November 17, 2022 Newsletter

Dear Friends,

Tangents: Happy Friday Eve.

On Nov. 17, 1973, President Nixon told an Associated Press managing editors meeting in Orlando, Fla., that “people have got to know whether or not their president is a crook. Well, I’m not a crook.”  Go to article »

The Leonid meteor shower peaks this week. Here’s how to watch:  The annual Leonid meteor shower will peak this week as Earth passes through the trail of icy, rocky debris left behind nearly 30 years ago by the comet Tempel-Tuttle.
On Thursday (Nov. 17) around 7 p.m. EST, Earth will swoop near a particularly dense patch of debris, resulting in sightings of about 15 meteors per hour, according to Live Science’s sister site Space.com. Skywatchers in Europe and western Asia will have the best view, while observers in North America will have to wait until after midnight for their best look at the shower.  Full Story: Live Science (11/16)

Scientists solved a 500-million-year-old mystery about strange Cambrian structures found in China: Over 500 million years ago, sea-dwelling invertebrates pioneered a new evolutionary experiment: skeletons. But while those durable, tubelike structures stood the test of time as fossils, the animals’ soft bodies decayed and vanished, erasing all evidence of what these ancient animals may have looked like.
Now, a recent re-examination of those ancient skeletal tubes has finally unveiled the identity of one of these mysterious organisms.  Full Story: Live Science (11/17)

‘Most Cringiest Thing’: Daniel Craig dances in new ad:  The man we know as James Bond ditched his dapper suits to perform a hilarious dance number in a vodka ad. Watch the video here.

Andy Warhol artwork sells for ‘monumental’ $85.4 million.  Warhol may be best known for his pop art prints of Marilyn Monroe and Campbell’s soup cans, but this piece just joined the most valuable post-war works ever to sell at auction.

Porsche debuts a modern, $220,000 off-road 911 

Every apple, rated.

PHOTOS OF THE DAY

Battle, UK
Battle Abbey in Sussex is bathed in colourful illuminations as visitors are offered the opportunity to experience the site after dark through a series of tableaux featuring light, sound and performers
Photograph: Jim Holden/English Heritage

Villarrica, Chile
An active Villarrica volcano during the night
Photograph: Reuters

