March 28, 2024, Newsletter

Dear Friends,

Tangents: Happy Friday

March 28, 1854: Great Britain and France declare war on Russia, expanding the Crimean War.
On March 28, 1979, America’s worst commercial nuclear accident occurred inside the Unit Two reactor at the Three Mile Island plant near Middletown, Pa.  Go to article.

Monsters aren’t real, kid. Let me show you …
A babysitter in Kansas was trying to reassure the child in her care that there was no monster under the bed. So, she bent down to look — and came face-to-face with an intruder.

Human sacrifices found in a Bronze Age tomb in Turkey were mostly teenage girls
Archaeologists are unsure why unrelated teenagers were buried in an elaborate Bronze Age tomb but think their age may be a clue. Read More.

James Webb telescope captures auroras on Neptune for first time ever
The James Webb Space Telescope has successfully detected auroras on Neptune for the first time ever, finishing a job that NASA’s Voyager 2 probe began decades ago. Read More.

New cells discovered in eye could help restore vision, scientists say
A new study suggests that never-seen-before stem cells in the human retina can restore vision in mice with a common eye disorder. But more work is needed to
translate the treatment to people. Read More.

Current AI models a ‘dead end’ for human-level intelligence, scientists agree
In a new survey, 76% of scientists said that scaling large language models was “unlikely” or “very unlikely” to achieve AGI. Read More.

Giant, fungus-like organism may be a completely unknown branch of life
An ancient and enormous organism called Prototaxites, initially found to be a type of fungus, may actually be an unknown branch of life, researchers say. Read More.

PHOTOS OF THE DAY

Seoul, South Korea
A worker adjusts colourful lanterns during preparations for Buddha’s birthday celebrations on 5 May at Jogye temple
Photograph: Lee Jin-man/AP

Nuuk, Greenland
The lights from residential housing blocks illuminate snowdrifts
Photograph: Leon Neal/Getty Images

​​​​​​​Bridport, UK
A man walks his dog near the art trail Stampede by the Sea in West Bay. The trail showcases 30 striking and colourful elephants, designed and painted by local artists. The exhibition will conclude with an auction of the artwork raising funds for Weldmar Hospicecare charity
Photograph: Finnbarr Webster/Getty Images
Market Closes for March 28^th, 2025

