June 16th, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.
On June 16, 1933, President Roosevelt opened his New Deal recovery program, signing bank, rail, and industry bills and initiating farm aid.  Go to article »

Five guys take the same photo for 40 years.  This group of friends took pictures in the same pose from 1982 to 2022. Check out their cool tradition!

‘Floating’ airplane cabin could be the future of travel.  A futuristic cabin concept with “floating furniture” recently won a prestigious aviation award. 

A first look at Ryan Gosling in ‘Barbie’ has sent the internet into a frenzy.  Who could play a better tanned and toned Ken doll than Ryan Gosling? (That’s a trick question… there is literally no one more perfect for this role.) 
China says it may have received signals from aliens:  China is claiming that its enormous “Sky Eye” telescope may have picked up trace signals from a distant alien civilization, according to a recently posted and subsequently deleted report by Chinese scientists.  Astronomers at Beijing Normal University have discovered “several cases of possible technological traces and extraterrestrial civilizations from outside the Earth,” according to a report published Tuesday (June 14) in Science and Technology Daily, the official newspaper of China’s Ministry of Science and Technology. Full Story: Live Science (6/15) 

$17 billion shipwreck near Colombia is remarkably preserved, new photos reveal: New images of one of the world’s most valuable shipwrecks show its remarkable preservation on the seafloor off the coast of Colombia — while the search has revealed two more historic shipwrecks in the same area.  The latest photographs and video of the wreck of the San José treasure galleon were released by the Colombian navy on June 6.  Full Story: Live Science (6/16) 

PHOTOS OF THE DAY

Members of the Joycestagers during their reenactment from the ‘Hades’ chapter of Ulysses at Glasnevin Cemetery, as part of the annual Bloomsday celebrations. Bloomsday is a celebration of the life of Irish writer James Joyce, observed annually worldwide on June 16, the day his 1922 novel Ulysses takes place in 1904, the date of his first outing with his wife-to-be Nora Barnacle. The day is named after its protagonist Leopold Bloom
CREDIT: Brian Lawless/PA

Visitors wearing lavish hat creations at attend Ladies Day at Royal Ascot, in Berkshire. Royal Ascot is Britain’s most lucrative horse race event
CREDIT: Andy Rain/EPA

Visitors gather around colourful hydrangeas at the Taishofu Tenmangu Shrine in Fukuoka prefecture. Hydrangeas are symbolic flowers of the hot and humid rainy season
CREDIT: Jiji Press/EPA

