September 8, 2021 Newsletter

Dear Friends,

Tangents:
On Sept. 8, 1974, President Ford granted an unconditional pardon to former President Nixon.  Go to article »

A brief history of the Twin Towers.

Area scientists find the biggest comet on record.

This premature supernova was triggered by a dead star.  If this doesn’t boggle your mind, we don’t know what will.

Duck mimics human sound during mating display.  An Australian musk duck has been recorded saying “You bloody fool” in the first documented instance of the species mimicking human speech. (Yes, you read that correctly.)

Builders discover stash of 239 gold coins worth up to $356,000.  Talk about bang for your buck. 

PHOTOS OF THE DAY

A bald eagle drags its opponent through water as the pair battle for territory above a canal. The aggressor swooped down to attack its rival – locking talons and dragging it across the water’s surface. The photos of the tussle, which lasted just seconds, were captured by American wildlife photographer Chris Covington, in the North West state of Washington in the United States
CREDIT: CHRIS, COVINGTON/SOLENT NEWS & PHOTO AGENCY

A misty but beautiful morning over Trinity Methodist Church in Harrogate, Yorkshire. The UK is set for another hot day today as the mini heat wave continues
CREDIT: RICHARD MAUDE / SWNS.COM

A slow shutter speed photograph shows commuters on vehicles making their way along a busy highway in Shanghai 
CREDIT: HECTOR RETAMAL/AFP VIA GETTY IMAGES

Skateboarders take over the Stand outside Somerset House, Skate the strand launches as part of inside out festival
CREDIT: PAUL GROVER FOR THE TELEGRAPH

