June 28, 2022 Newsletter

Dear Friends,

Tangents:
1919: Treaty of Versailles, ending WWI and establishing the League of Nations, is signed in France.  Go to article »
1969: Stonewall Riot, start of Gay Liberation movement.

Gilda Radner, comedienne, b.1946
Mel Brooks, actor/director, b. 1926
Peter Paul Rubens, artist, b.1572
Jean-Jacques Rousseau, philosopher, b.1712

Happy 10th birthday, Crispr! You’ve got a bit of maturing to do before you revolutionize the medical world.  — Lisa Jarvis

NASA catches someone auctioning off its moon dust and cockroaches. (h/t Mike Smedley)

30,000 year-old mummified baby mammoth found by Canadian gold miner: The stunningly preserved baby, which measured just 4.5 feet (1.4 meters) long and has much of its hair and skin intact, was described by officials as “the most complete mummified mammoth found in North America.”  Full Story: Live Science (6/28) 

Rare ‘Obi-Wan Kenobi’ star survives death by supernova, returns stronger and brighter: In 2012, a shriveled white star in a nearby galaxy reached the end of its life and exploded in a violent, thermonuclear supernova. Such explosions — known as type 1a supernovas — are a common end for billions of stars in our universe, typically resulting in the utter obliteration of the old star at the heart of the blast.  But this time, something went wrong.
Full Story: Live Science (6/28) 

Surprise solar storm with ‘disruptive potential’ slams into Earth:  Scientists were recently left scratching their heads after a “potentially disruptive” solar storm smashed into Earth without warning.  The surprise solar storm hit Earth just before midnight UTC June 25 and continued throughout most of June 26, according to Spaceweather.com. Scientists classified it as a G1-class storm, which means it was strong enough to create weak power grid fluctuations, cause minor impacts to satellite operation, disrupt the navigational abilities of some migrating animals, and cause unusually strong auroras.  Full Story: Live Science (6/28) 
 

Magnificent ancient mosaic found near Tel Aviv returns home.  Art buffs, this one is for you. Check out this stunning 1,700-year-old mosaic from the late Roman period.

Meet Mr. Happy Face, the ‘World’s Ugliest Dog’.  Some call him ugly, we prefer the word unique! Watch Mr. Happy Face get crowned “World’s Ugliest Dog” here.  

PHOTOS OF THE DAY

Rainbow lorikeets perched on a rail overlooking the ocean as another one drops in to join them, giving them a fright in the process.
CREDIT: Kim Borg/Picfair

‘Little Wren nesting in our backyard makes sure Chippie knows the boundaries! This chipmunk is testing his life limits and the wren is having none of it. She is a feisty little thing’
CREDIT: Susi Ryan/Picfair

Tapestries are installed at Salisbury Cathedral for Grayson Perry’s The Vanity of Small Differences exhibition. The exhibition consists of six monumental tapestries each charting a stage in the ‘class journey’ made by young Tim Rakewell, the protagonist of the exhibition, and including many of the characters, incidents and objects Grayson Perry encountered on journeys through Sunderland, Tunbridge Wells and the Cotswolds for the 2012 Channel 4 television series All in the Best Possible Taste with Grayson Perry
CREDIT: Finnbarr Webster/Getty Images