Market Closes for June 16^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1812, the State of New York chartered a new institution called City Bank of New York, capitalized at $2 million, with $800,000 already raised. Today it is the global behemoth called Citigroup.
Canada
By Stefanie Marotta
(Bloomberg) — Canadian equities plunged to their biggest drop since June 2020, hitting their lowest point in 14 months as concerns mount that a recession is coming.
The S&P/TSX Composite fell 3.1% at 19,004.06 in Toronto.
Today, energy stocks led the market lower, as all sectors lost; 207 of 239 shares fell, while 30 rose.
Toronto-Dominion Bank contributed the most to the index decline, decreasing 3.4%.
Cargo jet Inc. had the largest drop, falling 19.3%.
Insights
* This quarter, the index fell 13%, heading for the biggest decline since the first quarter of 2020
* So far this week, the index fell 6.3%, heading for the biggest decline since the week ended March 20
* The index declined 6.1% in the past 52 weeks. The MSCI AC Americas Index lost 15% in the same period
* The S&P/TSX Composite is at its 52-week low and 14.4% below its high on April 5, 2022
* The S&P/TSX Composite is down 7.6% in the past 5 days and fell 6% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 14.8 on a trailing basis and 11.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.14t
* 30-day price volatility rose to 21.01% compared with 20.10% in the previous session and the average of 20.41% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | -180.6987| -4.8| 0/34
* Financials | -177.3600| -2.9| 1/27
* Industrials | -53.8944| -2.4| 3/27
* Information Technology| -41.6077| -4.1| 2/14
* Communication Services| -36.6432| -3.8| 0/7
* Consumer Discretionary| -27.7930| -4.4| 0/14
* Real Estate | -24.5237| -4.8| 0/23
* Utilities | -21.7477| -2.3| 0/16
* Materials | -18.1659| -0.7| 24/26
* Consumer Staples | -16.2946| -2.1| 0/11
* Health Care | -3.3836| -4.4| 0/8
================================================================
| | | | YTD
|Index Points| | Volume VS | Change
Top Contributors | Move |% Change |20D AVG (%)| (%)
================================================================
* TD Bank | -37.5100| -3.4| 65.0| -11.1
* Brookfield Asset Management | -31.2100| -5.3| -3.3| -26.9
* Enbridge | -28.2800| -3.7| -46.2| 7.2
* LifeWorks Inc | 5.7570| 66.4| 1,924.0| 18.6
* Barrick Gold | 8.1960| 2.7| -40.8| 7.6
* Agnico Eagle Mines | 9.7550| 4.9| 21.7| -0.9
US
By Rita Nazareth
(Bloomberg) — Stocks tumbled around the globe as recession fears resurfaced, with the Federal Reserve struggling to get on top of inflation that has proved more persistent and widespread than officials anticipated.
The S&P 500 closed at its lowest since December 2020, while the tech-heavy Nasdaq 100 sank 4%.
The deal spread on Elon Musk’s proposed takeover of Twitter Inc. widened as the billionaire wasn’t directly asked and didn’t address the issue on whether he’s committed to buying the social-media firm during
a staff meeting.
Homebuilders slid as mortgage rates jumped the most since 1987.
The dollar fell as central banks in Europe stepped up monetary tightening, promising to narrow the gap between rates there and in the US.
Treasuries rebounded from an earlier selloff.
Bitcoin slid below $21,000, heading toward its longest slide in Bloomberg data going back to 2010.
Declaring that it’s essential to tame inflation, Jerome Powell engineered the biggest rate increase since 1994 Wednesday and held out the distinct possibility of another jumbo hike in July.
While the Fed chief sought to soften the blow of the 75-basis-point boost, saying he didn’t expect such moves to be the norm, he tacitly admitted the chance of an economic downturn.
“We’re worrying about growth and where the Fed takes us ultimately,” said Chris Gaffney, president of world markets at TIAA Bank.  “Yesterday everybody said, ‘Oh good, the Fed is doing something aggressive, they’re going to get aggressive, they’ll try to catch up to the inflation curve.’ But now, you’re looking at it and saying, ‘Yeah, but are they chasing something they’re not going to be able to catch?’”
While inflation is “out of control,” the Fed is doing the best it can given its limited tools, Orlando Bravo, co-founder of private-equity firm Thoma Bravo said.
Despite the stock carnage, valuations still have much further to fall, according to Jim Chanos, founder of Chanos & Company LP.
The S&P 500 now implies an 85% chance of a US recession amid fears of a policy error by the Fed, according to JPMorgan Chase & Co.
The warning from quant and derivatives strategists is based on the average 26% decline for the gauge during the past 11 recessions and follows its collapse into a bear market.
One technical indicator of US stocks shows the extent of the recent slump, while offering a whiff of optimism that it will soon come to an end.
The percentage of S&P 500 members that are trading above their 50-day moving average sank below 5% this week, the lowest level since Covid-19 fears battered shares more than two years ago.
Both that selloff and the one that hit markets in late 2018 reversed course shortly after seeing a similar share of stocks dip below the closely watched technical average.

More comments:
* “Our main takeaway from the Fed is hawkish — meaning the Fed is going to accept recession risk to deliver below-trend economic growth,” wrote Dennis DeBusschere, the founder of 22V Research.
* “Concerns are mounting about whether the Fed is headed towards a policy mistake,” said Quincy Krosby, chief equity strategist at LPL Financial.
* “Despite their assurance, it’s unclear to me whether the Fed has the tools they say they do to tamp down prices,” said Jason Brady, chief executive officer at Thornburg Investment Management.
Elsewhere, investors dumped European bonds and the franc rallied after a surprise Swiss rate hike.
The pound rose as the Bank of England raised rates and signaled it’s prepared to unleash larger moves if needed.
Currency options traders are betting the Bank of Japan will deliver a policy surprise this week.

Key events this week:
* 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 fell 3.2% as of 4 p.m. New York time
* The Nasdaq 100 fell 4%
* The Dow Jones Industrial Average fell 2.4%
* The MSCI World index fell 2.3%
Currencies
* The Bloomberg Dollar Spot Index fell 0.8%
* The euro rose 1.1% to $1.0559
* The British pound rose 1.5% to $1.2357
* The Japanese yen rose 1.4% to 132.03 per dollar
Bonds
* The yield on 10-year Treasuries declined five basis points to 3.23%
* Germany’s 10-year yield advanced seven basis points to 1.71%
* Britain’s 10-year yield advanced five basis points to 2.52%
Commodities
* West Texas Intermediate crude rose 1.4% to $116.91 a barrel
* Gold futures rose 2% to $1,855.10 an ounce
–With assistance from Andreea Papuc, Sunil Jagtiani, Srinivasan Sivabalan, Vildana Hajric, Isabelle Lee, Matt Turner and Yiqin Shen.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

It is in our lives and not our words that our religion must be read. –Thomas Jefferson, 1743-1826.

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