May 25, 2020 Newsletter

Dear Friends,

Tangents:
On May 24, 1883, the Brooklyn Bridge, linking Brooklyn and Manhattan, was opened to traffic. Go to article »

Ralph Waldo Emerson, b. 1803.

       The Rhodora
On Being Asked, Whence Is the Flower?

RALPH WALDO EMERSON

In May, when sea-winds pierced our solitudes,
I found the fresh Rhodora in the woods,
Spreading its leafless blooms in a damp nook,
To please the desert and the sluggish brook.
The purple petals, fallen in the  pool,
Made the black water with their beauty gay;
Here might the red-bird come his plumes to cool,
And court the flower that cheapens his array.
Rhodora! if the sages ask thee why
This charm is wasted on the earth and sky,
Tell them, dear, that if eyes were made for seeing,
Then Beauty is its own excuse for being;
Why thou wert there, O rival of the rose!
I never thought to ask, I never knew:
But, in my simple ignorance, suppose
The self-same Power that brought me there brought you.

PHOTOS OF THE DAY

Teenagers chain-surf at South Curl Curl ocean pool as a large southerly swell hits Sydney coastline in Sydney, Australia.
CREDIT: CAMERON SPENCER/GETTY IMAGES

Pro-democracy protesters gather in Causeway Bay district of Hong Kong.
CREDIT: ISAAC LAWRENCE/AFP

Geese fly past the Statue of Liberty as the sun rises in New York City on May 24, 2020 as seen from Jersey City, New Jersey.
CREDIT: GARY HERSHORN/GETTY IMAGES

Colourful bee eaters appear to be showing off the insects they’ve caught as they line up perfectly on a branch. One of the 9-inch long birds can be seen fanning out it’s wings as they land on a branch with beaks full of dragonflies.
CREDIT: ARINDAM SAHA/SOLENT NEWS & PHOTO AGENCY

Market Closes for May 25th, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities gained Monday with U.S. markets closed for the Memorial Day holiday, while 10-year government bond yields hit a record closing low. The S&P/TSX Composite Index climbed 1.1%, rising for the second straight session, with nine of 11 sectors higher. Health care stocks led the way as Hexo Corp. rallied 24, while Canopy Growth Corp. gained 8.5%. Real estate shares also advanced, with Brookfield Property Partners LP rising 2.9%. “While the recovery in financial markets grinds on for most assets, government bond yields are sending a different signal on the outlook,” Douglas Porter, chief economist at Bank of Montreal said in a note to clients, noting five and seven-year yields are also flirting with new lows. “These sustained low yields will help keep the cost of massive fiscal support measures manageable.” Porter puts the decline down to aggressive bond buying by the Bank of Canada. Canada’s economy will continue to require significant amounts of stimulus in the rebuilding phase, even with the potential for higher debt levels to fuel financial vulnerabilities, Bank of Canada Governor Stephen Poloz said in his final speech at the helm. Air Canada’s bid for tour operator Transat A.T. Inc. faces an extended probe from European Union regulators who said the deal may hamper competition by combining the two biggest airlines linking Europe and Canada. Meanwhile, Canada has paid C$40.33 billion in Emergency Response Benefits to 8.21 million applicants as of May 24, according to data from the government.
Commodities
* Western Canada Select crude oil traded at a $8.75 discount to West Texas Intermediate
* Spot gold fell 0.2% to $1,731.95 an ounce
FX/Bonds
* The Canadian dollar slightly rose to C$1.3986 per U.S. dollar
* The 10-year government bond yield tumbled 1.9 basis points to 0.488%, the lowest on a closing basis going back to 1989, according to data compiled by Bloomberg.
–With assistance from Divya Balji.

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 1.1 percent, or 161.78 to 15,075.42 in Toronto. The index advanced to the highest closing level since May 11. Shopify Inc. contributed the most to the index gain, increasing 2.9 percent. Hexo Corp. had the largest increase, rising 23.9 percent. Today, 160 of 229 shares rose, while 64 fell; 8 of 11 sectors were higher, led by financials stocks.
Insights
* This month, the index rose 2 percent
* The index declined 7.1 percent in the past 52 weeks. The MSCI AC Americas Index gained 3.4 percent in the same period
* The S&P/TSX Composite is 16.1 percent below its 52-week high on Feb. 20, 2020 and 34.9 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 3 percent in the past 5 days and rose 4.5 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.8 on a trailing basis and 24.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.5 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.26t
* 30-day price volatility little changed to 25.85 percent compared with 25.85 percent in the previous session and the average of 38.26 percent over the past month
================================================================
|Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 69.2836| 1.7| 26/0
Information Technology | 34.1115| 2.3| 10/0
Industrials | 14.6592| 0.8| 24/6
Utilities | 8.9520| 1.2| 14/2
Communication Services | 8.6220| 1.0| 7/1
Health Care | 7.5212| 4.5| 10/0
Consumer Discretionary | 5.5912| 1.1| 10/3
Consumer Staples | 0.9247| 0.1| 7/4
Real Estate | 0.0000| -0.2| 24/2
Materials | -0.0627| 0.0| 19/26
Energy | -0.7307| 0.0| 9/20
US
Markets closed for Memorial Day holiday.

Have a great night.

Be magnificent!
As ever,

Carolann

Deep in their roots, all flowers keep the light.
    -Theodore Huebner Roethke, 1908-1963

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