International Markets

Bonds

Currencies

Commodities

Market Commentary:
One of the lessons of history is that nothing is often a good thing to do and always a clever thing to say. -Will Durant.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 1.6% at 24,759.15 in Toronto.
The move was the biggest since falling 1.7% on March 4 and follows the previous session’s little change.
Today, financials stocks led the market lower, as 10 of 11 sectors lost; 167 of 218 shares fell, while 47 rose.
Shopify Inc. contributed the most to the index decline, decreasing 5.7%.
Aya Gold & Silver Inc. had the largest drop, falling 15.8%.
Insights
* In the past year, the index had a similar or greater loss five times. The next day, it declined three times for an average 1.3% and advanced twice for an average 1%
* This quarter, the index was little changed
* This month, the index fell 2.5%
* So far this week, the index fell 0.8%
* The index advanced 12% in the past 52 weeks. The MSCI AC Americas Index gained 5.9% in the same period
* The S&P/TSX Composite is 4.3% below its 52-week high on Jan. 30, 2025 and 15.3% above its low on June 17, 2024
* S&P/TSX Composite is trading at a price-to-earnings ratio of 18.6 on a trailing basis and 15.4 times estimated earnings of\ its members for the coming year
* The index’s dividend yield is 2.9% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$4.06t
* 30-day price volatility rose to 15.95% compared with 15.43% in the previous session and the average of 14.46% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -131.9645| -1.6| 6/19
Information Technology| -94.8325| -3.9| 0/10
Industrials | -68.0591| -2.2| 1/27
Materials | -56.7161| -1.7| 7/42
Energy | -28.5129| -0.7| 10/31
Consumer Discretionary| -15.7391| -2.0| 2/8
Real Estate | -3.6619| -0.8| 4/14
Communication Services| -3.1555| -0.5| 2/3
Health Care | -0.9399| -1.4| 2/2
Consumer Staples | -0.4763| -0.1| 6/4
Utilities | 2.1240| 0.2| 7/7
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | -71.4000| -5.7| -17.7| -9.6
RBC | -36.3300| -2.2| 12.3| -7.4
Brookfield Corp | -32.9100| -4.2| -13.5| -10.2
Emera | 2.2640| 1.8| 14.8| 12.3
Fortis | 2.7680| 1.2| -8.3| 8.5
Dollarama | 3.1900| 1.1| -14.1| 8.1
US
By Rita Nazareth
(Bloomberg) — Stocks got hammered, bonds climbed and gold hit a record high, following signs of weakness in the main engine of the US economy and worries that inflation could gain further traction amid a trade war.
With just one more session left before the end of a quarter that’s set to be the S&P 500’s worst since 2022, the gauge fell 2%.
Data showed a plunge in US consumer sentiment and a surge in long-term inflation expectations.
That was after another report underscored tepid spending and a pick-up in prices ahead of next week’s big US tariff rollout.
A gauge of tech mega caps slumped 3.5%.
The yield on 10-year Treasuries sank 10 basis points to 4.26%.
To Bret Kenwell at eToro, the biggest worry is that inflation will remain elevated amid a notable slowdown in the economy.
“And while that risk may not be the base case right now, any traction it gains could further weigh on investor sentiment,” he said. “But unless there’s a larger deterioration in the economy, it’s too soon to jump on the stagflation train.”
The Nasdaq Composite Index lost 2.7%, notching a drop of at least 2% in March for the fifth time — the most for a single month since the bear market in June 2022, according to Bespoke Investment Group.
The Dow Jones Industrial Average slipped 1.7%.
All mega caps sank, with Amazon.com Inc. and Alphabet Inc. sinking over 4%.
Lululemon Athletica Inc. tumbled 14% on a gloomy outlook.
Wall Street’s “fear gauge” – the VIX – topped 21.
The dollar fell 0.1%.
Bitcoin tumbled about 4%.
As President Donald Trump’s tariff policy expands, consumers are growing more worried that the added duties will drive up prices.
A prolonged rise in costs could prompt households to cut back on discretionary spending, which has implications for broader economy — and Corporate America.
“Today’s data has the general pattern of what many observers will be looking for in the months ahead as new tariffs and other policy change begin to bite: weaker-than-expected spending and stronger-than-expected inflation,” according to David Alcaly at Lazard Asset Management.
While it’s premature to be drawing judgments, seeing this pattern in hard data could feed apprehension before next week’s announcements, Alcaly added.
“When you don’t know what’s coming, it’s harder to plan,” said Jim Baird at Plante Moran Financial Advisors.
“In the face of growing uncertainty, consumers are left with tough decisions. For now, inflation has re-emerged as a significant – and growing – concern.”
Economists dialed back their expectations for US growth this year, envisioning softer consumer spending and more limited capital investment amid mounting uncertainty created by the ever-evolving trade policy, according to the latest Bloomberg survey of economists.
US stock funds suffered their largest weekly outflow this year, while inflows continued to pour into European equities, Bank of America Corp. said, citing EPFR Global data.
“Looking ahead, the market’s recovery is expected to be turbulent, with volatility persisting until policy uncertainty clears,” said Mark Hackett at Nationwide.
“However, April has historically provided a seasonal tailwind – whether that holds true this year remains to be seen given the current environment.”
Hackett noted that investor sentiment has reached extreme levels, which often serves as a contrarian signal.
Historically, when sentiment has been this stretched, the S&P 500 has posted strong gains over the following six and 12 months, he said.
“All in all, investors should stay patient for now,” Hackett concluded.
UBS Global Wealth Management’s David Lefkowitz lowered his S&P 500 year-end target to 6,400 from 6,600 to account for recent economic turbulence, but he sees stocks reversing course and rising into the end of 2025.
“We still believe that US stocks can recover and post gains for the year,” he said in a Friday note to clients.

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 2.6%
* The Dow Jones Industrial Average fell 1.7%
* The MSCI World Index fell 1.7%
* The Nasdaq Composite fell 2.7%
* Bloomberg Magnificent 7 Total Return Index fell 3.5%
* The Russell 2000 Index fell 2.1%
Currencies
* The Bloomberg Dollar Spot Index fell 0.1%
* The euro rose 0.2% to $1.0826
* The British pound was little changed at $1.2945
* The Japanese yen rose 0.9% to 149.75 per dollar
* The Canadian dollar was little changed at 1.4316
Cryptocurrencies
* Bitcoin fell 4.1% to $83,733.65
* Ether fell 6.7% to $1,872.77
Bonds
* The yield on 10-year Treasuries declined 10 basis points to 4.26%
* Germany’s 10-year yield declined five basis points to 2.73%
* Britain’s 10-year yield declined nine basis points to 4.69%
Commodities
* West Texas Intermediate crude fell 1.2% to $69.11 a barrel
* Spot gold rose 0.8% to $3,081.23 an ounce

–With assistance from Margaryta Kirakosian and Lynn Thomasson.

Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann
No person has was ever honored for what he received.  Honor has been the reward for what he gave. -Calvin Coolidge, 1872-1933.

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 (Text Only)
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com