Oakland, US
Some of the 100-plus animal lanterns on display during the zoo’s Glowfari festival. The real animal exhibits are closed during the festival
Photograph: Anadolu Agency/Getty
Market Closes for November 17^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Only when the tide goes out do you discover who’s been swimming naked. –Warren Buffett.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the second  day, dropping 0.4%, or 73.38 to 19,884.58 in Toronto.
The index dropped to the lowest closing level since Nov. 9.
Brookfield Asset Management Inc. contributed the most to the index decline, decreasing 1.9%. Equinox Gold Corp. had the largest drop, falling 9.2%.
Today, 164 of 236 shares fell, while 70 rose; 6 of 11 sectors were lower, led by materials stocks.
Insights
* This year, the index fell 6.3%, heading for the worst year since 2018
* So far this week, the index fell 1.1%, heading for the biggest decline since the week ended Oct. 14
* The index declined 8.2% in the past 52 weeks. The MSCI AC Americas Index lost 17% in the same period
* The S&P/TSX Composite is 10.5% below its 52-week high on April 5, 2022 and 11.3% above its low on Oct. 13, 2022
* The S&P/TSX Composite is down 0.5% in the past 5 days and rose 6.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.2 on a trailing basis and 12.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.18t
* 30-day price volatility fell to 19.83% compared with 20.28% in the previous session and the average of 22.13% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -28.5600| -1.2| 8/43
Energy | -21.2874| -0.6| 11/26
Information Technology | -20.7290| -1.8| 2/12
Utilities | -10.9377| -1.2| 3/13
Real Estate | -2.7018| -0.5| 4/18
Communication Services | -0.0641| 0.0| 3/4
Industrials | 0.7987| 0.0| 11/16
Health Care | 1.2677| 1.5| 3/4
Financials | 2.4002| 0.0| 14/14
Consumer Discretionary | 2.7900| 0.4| 4/10
Consumer Staples | 3.6362| 0.4| 7/4
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Brookfield Asset Management | -11.4100| -1.9| 28.3| -21.6
Shopify | -8.8220| -2.1| -28.5| -71.1
Canadian Natural Resources | -6.8080| -1.1| 64.8| 52.9
TD Bank | 7.4640| 0.7| -15.5| -8.5
RBC | 7.6810| 0.6| -19.1| -1.4
Restaurant Brands | 7.8600| 4.4| 69.9| 15.6
US
By Isabelle Lee
(Bloomberg) — US stocks and Treasuries slumped as Federal Reserve officials hammered home their resolve to remain persistent in their fight against inflation and warned of more pain to come.
The S&P 500 and the tech-heavy Nasdaq 100 declined for the second straight session.
Commodities from oil to copper fell while the dollar snapped a two-day drop.
US 10-year Treasury yields climbed after St. Louis Fed President James Bullard said policy makers should increase interest rates to at least 5% to 5.25% to curb inflation.
He also warned of further financial stress ahead.
With inflation only starting to ease and a gauge of US retail sales increasing at the fastest pace in eight months, Fed speakers in recent days have emphasized that they need to go further to extinguish prices pressures.
Bullard’s comments came a day after San Francisco Fed President Mary Daly said a pause in rate hikes was “off the table.”
Their hawkish tone was echoed by Minneapolis Fed President Neel Kashkari on Thursday afternoon.
“The takeaway is that the Fed is following the same playbook they have now for a long time,” said Johan Grahn, head of ETFs at Allianz Investment Management.
Fed Chair Jerome Powell persistently reiterates his hawkish stance to keep markets at bay, so the rally after softer inflation data was not what central bank officials wanted to see, he said.
“It’s a game of chicken between basically the economy, the markets and the Fed right now,” Grahn said. “And most people, I think, would be wise to believe that the Fed might win in the end.”
On Thursday, fresh data showing weekly jobless claims came in below the forecast further underscored the strength of the labor market.
US mortgage rates posting their biggest weekly decline since 1981 briefly improved sentiment, even though Freddie Mac’s chief economist said there’s a long road ahead for the housing market.
A handful of earnings reports trickled in after markets closed on Thursday. Applied Materials Inc., the biggest maker of chip-manufacturing equipment, gave a better-than-feared sales forecast for the current period.
Gap Inc., meanwhile, jumped after its quarterly sales and profit surpassed Wall Street’s estimates.
Meanwhile, European Central Bank policy makers are said to be mulling a smaller 50 basis-point rate hike next month, signaling their concern for the economy and pushing the euro lower.
The pound dropped after Chancellor Jeremy Hunt outlined a £55 billion ($65 billion) package of tax rises and spending cuts even as the economy slid into recession. Gilt yields rose.
Key events this week:
* US Conference Board leading index, existing home sales, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.3% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.2%
* The Dow Jones Industrial Average was little changed
* The MSCI World index fell 0.8%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.3% to $1.0368
* The British pound fell 0.4% to $1.1863
* The Japanese yen fell 0.5% to 140.19 per dollar
Cryptocurrencies
* Bitcoin rose 0.9% to $16,682.04
* Ether fell 0.4% to $1,200.56
Bonds
* The yield on 10-year Treasuries advanced eight basis points to 3.77%
* Germany’s 10-year yield advanced two basis points to 2.02%
* Britain’s 10-year yield advanced five basis points to 3.20%
Commodities
* West Texas Intermediate crude fell 4.3% to $81.95 a barrel
* Gold futures fell 0.7% to $1,763.50 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Peyton Forte and Vildana Hajric.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

It takes courage to live— courage and strength and hope and humor. And courage and strength and hope and humor
have to be bought and paid for with pain and work and prayers and tears. -Jerome P. Fleishman, 1922-2007.

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