November 25, 2019 Newsletter

Dear Friends,

Tangents:

On Nov. 25, 1986, the Iran-Contra affair erupted as President Reagan and Attorney General Edwin Meese revealed that profits from secret arms sales to Iran had been diverted to Nicaraguan rebels. Go to article »

The Beverly Hills setting of the “Godfather” horse-head scene is in bankruptcy protection.

-from today’s New York Times:
The 2010s are about over. What did we live through, culturally speaking?
Gwyneth Paltrow became a lifestyle brand, superhero spandex took over, Broadway persevered, black art and gay culture came of age, and bingeing became a thing. And then there was #MeToo.
Our Culture staff took a look back at what we watched, heard, read, liked and shared.
Have a nostalgic evening.

PHOTOS OF THE DAY

The Churchill Arms on Kensington Church Street, West London switches on its display of Christmas lights.
CREDIT: PAUL DAVEY/SWNS

Chinese People’s Liberation Army soldiers riding horses as they Patrol along the border of Khunjerab Pass in Kashgar in China’s western Xinjiang region.
CREDIT:AFP

Prince Charles visits Solomon Islands: The Prince of Wales and Duchess of Cornwall just finished a tour of New Zealand. It was their third joint visit to New Zealand. It was their third joint visit to New Zealand and first in four years.
CREDIT: CHRIS JACKSON/GETTY IMAGES

A newborn lamb sticks its tongue out standing next to its mother in the lambing sheds at The Olde House, Chapel Amble, Cornwall, where the milder Cornish weather affords the workings farm two lambing seasons over the year, around 500 lambs are expected to be born this autumn.
CREDIT: BEN BIRCHALL/PA

Market Closes for November 25^th, 2019  

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 2008, the U.S. pledged to pump another $800 billion into ailing credit markets, much of it directly from the Fed. The central bank planned to buy up to $600 billion of debt issued or backed by mortgage-finance firms such as Fannie Mae and Freddie Mac. With support from the Treasury, the Fed would also provide as much as $200 billion in financing to boost consumer lending.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.5 percent at 17,032.86 in Toronto. The move was the biggest since rising 0.7 percent on Nov. 1 and follows the previous session’s decrease of 0.3 percent. Today, financials stocks led the market higher, as 8 of 11 sectors gained; 158 of 233 shares rose, while 69 fell. Alimentation Couche-Tard Inc. contributed the most to the index gain, increasing 3.5 percent. Martinrea International Inc. had the largest increase, rising 4.6 percent.

Insights
* This month, the index rose 3.3 percent, heading for the biggest advance since January
* This year, the index rose 19 percent, heading for the best year in at least 10 years
* The index advanced 13 percent in the past 52 weeks. The MSCI AC Americas Index gained 19 percent in the same period
* The S&P/TSX Composite is 0.1 percent below its 52-week high on Nov. 25, 2019 and 23.6 percent above its low on Dec. 24, 2018
* The S&P/TSX Composite is little changed in the past 5 days and rose 3.8 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.3 on a trailing basis and 15.8 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.61t
* 30-day price volatility rose to 4.16 percent compared with 4.04 percent in the previous session and the average of 5.90 percent over the past month

================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 24.0666| 0.4| 21/6
Energy | 23.6582| 0.9| 22/8
Industrials | 14.2132| 0.8| 24/8
Consumer Staples | 12.1503| 1.8| 8/2
Consumer Discretionary | 8.2220| 1.2| 11/5
Information Technology | 7.1392| 0.8| 8/1
Real Estate | 2.8569| 0.5| 21/2
Communication Services | 1.9632| 0.2| 5/2
Health Care | -1.6153| -0.8| 5/5
Utilities | -3.2822| -0.4| 8/7
Materials | -11.3470| -0.6| 25/23

