June 15, 2022 Newsletter

Dear Friends,

Tangents:
June 15, 1215: Magna Carta chartered.
June 15, 1860: Florence Nightingale started her School for Nurses at London’s St Thomas’ Hospital.
June 15, 1844: Charles Goodyear received a patent for a process to strengthen rubber.  Go to article »
Edvard Greig, composer, b. 1843.

Reporter loses it on air after Australia wins World Cup qualifier.  Need a smile? This Australian reporter reacted with pure joy when his home team earned a spot in the World Cup. 

Man vs. Emu: A Texas man fends off his giant aggressive bird with a very emusing tactic!  Watch the viral video here.

The best of Ascot style, then and now: From the Queen epitomising elegance in the 1950s to power suits in the 1980s to Meghan Markle’s debut, look at how Ascot style has evolved.

Where is the tomb of Genghis Khan?   Genghis Khan unified the Mongols and created an enormous empire that stretched from the Pacific Ocean to Ukraine by the time of his death in 1227; and his successors would go on to conquer even more territory.   So, where is this charismatic leader buried? Does he have a monumental tomb like the pyramids built for the ancient Egyptian pharaohs, or a mausoleum with terra–cotta warriors, like the one built for China’s first Qin emperor?  Full Story: Live Science (6/12) 

‘Factorian Deep,’ the new deepest point in Antarctica’s Southern Ocean, mapped for the first time:  Researchers have published the most detailed map of Antarctica’s frigid Southern Ocean to date, including the ocean’s new deepest point, the “Factorian Deep,” which sits nearly 24,400 feet (7,437 meters) below the sea surface.   Resting at a depth equivalent to about 17 Empire State Buildings stacked top to bottom, the Factorian Deep was discovered in 2019 by American explorer and entrepreneur Victor Vescovo, as part of his Five Deeps Expedition to map the deepest points of the world’s five oceans. Vescovo personally piloted a submersible named “Limiting Factor” (for which the Factorian Deep was named) to the bottom of the Atlantic Ocean’s South Sandwich Trench – an undersea canyon that spans roughly 600 miles (965 kilometers) of seafloor between South America and Antarctica.  Full Story: Live Science (6/14).

PHOTOS OF THE DAY

The artist Ai Weiwei shows his Arch installation at the National Museum
CREDIT: Michael Campanella/Getty Images for Brilliant Minds

Dancers Alex Clayton and Lisa Borres, from the Paul Taylor Dance Company, perform a scene from the 1961 work Fibers
CREDIT: Timothy A Clary/AFP/Getty Images

Hot air balloons fly over Cappadocia
CREDIT: Behcet Alkan/Anadolu Agency/Getty Images

