September 23, 2020 Newsletter

Dear Friends,

Tangents:
September 23, 1846- Neptune discovered.

Euripides, playwright, b. 480 BCE.
John Coltrane, musician, b. 1926
Ray Charles, b. 1930.
Bruce Springsteen, b. 1949.

Take a virtual tour of Montana, where the trout are plentiful and the crafting of fly-fishing rods is an art. -The New York Times.

Why there is no speed limit in the superfluid universe.

On Sept. 23, 1952, Republican vice-presidential candidate Richard M. Nixon went on television to deliver what came to be known as the ”Checkers” speech as he denied
allegations of improper campaign financing. Go to article »

-from Bloomberg today:
Researchers build the first human bionic eye.

Chitin could build tools and habitats on Mars.

What is a minimally good life?

PHOTOS OF THE DAY

Morning fog in Kvaerndrup, Fyn island, Denmark
CREDIT: MICHAEL BAGER/ EPA -EFE/ SHUTTERSTOCK

A yacht sails ahead of an approaching rainstorm over The Mediterranean Sea, near the coast of the French Riviera city of Nice, southern France
CREDIT: VALERY HACHE/ AFP VIA GETTY IMAGES

Ben Taylor of the Little Car Company in partnership with Aston Martin driving an electric Aston Martin DB5 with an original DB5 in the background.
CREDIT: PAUL GROVER FOR THE TELEGRAPH

Sir Anthony Gormley with his latest work “look II” on West Hoe Pier, Plymouth
CREDIT: DALE CHERRY FOR THE TELEGRAPH
Market Closes for September 23rd, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1998, Wall Street’s top investment banks, encouraged by the Federal Reserve, completed marathon negotiations for a $3.65 billion bailout of the giant hedge fund Long-Term Capital Management, which lost nearly $2 billion in a single month when the mathematical models designed by two Nobel laureates failed.
Canada
By Michael Bellusci
(Bloomberg) — Canadian equities fell Wednesday as confidence in the economic recovery waned. Shares in the U.S. also retreated amid warnings from Federal Reserve officials on the need for more stimulus.
The S&P/TSX Composite Index sank 2%, the most since June 11. Nine of 11 sectors retreated, with materials and health care among the laggards. Aurora Cannabis Inc. lost 28% after a weak earnings report.
Gold’s slump this week is forcing investors to ask whether the haven asset is taking a breather or facing an even sharper decline. Prime Minister Justin Trudeau says his government will launch a campaign to create 1 million jobs in Canada, returning employment to pre-pandemic levels.
Commodities
* Western Canada Select crude oil traded at a $10.60 discount to West Texas Intermediate
* Spot gold fell 2% to $1,860 an ounce
FX/Bonds
* The Canadian dollar weakened 0.6% to C$1.3383 per U.S. dollar
* The 10-year government bond edged lower to 0.557%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite fell 2 percent at 15,817.11 in Toronto. The move was the biggest since falling 4.1 percent on June 11 and follows the previous session’s increase of 1 percent.
Today, materials stocks led the market lower, as 9 of 11 sectors lost; 205 of 223 shares fell, while 16 rose.
Shopify Inc. contributed the most to the index decline, decreasing 3.0 percent. Aurora Cannabis Inc. had the largest drop, falling 29.1 percent.
Insights
* In the past year, the index had a similar or greater loss 17 times. The next day, it advanced 11 times for an average 3.8 percent and declined six times for an average 5 percent
* This month, the index fell 4.2 percent
* This quarter, the index rose 1.9 percent
* This year, the index fell 7.3 percent, heading for the worst year since 2018
* The index declined 6.2 percent in the past 52 weeks. The MSCI AC Americas Index gained 8 percent in the same period
* The S&P/TSX Composite is 12 percent below its 52-week high on Feb. 20, 2020 and 41.6 percent above its low on March 23, 2020
* The S&P/TSX Composite is down 2.9 percent in the past 5 days and fell 4.2 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 24.1 on a trailing basis and 23 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.3 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.47t
* 30-day price volatility rose to 14.40 percent compared with 13.28 percent in the previous session and the average of 11.65 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | -129.7538| -5.1| 1/51
Energy | -58.2727| -3.2| 2/20
Financials | -54.5791| -1.2| 0/26
Information Technology| -36.0200| -2.3| 1/9
Industrials | -12.3276| -0.6| 3/24
Utilities | -10.7467| -1.3| 0/16
Communication Services| -10.7314| -1.3| 1/6
Real Estate | -10.1197| -2.0| 1/26
Health Care | -8.1271| -5.1| 0/10
Consumer Discretionary| 2.2855| 0.4| 5/8
Consumer Staples | 2.6104| 0.4| 2/9
US
By Rita Nazareth and Sarah Ponczek
(Bloomberg) — Stocks slumped to an eight-week low amid warnings from Federal Reserve officials on the need for more stimulus to lift the world’s largest economy from a coronavirus-induced recession. The dollar rallied.
The S&P 500 closed near the threshold that many investors consider to be a market correction, while the Nasdaq 100 tumbled more than 3%, led by giants Apple Inc. and Amazon.com Inc. Fed Chairman Jerome Powell reiterated there’s a long way to go for the economic rebound, which will likely require more support.
The need for further aid was also stressed by Vice Chairman Richard Clarida, Governor Randal Quarles and regional chiefs Charles Evans, Loretta Mester and Eric Rosengren.
The warnings come days after Congress all but ended its pursuit of a bipartisan spending bill to focus on replacing Ruth Bader Ginsburg on the Supreme Court. It’s another blow to investors who are also watching virus cases tick higher in the U.S. amid a resurgence in infections around the world. Traders are growing cautious about the strength of the economic recovery, with the chances for Congressional stimulus withering ahead of a contentious election battle. The benchmark gauge of U.S. equities is poised for its first monthly slide since March.
“Markets are digesting and grappling with this idea that the growth expectations that investors have might not materialize,” said Lauren Goodwin, economist and multi-asset portfolio strategist at New York Life Investments. “As the fiscal impulse in the U.S. starts to wane, some of these expectations for a slow and steady recovery are shaken.”
On corporate news, Tesla Inc. plunged after its “Battery Day” event fell short of expectations. Nike Inc. rallied on solid earnings, while GoodRx Holdings Inc. — which operates a telemedicine site and platform to track drug prices — surged in its trading debut.

