November 18, 2016 Newsletter

Dear Friends,

Tangents:

Carolann is out of the office, I will be writing the newsletter on her behalf.

PHOTOS OF THE DAY

Visitors stand in front of an illuminated object during the Christmas Garden event at a botanic garden in Berlin, Germany on Friday. Stefanie Loos/Reuters

Huge waves crash on the San Esteban de Pravia seafront in the northern Spanish region of Asturias on Friday. Eloy Alonso/Reuters
Market Closes for November 18^th, 2016

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Eric Lam
     (Bloomberg) — Canadian stocks rose a second day, capping the biggest weekly gain in a month, as energy producers advanced with crude on growing optimism OPEC nations will secure an output deal.
     The S&P/TSX Composite Index rose 0.3 percent to 14,864.03 at 4 p.m. in Toronto, trading at the highest level in more than three weeks. The equity benchmark is up 14 percent in 2016, making it the top performer among developed markets tracked by Bloomberg. Canadian stocks are about 10 percent more expensive than their peers in the S&P 500 Index.
     Energy producers advanced 0.8 percent Friday to contribute most to gains as five of 11 industries in the S&P/TSX advanced. Trading volume was 10 percent lower than the 30-day average. Encana Corp. added 3.1 percent.
     Crude capped a weekly gain of its own in New York as futures rose 0.6 percent, recouping earlier losses after OPEC member Algeria said the organization’s meeting with Russia gave it confidence a deal can be reached. Russian Energy Minister Alexander Novak said a consensus is emerging and Russia is considering an output freeze of six months. Crude prices have whipsawed between gains and losses this week as the outcome of the meeting remains murky.
     Natural resource producers are the top-performing companies in the Canadian market this year, with materials stocks rallying 38 percent year-to-date on a rebound in commodities prices from gold to crude. Teck Resources Ltd., the nation’s largest diversified miner, is the top stock in the index, up almost six- fold this year as prices for coking coal and zinc have also surged.
     Financial services stocks edged higher, adding 0.6 percent as a group. The head of Canada’s housing agency warned the country may need further changes to mortgage rules to further reduce risks to the real-estate market and protect the financial system.
     Canadian inflation meanwhile quickened for a second month in October, advancing 1.5 percent from year-ago figures. The data are in line with expectations inflation is poised to rebound as the drag of cheaper gasoline fades and economic growth accelerates.
     Brookfield Asset Management Inc. added 0.6 percent. The alternative asset manager said it was prepared to offer $13 a share to acquire TerraForm Power Inc., valuing the company at about $1.8 billion.
US
By Oliver Renick
     (Bloomberg) — U.S. stocks added to the rally sparked by Donald Trump’s surprise election, rising for a second week on speculation the president-elect will introduce policies that will spark brisker economic growth.
     The biggest beneficiary has been small caps, with the Russell 2000 Index rallying 11 straight days to cap its longest winning streak since 2003 as the dollar strengthened. The gauge ended the five days higher by 2.6 percent. The S&P 500 Index rose 0.8 percent, with financials again contributing the most to the advance. Technology shares joined the rally after concerns over trade policies faded. The Dow Jones Industrial average edged up for the week after touching a fresh high on Nov. 15.
     The benchmark for American equity has added 2 percent since president-elect Donald Trump won the U.S. election, led by a surge in financial stocks and shares of industrial companies. While the former added to its rally in the week with a 2.2 percent advance, shares in companies that build bridges and make equipment were little changed. Health-care stocks that rallied 5.8 percent last week pared those gains with a 1.2 percent decline.
     Since the election losses remain the biggest in dividend- paying groups like utilities, real estate and consumer staples shares that had led the market in the first half of the year.
     The variation in returns among sectors has created an opportunity that some investors have seized upon, according to record flows into exchange-traded funds that track financial and industrial companies. That’s happened as dispersion within the stock market reached levels unseen since the start of the bull market — a good sign for active managers.
  

Have a wonderful weekend everyone.

Be magnificent!
 

 “My mission in life is not merely to survive, but to thrive; and to do so with some passion, some compassion, some humor, and some style”. Maya Angelou

As ever,
 

Karen

“In order to carry a positive action we must develop here a positive vision.” Dalai Lama

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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