Market Closes for June 15^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1910, inspectors from the U.S. Post Office raided the headquarters of the United Wireless Telegraph Co. in New York, arresting its flamboyant president, Col. Christopher Columbus Wilson, and vice president Samuel Bogart, on charges of manipulating the stock price through mail fraud, fleecing the public of more than $20 million—over $365 million in today’s money.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities spiked a five-day losing streak, ending the session higher after the US Federal Reserve announced a 75 basis point rate hike and said that further outsized increases will be rare.
The S&P/TSX Composite rose 0.3% at 19,611.56 in Toronto.
The move was the biggest since rising 0.5% on June 7 and follows the previous session’s decrease of 1%.
Shopify Inc. contributed the most to the index gain, increasing 6.9%.
Bombardier Inc. had the largest increase, rising 18.3%.
On Wednesday, 173 of 239 shares rose, while 61 fell; 9 of 11 sectors were higher, led by financials stocks.
Insights
* This quarter, the index fell 10%, heading for the biggest decline since the first quarter of 2020
* The index declined 3.1% in the past 52 weeks. The MSCI AC Americas Index lost 12% in the same period
* The S&P/TSX Composite is at its 52-week low and 11.7% below its high on April 5, 2022
* The S&P/TSX Composite is down 5.7% in the past 5 days and fell 2.4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15.2 on a trailing basis and 12.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.13t
* 30-day price volatility fell to 20.10% compared with 20.60% in the previous session and the average of 20.38% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 33.7458| 0.5| 20/8
* Information Technology | 28.9393| 2.9| 13/3
* Materials | 17.9032| 0.7| 41/10
* Industrials | 14.6673| 0.7| 24/6
* Consumer Discretionary | 9.6951| 1.6| 14/0
* Real Estate | 6.8586| 1.4| 23/0
* Communication Services | 4.1499| 0.4| 6/1
* Health Care | 2.4887| 3.4| 7/0
* Consumer Staples | 1.1882| 0.2| 10/1
* Utilities | -1.1443| -0.1| 5/10
* Energy | -50.3888| -1.3| 12/21
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | 21.2900| 6.9| 56.5| -75.9
* Brookfield Asset Management | 7.3270| 1.3| -11.5| -22.8
* Canadian National | 7.0090| 1.2| -33.3| -8.5
* Cenovus Energy | -8.8410| -3.6| 16.1| 78.7
* Suncor Energy | -9.7150| -1.9| -15.4| 58.0
* Canadian Natural Resources | -10.4300| -1.7| 118.8| 44.4
US
By Rita Nazareth
(Bloomberg) — Stocks rallied, halting a five-day rout that took 10% off the S&P 500, after Federal Reserve Chair Jerome Powell said outsize rate hikes will be rare as officials intensify their battle against
sky-high inflation.
Treasury yields tumbled alongside the dollar.
Equities pushed higher amid wild swings as the central bank raised rates by 75 basis points — the biggest increase since 1994 — and Powell said officials could move by that much in July or make a smaller
half-point hike.
While “it will take some time” to get inflation back down, the Fed chief is confident that “we will do that.”
His remarks sent two-year Treasury yields sinking as much as 24 basis points.
“The Fed nailed it,” said Ronald Temple, co-head of multi-asset and head of US equity at Lazard Asset Management.
“The Fed demonstrated its resolve to tame inflation without undermining its employment mandate. While some spectators argued for an even steeper hike, the Fed understood that the combination of rate hikes and QT already takes the US into uncharted territory with significant risks to growth,” he said, referring to quantitative tightening.
Powell and his colleagues on Wednesday intensified their effort to cool prices by lifting the target range for the federal funds rate to 1.5% to 1.75%.
Officials projected raising it to 3.4% by year-end, implying another 175 basis points of tightening this year.
The Fed also reiterated it will shrink its massive balance sheet by $47.5 billion a month — a move that took effect June 1 — stepping up to $95 billion in September.
Barclays Plc, which was among the first major banks to shift its Fed prediction for June to a 75-basis-point hike, said it anticipates the central bank will return to hiking at a 50-basis-point pace in July. Meantime, T. Rowe Price Group Inc., manager of $1.4 trillion in assets, said investors should buy bonds now because it’s the “most attractive point” in years.
More comments:
* “This indicates some confidence in what the Fed is doing,” said Kathy Jones, chief fixed-income strategist at the Schwab Center for Financial Research. “The Fed should see a flatter yield curve when it raises rates, unless there’s fear that they’re not going to get inflation under control or they haven’t reached a critical point where they can do that.”
* “With inflation not letting up, it’s become pretty clear that the Fed needs to take a more aggressive approach,” said Mike Loewengart at E*TRADE from Morgan Stanley. “Keep in mind that as we go through a changing monetary policy landscape, we’ll likely continue to see volatility as the market digests the new norm.  Sticking to your investment strategy during waves of volatility is a solid course of action — aka don’t panic.”
* “The Fed needed to prove once again it was serious about fighting inflation,” said Barry Gilbert, asset allocation strategist for LPL Financial. “The more aggressive stance can still be consistent with a softish landing for the economy, but the path is getting narrower.”
The Fed’s so-called dot plot, which the US central bank uses to signal its outlook for the path of interest rates, shows the median year-end projection for the federal funds rate moved up to 3.4%.
The estimate for the end of 2023 was boosted to near 3.8%.
Key events this week:
* Bank of England rate decision, Thursday.
* US housing starts, initial jobless claims, Thursday.
* Bank of Japan policy decision, Friday.
* Eurozone CPI, Friday.
* US Conference Board leading index, industrial production, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.5% as of 4 p.m. New York time
* The Nasdaq 100 rose 2.5%
* The Dow Jones Industrial Average rose 1%
* The MSCI World index rose 1.3%
Currencies
* The Bloomberg Dollar Spot Index fell 0.9%
* The euro rose 0.4% to $1.0458
* The British pound rose 1.6% to $1.2189
* The Japanese yen rose 1.3% to 133.73 per dollar
Bonds
* The yield on 10-year Treasuries declined 17 basis points to 3.31%
* Germany’s 10-year yield declined 11 basis points to 1.64%
* Britain’s 10-year yield declined 12 basis points to 2.47%
Commodities
* West Texas Intermediate crude fell 2.6% to $115.78 a barrel
* Gold futures rose 1.2% to $1,835.30 an ounce
–With assistance from Andreea Papuc, Robert Brand, Cecile Gutscher, Vildana Hajric, Elaine Chen, Isabelle Lee and Peyton Forte.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

I am still learning.
-Michelangelo’s motto.

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