     These are some events to watch this week:
* Powell and Treasury Secretary Steven Mnuchin will testify before a Senate committee on the economic response to the pandemic on Thursday.
* U.S. initial jobless claims are due Thursday.

Here are some of the main moves in markets:
Stocks
* The S&P 500 declined 2.4% at 4 p.m. New York time.
* The Stoxx Europe 600 Index rose 0.6%.
* The MSCI Asia Pacific Index fell 0.2%.
Currencies
* The Bloomberg Dollar Spot Index jumped 0.7%.
* The euro fell 0.4% to $1.1659.
* The Japanese yen depreciated 0.4% to 105.40 per dollar.
Bonds
* The yield on 10-year Treasuries was unchanged at 0.67%.
* Germany’s 10-year yield was unchanged at -0.51%.
* Britain’s 10-year yield increased two basis points to 0.218%.
Commodities
* West Texas Intermediate crude fell 0.7% to $39.52 a barrel.
* Gold depreciated 2.1% to $1,859.48 an ounce.
* Silver depreciated 7.3% to $22.62 per ounce.
–With assistance from Constantine Courcoulas, Adam Haigh, Todd
White, Cecile Gutscher, Lynn Thomasson, Vildana Hajric, Vassilis Karamanis and Claire Ballentine.
Have  a great night.

Be magnificent!
As ever,

Carolann

You better live every day like your last because one day you’re going to be right.
                                                                           -Ray Charles, 1930-2004

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