June 21, 2022 Newsletter

Dear Friends,

Tangents: Happy First Day of Summer!  
And longest day of the year – unfortunately that means they start getting shorter tomorrow.
Litha, Wicca.

On June 20, 1967, boxer Muhammad Ali was convicted in Houston of violating Selective Service laws by refusing to be drafted. The conviction was later overturned by the Supreme Court. Go to article »

Bizarre spiral object found swirling around Milky Way’s center:  As if cracking open a cosmic Russian nesting doll, astronomers have peered into the center of the Milky Way and discovered what appears to be a miniature spiral galaxy, swirling daintily around a single large star.  The star — located about 26,000 light-years from Earth near the dense and dusty galactic center — is about 32 times as massive as the sun and sits within an enormous disk of swirling gas, known as a “protostellar disk.” (The disk itself measures about 4,000 astronomical units wide — or 4,000 times the distance between Earth and the sun).  Full Story: Live Science (6/20) 

Monstrously huge black hole devours an Earth-size chunk of matter every second:  Astronomers have detected the brightest and fastest-growing black hole to have existed in the last 9 billion years. The enormous cosmic entity is 3 billion times more massive than the sun and swallows up an Earth-size chunk of matter every second.  Astronomers have detected the brightest and fastest-growing black hole to have existed in the last 9 billion years. The enormous cosmic entity is 3 billion times more massive than the sun and swallows up an Earth-size chunk of matter every second.  Full Story: Live Science (6/18) 

What sitting in economy on Qantas’ 20-hour flight will be like.  Would you be able to handle a nonstop, 20-hour flight? What if we told you there will be a Wellbeing Zone to stretch your legs? 

PHOTOS OF THE DAY

People play music at sunrise at Stonehenge in Wiltshire. The summer solstice occurs on 21 June. It is the longest day and shortest night of the year in the northern hemisphere
CREDIT: Finnbarr Webster/Getty Images

Students from Cambridge University make their way home after celebrating the end of the academic year at a May ball in Trinity College
CREDIT:  Joe Giddens/PA

The sun sets behind the Statue of Liberty, seen from Brooklyn
CREDIT: Anadolu Agency/Getty Images

