September 9,2022 Newsletter

Dear Friends,

Tangents: Happy Friday.
Chrysanthemum Day, Japan, festival of happiness.
Remember to gaze at the Harvest full moon tomorrow night.

September 9, 2022: Charles III commences his first full day as King of the United Kingdom and 14 other Commonwealth realms following the death of Queen Elizabeth II.
Marxist revolutionary Mao Zedong, who died this day in 1976, emerged as the undisputed Chinese Communist Party leader following the Long March (1934–35) and dominated China in the period after the communist takeover in 1949.  Go to article »

490 BC: Battle of Marathon.
Leo Tolstoy, b. 1828.
William the Conqueror, d.1087.

James Corden says he stole from President Biden’s bathroom.  Many people who visit the White House are tempted to swipe a memento, but very few admit it. James Corden, on the other hand, told the entire world in this hilarious confession.

Kellogg’s wants you to add water to its new cereal.  Yes, cereal-ously.

Luxury fashion houses are funneling millions into the metaverse.  Some people are spending big bucks on their digital wardrobes in the metaverse — and luxury labels want a slice of the market.

Most stylish new hotels and spas for 2022 revealed.  Take a moment to marvel at these peaceful destinations created by world-renowned architects.

2022 NFL season preview.  Finally! The wait is over. Here are the teams you should keep an eye on this football season.
PHOTOS OF THE DAY

Queen Elizabeth II waits in the drawing room to receive Liz Truss and invite her to become prime minister and form a new government. The monarch died peacefully at Balmoral on Thursday afternoon, two days after undertaking her final public constitutional duty
Photograph: Jane Barlow/AP

Crowds cheer King Charles III and Camilla, the Queen Consort, as they walk into Buckingham Palace. Huge crowds gathered at the palace, many of whom also laid flowers in tribute to the Queen
Photograph: John Sibley/Reuters

People outside Buckingham Palace react to the announcement of the death of Queen Elizabeth II.
Photograph: Henry Nicholls/Reuters
Market Closes for September 9, 2022

