September 28, 2021 Newsletter

Dear Friends,

Tangents:
On Sept. 28, 1924, two United States Army planes landed in Seattle, Washington, having completed the first round-the-world flight in 175 days. Go to article »

Cabrillo Day: discovery of California, 1542.

Al Capp, cartoonist, b. 1909
Marcello Mastroianni, actor, b. 1924
Brigitte Bardot, actress, b. 1934
Gwyneth Paltrow, actress, b. 1973

How neutron star collisions flooded Earth with gold and other precious metals. 

These are the best restaurants in California.

You could live in a town where mail is delivered only by people jumping from boats. 
PHOTOS OF THE DAY

A double rainbow gleams after a storm near Atherfield on the Isle of Wight
CREDIT: SIENNA ANDERSON/PICTUREEXCLUSIVE.COM

With HMS Lancaster’s mission complete, she headed West back towards the Norwegian Sea. As the sun set on the first clear sky since being in the high north. The ships company were treated to a spectacular display courtesy of the Aurora Borealis. With the sky alive with dancing swirls and streaks of green, awestruck sailors stared to the skies
CREDIT: ROYAL NAVY/LPHOT KYLE HELLER

People stand on the west pier in Whitby to watch the sunrise this morning on the Yorkshire coast
CREDIT: ANDREW MCCAREN/LNP

A model walks the runway during the Victoria/Tomas Womenswear Spring/Summer 2022 show as part of Paris Fashion Week
CREDIT: THIERRY CHESNOT/GETTY IMAGES

Market Closes for September 28^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
     On this day in 1987, the cover of Fortune magazine asked, “ARE STOCKS TOO HIGH?” Heck no, answered the cover story. “New ways of valuing shares give some surprising answers…. Clearly, something is going on that the old analytical concepts cannot account for.” Just 14 trading days later, the stock market dropped 23%.
Canada
By Divya Balji
(Bloomberg) — Canadian stocks sank, with tech stocks dragging the benchmark index lower as rising Treasury yields pushed investors to rotate out of growth stocks and into value. The S&P/TSX Composite fell 1.4% to 20,174.14 in Toronto. All 11 sectors dropped with information technology and consumer discretionary companies as the biggest losers.  Shopify Inc. contributed the most to the index decline, decreasing 4.8%. Converge Technology Solutions Corp. had the largest drop, falling 8.2 percent.
Insights
* In the past year, the index had a similar or greater loss four times. The next day, it advanced after all four occasions
* This year, the index rose 16 percent, heading for the best year since 2019
* This quarter, the index was little changed
* This month, the index fell 2 percent, heading for the biggest decline since October 2020
* The index advanced 24 percent in the past 52 weeks. The MSCI AC Americas Index gained 30 percent in the same period
* The S&P/TSX Composite is 3.5 percent below its 52-week high on Sept. 7, 2021 and 30.8 percent above its low on Oct. 30, 2020
* The S&P/TSX Composite is down 0.3 percent in the past 5 days and fell 2.3 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.2 on a trailing basis and 16.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.6 percent on a trailing 12- month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.22t
* 30-day price volatility rose to 9.55 percent compared with 8.71 percent in the previous session and the average of 6.90 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology| -103.4416| -4.2| 0/15
* Financials | -60.1620| -0.9| 3/25
* Industrials | -26.1558| -1.1| 2/28
* Energy | -23.5387| -0.9| 9/13
* Materials | -20.2006| -0.9| 16/38
* Consumer Discretionary| -16.7291| -2.2| 0/12
* Communication Services| -9.4861| -1.0| 1/6
* Utilities | -9.0652| -1.0| 3/13
* Real Estate | -8.4003| -1.3| 5/20
* Consumer Staples | -7.9820| -1.1| 0/12
* Health Care | -4.1166| -1.9| 1/8
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | -68.7800| -4.8| 31.2| 20.7
* Brookfield Asset | | | |
* Management | -17.2100| -2.4| -2.6| 31.1
* Royal Bank of | | | |
* Canada | -13.7500| -1.1| 9.8| 21.0
* Canadian Natural | | | |
* Resources | 1.3180| 0.4| -47.9| 49.1
* Barrick Gold | 3.3330| 1.2| 16.6| -19.9
* TD Bank | 3.9190| 0.4| 29.4| 18.1

