November 28, 2022 Newsletter

Dear Friends,

Tangents: Happy Monday.

November 28, 2001: Enron Corp., once the world’s largest energy trader, collapsed after would-be rescuer Dynegy Inc. backed out of an $8.4 billion deal to take it over.  Go to article »
1886: Sadie Allen becomes the first woman to go over Niagara Falls in a barrel.  The barrel also contained her partner, George Hazlett, and 227 kg (500 lbs) of sand.

William Blake, poet, b. 1757.
Friedrich Engels, philosopher, b. 1820.
Berry Gordy Jr., cofounder of Motown, b. 1929.
Jon Stewart, comedian, b. 1962.

Dozens of earthquakes swarm Hawaii as the world’s largest volcano erupts.  Hawaii’s Mauna Loa, the world’s largest active volcano, is erupting for the first time in nearly 40 years.
Dozens of earthquakes — one of them a magnitude 4.2 quake — have swarmed the region after the volcano’s Moku’āweoweo summit caldera erupted on Sunday (Nov. 27) night. Officials have issued an ashfall advisory for Hawaii’s Big Island and residents have been asked to remain vigilant.  Full Story: Live Science (11/28)
.

A journey to the quietest place on Earth.

What NASA’s discovery means for life beyond Earth: Watch astrophysicist Neil deGrasse Tyson react to the discovery of organic matter on Mars and what it could mean for life beyond Earth.

Abandoned Greek airport to be transformed into a 600-acre park.  View the impressive renderings of a coastal park that will bring much-needed green space to the Greek capital of Athens.

Stars reveal their favorite Christmas movies — and one had a controversial pick.  Tom Hanks, a few celebrities, and some of your favorite CNN journalists say these are the movies they love to watch during the holidays. Enjoy!

PHOTOS OF THE DAY

Villingaholtskirkja, Iceland
The northern lights appear over Villingaholtskirkja church on the country’s south coast
Photograph: Owen Humphreys/PA

Martinique, France
A woman stands on Plage du Diamant (Diamond beach) at sunset
Photograph: Charly Triballeau/AFP/Getty Images

