November 21, 2022 Newsletter

Dear Friends,

Tangents: Happy Monday.
November 21, 1986: Mike Tyson becomes the youngest heavyweight champion in boxing history with a 2^nd round knockout of Trevor Berbick.  At just 20 years old, he was 2 years younger than when Muhammad Ali won the title in1963.
November 21, 2010:  Debt-struck Ireland applied for a massive EU-IMF loan to stem the flight of capital from its banks.  Go to article »
1783: Man’s first flight in a balloon.

Voltaire, philosopher, b. 1694.
Henry Purcell, composer, d.1695.

Who was the world’s first author?  The oldest known writing dates back more than 5,000 years to ancient Mesopotamia, in what is now mostly present-day Iraq.
But who was the first author known by name?  Full Story: Live Science (11/21)

4.6 billion-year-old meteorite may reveal the origin of Earth’s water:  An ancient meteorite that crash-landed on a U.K. driveway may have solved the mystery of where Earth’s water came from.
The 4.6 billion-year-old space rock, which landed in front of a family home in the English town of Winchcombe in February 2021, contains water that closely resembles the chemical composition of water found on Earth — presenting a possible explanation for how our planet was seeded with the life-giving substance.  Full Story: Live Science (11/18)

Here’s who won at last night’s American Music Awards:  Beyoncé and Taylor cleaned up YET AGAIN.

PHOTOS OF THE DAY

Jukkasjarvi, Sweden
The northern lights illuminate the sky
Photograph: Jonathan Nackstrand/AFP/Getty Images