US
By Rita Nazareth and Kamaron Leach
(Bloomberg) — The selloff in risk assets accelerated Tuesday amid mounting concern over the debt-ceiling impasse in Washington, with stocks suffering their worst rout since May. During a Senate hearing Tuesday, Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen both warned that a U.S. default due to a failure to raise the debt ceiling would have catastrophic consequences. Republicans blocked a Democratic move in the Senate to raise the debt limit for the second time in as many days – escalating tensions less than three weeks before the Treasury potentially runs out of capacity to avert a federal payments default. “We would expect a deal to get done, but it appears as though both sides are a bit more entrenched compared to previous periods,” said Brian Price, head of investment management at Commonwealth Financial Network. “A government shutdown is a risk factor that we’ll be watching in the coming days and weeks.” Yellen warned that her department will effectively run out of cash around Oct. 18 unless legislative action is taken to suspend or increase the debt limit. Heated remarks from Senator Elizabeth Warren also weighed on markets. After slamming Powell on his track record over financial regulation, Warren said he’s a “dangerous man to head up the Fed” and that’s why she’ll oppose his renomination.
The S&P 500 extended its September selloff, with technology shares underperforming economically sensitive companies. The Nasdaq 100 tumbled the most since March. The yield on Treasury 30-year bonds climbed more than 10 basis points earlier Tuesday. The dollar rallied. Brent slipped from a three-year high above $80 a barrel, dragged lower by a rout in U.S. equities. U.S. consumer confidence dropped in September for a third straight month, suggesting concerns over the delta variant and higher prices continue to dampen sentiment. Home prices surged 19.7% in July – once again posting the biggest jump in more than 30 years.
Here are some events to watch this week:
* Japan’s ruling party votes to elect leader, Wednesday
* Central bank chiefs Andrew Bailey (BOE), Haruhiko Kuroda (BOJ), Christine Lagarde (ECB) and Jerome Powell (Fed) participate in an ECB Forum panel, Wednesday
* House Financial Services Committee hearing on the Fed, Treasury’s pandemic response, Thursday
* China Caixin manufacturing PMI, non-manufacturing PMI, Thursday
* Univ. of Michigan sentiment, ISM manufacturing, U.S. construction spending, spending/personal income, Friday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 2% as of 4 p.m. New York time
* The Nasdaq 100 fell 2.9%
* The Dow Jones Industrial Average fell 1.6%
* The MSCI World index fell 1.9%
* The Russell 2000 Index fell 2.2%
Currencies
* The Bloomberg Dollar Spot Index rose 0.5%
* The euro fell 0.1% to $1.1683
* The British pound fell 1.2% to $1.3539
* The Japanese yen fell 0.5% to 111.51 per dollar
Bonds
* The yield on 10-year Treasuries advanced five basis points to 1.54%
* Germany’s 10-year yield advanced two basis points to -0.20%
* Britain’s 10-year yield advanced four basis points to 0.99%
Commodities
* West Texas Intermediate crude fell 0.8% to $74.81 a barrel
* Gold futures fell 1.1% to $1,733.20 an ounce
–With assistance from Andreea Papuc, Srinivasan Sivabalan, Ksenia Galouchko and Vildana Hajric.
Have a lovely evening.

Be magnificent!

As ever,

Carolann

He who uses only the sight of his eye is acted on by what he sees; it is the intuition of the spirit that gives
the assurance of certainty.  That the sight of the eyes is not equal to the intuition of the spirit is a thing long
acknowledged.  And yet stupid people rely on what they see. –Chuan Tzu, c.369 BC-286 BC.

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