June 8, 2021 Newsletter

Dear Friends,

Tangents:
On June 8, 1968, authorities announced the capture in London of James Earl Ray, the suspected assassin of civil rights leader Martin Luther King Jr. Go to article »

Frank Lloyd Wright, Architect, b. 1867.

Some people have clearer mind’s eyes than others.

A walk in nature is better for mood and focus than micro dosing.

Scientists are learning more about a dinosaur species found in Australia.  It was one of the biggest in the world, measuring as long as a basketball court and as tall as a two-story building.

PHOTOS OF THE DAY

Low clouds hovers over the sea at the Hamlet of Luccombe on the Isle of Wight
CREDIT: JAMIE RUSSELL/ISLANDVISIONS/BNPS

Shepherds and their flock are shrouded in dust as they travel to the plateau for spring in the Tatvan district of Bitlis, Turkey 
CREDIT: SENER TOKAS/ANADOLU AGENCY VIA GETTY IMAGES

A Palestinian man rides his camel after sunset on the shores of the Mediterranean Sea, at the beach in Gaza City
CREDIT: FELIPE DANA/AP

Market Closes for June 8^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     Based on my own personal experience – both as an investor in recent years and an expert witness in years past – rarely do more than three or four variables really count. Everything else is noise. –Martin J. Whitman, 1924-2018, Founder Third Avenue Funds.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities rose Tuesday with Air Canada leading industrials higher, as Prime Minister Justin Trudeau is preparing to ease border restrictions for travelers who have been fully vaccinated against Covid-19, according to people familiar with the discussions. The S&P/TSX Composite Index gained 0.2%, with industrials, real estate, and energy higher. Materials and financials fell. Oil resumed its rally to top $70 a barrel in New York as investors grew more confident that accelerating vaccinations and easing travel restrictions will continue to boost demand.
Commodities
* Western Canadian Select crude oil traded at a $13.80 discount to West Texas Intermediate
* Spot gold fell 0.3% to $1,893.19 an ounce
FX/Bonds
* The Canadian dollar fell 0.2% to C$1.2111 per U.S. dollar
* The 10-year Canada government bond yield fell 2.5 basis points to 1.451%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.2 percent, or 30.62 to 20,065.92 in Toronto. Canadian Pacific Railway Ltd. contributed the most to the index gain, increasing 1.0 percent. Real Matters Inc. had the largest increase, rising 6.8 percent. Today, 125 of 229 shares rose, while 98 fell; 6 of 11 sectors were higher, led by industrials stocks.
Insights
* This quarter, the index rose 7.3 percent
* The index advanced 26 percent in the past 52 weeks. The MSCI AC Americas Index gained 33 percent in the same period
* The S&P/TSX Composite is 0.2 percent below its 52-week high on June 8, 2021 and 34.4 percent above its low on June 15, 2020
* The S&P/TSX Composite is up 0.5 percent in the past 5 days and rose 3 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 23 on a trailing basis and 17 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6 percent 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 little changed to 9.43 percent compared with 9.44 percent in the previous session and the average of 9.48 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Industrials | 19.8943| 0.9| 26/4
* Energy | 15.4053| 0.6| 12/10
* Information Technology | 7.6476| 0.4| 8/3
* Real Estate | 5.0360| 0.8| 20/5
* Health Care | 1.6434| 0.6| 6/4
* Utilities | 0.8792| 0.1| 10/5
* Consumer Discretionary | -0.1292| 0.0| 9/4
* Consumer Staples | -0.2206| 0.0| 5/7
* Communication Services | -0.6994| -0.1| 3/4
* Financials | -5.0606| -0.1| 11/16
* Materials | -13.7735| -0.5| 15/36
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Canadian Pacific | 4.5530| 1.0| -41.1| 10.9
* Cenovus Energy | 4.1850| 4.2| 48.4| 53.8
* Shopify | 4.1830| 0.4| -32.2| 3.5
* Wheaton Precious | | | |
* Metals | -3.2590| -1.8| 57.4| 7.6
* Barrick Gold | -3.4710| -1.0| -7.5| -2.9
* Royal Bank of | | | |
* Canada | -3.4760| -0.3| 14.0| 20.2

