May 27, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday!

May 27, 1930: Scotch tape patented.
.
1905: Japanese fleet destroys the Russian East Sea fleet in the Battle of Tsushima, the only decisive clash between modern steel battleships in history.
1937: The Golden Gate Bridge connecting San Francisco and Marin County, Calif., opened. Go to article »

Hubert  H. Humphrey, politician, b. 1911.
Isadora Duncan, dancer, b. 1878.
Rachel Carson, author, b. 1907.

There’s a real-life yellow brick road forming in Ghana.  This artist used pieces of yellow plastic to create a powerful work of art reminiscent of “The Wonderful Wizard of Oz.”

Geetanjali Shree becomes first Indian author to win International Booker prize.  Well deserved! This inspiring woman has added a new prestigious literary award to her list of accomplishments.

Rat sends dog park into a frenzy.  A rat was being hounded by a bunch of dogs, then a hunky hero stepped in to save the day. Watch the chaos unfold!

 Mercedes plans to shock the auto world with the next incarnation of its Maybach brand.

PHOTOS OF THE DAY

A woman pauses for thought in the Pechersk Lavra monastery. Following Russia’s retreat from the Ukrainian capital, signs of normal life have returned to Kyiv, with residents taking advantage of shortened curfew hours, businesses reopening, and foreign countries promising to return their diplomats
CREDIT: Christopher Furlong/Getty Images

Maritime workers gather for a group photograph in Times Square as part of Fleet Week celebrations in New York. Fleet Week is a week-long celebration of the sea services that aims to provide an opportunity for members of the public to meet sailors, marines and coastguard personnel through various events
CREDIT: Ed Jones/AFP/Getty

Chestnut tiger butterflies take to the skies at Himeshima Island
CREDIT: Asahi Shimbun/Getty Images

Market Closes for May 27^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1794, Cornelius Vanderbilt was born on a farm in Staten Island, N.Y. He started off in the steamboat business with $100, breaking Robert Fulton’s monopoly on steamboat traffic in the Hudson River by charging 75% less. He then moved into railroads, building the New York Central into one of the world’s dominant businesses, and died as the world’s richest man in 1877, with a $105 million fortune.
Canada
By Geoffrey Morgan
(Bloomberg) — Canadian equities posted their longest winning streak since March as risk-on investors bought up information technology, real-estate and consumer discretionary stocks.
The S&P/TSX Composite rose for the sixth day, climbing 1.1%, or 216.4 to 20,748.58 in Toronto, marking the index’s biggest move since May 17.
Brookfield Asset Management Inc. contributed the most to the index gain, increasing 4.2%.
Hut 8 Mining Corp. had the largest percentage increase, rising 8.1%.
Today, 184 of 239 shares rose, while 53 fell; 9 of 11 sectors were higher, led by financials stocks.
Insights
* In the past year, the index had a similar or greater gain 19 times. The next day, it advanced 10 times for an average 0.7% and declined nine times for an average 0.9%
* This month, the index was little changed * So far this week, the index rose 2.7%, heading for the biggest advance since the week ended Feb. 5
* The index advanced 4.9% in the past 52 weeks. The MSCI AC Americas Index lost 2.7% in the same period
* The S&P/TSX Composite is 6.6% below its 52-week high on April 5, 2022 and 6.5% above its low on May 12, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16 on a trailing basis and 12.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.8% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.29t
* 30-day price volatility rose to 20.95% compared with 20.63% in the previous session and the average of 17.54% over the past  month
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Financials | 85.7380| 1.3| 23/5
* Energy | 43.1075| 1.1| 30/4
* Industrials | 30.5560| 1.3| 27/3
* Information Technology | 29.2553| 2.7| 16/0
* Real Estate | 9.8202| 1.8| 23/0
* Consumer Staples | 9.7609| 1.2| 10/1
* Consumer Discretionary | 9.2868| 1.4| 13/1
* Materials | 4.7371| 0.2| 29/21
* Communication Services | 3.9982| 0.4| 5/2
* Health Care | -3.9181| -4.1| 3/5
* Utilities | -5.9501| -0.6| 5/11
================================================================
| | |Volume VS |
| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
* Brookfield Asset Management | 26.1000| 4.2| 68.7| -15.8
* Royal Bank of Canada | 23.5500| 1.9| -22.5| -2.5
* Shopify | 16.1200| 4.6| -34.9| -73.1
* Canadian Western Bank | -1.9670| -9.6| 609.9| -17.3
* Barrick Gold | -2.3240| -0.7| 61.1| 8.9
* Nutrien | -3.6390| -0.8| 109.3| 27.9
US
By Abigail Moses
(Bloomberg) — Stocks continued to rebound from a steep rout that drove the market down for seven straight weeks, with rebalancing from institutional investors potentially lifting equities at the end of the month.
The S&P 500 wiped out its May losses and posted its biggest weekly gain since November 2020.
Global stock funds saw their largest inflows in 10 weeks, led by US shares, according to a Bank of America Corp.’s note citing EPFR data.
The Nasdaq 100 outpaced major benchmarks, with Apple Inc. and Tesla Inc. up more than 4%.
Dell Technologies Inc. surged as revenue topped estimates.
The dollar fell, while Treasuries fluctuated.
US markets will be closed Monday for a holiday.
Volatility gripped markets this year on fears that hawkish central banks will tip the economy into a recession, with analysts remaining split on whether equities have found a bottom.
Morgan Stanley and Bank of America recently said there may be more losses to come, while BlackRock Investment Institute cut developed-market shares to neutral.
Meantime, Citigroup Inc. strategists recommended stepping back into stocks, particularly in Europe and emerging markets, on their appealing valuations.
“It is fair at this point to start doing some bargain-hunting,” Lori Calvasina, head of US equity strategy at RBC Capital Markets, told Bloomberg Television. “If you can get people more comfortable in the fundamental narrative going
forward, I think that stocks are cheap enough to buy. Are valuations a reason to buy on their own? No, not yet.”
After a major outperformance versus growth shares this year, value stocks are starting to lose their appeal as bond yields peak and the economic recovery grinds to a halt, strategists at Credit Suisse Group AG and Bank of America
warned.
Value companies have been largely shielded from this year’s market selloff as investors turned to cheaper equities in search of shelter amid fears of rising rates.
US consumer sentiment deteriorated further in late May to a fresh decade low as escalating concerns over inflation dimmed the outlook for the economy.
A separate report showed inflation-adjusted consumer spending rose in April by the most in three months, indicating households were holding up in the face of persistent price pressures by dipping into savings.
Some of the main moves in markets:
Stocks
* The S&P 500 rose 2.5% as of 4 p.m. New York time
* The Nasdaq 100 rose 3.3%
* The Dow Jones Industrial Average rose 1.8%
* The MSCI World index rose 2.2%
Currencies
* The Bloomberg Dollar Spot Index fell 0.3%
* The euro was little changed at $1.0733
* The British pound rose 0.2% to $1.2631
* The Japanese yen was unchanged at 127.12 per dollar
Bonds
* The yield on 10-year Treasuries declined one basis point to 2.74%
* Germany’s 10-year yield declined four basis points to 0.96%
* Britain’s 10-year yield declined five basis points to 1.92%
Commodities
* West Texas Intermediate crude rose 0.9% to $115.14 a barrel
* Gold futures rose 0.2% to $1,857.10 an ounce
–With assistance from Andreea Papuc, Isabelle Lee and Peyton Forte.
Have a wonderful weekend everyone.

Be magnificent!

As ever,

Carolann

The young man knows the rules, but the old man knows the exceptions. –Oliver Wendell Holmes, 1809-1894.

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