5.7 billion shares traded hands on U.S. exchanges Tuesday, 12 percent below the three-month average.

     “I was a little disappointed with the retail sales numbers today, so I was a little surprised by the rally,” said Mark Kepner, an equity trader at Chatham, New Jersey-based Themis Trading LLC. “Maybe the drumbeat of the September rate rise is something that may get pushed back to later in the year. Going forward it’s going to take earnings to push us higher. JPMorgan started the week of earnings off pretty well.”

     A report today showed consumer purchases decreased 0.3 percent in June after a 1 percent advance in May that was smaller than previously reported, curbing optimism about the strength of the rebound in spending during the second quarter.

     Greece’s financial crisis and turmoil in China’s equity market had recently diverted attention from corporate profits, U.S. economic data and the path of the Fed’s monetary policy.

     The S&P 500 last week fell as much as 4 percent from its all-time high, and has since recovered to trade within 1 percent of its record set in May as the Greek crisis neared a resolution and China shares stabilized. The benchmark gauge and the Dow are up 3 percent over four sessions, while the Nasdaq Composite has added 4 percent.

     Fed Chair Janet Yellen appears before Congress tomorrow for her semi-annual monetary policy testimony. Officials in June forecast the central bank would raise rates twice this year, signaling that September is the most likely month for liftoff. Policy makers have indicated a desire to see more evidence of labor-market improvement, particularly in wage gains, before raising rates.

     Other data releases this week that may provide clues on the pace of any rate increase include industrial production, housing starts and consumer sentiment.

     “With China and Greece hopefully in the rear-view mirror, we’re focused on domestic things, with Yellen’s testimony tomorrow and a retail sales number that hasn’t been increasing in the face of lower oil prices,” said Matt Maley, an equity strategist at Miller Tabak & Co. in Newton, Massachusetts.                      

     Quarterly earnings will also move more into focus as concerns about Greece wane. Goldman Sachs Group Inc., Intel Corp. and Google Inc. are among S&P 500 firms posting results this week. Analysts project earnings for companies on the equity benchmark dropped 6.4 percent in the second quarter.

     The Chicago Board Options Exchange Volatility Index fell 3.8 percent Tuesday to 13.37. The gauge, known as the VIX, had its biggest three-day drop since October. Nine of the S&P 500’s 10 main groups rose.

     Health-care companies advanced amid a rally in biotechnology. Biogen Inc. added 2.3 percent after Bank of America Merrill Lynch raised the stock to buy from neutral, while Gilead Sciences Inc. increased 2.5 percent. The Nasdaq Biotech Index rose for the ninth time in 10 sessions, up 2.3 percent today to an all-time high.

     Energy shares gained as West Texas Intermediate crude rose, after erasing early losses on speculation that the return of sanctioned Iranian oil will be gradual following an historic accord with world powers on the country’s nuclear program. Southwestern Energy Co. and Halliburton Co. rose more than 1.6 percent, while Chevron Corp. added 1 percent.

     Micron’s biggest gain in more than three years helped chipmakers in the benchmark index rise for a third session, their strongest such stretch in six weeks. The investment arm of one of China’s top universities is planning to offer $23 billion for Micron, a person familiar with the matter said. SanDisk Corp. jumped 3.4 percent, while Qorvo Inc. and Avago Technologies Ltd. increased more than 1.7 percent.

     Google Inc. advanced 2.2 percent in its strongest four- session stretch since Oct. 2013. The search giant’s shares hit a nine-month high as it steps up efforts against Apple Inc. with smartphone location tracking tools.

     Banks in the S&P 500 gained for a fourth day, their longest winning streak in three months. Wells Fargo & Co. added 0.9 percent after its quarterly earnings matched analysts’ estimates. Citigroup Inc. and Bank of America Corp. climbed at least 0.6 percent.

     Coca-Cola Co. rose 1.3 percent to a seven-week high after UBS AG upgraded the shares to buy from neutral. The firm sees the stock poised for gains in part as Coke benefits from higher prices.

     Spirit Airlines Inc. fell 7.4 percent to its lowest since October after the budget airline cut its forecast for operating margins for the rest of the year as pricing pressure from other carriers weighs on revenue. A Bloomberg index of U.S. airlines lost 0.3 percent.

     Johnson & Johnson slid 0.5 percent, halting three straight winning sessions, as its earnings exceeded analysts forecasts while revenue was in line with estimates.

     Navient Corp. sank 11 percent, the biggest drop in the S&P 500 Tuesday, after the student-loan servicer cut its outlook. Shares fell the most since the company was split from SLM Corp.in 2014.
 

Have a wonderful evening everyone.

Be magnificent!

Adaptability is not imitation.

It means power of resistance and assimilation.

Mahatma Gandhi

As ever,

Carolann

In the absence of clearly-defined goals, we become strangely loyal to performing daily trivia until ultimately we become enslaved by it.

                                                                                                                                                    -Robert Heinlein, 1907-1988

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM

Senior Portfolio Manager &

Senior Vice-President

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7