November 20, 2014 Newsletter

Dear Friends,

Tangents:

Each time someone stands up for an ideal or acts to improve the lot of others or strikes out against injustice, he sends forth a tiny ripple of hope. –Robert F. Kenndey.

Robert F. Kennedy’s birthday,  November 20^th, 1925. 

NOVEMBER  PROJECT:

Keep a Contented Heart

   ATTITUDE

•   Laugh out loud.
•   Use good manners
•   Give positive reviews.
•   Find an area of refuge.

“By the end of November, I’d realized that one of the most important lessons of the happiness project is that if I keep my resolutions and do the things that make me happier, I end up feeling happier and acting more virtuously.  Do good, feel good; feel good, do good.”  -Gretchen Rubin, The Happiness Project, Collins, 2009.

Always good to remind ourselves.

PHOTOS OF THE DAY

Holiday lights decorate trees along the Champs Elysees leading to the Arc de Triomphe in Paris. Charles Platiau/Reuters

A worker carries a ladder by the painting ‘Flowers’ (1964-1965) by Andy Warhol during the hanging of the exhibition ‘Death and Disaster’ in Chemnitz, Germany. The exhibition runs from Nov. 23 until Feb. 22. Jens Meyer/AP

Market Closes for November 20^th, 2014    

International Markets

Bonds

Currencies

Commodities

Market Commentary:

Canada

By Eric Lam

     Nov. 20 (Bloomberg) — Canadian stocks rose a fifth day, extending a September high, as gold miners advanced while energy producers rallied with the price of crude.

     Nevsun Resources Ltd. surged 11 percent amid speculation mining fund QKR Corp. will make a bid of about $1 billion for the miner. Alacer Gold Corp. and Detour Gold Corp. increased at least 4.6 percent as producers of the metal advanced for the fourth time in five sessions. Metro Inc. dropped 2.6 percent after rallying yesterday to a record.

     The Standard & Poor’s/TSX Composite Index rose 95.03 points, or 0.6 percent, to 15,075.18 at 4 p.m. in Toronto, the highest since Sept. 24. The Canadian benchmark equity gauge has climbed in 11 of the past 12 sessions for a 4.8 percent gain since Nov. 4.

     Six of the 10 industries in the index rose today on trading 8 percent below the 30-day average. Energy and materials producers gained at least 1.9 percent to pace advances.

     Lightstream Resources Ltd. surged 21 percent to C$3.38 and Bankers Petroleum Ltd. added 7.9 percent to C$4.62. Crude in New York and London advanced for the first time in four days.

     Alacer Gold climbed 4.6 percent to C$2.29 and Detour Gold rose 5.1 percent to C$9.72 as the S&P/TSX Gold Index jumped 3.1 percent.

     Nevsun gained 11 percent to C$4.72, the biggest advance since July 2012. QKR, headed by former JPMorgan Chase & Co. banker Lloyd Pengilly and funded by Qatar’s sovereign wealth fund, is reportedly in ongoing negotiations with the Vancouver- based firm, according to people familiar with the situation.

US

By Oliver Renick

     Nov. 20 (Bloomberg) — U.S. stocks rose to a record, led by energy and small-cap shares, as data showing improvements in the American economy overshadowed concern over weaker growth overseas.

     Best Buy Co. jumped 7 percent as demand for televisions and tablets helped the retailer post a surprise sales gain. Dollar Tree Inc. advanced 5.2 percent after reporting third-quarter earnings that beat analysts’ estimates. Energy stocks rose the most of 10 groups in the S&P 500 as crude oil gained for the first time in four days. Intel Corp. led chipmakers higher after raising its dividend.

     The Standard & Poor’s 500 Index rose 0.2 percent to a record 2,052.75 at 4 p.m. in New York, erasing an earlier loss. The Dow Jones Industrial Average added 33.27 points, or 0.2 percent, to 17,719, also an all-time closing high. The Russell 2000 Index of smaller companies climbed 1.1 percent. About 5.7 billion shares traded hands on U.S. exchanges, 12 percent below the three-month average.

     “The swing from this morning was powerful, that shows you there’s strength and the data is quieting market fears about growth,” said Paul Zemsky, the New York-based head of multi- asset strategies at Voya Investment Management LLC, which oversees $213 billion. “We got some concerning numbers out of Europe and softness in China but the data in the U.S. continues to be mixed to better whereas in other places it’s mixed to worse.”

