May 10, 2017 Newsletter

Dear Friends,

Tangents:

Just returned from one of the annual investment conferences that I attend every year in NYC and came away with many cogent perspectives on current market trends and specific investment ideas from industry leaders, so very worthwhile.
I was able to get to the theatre a couple of evenings and saw the plays Oslo and Sweat, both of which have achieved wide critical acclaim, in fact  Sweat won the Pulitzer prize this year.  It certainly gives a convincing portrayal of the societal dissonance that exists in the US today, especially the dysfunctional working class.  It underscores the themes that led to the election of an a political neophyte and the subsequent political chaos that has ensued – so anathema to what we regard as the American psyche. 
Oslo is disturbing in that it reminds us that the power to change the world is always within reach, but orchestrated by the very few, the powerful political elite, who show their human frailty, ego and vulnerability in this play.   It is the humanity of leaders that handicaps progress in the world – and by that I mean, peace in the world.

May 10, 1534 – Jacques Cartier sights Cape Bonavista after a rapid three week crossing from St-Malo; stopped ten days by ice; then skirts east coast of Newfoundland; his first voyage to Canada under a commission from king François I, “to discover certain islands and lands where it is said that a great quantity of gold and other precious things are to be found”; he had previously sailed with Verrazano to Nova Scotia and Newfoundland in 1524. Bonavista, Newfoundland.

The secret of change is to focus all of your energy, not on fighting the old, but on building the new. –Socrates.

PHOTOS OF THE DAY

Utility poles line a road near the Ariake Sea at high tide in Tara, Saga Prefecture, southwestern Japan. Eugene Hoshiko/AP

Aerial view of Semanggi bridge during sunset in Jakarta, Indonesia. Beawiharta/Reuters
Market Closes for May 10^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed with a gain, boosted by energy companies after new data showed U.S. crude stockpiles fell for a fifth week.
     The S&P/TSX Composite Index added 64 points or 0.4 percent to 15,633.21. Energy stocks rose 1.1 percent as the price of West Texas Intermediate crude jumped 3.3 percent to $47.38 a barrel. Crew Energy Inc. and Spartan Energy Corp. both gained more than 7 percent.
     The materials index also gained, adding 0.8 percent as the price of gold rose with renewed political concerns in the U.S. Iamgold Corp. jumped 8.4 percent after reporting an unexpected profit.
     In other moves:
* Element Fleet Management Corp. rose 8.8 percent after first- quarter operating earnings per share beat estimates
* Sleep Country Canada Holdings Inc. gained 7.3 percent. The mattress retailer reported 11.9 percent same-store sales growth
* TMX Group Ltd. lost 6.7 percent, the most since 2015, after first-quarter earnings missed expectations.
US
By Robert Brand
     (Bloomberg) — U.S. stocks added to all-time highs as oil jumped above $47 a barrel, while the dollar’s rally faltered as markets showed resilience in in the face of Washington political wrangling.
     The S&P 500 Index edged higher, enough to claim a second closing record this week, as markets looked past President Donald Trump’s firing of FBI Director James Comey. Energy shares led gains as crude surged almost 4 percent. The greenback fell for the first drop in three days as Federal Reserve Bank of Dallas President Robert Kaplan cast doubt on the pace of rate hikes. Treasuries slipped, while gold ended the longest run of losses since October. Emerging-market equities rose to the highest in almost two years.
     Investors focused on oil’s rebound and corporate profits that signal the global economy is on firming footing. While Washington focused on the firing’s political implications, the impact on Trump’s policy agenda was deemed largely remote. The turmoil comes as political risks ease in Europe and corporate earnings suggest the global economy is on the mend.
     Read more on Trump’s dismissal of Comey here.
     “All in all, this does not support the view that the U.S. Trumpflation trade faces an easy road ahead of it,” Michael Every, head of financial markets research at Rabobank Group in Hong Kong, wrote in a note. “It underlines that real surprises can pop up out of the box at any time right now.”
     Here’s what investors will be scrutinizing:
* Earnings are expected from companies including Deutsche Telekom AG and Snap Inc. Toyota Motor Corp. and SoftBank Group Corp. posted results after the close of Japanese markets.
* The Bank of England on Thursday publishes its interest-rate decision and quarterly Inflation Report.

      Here are the main moves in markets:
     Stocks
* The S&P 500 rose 0.1 percent to 2,399.64 at 4 p.m. in New York.
* Boeing Co. fell 1.3 percent and Walt Disney Co. lost 2.2, leading the Dow Jones Industrial Average to a 0.2 percent slide.
* The CBOE Volatility Index edged toward 10, near a 24-year low.
* Emerging-market equities rose for a third day, pushing the MSCI index to the highest since June 2015.
* The Stoxx Europe 600 ended higher 0.2 percent, add to its highest close since August 2015.

      Currencies
* The Bloomberg Dollar Spot Index lost 0.1 percent after climbing 0.4 percent Tuesday, amid subdued trading as focus shifted away from the greenback.
* The euro slipped to $1.0867, while the pound was little changed at $1.2931.

      Bonds
* The yield on 10-year Treasury notes rose one basis point to 2.41 percent after a soft auction of the notes.
* Benchmark German yields dropped one basis points to 0.422 percent, while French yields were down two basis points to 0.843 percent.

      Commodities
* Gold futures climbed the most in more than two weeks amid uncertainties fueled by North Korea’s reported plans for a nuclear test. Bullion added 0.2 percent to settle at $1,218.909.00 an ounce, rebounding from five days of declines.
* West Texas oil jumped 3.4 percent to settle at $47.33 a barrel, resuming gains after dropping 1.2 percent on Tuesday.
Have a wonderful evening everyone.

Be magnificent!

I declare out loud to whoever wants to believe me:
I have no word in my mouth
that is not in your heart!
Kabir

As ever,

Carolann

There is a way to look at the past.  Don’t hide from it.
It will not catch you if you don’t repeat it.
                                       -Pearl Bailey, 1918-1990

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,]
Victoria, B.C. V8W 3Y7

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