May 14, 2015 Newsletter

Dear Friends,

Tangents:

PHOTOS OF THE DAY

Visitors watch ‘Skuls’, Lego sculptures by US artist Nathan Sawaya presented during an exhibition The Art of the Brick, in Paris, France, Thursday. The exhibition is created with Lego bricks and runs until Aug. 30. Christophe Ena/AP

The pack of riders competes during the sixth stage of the 98th Tour of Italy cycling race from Montecatini Terme to Castiglione della Pescaia, Italy, Thursday. Lotto Soudal rider Andre Greipel of Germany won the stage while Tinkoff Saxo rider Alberto Contador of Spain retained the leader’s pink jersey. Fabio Ferrari/Reuters

Market Closes for May 14^th, 2015

International Markets

Bonds

Currencies

Commodities

I WOULD RATHER BE POSITIONED AS A PETRIFIED BULL RATHER THAN A PENNILESS BEAR. –JOHN L. PERSON.

Market Commentary:

Canada

By Eric Lam

     (Bloomberg) — Canadian stocks rose, snapping a three-day slide, as consumer shares rallied and raw-materials producers climbed after precious metals extended a rally.

     DHX Media Ltd. jumped 11 percent after reporting third- quarter earnings and sales that topped analysts’ estimates. Silver Standard Resources Inc. added 4.8 percent, while OceanaGold Corp. climbed 4.4 percent to its highest since September after gold hit a 12-week high.

     The Standard & Poor’s/TSX Composite Index rose 47.40 points, or 0.3 percent, to 15,028.12 at 4 p.m. in Toronto. The index had dropped 1.3 percent in the prior three days to the lowest since April 1.

     Alimentation Couche-Tard Inc. rallied 3.1 percent to lead a gain in the consumer staples group. Eight of 10 industries in the S&P/TSX advanced on trading volume 6.2 percent higher than the 30-day average.

     Gold for June delivery added 0.6 percent to $1,225.20 an ounce, the highest level since Feb. 17. Silver climbed to the most expensive since Feb. 4. The metals rallied as the dollar fell to a January low against a basket of 10 currencies, boosting demand for the precious metals as alternative investments.

     Canadian Tire added 1.3 percent after the retailer reported earnings in line with analysts’ estimates. DHX, a television programming producer, surged 11 percent, the most since Nov. 2013. The company’s third-quarter revenue almost tripled to C$85.6 million from C$29 million a year ago.

US

By Stephen Kirkland and Jeremy Herron

     (Bloomberg) — U.S. stocks rose for the first time this week, with the Standard & Poor’s 500 Index topping its closing record, as a weaker dollar boosted multinational companies and a bond-market selloff showed signs of easing.

     The Standard & Poor’s 500 Index increased 1 percent at 3:03 p.m. in New York. The gauge has climbed 1.8 percent since falling to a one-month low May 6. Apple Inc. and Microsoft Corp. jumped more than 2 percent. The Bloomberg Dollar Spot Index retreated 0.3 percent, headed for a fifth weekly decline. The yield on 10-year Treasuries fell five basis points to 2.24 percent while German bund rates slipped two basis points. Gold rose to the highest since February.

     The Bloomberg dollar gauge has retreated from its highest level in data back to 2005 as economic reports undermine prospects for higher borrowing costs. An unexpected drop in wholesale prices fueled doubt about whether inflation is high enough to warrant a rate increase. Declines in the currency have generally boosted shares of the biggest U.S. companies on speculation they make American products more attractive.

     “The dollar’s getting a little bit weaker and the bond market is actually rallying a bit as opposed to what’s been happening,” Mark Kepner, an equity trader at Themis Trading LLC, in Chatham, New Jersey, said via phone. “The jobless claims numbers were also good and continue to show the job market is getting better, while PPI numbers didn’t show any worries about inflation.”                        

     The S&P 500’s record was its first since April 24. The gauge fell as much as 1.8 percent through May 6, amid concern the Fed would raise interest rates even with worsening economic data. Stocks have whipsawed between gains and losses in the past six weeks as investors weigh whether a first-quarter slowdown in growth was temporary. It is 0.2 percent higher this week.

     Data Thursday showed fewer Americans than forecast filed for unemployment benefits last week. A report yesterday indicated retail sales stagnated after data Friday showed better-than-forecast hiring.

     The Dow Jones Industrial Average jumped 1 percent, as all but one of its 30 members gained. All but one of the 10 main S&P 500 industries advanced Thursday, with technology shares rallying a second day.

     The dollar had climbed nine straight months through March on speculation the first hike in almost a decade was looming. The greenback weakened to $1.1402 per euro, after dropping 1.2 percent Wednesday. The euro briefly trimmed advances after Mario Draghi said the European Central Bank will implement its bond- buying program “in full.”

     Yields on 30-year Treasuries retreated three basis points to 3.06 percent after surging seven basis points Wednesday. Investors in the U.S. and Europe clamored to buy securities at government debt auctions this week, even as prices of outstanding bonds tumbled in secondary-market trading.

     More than $400 billion has been wiped off the value of global bonds in May, led by a rout in German bunds. The rate on the 10-year bond slipped two basis points to 0.70 percent Thursday, its first decline this week.

     “We’ve seen a reversal in what were some pretty crowded trades,” Carin Pai, director of equity strategy at Fiduciary Trust Company International in New York, said by phone. “With the ECB announcing their QE program there was a lot of pressure on European bond yields.”

     The MSCI Emerging Markets Index gained 0.3 percent. The Hang Seng China Enterprises gauge dropped for a third day, retreating 0.6 percent. The Shanghai Composite Index was little changed. Taiwan’s Taiex Index retreated 1.2 percent, halting a two-day advance.

     Gold futures for June delivery rose 0.6 percent to settle at $1,225.20 an ounce. Earlier, the price reached $1,227.70, the highest for a most-active contract since Feb. 17. Silver futures for July delivery climbed 1.4 percent to $17.465 an ounce. The price reached $17.585, the highest since Feb. 4.

     Oil fell for a second day after the biggest drop in U.S.refinery activity in four months cut crude demand.

Have a wonderful evening everyone.

Be magnificent!

Not only must we be aware of the nature and structure of the problem

and see it completely,

but meet it as it arises and resolve it immediately,

so that it does not take root in the mind.

If one allows a problem to endure for a month or a day,

or even for a few minutes, it distorts the mind.

Krishnamurti

As ever,

Carolann

Sometimes one pays most for the things one gets for nothing.

                                            -Albert Einstein, 1879-1955

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7