     Purchases of previously owned U.S. homes unexpectedly rose in October to a one-year high as low borrowing costs helped sustain the recovery in residential real estate. Other data showed fewer Americans filed for unemployment benefits last week as the need to retain staff keeps firings at the lowest levels in more than a decade.                      

     A gauge of U.S. leading indicators widened more than estimated last month, while a Federal Reserve factory index for the Philadelphia region jumped.

     The economic picture in the U.S. contrasted with weakness in Europe and Asia. A purchasing managers’ index for factories and services activity in the euro area unexpectedly dropped in November, to the lowest level in 16 months, London-based Markit Economics said today. In China, a factory gauge fell to a six- month low this month.

     The S&P 500 and the Dow have rallied to records as better- than-forecast earnings and data boosted speculation that the economy is strong enough to overcome a global slowdown. The benchmark index has rebounded 10 percent from a six-month low in October and is trading at 17.1 times the projected earnings of its members, the highest multiple since 2009.

     The Chicago Board Options Exchange Volatility index, the gauge of options prices known as the VIX, declined 2.7 percent to 13.58.

     Stocks fell yesterday as minutes from the Fed showed some policy makers were concerned inflation isn’t rising fast enough. Concern economic recoveries from the U.S. to Europe and Japan are failing to spur inflation has been cited by central bankers worldwide as justification for prolonged stimulus efforts.

     A government report today showed prices in the U.S. excluding fuel and food increased more than forecast in October as a drop in energy costs failed to filter through to other goods and services. The so-called core measure of the consumer- price index climbed 0.2 percent, the most in five months, after rising 0.1 percent in September.

     Dollar Tree, Best Buy and Gap Inc. were among companies posting results today. Of the S&P 500 companies that have reported this earnings season, 79 percent beat profit estimates and 60 percent surpassed revenue projections, according to data compiled by Bloomberg.

     “The backdrop for holiday sales and retail is setting up to be a very good holiday season,” David Lyon, global investment specialist at JP Morgan Private Bank, which oversees about $1 trillion, said by phone in New York. “That additional cash or income that consumers will have to spend from lower energy prices at least for a quarter or two will be a fantastic tailwind for retailers.”

     Retailers rallied 0.9 percent. Urban Outfitters Inc. climbed 7 percent to $31.61, the most in the S&P 500.

     Best Buy jumped 7 percent to $38.02 percent. The world’s largest electronics chain said comparable-store sales — a closely watched measure — rose 2.2 percent in the quarter. Analysts had predicted a decline of 2 percent, according to Consensus Metrix.

     Dollar Tree, which is seeking to merge with Family Dollar Stores Inc., advanced 5.2 percent to $65.87.

     Keurig Green Mountain Inc. lost 7.4 percent to $142.50, the most in the S&P 500, after Stifel Nicolaus & Co analyst Mark Astrachan said the company’s 2015 outlook for sales and earnings are “modestly disappointing.”

     Technology shares increased as Intel added 4.7 percent, the most in the Dow. The world’s largest chipmaker said it will raise its annual dividend by 6.7 percent. Sales in 2015 will rise by a percentage in the “mid-single digits,” in line with analysts’ estimates, as it pushes into markets outside personal computers.

     Salesforce.com Inc. slid 4.5 percent to $58.30, the biggest drop since May, after forecasting fiscal fourth-quarter sales and profit and 2016 revenue that may miss analysts’ estimates.

     Six out of 10 main industries in the S&P 500 advanced. Energy companies had the biggest gains, jumping 1.1 percent, as West Texas Intermediate crude for January delivery climbed 1.8 percent. The energy group has lost 13 percent from a June high after oil collapsed into a bear market.

     Nabors Industries Ltd advanced 3.5 percent to $16.37 and Chesapeake Energy Corp. climbed 3.9 percent to $23.95.

Have a wonderful evening everyone.

Be magnificent!

This is a good point to understand that the sum and substance of this lecture

is that there is but One Existence, and that One Existence seen through different constitutions

appears either as the earth, or heaven, or hell, or gods, or ghosts, or men, or demons, or world,

or all these things.

Swami Vivekananda

As ever,

Carolann

Research has shown that the best way to be happy is to make each day happy.

                                                                         -Deepak Chopra, 1947-

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7