Market Closes for September 8^th, 2021

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1916, the U.S. Congress enacted the Revenue Act of 1916, creating the federal estate tax.
Canada
By Michael Bellusci
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 0.3%, or 64.84 to 20,741.79 in Toronto. The move was the biggest since falling 0.4% on Aug. 26. Today, information technology stocks led the market lower, as 5 of 11 sectors lost; 117 of 229 shares fell, while 108 rose. Shopify Inc. contributed the most to the index decline, decreasing 3.6%. Ballard Power Systems Inc. had the largest drop, falling 8.6%. Meanwhile, the Bank of Canada expressed optimism about the prospects of a strong recovery later this year despite a run of weak data, keeping expectations intact for a resumption of bond tapering in October.
Insights
* This year, the index rose 19 percent, heading for the best year since 2019
* This quarter, the index rose 2.9 percent
* The index advanced 29 percent in the past 52 weeks. The MSCI AC Americas Index gained 36 percent in the same period
* The S&P/TSX Composite is 0.7 percent below its 52-week high on Sept. 7, 2021 and 34.5 percent above its low on Oct. 30, 2020
* The S&P/TSX Composite is up 0.8 percent in the past 5 days and rose 1.3 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 19.5 on a trailing basis and 16.6 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.5 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.27t
* 30-day price volatility rose to 5.82 percent compared with 5.69 percent in the previous session and the average of 7.75 percent over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
* Information Technology | -61.3043| -2.5| 2/10
* Materials | -25.8948| -1.1| 23/30
* Financials | -11.4666| -0.2| 13/14
* Health Care | -6.4333| -2.7| 2/7
* Consumer Discretionary | -1.6507| -0.2| 4/9
* Real Estate | 4.8268| 0.8| 21/4
* Industrials | 5.0417| 0.2| 11/18
* Energy | 5.9476| 0.2| 8/15
* Consumer Staples | 7.8841| 1.0| 8/4
* Communication Services | 8.8724| 0.9| 4/2
* Utilities | 9.3292| 1.0| 12/4
================================================================
| | |Volume VS| YTD
|Index Points | | 20D AVG | Change
Top Contributors | Move | % Change | (%) | (%)
================================================================
* Shopify | -54.6900| -3.6| 52.6| 30.5
* First Quantum | | | |
* Minerals | -7.4300| -7.5| 13.4| 3.7
* Nutrien | -7.0740| -2.3| 1.2| 25.5
* BCE | 5.8640| 1.4| 329.3| 23.0
* Canadian Pacific | 7.8980| 1.9| -10.7| 3.5
* Enbridge | 10.3100| 1.4| -2.2| 26.0
US
By Richard Richtmyer and Vildana Hajric
(Bloomberg) — U.S. equities retreated as investors reassessed valuations in light of global economic risks including the spread of the Covid-19 delta variant and reductions in central bank stimulus. The Nasdaq 100 notched its biggest drop in two weeks, with losses in mega caps including Apple Inc. and Facebook Inc. among the biggest contributors to the decline. The S&P 500 fell for a third day since it closed at a record on Sept. 2. The Dow Jones Industrial Average extended its retreat from last month’s all-time high to more than 1.5%. Europe’s Stoxx 600 dropped to a three-week low. Cryptocurrency-exposed stocks slumped as a selloff in Bitcoin continued. Wednesday’s declines came as money managers from Morgan Stanley to Citigroup have turned cautious on U.S. equities. Many investors have begun to see relative U.S. valuations as excessive even as growth elsewhere suffers from renewed Covid lockdowns and travel curbs. They doubt the world is ready for an eventual tapering of central-bank stimulus even as inflation accelerates due to supply shocks. End-of-year seasonality and valuation concerns are adding to the gloomy mood. “Momentum definitely seems to be slowing as far as the recovery is concerned,” Fiona Cincotta, a senior financial markets analyst at City Index, said by phone. “Before we’d been hearing that the Fed would tighten monetary policy and that’s what was unnerving the market.
Now, it’s actually slightly softer data and also rising Covid cases.” Morgan Stanley this week cut U.S. stocks to underweight and global equities to equal-weight, citing “outsized risks” to growth through October. Extremely bullish positioning means corrections can be amplified, Citigroup said. Credit Suisse Group AG said it has a small underweight on the U.S. market. In Europe, growth concerns were compounded by speculation that the European Central Bank is getting ready to slow down emergency stimulus.  EQT AB slumped in Stockholm after partners in the private equity firm sold a part of their holdings earlier than expected. Meanwhile, the continued spread of Covid-19 is curbing economic activity around the world. The Philippines backtracked on easing curbs in the capital region, while Japan may extend state of emergency orders. Taiwan identified a delta variant outbreak in New Taipei City. Equities climbed for an eighth day in Japan, supported by hopes for economic stimulus from the next prime minister. Pakistan’s stocks benchmark slid to the lowest since May after MSCI downgraded the country to a frontier market from an emerging market. Bitcoin posted second-day losses in the wake of El Salvador’s rocky implementation of a law that makes the cryptocurrency legal tender. Coinbase Global Inc. slumped after the Securities and Exchange Commission warned the company against launching a product that would allow consumers to earn interest on their crypto holdings. Other crypto-linked stocks also fell, including declines of more than 5% in Marathon Digital Holdings Inc. and Riot Blockchain Inc.
What to watch this week:
* U.S. President Joe Biden may make his choice this week on whether to renominate Fed Chair Jerome Powell to a second term
* ECB President Christine Lagarde holds a press conference after the bank’s rate decision Thursday
* China PPI, CPI, new yuan loans, money supply, aggregate financing, Thursday

Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.1%
* The Nasdaq 100 fell 0.4%
* The Dow Jones Industrial Average fell 0.2%
* The MSCI World index fell 0.4%
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%
* The euro fell 0.2% to $1.1819
* The British pound was little changed at $1.3774
* The Japanese yen was little changed at 110.27 per dollar
Bonds
* The yield on 10-year Treasuries declined four basis points to 1.34%
* Germany’s 10-year yield was little changed at -0.32%
* Britain’s 10-year yield was little changed at 0.74%
Commodities
* West Texas Intermediate crude rose 1.4% to $69.34 a barrel
* Gold futures fell 0.4% to $1,791 an ounce
–With assistance from Sunil Jagtiani.
Have a terrific evening.

Be magnificent!

As ever,

Carolann

He who mistrusts most should be trusted least. –Theognis, 570 BC-485 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