November 10, 2021 Newsletter

Dear Friends,

Tangents:
Today is Call to Earth Day, a time to raise awareness of environmental issues and engage with conservation education. How can you participate? Just do something positive for the environment today! Pick up trash, recycle, reduce your consumption or learn about something new.

November 10, 1951: Area codes introduced – direct-dial, coast-to-coast telephone service began with a call between the mayors of Englewood, N.J., and Alameda, Calif.  Go to article »
1871- Stanley finds Livingstone.
1983 – Microsoft releases Windows.
Martin Luther, theologian, b. 1483.
Richard Burton, actor, b. 1925.

Honeybees make a chilling warning noise when attacked by hive-destroying murder hornets.  Well, here’s your horrifying fact for the day.

New theory suggests dark matter came from regular matter.  

PHOTOS OF THE DAY
The dean of Salisbury, the Very Rev Nick Papadopulos, at the opening night of a light and music installation at Salisbury Cathedral in Wiltshire
Visitors enjoy the Glow winter light trail, featuring 1,100 coloured lights and five miles of cable, at RHS Garden Hyde Hall in Essex
CREDIT: Joe Giddens/PA
The lord mayor elect, Vincent Keaveny, travels in the lord mayor’s state coach, believed to be the oldest ceremonial vehicle in regular use in the world, during a pre-dawn rehearsal of the Lord Mayor’s Parade. On Saturday Keaveny will be inaugurated as the 693rd lord mayor of the City of London
CREDIT: Leon Neal/Getty Images

Market Closes for November 10^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     Corporate balance sheets and income statements can trace their heritage to this day in 1494. The first edition of Luca Pacioli’s “Summa de Arithmetica, Geometria, Proportioni et Proportionalita” was printed in Venice, containing 36 chapters on accounting. This popularized double-entry bookkeeping, which offsets assets against liabilities and revenues against expenses.
Canada
By Alex Wittenberg
(Bloomberg) — Canadian equities finished lower Wednesday as shares in the tech sector led losses and a dip in oil dragged on energy companies. The S&P/TSX Composite fell 0.6% at 21,461.93 in Toronto. The decline was the biggest since falling 0.8% on Oct. 29 and follows the previous session’s increase of 0.2%. Shopify Inc. contributed the most to the index decline, decreasing 4.8%. SunOpta Inc. had the largest drop, falling 12.7%. Today, 158 of 233 shares fell, while 74 rose; six of 11 sectors were lower, led by information technology stocks.
Insights
* This year, the index rose 23 percent, heading for the best year in at least 10 years
* The index advanced 29 percent in the past 52 weeks. The MSCI AC Americas Index gained 31 percent in the same period
* The S&P/TSX Composite is 0.6 percent below its 52-week high on Nov. 10, 2021 and 30.2 percent above its low on Nov. 10, 2020
* The S&P/TSX Composite is up 0.9 percent in the past 5 days and rose 5.1 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.6 on a trailing basis and 16.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.4 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.4t
* 30-day price volatility rose to 9.22 percent compared with 8.91 percent in the previous session and the average of 10.29 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | -95.7605| -3.8| 0/15
* Energy | -41.1855| -1.4| 2/21
* Health Care | -7.5946| -3.7| 0/9
* Real Estate | -7.2103| -1.1| 2/22
* Industrials | -6.9676| -0.3| 9/21
* Consumer Staples | -2.3076| -0.3| 3/10
* Consumer Discretionary | 0.3801| 0.0| 6/7
* Utilities | 0.4834| 0.1| 6/10
* Financials | 0.5417| 0.0| 11/16
* Communication Services | 1.9595| 0.2| 4/3
* Materials | 25.0638| 1.0| 31/24
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | -72.4600| -4.8| -21.6| 28.2
* Canadian Natural Resources | -10.1300| -2.3| -25.1| 73.3
* Brookfield Asset Management | -9.2150| -1.2| -7.7| 44.5
* Intact Financial | 4.4980| 2.2| 304.9| 12.7
* TD Bank | 7.2070| 0.6| -49.3| 28.2
* Barrick Gold | 14.3200| 4.8| 81.0| -10.7