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1974: Wall Street fell the day after President Gerald Ford pardoned Richard Nixon for the Watergate scandal. The Dow Jones Industrial Average dropped 2.2% that day, on fears that the pardon wouldn’t bring full closure to the scandal. The Dow proceeded to soar by 24.9% over the next year.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 1.9%, or 360.34 to 19,773.34 in Toronto.
The move was the biggest since rising 2% on May 13.
Shopify Inc. contributed the most to the index gain, increasing 8.3%.
Bausch Health Cos. had the largest increase, rising 9.7%.
Today, 213 of 237 shares rose, while 21 fell; all sectors were higher, led by financials stocks.
Insights
* In the past year, the index had a similar or greater gain two times. The next day, it advanced after both occasions
* This year, the index fell 6.8%, heading for the worst year since 2018
* This quarter, the index rose 4.8%
* So far this week, the index rose 2.6%
* The index declined 4.5% in the past 52 weeks. The MSCI AC Americas Index lost 11% in the same period
* The S&P/TSX Composite is 11% below its 52-week high on April 5, 2022 and 8.8% above its low on July 14, 2022
* S&P/TSX Composite is trading at a price-to-earnings ratio of 13.3 on a trailing basis and 12.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$3.1t
* 30-day price volatility rose to 14.11% compared with 13.35% in the previous session and the average of 13.67% over the past month
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 103.8314| 1.7| 29/0
Energy | 71.1909| 2.0| 33/4
Materials | 53.8425| 2.4| 48/2
Information Technology | 41.0643| 4.0| 10/4
Industrials | 40.0137| 1.6| 27/0
Consumer Staples | 16.8002| 2.0| 11/0
Communication Services | 10.8474| 1.1| 6/1
Real Estate | 9.2661| 1.8| 23/0
Consumer Discretionary | 9.2600| 1.4| 10/3
Health Care | 3.0177| 4.1| 7/0
Utilities | 1.2092| 0.1| 9/7
================================================================
| | |Volume VS | YTD
| Index | | 20D AVG | Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 27.4000| 8.3| 19.6| -74.0
TD Bank | 23.2000| 2.2| -29.5| -9.2
RBC | 19.9200| 1.6| -36.3| -4.9
Corus Entertainment | -0.5890| -11.7| 530.2| -33.6
Turquoise Hill | -0.8570| -3.0| 63.2| 95.8
Enghouse | -0.9520| -10.0| 230.7| -38.9
US
By Rita Nazareth
(Bloomberg) — Stocks joined gains in riskier corners of the market, with the dollar slumping after a seemingly unstoppable surge that rattled global currencies and stoked fears of more headwinds for Corporate America.
In a bullish signal, the S&P 500 topped its 100-day average, snapping a three-week losing streak.
The Nasdaq 100 outperformed. Profitless tech firms, meme shares and Bitcoin all rallied.
The greenback pushed away from a record, challenging skeptics who dubbed the drop a correction as calls for a stronger currency were still in place amid tighter Federal Reserve policy.
Investors defied hawkish Fed remarks and recession worries after a rout that drove equities to nearly oversold levels.
Citigroup Inc. said the mood was so pessimistic it would indicate a rebound is afoot if there weren’t so many risks ahead.
The Levkovich Index, a sentiment gauge, fell to -16 this week, a hair away from the -17 level that defines panic.
Bank of America Corp.’s bull-and-bear indicator slid to the “maximum bearish” level — often seen as a contrarian buy signal.  “The tug of war between the bull and bear case for markets boils down to the ability of the Fed to tamp down inflation without crushing economic growth, and how much tightening of monetary policy has been effectively priced in,” wrote Art Hogan, chief market strategist at B. Riley.
Traders almost fully expected another jumbo-sized hike in September, following two 75-basis-point increases.
Fed Bank of St. Louis President James Bullard said he was leaning “more strongly” toward a third straight boost of that magnitude.
His Kansas City counterpart Esther George noted officials have a “clear-cut” case for continuing to remove monetary support.
Fed Governor Christopher Waller said he favors “another significant” increase in rates.
To David Donabedian at CIBC Private Wealth US, this week’s market recovery has shown there is continued resilience in the economy.
But he also pointed out that a sustainable bull market would hinge upon three factors falling into place:
a belief that the Fed is about done with tightening, a convincing inflation downward trend and more realistic expectations for corporate earnings.
“Despite the idea that the Fed will kill the economy, we have not seen any signs of that,” said Donabedian. “We have not reached the bottom of the bear-market yet. Indeed, the journey to the next bull market will take time, and will be marked by a series of setbacks and recoveries.”
In fact, data show that investors might still be more likely to sell the dip than buy it.
The S&P 500’s performance in 2022 following daily moves of at least 1% in either direction has resulted in the worst next-day performance on record, according to Bespoke Investment Group.
This is a stark contrast to 2021, which delivered the best buy-the-dip year since 1963.
US stock funds had outflows of $10.9 billion in the week to Sept. 7, according to EPFR Global data cited by BofA strategists led by Michael Hartnett.
They said an “appalling” mode fueled the biggest exodus in 11 weeks, which was led by tech stocks.
Global equity funds had outflows of $14.5 billion, while $6.1 billion was poured into government and Treasury bonds.
Looking ahead, markets will be focused on the August consumer-price index due Tuesday, the last report before policy makers decide on rates.
While an expected 8% rise in the CPI on the year would suggest inflation is cooling, the core measure that excludes food and energy is seen accelerating.
“For investors, the bottom line is that the central bank shock — particularly from the Fed — is not over,” BofA economists including Ethan Harris wrote. “This means more pressure on interest rates, more weakness in risk assets and further upside for the super-strong dollar.”
Two years after Wall Street lost a closely monitored source of updates on their investing behavior, Robinhood Markets Inc. will distribute information on its users’ top stock holdings in a new index.
The gauge will offer a monthly snapshot of the top 100 stocks that its users are holding with the most “conviction.”
Tesla Inc., Apple Inc. and Amazon.com Inc. are among the top 10 shares.
The list also includes AMC Entertainment Holdings Inc., a meme stock whose volatility has been driven by retail investors.
Some of the main moves in markets:
Stocks
* The S&P 500 rose 1.5% as of 4 p.m. New York time
* The Nasdaq 100 rose 2.2%
* The Dow Jones Industrial Average rose 1.2%
* The MSCI World index rose 1.7%
Currencies
* The Bloomberg Dollar Spot Index fell 0.6%
* The euro rose 0.5% to $1.0044
* The British pound rose 0.7% to $1.1589
* The Japanese yen rose 1% to 142.71 per dollar
Bonds
* The yield on 10-year Treasuries was little changed at 3.32%
* Germany’s 10-year yield declined two basis points to 1.70%
* Britain’s 10-year yield declined five basis points to 3.10%
Commodities
* West Texas Intermediate crude rose 3.3% to $86.30 a barrel
* Gold futures rose 0.4% to $1,727 an ounce
–With assistance from John Viljoen, Emily Graffeo and Isabelle Lee.
Have a wonderful weekend everyone.

Be magnificent!

As ever,
Carolann

It is worth remembering that it is often the small steps, not the giant leaps, that bring about the most lasting change. –Queen Elizabeth II, 1926-2022.

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
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www.carolannsteinhoff.com