* The benchmark 10-year bond rose and the yield fell 0.1 basis points to 1.472 percent
US
By Claire Ballentine and Vildana Hajric
(Bloomberg) — U.S. equities closed at records amid optimism over China trade relations and a fresh wave of merger and acquisition activity. The dollar strengthened. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite Indexes reached all-time highs after China said over the weekend that it will tighten intellectual property rules, a move aimed at boosting the chances of a trade deal between the two largest economies. Tech shares led the gains. Charles Schwab Corp. agreed to buy TD Ameritrade Holding Corp., while LVMH purchased U.S. jeweler Tiffany & Co. “I don’t think we would be seeing these types of deals if the outlook for markets and the economy weren’t favorable,” said Adam Phillips, director of portfolio strategy for EP Wealth Advisors. “This is one additional piece we can look at to see the outlook for markets is a positive one.” The Stoxx Europe 600 Index advanced, with all 19 industry sectors closing in the green. Equities climbed across Asia, led by those in Hong Kong, where local elections brought a landslide victory to pro-democracy candidates. The dollar gained versus the euro and yen.
While doubts about the rally remain and haven investments such as bonds seem well-supported, stocks globally are approaching a third month of gains. The S&P 500 Index is building on an advance from Friday, when President Donald Trump said he was “very close” to a trade pact with Chinese President Xi Jinping, even as Treasuries hold on to most of their two-week surge. “Markets are relatively optimistic about a phase one trade deal happening, but obviously there’s more uncertainty until President Trump and President Xi sit down and sign something more formal,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management. Elsewhere, China was planning a record sale of sovereign bonds in dollars, with a potential $6 billion offering, according to people familiar with the discussions. West Texas- grade oil futures drifted higher. Bitcoin dropped as much as 11% before paring the decline.
Here are some key events coming up this week:
* Federal Reserve Chairman Jerome Powell speaks on Monday at the Greater Providence Chamber of Commerce annual dinner in Providence, Rhode Island.
* Alibaba starts trading in Hong Kong on Tuesday.
* Reserve Bank of Australia Governor Philip Lowe will give a speech on unconventional monetary policy on Tuesday evening in Sydney.
* U.S. consumer spending data is due Wednesday, along with GDP, jobless claims and durable goods.
* The U.S. celebrates Thanksgiving on Thursday, when equity and bond markets will be shut.
* The Bank of Korea sets policy on Friday.

These are the main moves in markets:
Stocks
* The S&P 500 Index advanced 0.7% to 3,133.57 as of 4:01 p.m. New York time, the highest on record with the largest gain in more than a week.
* The Dow Jones Industrial Average advanced 0.7% to 28,065.39, the highest on record with the biggest gain in more than a week.
* The Nasdaq Composite Index surged 1.3% to 8,632.49, the highest on record with the largest jump in more than six weeks.
* The MSCI All-Country World Index advanced 0.7% to 547.17, the highest in 22 months on the biggest gain in more than a week.
Currencies
* The Bloomberg Dollar Spot Index was little changed at 1,207.43, hitting the highest in six weeks with its fifth straight advance.
* The euro fell 0.1% to $1.1011, the weakest in more than a week.
* The Japanese yen depreciated 0.3% to 108.94 per dollar, the weakest in almost two weeks on the largest fall in more than a week.
* The British pound jumped 0.5% to $1.2902, the first advance in a week and the biggest increase in two weeks.
Bonds
* The yield on two-year Treasuries declined one basis point to 1.62%.
* The yield on 10-year Treasuries dipped one basis point to 1.76%.
* Germany’s 10-year yield climbed one basis point to -0.35%.
* Britain’s 10-year yield fell one basis point to 0.696%, the lowest in more than three weeks.
Commodities
* Gold depreciated 0.5% to $1,454.95 an ounce, the weakest in more than 16 weeks.
* West Texas Intermediate crude advanced 0.4% to $57.98 a barrel.
* Copper gained 0.1% to $2.66 a pound.
Have a great night.

Be magnificent!
As ever,

Carolann

Art is not what you see, but what you make others see.
                                                             -Edgar Degas, 1834-1917

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