Market Closes for June 21^st, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1970, Penn Central, one of the world’s largest and oldest railroad operators, declared bankruptcy when the Federal government refused to guarantee $200 million in emergency loans. Investors—especially banks and holders of the railway’s commercial paper—were caught almost completely by surprise.
CANADA
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.4%, or 73.66 to 19,257.29 in Toronto.
Suncor Energy Inc. contributed the most to the index gain, increasing 2.9%.
Vermilion Energy Inc. had the largest increase, rising 6.3%.
Today, 170 of 239 shares rose, while 66 fell; 8 of 11 sectors were higher, led by energy stocks.
Insights
* This quarter, the index fell 12%, heading for the biggest  decline since the first quarter of 2020
* This month, the index fell 7.1%
* The index declined 4.5% in the past 52 weeks. The MSCI AC Americas Index lost 13% in the same period
* The S&P/TSX Composite is 13.3% below its 52-week high on April 5, 2022 and 2.5% above its low on June 17, 2022
* The S&P/TSX Composite is down 1.5% in the past 5 days and fell 4.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15 on a trailing basis and 11.9 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$3.08t
* 30-day price volatility little changed to 19.66% compared with 19.64% in the previous session and the average of 20.47% over the past month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 60.6405| 1.7| 37/1
* Materials | 11.0594| 0.5| 36/14
* Financials | 6.6626| 0.1| 21/7
* Real Estate | 3.6235| 0.7| 22/1
* Information Technology | 3.0615| 0.3| 8/6
* Industrials | 1.7356| 0.1| 17/12
* Consumer Discretionary | 1.1600| 0.2| 8/5
* Utilities | 0.7228| 0.1| 11/5
* Consumer Staples | -0.4133| -0.1| 5/6
* Health Care | -0.5848| -0.8| 4/3
* Communication Services | -6.6032| -0.7| 1/6
================================================================
| | |Volume VS| YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move|% Change | (%) | (%)
================================================================
* Suncor Energy | 13.2300| 2.9| -0.4| 52.0
* Canadian Natural Resources | 10.4900| 1.9| 44.2| 32.8
* Enbridge | 9.0650| 1.2| -53.7| 8.5
* Brookfield Asset Management | -2.4130| -0.4| -27.5| -25.9
* Barrick Gold | -3.7960| -1.2| 40.2| 5.2
* Rogers Communications | -3.9800| -2.6| -23.4| 1.0
US
By Enrique Roces Gonzalez and Isabelle Lee
(Bloomberg) — US equities rebounded Tuesday after last week’s rout erased nearly $2 trillion from the S&P 500.
Treasuries retreated.
The S&P 500 added 2.4%, led by energy and consumer discretionary shares, while the tech-heavy Nasdaq 100 surged 2.5% following the long weekend.
Revlon Inc. gained 62% in the wake of its Chapter 11 bankruptcy filing, Kellogg Co. was up 2.0% after plans to separate into three companies, and a basket of the most-shorted stocks rose 2.7%.
The drop in Treasuries took the benchmark 10-year yield back to 3.3%.
Sentiment this week is being helped by comments from President Joe Biden that a US recession isn’t “inevitable,” but the outlook remains parlous for investors weighing whether the market has bottomed. History suggests bear markets usually take time to find a floor, especially when they are accompanied by a recession, as happened in 2008’s financial crisis.
Richmond Federal Reserve President Thomas Barkin said the US central bank should raise interest rates as fast as feasible in order to quell rampant inflation.
“We could likely skirt recession, almost touch it but not quite, because we think that the Federal Reserve has become much more sensitive to the effects of their actions on the economy, both in terms of employment and in terms of stability,” John Stoltzfus, chief investment strategist at Oppenheimer, said in an interview. “We’re not out of the woods yet, but we think we’re walking in the right direction.”
After unexpectedly accelerating to a fresh 40-year high in May, US consumer price growth is seen slowing, with a Bloomberg survey of economists predicting 6.5% by the fourth quarter and to 3.5% by the middle of next year.
Yet fears are increasing that Fed policy makers intent on cooling price pressures will go too far and trigger an economic slowdown.
Strategists at Morgan Stanley and Goldman Sachs Group Inc. warned equities may have further to fall to fully price in the risk of recession, reflecting wider skepticism about Tuesday’s rebound.
“Central banks are facing a growth-inflation trade-off.  Hiking interest rates too much risks triggering a recession, while not tightening enough risks causing unanchored inflation expectations,” strategists at BlackRock Investment Institute including Jean Boivin said in a note. “It’s tough to see a perfect outcome.”
Crude oil gained.
Bitcoin scaled $20,000 as cryptocurrencies got a reprieve from recent turbulence.
The dollar was little changed and the yen hovered near a 24-year low, sapped by the contrast between a super-dovish Bank of Japan and a hawkish Fed.
European stocks gained for a second day, with chemicals and automakers leading the advance in the benchmark Stoxx 600 Index.
What to watch this week:
* Fed Chair Jerome Powell semi-annual Senate testimony, Wednesday
* Bank of Japan April minutes, Wednesday
* Powell US House testimony, Thursday
* US initial jobless claims, Thursday
* PMIs for Eurozone, France, Germany, UK, Australia, Thursday
* ECB economic bulletin, Thursday
* US University of Michigan consumer sentiment, Friday
* RBA’s Lowe speaks on panel, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 rose 2.4% as of 4:02 p.m. New York time
* The Nasdaq 100 rose 2.5%
* The Dow Jones Industrial Average rose 2.2%
* The MSCI World index rose 1.8%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro rose 0.2% to $1.0529
* The British pound rose 0.1% to $1.2267
* The Japanese yen fell 1.2% to 136.67 per dollar
Bonds
* The yield on 10-year Treasuries advanced eight basis points to 3.30%
* Germany’s 10-year yield advanced two basis points to 1.77%
* Britain’s 10-year yield advanced five basis points to 2.65%
Commodities
* West Texas Intermediate crude rose 1% to $110.65 a barrel
* Gold futures fell 0.4% to $1,832.50 an ounce
–With assistance from Vildana Hajric, Cecile Gutscher, Robert Brand, Michael Msika, Denitsa Tsekova, Tugce Ozsoy and Andreea Papuc.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Let us not look back in anger, nor forward in fear, but around in awareness. –James Grover Thurber,  1894-1961.

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