US
By Claire Ballentine and Vildana Hajric
(Bloomberg) — U.S. equities closed within a hair’s breadth of a record high and Treasuries rose as investors continued to debate the impact of resurgent inflation on monetary policy. The S&P 500 ended little changed less than 6 points below its May 7 record close after fluctuating between gains and losses throughout the session. The 10-year Treasury yield fell to the lowest in a month, with focus turning toward Thursday’s consumer-price data that may offer clues on how far the Federal Reserve can postpone a tapering of stimulus. Mega cap tech stocks including Amazon.com Inc., Apple Inc. and Alphabet Inc. helped prop up the benchmark index, which has gained 13% in 2021. Biotechs were among the biggest drags on Tuesday, a day after many of them rallied after Biogen Inc. received regulatory approval for its Alzheimer’s disease drug.
Bitcoin slumped to a two-week low, with some analysts pointing to the recovery of Colonial Pipeline Co.’s ransom as evidence that crypto isn’t beyond government control. U.S. equities have traded in a relatively tight range around record highs in recent weeks as investors try to balance the economic recovery and a dovish Fed against inflation concerns, high valuations and disparities in global Covid vaccine rollouts. Volatility has returned to the market ahead of the CPI report and the Fed’s rate decision next Wednesday. “You look across the board and everything is more expensive,” said Brian Walsh, Jr., senior financial adviser at Walsh & Nicholson Financial Group.  “It’s something we’re watching, but the Fed has continued to say they are going to keep interest rates at bay regardless of the inflation data that comes in. You can only take them for their word and I think that’s what investors are doing.” Global equities also are near record highs, and Treasury yields have eased for three successive weeks. That suggests the Fed’s assurances are calming fears of Fed tightening for now.
Yet on Tuesday, traders were exercising caution before the inflation data, pushing the dollar toward its first gain in three days. “The tight trading ranges seen so far this month reflect the cautious mood in the market ahead of the inflation numbers,” said Fiona Cincotta, senior financial markets analyst at City Index. “Whilst the Fed reassures that this spike in inflation is temporary, policy makers will need to be out in their droves to calm the market.  Delaying action or even inaction could cause economic disruption that the markets fear.” West Texas Intermediate crude futures reversed a loss of as much as 1.1% on Tuesday, with investors focused on the health of the U.S. market ahead of inventory data on Wednesday.

The Bloomberg Commodity Index rose to its highest level since 2015.

Here are key events to watch this week:
* U.S. consumer price index on Thursday.
* Apple holds its annual Worldwide Developers Conference through June 11.
* European Central Bank decision on Thursday and press conference with President Christine Lagarde.
* Iran nuclear deal talks reconvene in Vienna Thursday.
* Group of Seven leaders’ summit starts in Cornwall, England Friday.

These are some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4:03 p.m. New York time
* The Nasdaq 100 was little changed
* The Dow Jones Industrial Average was little changed
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%
* The euro fell 0.1% to $1.2174
* The British pound fell 0.2% to $1.4156
* The Japanese yen fell 0.2% to 109.48 per dollar
Bonds
* The yield on 10-year Treasuries declined four basis points to1.53%
* Germany’s 10-year yield declined three basis points to -0.22%
* Britain’s 10-year yield declined four basis points to 0.77%
Commodities
* West Texas Intermediate crude rose 1.4% to $70 a barrel
* Gold futures fell 0.2% to $1,896 an ounce
–With assistance from Srinivasan Sivabalan.

Have a great evening.

Be magnificent!
As ever,

Carolann

It ain’t over till it’s over. –Lawrence Peter Berra “Yogi”, 1925-2015.

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