July 21, 2017 Newsletter

Dear Friends,

Tangents:
Carolann is out of the office this afternoon, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

The peloton in action during the 104^th Tour de France cycling race – The 179.5-km Stage 18 Briancom to Izoard, France. CREDIT: REUTERS/CHRISTIAN HARTMANN.

View of Amir Chakmakh Complex in the historical city of Yazs in central Iran. UNESCO has added the historic city of Yazd to its list of world heritage sites on July 9, 2017. CREDIT: AHMAD HALABISAZ/XINHUA/AVALON.RED
Market Closes for July 21st, 2017 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks posted their biggest decline this month as falling oil prices weighed on energy stocks.
     The S&P/TSX Composite Index lost 82 points or 0.5 percent to close at 15,183.13, its biggest drop since June 29. The benchmark was up 0.1 percent on the week.
     Energy shares fell 1 percent as the price of crude tumbled
2.2 percent, its biggest decline in two weeks. A report that OPEC’s July shipments will be the highest this year increased concerns about global oversupply. Spartan Energy Corp. was the biggest decliner on the S&P/TSX energy index, falling 5.2 percent.
     Consumer discretionary shares lost 1 percent as auto suppliers weighed on the index. Swedish parts maker Autoliv Inc.
said it continues to see high inventories of light vehicles, slow sales growth and market uncertainty in North America and China. Magna International Inc. fell 2.8 percent.
     In other moves:
* West Fraser Timber Co. Ltd. lost 1.2 percent. The company said it’s prepared for no Canada-U.S. softwood lumber deal
* Husky Energy Inc. fell 2.7 percent after its second-quarter results missed analyst estimates
* Encana Corp. added 1.4 percent, bucking the broader energy sector decline, after reporting better-than-expected results
US
By Oliver Renick
     (Bloomberg) — Even as the S&P 500 Index clawed its way to a fresh record and squeezed out a third consecutive weekly gain, signs of fading enthusiasm in U.S. stocks have become increasingly difficult to ignore.
     The latest can be seen in the SPDR S&P 500 Trust, the biggest exchange-traded fund tracking the U.S. equity benchmark.
As of Thursday, investors had pulled $3.8 billion out of it in July. That puts the fund on pace for a fourth consecutive monthly outflow, which would be the longest streak since the start of the bull rally in 2009.
     And it isn’t just the $237 billion SPDR fund that’s thinning. Traders took $2.1 billion out of U.S. mutual funds and ETFs in the week ended July 12, ICI data show. That compared with $5.1 billion that went into funds around the world. Bank of America Merrill Lynch’s most recent fund manager survey found allocation to U.S. stocks is the most underweight since 2008.
     “We’ve contributed to that because we’ve been moving money out of large-cap stocks in the U.S.,” Ed Keon, managing director and portfolio manager at Quantitative Management Associates LLC, said by phone. “We’re not bearish, it’s just a question of better growth with lower valuations elsewhere.”
     The S&P 500 touched new highs this week before retreating as an intensifying investigation into President Donald Trump stoked concern that his economic agenda may stall. The benchmark gauge added 0.5 percent in the five days to end at 2,472.54. The Nasdaq 100 Index jumped 1.4 percent, ending the week at a record 5,921.525. The Dow Jones Industrial Average slipped 0.3 percent to 21,580.07.
     Strong earnings growth this year has kept the S&P 500’s price-to-earnings multiple below its March peak, despite the index reaching all-time highs. Even so, most equity valuations outside the U.S. remain more compelling.
     In Europe, German and French shares trade at a trailing P/E of as low as 18.9, compared with the S&P 500’s 21.6. Japanese shares are at 19.2, and emerging-market stocks tracked by MSCI Inc. trade at 16.1. MSCI’s world index excluding the U.S. trades at 19.7.
     Utility shares led the S&P 500’s advance this week, climbing 2.6 percent in their best performance since February as the 10-year Treasury yield dropped nine basis points. Real estate shares added 0.8 percent.
     Technology stocks rallied for the fourth week in five as the Nasdaq 100 Index jumped 1.4 percent. Industrial and financial stocks weighed on the market.
 

Have a wonderful weekend everyone.

Be magnificent!

“The biggest adventure you can take is to live the life of your dreams.”
– Oprah Winfrey

As ever,

Megan

“ It’s all about quality of life and finding a happy balance between work and friends and family.”
– Philip Green

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
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com