Al Rayyan, Qatar
Japan fans inside the stadium before the World Cup match against Costa Rica
Photograph: Issei Kato/Reuters
Market Closes for November 28^th, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1895, the “horseless carriage” began to seem practical, as the Chicago Times-Herald sponsored the first automobile race in U.S. history. The winner of the 54-mile contest, Frank Duryea, clocked in an average speed of roughly 7 miles per hour.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.8% at 20,220.49 in Toronto.
The move was the biggest since falling 0.9% on Nov. 14 and follows the previous session’s increase of 0.2%.
Royal Bank of Canada contributed the most to the index decline, decreasing 1.2%.
Endeavour Silver Corp. had the largest drop, falling 8.7%.
Today, 193 of 236 shares fell, while 41 rose; 7 of 11 sectors were lower, led by financials stocks.
Insights
* This year, the index fell 4.7%, heading for the worst year since 2018
* This month, the index rose 4.1%
* The index declined 4.3% in the past 52 weeks. The MSCI AC Americas Index lost 15% in the same period
* The S&P/TSX Composite is 9% below its 52-week high on April 5, 2022 and 13.1% above its low on Oct. 13, 2022
* The S&P/TSX Composite is up 1.2% in the past 5 days and rose 3.8% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.5 on a trailing basis and 12.7 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$3.25t
* 30-day price volatility rose to 15.14% compared with 14.91% in the previous session and the average of 19.86% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -67.3719| -1.1| 4/24
Materials | -55.3901| -2.3| 1/50
Energy | -49.1582| -1.3| 3/34
Real Estate | -11.1665| -2.2| 0/22
Utilities | -9.6554| -1.1| 0/16
Consumer Discretionary | -1.8357| -0.3| 5/9
Health Care | -1.0472| -1.3| 1/6
Communication Services | 0.5240| 0.1| 4/3
Industrials | 5.0869| 0.2| 11/16
Consumer Staples | 12.8612| 1.5| 7/4
Information Technology | 13.8859| 1.2| 5/9
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
RBC | -15.3600| -1.2| -18.2| -0.8
TD Bank | -13.0600| -1.2| 28.7| -7.2
Suncor Energy | -11.2100| -2.5| 245.2| 46.0
Canadian National | 4.0720| 0.6| 29.2| 9.5
Couche-Tard | 6.0710| 1.8| 62.9| 17.0
Shopify | 17.6400| 4.4| 14.0| -70.5
US
By Rita Nazareth
(Bloomberg) — Stocks sank as Federal Reserve officials stressed that more rate hikes are coming, with risk appetite also hit by uncertainties around China’s Covid curbs and their impact on the global economy.
The S&P 500 pared its monthly gain as Fed Bank of St. Louis President James Bullard said markets may be underestimating the chances of higher rates while his New York counterpart John Williams noted policymakers have more work to do to curb inflation.
Fed Vice Chair Lael Brainard said the string of supply shocks is keeping inflation risks elevated.
Investors are now looking ahead to Jerome Powell’s speech Wednesday, with many economists expecting he’ll cement bets that the Fed will slow its pace of rate increases next month – while reminding Americans that its fight against inflation will run into 2023.
“We expect Powell will push back more narrowly on market bets on early rate cuts that have once again crept a bit too far into 23, emphasizing that a stronger-for-longer labor market suggests that rates will need to be higher for longer,” wrote Krishna Guha, vice chairman of Evercore ISI.
As traders sought safety, the dollar rose alongside the Japanese yen. Investor anxiety also hit Bitcoin, with the crypto market digesting BlockFi Inc.’s bankruptcy filing.
US-listed Chinese shares rebounded from a selloff.
Apple Inc. slid as Bloomberg News reported that turmoil in China is likely to result in a production shortfall of close to 6 million iPhone Pro units this year.
China’s woes complicate expectations of its path to reopening, with authorities deploying a heavy police presence in Beijing and Shanghai to deter a repeat of the weekend’s demonstrations.
Chances are growing of a messy exit from the Covid Zero policy, analysts at Goldman Sachs Group Inc. warned.
“This is going to keep economic activity subdued in the country, and beyond,” said Fawad Razaqzada, market analyst at City Index and Forex.com. “The civil unrest is adding another layer of uncertainty over the economic situation there. It is certainly hurting investor sentiment across the financial markets.”
Just when the S&P 500 was trying to break above the highs of mid-November, sentiment turned negative, threatening the market’s recent momentum.
Timing is most inconvenient here as the index approaches a crucial technical zone in the shape of both the 2022 downtrend and the 200-day moving average.
Should the recent bullishness evaporate, short-term tactical bear trades might spark a bout of profit taking.
Stock markets are in for a wild ride next year as they don’t yet reflect the risk of a US recession, according to strategists at Goldman Sachs and Deutsche Bank.
Their calls are a warning after equities rallied sharply in the past two months on bets that a peak in inflation will lead to a softening of hawkish central bank policies.
BlackRock Inc.’s Chief Investment Officer Rick Rieder sees a chance for rates volatility to turn lower and provide a necessary, “though perhaps not sufficient” condition for stabilization in risk assets markets.
Stagflation is the key risk for the global economy in 2023, according to investors who said hopes of a rally in markets are premature following this year’s brutal selloff.
Almost half of the 388 respondents to the latest MLIV Pulse survey said a scenario where growth continues to slow while inflation remains elevated will dominate globally next year.
Elsewhere, oil climbed as OPEC+ is seen considering deeper output cuts amid a faltering market.
Key events this week:
* Euro area economic confidence, consumer confidence, Tuesday
* US Conference Board consumer confidence, Tuesday
* EIA crude oil inventory report, Wednesday
* China PMI, Wednesday
* Fed Chair Jerome Powell speech, Wednesday
* Fed releases its Beige Book, Wednesday
* US wholesale inventories, GDP, Wednesday
* S&P Global PMIs, Thursday
* US construction spending, consumer income, initial jobless claims, ISM Manufacturing, Thursday
* BOJ’s Haruhiko Kuroda speaks, Thursday
* US unemployment, nonfarm payrolls, Friday
* ECB’s Christine Lagarde speaks, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 1.5% as of 4 p.m. New York time
* The Nasdaq 100 fell 1.4%
* The Dow Jones Industrial Average fell 1.4%
* The MSCI World index fell 1.4%
Currencies
* The Bloomberg Dollar Spot Index rose 0.6%
* The euro fell 0.6% to $1.0336
* The British pound fell 1.2% to $1.1949
* The Japanese yen rose 0.2% to 138.93 per dollar
Cryptocurrencies
* Bitcoin fell 1.9% to $16,252.51
* Ether fell 3.4% to $1,174.4
Bonds
* The yield on 10-year Treasuries advanced one basis point to 3.69%
* Germany’s 10-year yield advanced two basis points to 1.99%
* Britain’s 10-year yield was little changed at 3.13%
Commodities
* West Texas Intermediate crude rose 0.8% to $76.87 a barrel
* Gold futures fell 0.8% to $1,754.50 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Sujata Rao, John Viljoen, Vildana Hajric, Peyton Forte and Isabelle Lee.
Have  a lovely evening.

Be magnificent!
As ever,

Carolann

The measure of who we are is what we do with what we have. –Vince Lombardi, 1913-1970.

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