May 20, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday.

1927-First Tarns-Atlantic flight, Lindbergh.
1939- Regular trans-Atlantic air service began as a Pan American Airways plane took off from Port Washington, N.Y., bound for Europe.  Go to article »
1932- Amelia Earhart Atlantic crossing.
1989-The Chinese authorities declare martial law in the face of pro-democracy demonstrations, setting the scene for the Tiananmen Square massacre.

Henry Rousseau, painter, b.1844.
Honoré de Balzac, writer, b. 1799.

Mercedes just sold the world’s most expensive car for $142 million.  Yes, you read that right… a whopping $142 million for a car. The floor mats probably cost more than an average house. Insane.

The 10 Best Books for Your Summer Reading List.

PHOTOS OF THE DAY

A fisherman paddles his boat during a sandstorm in Iraq’s southern city of Basra. Hundreds of Iraqis were taken to hospitals with breathing problems and Baghdad airport suspended flights for several hours as a thick sandstorm blanketed the country, the fifth to engulf Iraq within a month
CREDIT: Hussein Faleh/AFP/Getty Images

Locals and tourists watch the moon rising by the Temple of Poseidon at the cape of Sounion. A total lunar eclipse this week coincided with a super moon, when the moon is at its closest point to Earth and reflects a red and orange light
CREDIT: Louisa Gouliamaki/AFP/Getty Images

Giant pandas eat bamboo in a tree at the Shenshuping base of the China conservation and research centre for the giant panda in Aba
CREDIT: Xu Jun/VCG/Getty Images
Market Closes for May 20^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1873, Jacob Davis, a Latvian tailor who had settled in Reno, Nev., and a Bavarian merchant named Levi Strauss, who sold cloth in San Francisco, jointly took out U.S. Patent No. 139,121. Strauss supplied the $68 in patent fees; Davis supplied the design. The two men patented the process for holding indigo denim “waist overalls” together with metal rivets—the first blue jeans.
Canada:
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite advanced slightly to 20,197.61 in Toronto.
Brookfield Asset Management Inc. contributed the most to the index gain, increasing 1.8%.
Kinaxis Inc. had the largest increase, rising 3.8%.
Today, 114 of 239 shares rose, while 121 fell; 7 of 11 sectors were higher, led by energy stocks.
Insights
* This month, the index fell 2.7%
* So far this week, the index rose 0.5%, heading for the biggest advance since the week ended March 25
* The index advanced 3.3% in the past 52 weeks. The MSCI AC Americas Index lost 7.6% in the same period
* The S&P/TSX Composite is 9.1% below its 52-week high on April 5, 2022 and 4% above its low on May 20, 2021
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16 on a trailing basis and 12.5 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$3.23t
* 30-day price volatility little changed to 20.34% compared with 20.36% in the previous session and the average of 15.76% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Energy | 15.7620| 0.4| 19/14
* Financials | 11.7318| 0.2| 14/13
* Communication Services | 9.2755| 0.9| 6/1
* Utilities | 9.1730| 0.9| 12/4
* Industrials | 8.4088| 0.4| 11/19
* Consumer Staples | 4.6477| 0.6| 8/3
* Real Estate | 1.0943| 0.2| 12/10
* Consumer Discretionary | -0.5519| -0.1| 6/8
* Health Care | -2.2194| -2.2| 0/7
* Information Technology | -16.7133| -1.5| 11/5
* Materials | -24.9356| -0.9| 15/37
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Brookfield Asset Management | 10.9400| 1.8| 1.0| -20.9
* Waste Connections | 5.6730| 2.0| -32.2| -7.3
* Canadian National | 4.7280| 0.8| 5.5| -7.8
* WSP Global | -3.7740| -5.2| 110.2| -26.3
* Nutrien | -20.1300| -4.1| 0.6| 31.0
* Shopify | -27.7200| -7.1| 4.9| -73.2
US
By Stephen Kirkland and Vildana Hajric
(Bloomberg) — A dramatic late-session rally brought the S&P 500 back from the brink of a bear market, but the index still sank for a seventh straight week in a stretch of weakness not seen since 2001.
The benchmark closed the day little changed, after a selloff earlier sent it down more than 2% from a January closing high, meeting the common definition of a bear market.
At the end of another volatile week, the monthly expiration of options tied to equities and exchange-traded funds exacerbated price swings.
Treasuries gained with the dollar as havens caught bids.
In a week marked by buy-the-dip, sell-the-rally price action, investors grappled with concerns about an economic slowdown and prospects for more monetary tightening, while retailers signaled the mounting impact of high inflation on
margins and consumer spending.
The S&P 500’s seventh weekly decline marked the longest losing streak since the dotcom bubble burst more than two decades ago.
It’s just its fourth streak of seven or more weekly losses in the post-World War II period, according to Bespoke Investment Group.
“It’s a small sample size, but these types of streaks haven’t occurred during particularly positive periods for the equity market,” wrote the firm’s strategists in a note. “The root causes of the weakness have been the hawkish FOMC and increasing concerns over the potential for a recession.”
More Commentary
* “The economy is relatively fragile right now, has been weakening, and obviously inflation is causing a lot of consternation among a lot of companies and investors, and we weren’t seeing that being reflected in earnings estimates,” Mike Mullaney, director of global markets research at Boston Partners, said by phone. “We just haven’t seen negative revisions yet, and until you see negative revisions, we still think there’s more downside to the market.”
* “A lot of the excesses have been wrung out, especially out of the more speculative segments of the market,” Keith Lerner, co-chief investment officer and chief market strategist at Truist Advisory Services, said in a note. “In times like this, volatility and pullbacks are always uncomfortable and come with bad news, but they are also the admission price to being in the market with the potential for higher long-term returns relative to most other asset classes.”
* “No sign yet of the Fed being unhappy about tighter financial conditions so far, and markets are continuing to fully price in two further 50bp moves from the Fed in June and July,” wrote Deutsche Bank’s Jim Reid. “Nobody said getting inflation back to target from such lofty levels would be easy. So if you’re looking for a Fed put, it may take a while.”
In the latest developments over Russia’s war in Ukraine, the Senate passed a more than $40 billion Ukraine aid package, sending the bill to President Joe Biden for his signature.
Meanwhile, the Group of Seven industrialized nations will agree on more than 18 billion euros ($19 billion) in aid for Ukraine, according to German Finance Minister Christian Lindner.
Some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4 p.m. New York time
* The Nasdaq 100 fell 0.3%
* The Dow Jones Industrial Average was little changed
* The MSCI World index rose 0.4%
Currencies
* The Bloomberg Dollar Spot Index rose 0.2%
* The euro fell 0.3% to $1.0556
* The British pound rose 0.2% to $1.2489
* The Japanese yen was little changed at 127.87 per dollar
Bonds
* The yield on 10-year Treasuries declined five basis points to 2.78%
* Germany’s 10-year yield was little changed at 0.94%
* Britain’s 10-year yield advanced three basis points to 1.89%
Commodities
* West Texas Intermediate crude rose 0.9% to $113.23 a barrel
* Gold futures were little changed
–With assistance from April Ma, Tassia Sipahutar, Michael Msika, Robert Brand and Isabelle Lee.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

To live each day as though one’s last, never flustered, never apathetic, never attitudinizing – here is perfection of character. –Marcus Aurelius, 121 AD-180 AD.

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