Villarrica, Chile
The Villarrica volcano erupts
Photograph: Reuters

Shanghai, China
A shipwreck dating back to the reign of the Qing dynasty’s Emperor Tongzhi (1862-1875) is lifted out of the water
Photograph: Xinhua/REX/Shutterstock
Market Closes for November 21st, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1995, the Dow Jones Industrial Average broke through the 5000 barrier for the first time, just nine months after first closing above 4000.  Never before had a market milestone fallen so quickly, and even bullish analysts were astonished at the speed of the market’s rise
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite declined slightly to 19,977.13 in Toronto.
The move follows the previous session’s increase of 0.5%.
Shopify Inc. contributed the most to the index decline, decreasing 3.4%.
Bausch Health Cos. had the largest drop, falling 7.7%.
Today, 119 of 236 shares fell, while 114 rose; 5 of 11 sectors were lower, led by energy stocks.
Insights
* This year, the index fell 5.9%, heading for the worst year since 2018
* This month, the index rose 2.8%
* The index declined 7.3% in the past 52 weeks. The MSCI AC Americas Index lost 17% in the same period
* The S&P/TSX Composite is 10.1% below its 52-week high on April 5, 2022 and 11.8% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 0.3% in the past 5 days and rose 5.9% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.3 on a trailing basis and 12.6 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 17.24% compared with 18.56% in the previous session and the average of 21.47% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Energy | -29.4806| -0.8| 2/36
Information Technology | -14.0878| -1.3| 4/10
Materials | -3.9414| -0.2| 25/24
Health Care | -2.2774| -2.7| 2/5
Communication Services | -0.7232| -0.1| 4/3
Utilities | 0.3173| 0.0| 8/8
Real Estate | 2.4394| 0.5| 14/8
Consumer Discretionary | 5.8154| 0.8| 6/8
Consumer Staples | 7.2817| 0.9| 11/0
Financials | 9.8916| 0.2| 17/11
Industrials | 20.9858| 0.8| 21/6
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
Shopify | -13.5600| -3.4| -21.8| -72.8
Cenovus Energy | -5.5520| -2.1| 36.7| 71.9
Bank of Montreal | -5.4800| -0.9| -39.6| -3.7
Restaurant Brands | 4.8460| 2.6| 38.1| 19.5
Canadian Pacific | 8.7710| 1.3| -3.2| 17.0
Bank of Nova Scotia| 9.4450| 1.7| -11.3| -21.6
US
By Peyton Forte and Emily Graffeo
(Bloomberg) — US stocks dropped as investors parsed comments from Federal Reserve officials who broadly remained steadfast in their fight against inflation.
Mounting concerns that China may tighten Covid curbs after a string of reported deaths also continued to weigh on investors.
Technology stocks, which are typically more sensitive to interest rates, dragged the S&P 500 lower.
The Nasdaq 100 ended the day down 1.1%.
Oil emerged from a volatile session largely unchanged after Saudi Arabia denied a report that it is discussing an oil-production increase for the OPEC+ meeting next month.
The dollar climbed for a third day as investors sought haven assets.
Treasuries were mixed.
Investors are closely watching what Fed speakers say about the outlook for interest rates.
While several central bank officials in recent days have restated their intention to remain relentless until inflation is under control, they differ on how far they’ll go.
On Monday, San Francisco Fed President Mary Daly said that officials will need to be mindful of the lags with which monetary policy is transmitted through the economy as they raise rates further.
Her Cleveland counterpart Loretta Mester said she’s open to slowing the tempo of rate hikes.
“This shouldn’t be regarded as a pivot or anything new,” said Michael Contopoulos, director of fixed income at Richard Bernstein Advisors. “A real pivot is when the Fed starts to cut rates and/or pause quantitative tightening. That is nowhere in sight.”
Atlanta Fed President Raphael Bostic, meanwhile, has said he favors slowing the pace of interest rate increases, with no more than 1 percentage point more of hikes, to try to ensure the economy has a soft landing.
Boston Fed President Susan Collins has reiterated her view that options are open for the size of the December interest-rate increase, including the possibility of a 75 basis-point move.
Traders this week will also be looking to minutes of the most recent Fed policy meeting for further clues on the central bank’s path ahead.
“For the Fed right now, if we do get some slowing in inflation — which it seems like we might — but you’re not seeing it in the slowing of service inflation, that’s related to a tight labor market,” Veronica Clark, economist at Citigroup,
said on Bloomberg Television. “You do need to see that loosening in the labor market data.”
Meanwhile, China saw its first Covid-related death in almost six months on Saturday and another two were reported on Sunday.
Worsening outbreaks across the nation are stoking concerns that authorities may again resort to harsh restrictions.
Shutdowns could have a negative impact on supply-chain dynamics and possibly exacerbate inflation issues across economies. 
Key events this week:
* US Richmond Fed manufacturing index, Tuesday
* OECD releases Economic Outlook, Tuesday
* Fed’s Loretta Mester and James Bullard speak, Tuesday
* S&P Global PMIs: US, Euro area, UK, Wednesday
* US MBA mortgage applications, durable goods, initial jobless claims, University of Michigan sentiment, new home sales, Wednesday
* Minutes of the Federal Reserve’s Nov. 1-2 meeting, Wednesday
* ECB publishes account of its October policy meeting, Thursday
* US stock and bond markets are closed for the Thanksgiving holiday, Thursday
* US stock and bond markets close early, Friday

Some of the main moves in markets :
Stocks
* The S&P 500 fell 0.4% as of 4:01 p.m. New York time
* The Nasdaq 100 fell 1.1%
* The Dow Jones Industrial Average fell 0.1%
* The MSCI World index rose 0.6%
Currencies
* The Bloomberg Dollar Spot Index rose 0.7%
* The euro fell 0.8% to $1.0239
* The British pound fell 0.6% to $1.1818
* The Japanese yen fell 1.2% to 142.11 per dollar
Cryptocurrencies
* Bitcoin fell 2.8% to $15,800.01
* Ether fell 3.2% to $1,104.71
Bonds
* The yield on 10-year Treasuries was little changed at 3.83%
* Germany’s 10-year yield declined two basis points to 1.99%
* Britain’s 10-year yield declined five basis points to 3.19%
Commodities
* West Texas Intermediate crude fell 0.4% to $79.73 a barrel
* Gold futures fell 0.8% to $1,755.20 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Isabelle Lee.
Have a lovely evening.

Be magnificent!
As ever,

Carolann

Far more crucial than what we know or do not know is what we do to want to know. –Eric Hoffer, 1902-1983.

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