Market Closes for June 28^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1890, Congress created the first pension in which age was part of eligibility, as any veteran over age 65 became entitled to a monthly payment of between $6 and $12.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.2% at 19,222.74  in Toronto. The move follows the previous session’s increase of 1%.
Shopify Inc. contributed the most to the index decline, decreasing 6.2%. Kinross Gold Corp. had the largest drop, falling 7.0%.
Today, 145 of 239 shares fell, while 94 rose; 8 of 11 sectors were lower, led by materials stocks.
Insights
* This quarter, the index fell 12%, heading for the biggest decline since the first quarter of 2020
* This month, the index fell 7.3%
* The index declined 4.6% in the past 52 weeks. The MSCI AC Americas Index lost 13% in the same period
* The S&P/TSX Composite is 13.5% below its 52-week high on April 5, 2022 and 3% above its low on June 23, 2022
* The S&P/TSX Composite is little changed in the past 5 days and fell 7.4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 15 on a trailing basis and 11.8 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$3.09t
* 30-day price volatility fell to 19.80% compared with 20.38% in the previous session and the average of 20.37% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | -37.1395| -1.6| 7/45
* Information Technology | -29.3912| -2.7| 4/10
* Industrials | -28.2406| -1.2| 10/19
* Consumer Staples | -16.9994| -2.1| 1/10
* Communication Services | -7.7911| -0.8| 3/4
* Consumer Discretionary | -7.1879| -1.1| 2/11
* Health Care | -1.2743| -1.6| 1/6
* Real Estate | -0.9580| -0.2| 10/13
* Financials | 0.1405| 0.0| 11/18
* Utilities | 1.0190| 0.1| 11/5
* Energy | 92.2480| 2.6| 34/4
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | -23.3200| -6.2| -20.9| -74.1
* Canadian National | -12.4800| -2.1| -46.4| -8.0
* Couche-Tard | -11.0000| -3.5| -4.3| 0.7
* Cenovus Energy | 7.9560| 3.7| -6.5| 68.8
* Suncor Energy | 11.3900| 2.6| -25.5| 48.9
* Canadian Natural Resources | 24.5600| 4.5| -32.2| 34.4
US
By Rita Nazareth
(Bloomberg) — A rout in big tech weighed heavily on stocks, with gains in the broader market sputtering as a report showed Americans grew more downbeat about prospects for the economy.
Traders got another reality check Tuesday after a worrisome reading on consumer confidence.
A gauge of expectations – which reflects a six-month outlook — tumbled to an almost decade low.
The figures come at a time when analysts remain bullish about corporate earnings, with net-margin estimates for S&P 500 companies at a record high.
The bleak economic picture pushed the US equity benchmark lower, following gains that topped 1% earlier in the day.
The index hovered near the key Fibonacci 38.2% retracement level of 3,815.
Quarterly rebalancing of portfolios also fueled volatility.
The Nasdaq 100 sank over 3%, dragged down by giants like Amazon.com Inc. and Tesla Inc.
Treasuries and the dollar rose.
For Goldman Sachs Group Inc. strategists, margin forecasts are too optimistic, putting stocks at risk of more losses when Wall Street analysts downgrade their estimates.
Meantime, HSBC Plc’s Max Kettner said equities aren’t still reflecting the impact of a potential recession, with earnings expectations at risk of being revised lower.

“The one thing that we can say with conviction is that high market volatility is likely to persist until there’s clear evidence that inflation is declining and the Fed pivots towards a less hawkish stance, taking the off-ramp away from the
recession destination,” said Jason Draho, head of asset allocation for the Americas at UBS Global Wealth Management.
Federal Reserve officials played down the risk that the US economy will tip into a recession, even as they raise rates, with another 75 basis-point hike on the table next month.
New York Fed President John Williams and San Francisco’s Mary Daly both acknowledged they had to cool inflation, but insisted that a soft landing was still possible.
A key set of rates that the Fed is focusing on to help judge financial conditions is still some way from levels that might prompt officials to halt their tightening plans.
Inflation-adjusted US rates at the shorter end of the curve are still mired below zero even as real rates on longer-tenor securities this month surged to levels unseen since 2019.
It’s tough to see a high probability of any sustained stock rally in the near term, according to Alifia Doriwala, managing director at RockCreek.
She says the market could be in for an even worse third quarter.
The S&P 500 has tumbled more than 15% since the end of March.
“We could see a lot of turbulence during earnings season if companies start revising earnings downward because they are seeing increased margin pressures,” Doriwala told Bloomberg Television.
Elsewhere, oil rose for a third day as global output threats compound already red-hot markets for physical supplies, while the Group of Seven agreed to look into a price cap for Russian crude.
What to watch this week:
* US GDP, Wednesday
* ECB President Christine Lagarde, Federal Reserve Chair Jerome Powell, BOE Governor Andrew Bailey and Cleveland Fed President Loretta Mester due to speak at ECB event, Wednesday
* St. Louis Fed President James Bullard speaks, Wednesday
* China PMI, Thursday
* US personal income, PCE deflator, initial jobless claims, Thursday
* Eurozone CPI, Friday
* US construction spending, ISM Manufacturing, Friday
Some of the main moves in markets:
Stocks
* The S&P 500 fell 2% as of 4 p.m. New York time
* The Nasdaq 100 fell 3.1%
* The Dow Jones Industrial Average fell 1.6%
* The MSCI World index fell 1.3%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.5% to $1.0527
* The British pound fell 0.6% to $1.2190
* The Japanese yen fell 0.5% to 136.20 per dollar
Bonds
* The yield on 10-year Treasuries declined two basis points to 3.18%
* Germany’s 10-year yield advanced eight basis points to 1.63%
* Britain’s 10-year yield advanced seven basis points to 2.46%
Commodities
* West Texas Intermediate crude rose 2% to $111.72 a barrel
* Gold futures fell 0.2% to $1,820.90 an ounce
–With assistance from Andreea Papuc, Abigail Moses, Vildana Hajric, Isabelle Lee, Enrique Roces, Peyton Forte and Sagarika Jaisinghani.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

There are a few times in life when you leap up and the past that you’d been standing on falls away behind you,
and the future you mean to land on is not yet in place, and for a moment you’re suspended,
knowing nothing and no one, not even yourself. -Ann Patchett, b. 1963, The Dutch House.                                                                                  

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