October 22, 2021 Newsletter

Dear Friends,

Tangents: Happy Friday.

On Oct. 22, 1962, President John F. Kennedy announced an air and naval blockade of Cuba, following the discovery of Soviet missile bases on the island.  Go to article »

5 expert tips to stress less this fall.  Print them out. Recite them. Get them tattooed. Whatever helps! 

Here’s a good cookie recipe.
 
More evidence for new fundamental physics from CERN. 

Scientists nearly achieve absolute zero, at which light becomes liquid (!!!). (h/t Mike Smedley)

The super-rich have a new club.

The hot new thing is buying property in Italy.

PHOTOS OF THE DAY
Waves crash on the shore at sunrise at St Mary’s lighthouse in Tyne and Wear on the north-east coast
CREDIT: Owen Humphreys/PA
Youngsters grapple with a large pumpkin at Tulleys farm in Crawley. The farm’s annual ‘pick your own pumpkins’ event takes place throughout October, with approximately 450,000 pumpkins available
CREDIT: Dan Kitwood/Getty Images
The Syrian artist Khaled Dawwa works on a clay sculpture depicting a street in Syria, destroyed by government forces and their allies
CREDIT: Joel Saget/AFP/Getty Images
A member of Sotheby’s staff wears a pair of Mughal spectacles with diamond lenses, in diamond-mounted frames. The spectacles are part of the forthcoming Arts of the Islamic World and India auction and are estimated to fetch £1.5-2.5m
CREDIT: Alberto Pezzali/AP

Market Closes for October 22^nd, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1929, Yale professor Irving Fisher, one of the nation’s foremost economists, wrote in the New York Herald Tribune, “The breaks of the past few days have driven stocks down to hard rock. I believe that we will have a ragged market for a few weeks and then the beginning of a mild bull movement that will gain momentum next year.” Prof. Fisher was half-right: The market was “ragged,” losing a quarter of its value by the end of the year. Then it stayed ragged for years.
Canada
By Natasha Abellard
(Bloomberg) — Canadian equities are gaining for a 13^th straight day as news that the China Evergrande Group narrowly escaped default helped investor sentiment. The S&P/TSX Composite is up 0.2% in Toronto on Friday, with the materials sector leading the mornings advance. Meanwhile, Canadian retail sales slipped in September due to supply chain issues, leading consumers to spend more on services instead of hard goods. Barrick Gold contributed the most to the index gain, increasing 2.6%. New Gold Inc. had the largest increase, rising 6%. In early trading, 155 of 233 shares rose, while 72 fell; 7 of 11 sectors were higher, led by materials stocks.
Insights
* This year, the index rose 22%, heading for the best year in at least 10 years
* This month, the index rose 5.8%, heading for the biggest advance since November 2020
* So far this week, the index rose 1.4%
* The index advanced 30% in the past 52 weeks. The MSCI AC Americas Index gained 32% in the same period
* The S&P/TSX Composite is 0% below its 52-week high on Oct. 22, 2021 and 37.7% above its low on Oct. 30, 2020
* S&P/TSX Composite is trading at a price-to-earnings ratio of 20.2 on a trailing basis and 16.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.5% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.34t
* 30-day price volatility fell to 10.39%compared with 10.48Z%in the previous session and the average of 9.69% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Materials | 43.7291| 1.8| 50/5
* Financials | 26.2206| 0.4| 23/5
* Energy | 12.4386| 0.4| 17/6
* Industrials | 2.9745| 0.1| 13/14
* Real Estate | 2.7505| 0.4| 21/2
* Consumer Staples | 0.8808| 0.1| 9/4
* Utilities | 0.4532| 0.0| 10/5
* Communication Services | -1.7831| -0.2| 2/4
* Consumer Discretionary | -2.7044| -0.4| 6/7
* Health Care | -3.2350| -1.6| 2/7
* Information Technology | -67.1820| -2.7| 4/11
================================================================
| | |Volume VS| YTD
|Index Points| | 20D AVG | Change
Top Contributors | Move |% Change | (%) | (%)
================================================================
* Barrick Gold | 7.6570| 2.6| 20.0| -14.2
* Royal Bank of Canada | 6.9270| 0.5| -26.5| 27.3
* Canadian Natural | | | |
* Resources | 5.3550| 1.2| -47.0| 73.4
* Magna International | -2.1940| -1.1| -28.9| 12.7
* Lightspeed Commerce | | | |
* Inc | -2.4660| -2.3| -27.8| 34.3
* Shopify | -61.0400| -4.2| 152.9| 23.0

US
By Nathan Hager and Vildana Hajric
(Bloomberg) — U.S. equities fell on Friday after the chairman of the Federal Reserve signaled some concern about inflation. The S&P 500 slid 0.1% and the Nasdaq 100 retreated 0.9% as Jerome Powell said the central bank was monitoring price pressures carefully and would adapt accordingly. Global supply-chain constraints and shortages that have led to elevated inflation “are likely to last longer than previously expected, likely well into next year,” Powell said, while adding that “it is still the most likely case” that as those constraints ease. Investors are increasingly concerned higher cost pressures and global supply-chain bottlenecks will push the Fed to raise interest rates faster than expected.  However, a solid start to the earnings season had offset those fears with the benchmark S&P 500 topping a record on Thursday. “The market is getting more worried that we are in some kind of a longer term inflation rise,” said Jim Bianco, president and founder of Bianco Research, on Bloomberg TV and Radio’s “Surveillance.” Stocks won’t like if the Fed responds to inflation and bonds won’t like it if they don’t, he said. “That’s not a good scenario.” The 10-year U.S. Treasury yield fell to 1.64% but still remained higher for the week.
The dollar edged lower, on track for a second week of declines. And gold gained. The losses came after the S&P 500 struggled for a direction earlier in the session after disappointing tech earnings overnight. A warning on ad spending from Snap Inc. wiped out more than $100 billion of market value from the social media company and its peers including Facebook Inc., Google-owner Alphabet Inc., Pinterest Inc. and Twitter Inc.
Meanwhile, Intel Corp. also fell on lower-than-expected sales amid component shortages.
“A double whammy of bad news for the tech sector could well mean that record highs are out of reach for now,” Fiona Cincotta, senior financial markets analyst at City Index, wrote in a note. Despite the threat of price pressures, however, global stocks are set for a third weekly advance helped by the ongoing recovery from the health crisis. Stocks in Europe gained on Friday, led by consumer shares on positive earnings.  Equities in Asia also rose after China Evergrande Group pulled back from the brink of a default, easing concerns about a contagion from the property developer’s woes.  Crude oil gained, Bitcoin fell to $60,900, and Russia’s ruble surged after the country’s central bank raised borrowing costs by more than economists’ expectations.
Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.1% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.9%
* The Dow Jones Industrial Average rose 0.2%
* The MSCI World index was little changed
Currencies
* The Bloomberg Dollar Spot Index fell 0.2%
* The euro rose 0.2% to $1.1644
* The British pound fell 0.2% to $1.3762
* The Japanese yen rose 0.5% to 113.43 per dollar
Bonds
* The yield on 10-year Treasuries declined six basis points to 1.64%
* Germany’s 10-year yield was little changed at -0.11%
* Britain’s 10-year yield declined six basis points to 1.15%
Commodities
* West Texas Intermediate crude rose 1.9% to $84.07 a barrel
* Gold futures rose 0.7% to $1,795.10 an ounce
–With assistance from Robert Brand and Sunil Jagtiani.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

Train yourself to let go of the things you fear to lose. –George Lucas, b.1944.

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