May 10, 2021 Newsletter

Dear Friends,

Tangents:
May 10, 1994~Nelson Mandela inauguration
Fred Astaire, dancer, b.1899
1924 J. Edgar Hoover was appointed director of the federal Bureau of Investigation – the forerunner of the FBI – a job he held until his death in 1972.  Go to article »
1940~Winston Churchill succeeds Neville Chamberlain as British Prime Minister.

A really big yacht. 

Animals laugh. 

Erwin Beerens bought his first Bugatti in 1983. Everything about the car intoxicated him, from the hue of the enamel to the roar of the eight cylinders. Beerens has owned 11 cars from the 112-year-old French brand, including a 1,200-horsepower, $1.1 million Veyron from 2007 and an original Bugatti Type 52. But his latest acquisition is less powerful than the others, and a bit smaller. Yes, we know what you’re thinking. 
PHOTOS OF THE DAY

This picture provided and painted by Bob Dylan in 2020 is called “New York Subways”
CREDIT: BOB DYLAN VIA AP

A moody sky looms over a lone oak tree surrounded by a sheet of yellow rapeseed blossom in a feel just outside the village of Woolley, near Wakefield, West Yorkshire
CREDIT: MARK COSGROVE/NEWS IMAGES

A Himalayan griffon walks towards the photographer, with the feathers on its back seeming to form a huge face
CREDIT: HUSEIN LATIF/SPLITPICS UK

Market Closes for May 10^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1928, the no-load mutual fund was born as Scudder, Stevens & Clark of Boston launched its First Investment Counsel Corp. (later known as Scudder Income Fund), the first fund that did not charge a sales commission
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian stocks fell after health care and tech companies underperformed on Monday. The S&P/TSX Composite index fell 0.6% in Toronto. Health care sector was the worst performer, led by pot stocks. Consumer staples sector was the best performer, led by grocery stocks. Within the M&A front, Trulieve Cannabis to buy Harvest Harvest Health & Recreation for about C$2.1 billion in shares. Meanwhile, Air Canada was upgraded to buy from hold at TD, who says valuation is attractive when considering earnings potential in 2023 and beyond.
Commodities
* Western Canadian Select crude oil traded at about a $13.40 discount to West Texas Intermediate
* Spot gold rose 0.4% to $1,838.26 an ounce
FX/Bonds
* The Canadian dollar rose 0.3% to C$1.2193 per U.S. dollar
* The 10-year Canada government bond yield rose slightly to 1.511%

By Bloomberg Automation:
     (Bloomberg) — The S&P/TSX Composite fell 0.6 percent at 19,361.88 in Toronto. The move was the biggest since falling 0.8 percent on April 30 and follows the previous session’s increase of 0.9 percent. Shopify Inc. contributed the most to the index decline, decreasing 3.1 percent. Village Farms International Inc. had the largest drop, falling 25.1 percent. Today, 150 of 229 shares fell, while 76 rose; 8 of 11 sectors were lower, led by information technology stocks.
Insights
* The index advanced 29 percent in the past 52 weeks. The MSCI AC Americas Index gained 45 percent in the same period
* The S&P/TSX Composite is 0.9 percent below its 52-week high on May 10, 2021 and 36.5 percent above its low on May 14, 2020
* The S&P/TSX Composite is up 0.8 percent in the past 5 days and rose 0.7 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 24.5 on a trailing basis and 17.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.7 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.05t
* 30-day price volatility rose to 9.17 percent compared with 8.97 percent in the previous session and the average of 8.77 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | -52.7318| -3.0| 0/11
* Materials | -27.4205| -1.1| 11/41
* Health Care | -10.8052| -4.2| 1/9
* Consumer Discretionary | -9.4509| -1.2| 3/10
* Energy | -8.1739| -0.3| 8/15
* Industrials | -6.4859| -0.3| 11/19
* Financials | -4.8153| -0.1| 13/13
* Real Estate | -2.5727| -0.4| 12/13
* Utilities | 0.2546| 0.0| 7/9
* Communication Services | 4.7854| 0.5| 4/3
* Consumer Staples | 6.5598| 0.9| 6/7