US
By Vildana Hajric and Emily Graffeo
(Bloomberg) — U.S. stocks fell by the most in a month and Treasury yields spiked higher as a hot inflation reading roiled financial markets. The S&P 500 slid 0.8%, extending earlier losses, after a 30-year Treasury auction went off at higher yields than anticipated. Two-year yields also shot higher after data showed the fastest annual inflation rate since 1990, upending bets on the timing for the next interest rate increase. The Nasdaq 100 led declines in equities as its highly valued tech members are deemed most susceptible to the impact from inflation. The dollar hit a 52-week high, oil slumped more than 3% and gold gained. Risks are building for both stocks and bonds as persistent elevated inflation could force the Federal Reserve to taper at a more substantial rate or hike interest rates faster than anticipated.
The U.S. consumer price index increased 6.2% in October from a year earlier, beating expectations for 5.9%, according to Bloomberg data. “Now that it’s breached that 6% level, I think the Fed are going to be getting a little bit hot under the collar,” Fiona Cincotta, senior financial markets analyst at City Index, said by phone. “There is no way, I think, they can ignore 6.2% on that CPI reading. It’s going to be prompting a more hawkish feel.” Treasury Secretary Janet Yellen on Tuesday reiterated her view that elevated U.S. inflation won’t persist beyond next year and said the Fed will not allow a repeat of 1970s-style price rises. Still, traders worry the latest figures may be enough to compel the Fed to raise rates as soon as June 2022 when it has finished tapering its assets-purchase program. “I expect lots of eyeballs were bulging out of their sockets when they saw the number come in,” said Seema Shah, chief strategist at Principal Global Investors. “Inflation is clearly getting worse before it gets better, while the significant rise in shelter prices is adding to concerning evidence of a broadening in inflation pressures.” The U.S. five-year breakeven rate on Treasury inflation protected securities rose to a record.
Meanwhile, the yield on the U.S. 10-year note gained 13 basis points to 1.56%. “I can’t explain why the bond market is so content with the current situation, but inflation has been running hot for about a year and the bond market has not panicked,” Michael Zigmont, head of trading and research at Harvest Volatility Management, said by phone. “The bond market seems very, very happy with negative real yields. And as long as the bond market is happy, the Fed can be very slow.” Bitcoin erased gains after hitting a record.  Iron ore tumbled on dimming prospects for steel demand owing to China’s real-estate troubles. And in Europe, equities gained while those in Asia fell.

What to watch this week:
* China’s Communist Party’s decision-making Central Committee meets through Thursday
* U.S. bond market is closed in observance of Veterans Day Thursday
* China holds its annual Singles’ Day, the world’s biggest shopping festival, when e-commerce giants like Alibaba and JD.com Inc. lure buyers with bargains Thursday

Stocks
* The S&P 500 fell 0.8% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.4%
* The Dow Jones Industrial Average fell 0.7%
* The MSCI World index fell 0.8%
Currencies
* The Bloomberg Dollar Spot Index rose 0.9%
* The euro fell 1% to $1.1478
* The British pound fell 1.1% to $1.3408
* The Japanese yen fell 0.9% to 113.90 per dollar
Bonds
* The yield on 10-year Treasuries advanced 13 basis points to 1.56%
* Germany’s 10-year yield advanced five basis points to -0.25%
* Britain’s 10-year yield advanced 10 basis points to 0.92%
Commodities
* West Texas Intermediate crude fell 3.4% to $81.33 a barrel
* Gold futures rose 1.3% to $1,854.60 an ounce
Have a lovely evening.

Be magnificent!
As ever,

Carolann

I don’t think education has a lot to do with the number of years you’re incarcerated in a brick building being talked down to. –Tom Peters, b. 1942.

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