In November, equity markets performed exceptionally well, propelling all three ABC Funds to new all-time highs.
The conclusion of the U.S. presidential election removed a major investment uncertainty, providing investors with greater clarity. As a result, money is beginning to flow back into the market, signalling a more constructive outlook among investors.
Additionally, inflation continues to ease, interest rates are normalizing, corporate earnings remain strong, and the economy is on solid footing, reinforcing investor confidence. Another major component of economic strength has been consumer spending, assisted by relatively low American unemployment.
Furthermore, the rapid pace of technological advancement, including innovations in artificial intelligence, robotics, quantum computing, and drug discovery, is driving corporate growth and underpinning the strength of key ABC Funds holdings such as NVIDIA, Amazon, ServiceNow, Microsoft, and Apple. These companies, along with Brookfield Corp, Visa, and Boston Scientific, were among the top contributors to our funds’ strong performance in November.
As we enter the final month of the year, the combination of renewed investor confidence, traditionally lower seasonal volumes, and substantial cash reserves could set the stage for the ‘Santa Claus Rally’—a period of historically strong stock market performance in December.
In summation, we remain optimistic and confident in our well-diversified portfolios, which are strategically positioned in both growth and value.
Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.