US
By Claire Ballentine and Vildana Hajric
(Bloomberg) — Technology shares led U.S. stocks lower as surging commodity prices stoked concern about whether inflation will derail a growth rebound in the world’s largest economy and spoil a record stock rally. The tech-heavy Nasdaq 100 Index tumbled 2.6% amid the growing anxiety over inflation, which can threaten  longer-horizon revenues typical of the sector. Tesla and Apple were among the biggest decliners.  The ARK Innovation ETF resumed its slide. The Dow Jones Industrial Average briefly topped 35,000 for the first time. The benchmark S&P 500 fell from an all-time high. Treasury yields edged higher as traders brace for a busy week of auctions. “Amid these new highs remember that the market doesn’t move only in one direction,” said Chris Larkin, managing director of trading and investing product at E*Trade Financial. “While a full economic recovery may already be priced into the market, the weak employment data could have temporarily eased worries about too-hot inflation and the necessity of interest rate hikes to combat it.” Copper jumped to a record while iron ore futures surged more than 10%, adding to concern about inflation. West Texas Intermediate fluctuated after a cyberattack forced the closure of a key U.S. pipeline, which operators hope to reopen by the end of the week.
Meanwhile, the pound climbed to its highest level since February after U.K. elections denied Scotland’s main independence party an outright majority and strengthened the grip of the Conservatives. The run-up in raw materials is intensifying debate ahead of a U.S. CPI report Wednesday that is forecast to show price pressures increased in April. The data will be closely watched by policy makers at the Federal Reserve trying to gauge the speed of the recovery after job growth significantly undershot forecasts. “People have been gravitating to value — now you can find growth outside of tech,” said Keith Lerner, chief market strategist at Truist Advisory Services. “As inflation expectations continue to move higher, that’s more beneficial for the value side of the trade.”

Here are some key events to watch this week:
* A range of Fed speakers are due this week, including Governor Lael Brainard on Tuesday, among others
* Chinese inflation data are due Tuesday
* OPEC monthly Oil Market Report is published with global demand forecasts and production estimates Tuesday
* U.S. CPI report Wednesday is forecast to show prices continued to increase in April
* Bank of England Governor Andrew Bailey speaks Wednesday

These are some of the main moves in markets:
Stocks
* The S&P 500 fell 1%, more than any closing loss since March 18 as of 4:01 p.m. New York time
* The Nasdaq 100 fell 2.6%, more than any closing loss since March 18
* The Dow Jones Industrial Average fell 0.1%, more than any closing loss since April 30
* The MSCI World index fell 0.6%, more than any closing loss since May 4
Currencies
* The Bloomberg Dollar Spot Index fell 0%, falling for the fourth straight day, the longest losing streak since April 19
* The euro fell 0.2% to $1.2142
* The British pound surged 1.1%, more than any closing gain since April 19
* The Japanese yen fell 0.1% to 108.76 per dollar
Bonds
* The yield on 10-year Treasuries advanced two basis points, more than any closing gain since April 29
* Germany’s 10-year yield advanced zero basis points, climbing
for the fourth straight day, the longest winning streak since April 29
* Britain’s 10-year yield advanced one basis point to 0.79%
Commodities
* West Texas Intermediate crude fell 0.1% to $65 a barrel
* Gold futures rose 0.4%, climbing for the fourth straight day, the longest winning streak since Feb. 10
–With assistance from Nancy Moran.
Have a wonderful evening.

Be magnificent!

As ever,

Carolann

When I was thirteen, I had an inspiring teacher of religion who one day went right through the class of boys asking each one, “what do you want to be remembered for?” 
None of us, of course, could give an answer…I’m always asking that question: “What to you want to be remembered for?”  It is a question that induces you to renew yourself,
because it pushes you to see yourself as a different person – the person you can become.  If you are fortunate, someone with moral authority will ask you that question
early enough in your life so that you will continue to ask it as you go though life. –Peter Drucker, 1909-2005.

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