November 13, 2019 Newsletter

Dear Friends,

Tangents:

The planet Mercury just made news by transiting the sun.

The innermost planet in the solar system, Mercury orbits in a zippy 88 days. The Romans named it after the speedy messenger of the gods (Hermes to the Greeks). The word “planet” is drawn from the ancient Greek for “wandering star.”

The Greeks and the Romans weren’t the only ancient people fascinated with Mercury and with the four other planets visible with the naked eye.

For instance, the Chinese named the five after their primary elements. Jupiter is the wood star (木星), Mars the fire star (火星), Saturn the earth star (土星), Venus the metal star (金星) and Mercury the water star (水星).

Eventually, humans realized that what they were standing on was also a planet. What the West ended up calling Earth, the Chinese called Diqiu (地球), meaning “ball of earth” — or, slightly less elegantly, “dirt ball.” –The New York Times.

In other news…
Venice is flooded.

PHOTOS OF THE  DAY

The recent cold weather has brought out the autumn colors of the Japanese maple trees at Barthelemy & Co nursery near Wimborne in Dorset.
CREDIT: ZACHARYCULPIN/BNPS

A man rides a bicycle in a snowstorm in Altai territory, Russia.
CREDIT: VLADIMIR SMIRNOV / TASS VIA GETTY IMAGES

People wade through floodwaters in Venice, Italy.
CREDIT: ANDREA MEROLA / EPA-EFE / REX

Market Closes for November 13^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1980, the Nasdaq Composite Index closed above 200 for the first time, finishing the day at 200.25. It had taken the index 9 1/2 years to double from its starting value of 100 on Feb. 8, 1971.  Today the Nasdaq closed at 8482.10 – an increase of  =4,135.8% in  39 years!
Canada
By Michael Bellusci and Bloomberg Automation
(Bloomberg) — Canadian stocks rose Wednesday, overlooking a report that said farm purchases have become another point of contention in trade negotiations between the U.S. and China. The S&P/TSX Composite rose for the ninth day, climbing 0.3%, or 48.61 to 16,957.99 in Toronto. Eight of eleven sectors rose, while marijuana-exposed stocks lagged, with the Horizons Marijuana Life Sciences Index ETF falling 3.4%. Meanwhile, Canada Goose Holdings Inc. fell on Wednesday after saying that unrest in Hong Kong hurt its business there and that wholesale revenue will decline this quarter. Also, Home Capital Group Inc. shares have regained all their lost ground since the Canadian alternative mortgage lender almost collapsed in 2017.
Commodities
* Western Canada Select crude oil traded at a $18.40 discount to WTI
* Spot gold rose 0.5% to $1,463.30
FX/Bonds
* The Canadian dollar fell 0.1% C$1.3252 per U.S. dollar
* The Canada 10-year government bond yield fell 4.8 basis points to 1.555%
Insights
* So far this year, the index rose 18%, heading for the best year in at least 10 years
* The index advanced 12% in the past 52 weeks. The MSCI AC Americas Index gained 14% in the same period
* The S&P/TSX Composite is 0.2% below its 52-week high on Nov. 13, 2019 and 23.1% above its low on Dec. 24, 2018
* The S&P/TSX Composite is up 1.3% in the past 5 days and rose 3.3% in the past 30 days
================================================================
|Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Information Technology | 14.8102| 1.7| 7/2
Materials | 10.8292| 0.6| 28/20
Utilities | 8.2870| 1.1| 15/1
Communication Services | 6.6756| 0.7| 7/0
Industrials | 6.6566| 0.4| 12/20
Energy | 5.3433| 0.2| 14/17
Consumer Staples | 4.2805| 0.7| 10/0
Real Estate | 1.8688| 0.3| 18/6
Consumer Discretionary | -1.6668| -0.2| 8/8
Health Care | -2.5661| -1.1| 3/7
Financials | -5.9177| -0.1| 11/15
US
By Randall Jensen and Claire Ballentine
(Bloomberg) — U.S. stocks edged higher, stalling below all-time highs as investors remained skittish about whether the U.S. and China will be able to hash out a partial trade deal. The dollar and Treasuries rose. The S&P 500 eked out its second straight gain, treading just under its record reached as part of a more than 7% rally since the start of October, fueled by trade hopes, waning recession fears and rate cuts. Tech shares gyrated after a report said farm purchases have become another of several issues in negotiations between the world’s two largest economies. The Dow Jones Industrial Average reached a record as Walt Disney Co. surged following the debut of its streaming service. The 10-year Treasury yield fell the most in more than a week, while the dollar rose for the seventh time in eight sessions to the highest in a month. The yen advanced along with gold. West Texas crude rose to $57 a barrel. “There was a mild optimism in the market today fueled by hopefulness about the consumer. On the other hand, the whole trade tariff thing doesn’t seem to be any closer to a resolution,” said John Carey, portfolio manager at Pioneer Investment Management Inc. “That uncertainty is still out there, but at this point people have gotten used to that uncertainty. A continued non-resolution isn’t a new negative, it’s just part of the landscape we’ve been watching.”
The prospect of a deal between the world’s two biggest economies has become key to sustaining a rally that drove American stocks to records, as it appears the Fed will be on the sidelines for a long time. The U.S. and China have yet to announce a new location or time to seal the agreement after an international gathering in Chile was canceled, and it’s unclear whether Trump’s renewed threats will move things forward. Elsewhere, emerging-market shares fell as Hong Kong’s benchmark stocks gauge slumped as the city endured a third day of unrest. Japanese shares retreated along with those in South Korea and Australia. New Zealand’s dollar jumped after the country’s central bank unexpectedly kept interest rates unchanged.
Here are some key events coming up this week:
* Earnings season is slowing. Reports are due this week from companies including Japan Post Bank, Walmart, and Cisco.
* U.S. CPI and earnings data Wednesday may provide more clues on the Fed’s policy path
* Thursday brings China retail sales and industrial production data.
* U.S. retail sales on Friday are forecast to rebound in October after unexpectedly falling the prior month.

These are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.1% at 4 p.m. New York time.
* The Stoxx Europe 600 Index declined 0.3%.
* The U.K.‘s FTSE 100 Index declined 0.2%.
* The MSCI Emerging Market Index sank 1.2%.
Currencies
* The Bloomberg Dollar Spot Index gained 0.1%.
* The euro was little changed at $1.1005.
* The British pound was little changed at $1.2838.
* The Japanese yen rose 0.2% to 108.84 per dollar.
Bonds
* The yield on 10-year Treasuries sank five basis points to 1.88%.
* Britain’s 10-year yield dipped five basis points to 0.75%.
* Germany’s 10-year yield declined five basis points to -0.299%.
* Japan’s 10-year yield fell two basis points to -0.042%.
Commodities
* West Texas Intermediate crude rose 0.7% to $57.23 a barrel.
* Gold climbed 0.5% to $1,463.99 an ounce.
–With assistance from Robert Brand and Vildana Hajric.
Have a great night.

Be magnificent!
As ever,

Carolann

Self-discipline is a form of freedom.  Freedom from laziness and lethargy, freedom from expectations and demands of others, freedom from  weakness and fear – and doubt.
                                                                                    –Harvey A. Dorfman, 1935-2011.

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