November 2023 Pricing Commentary (Audio version now available – use the controls above.) The month of November provided a remarkable stock market recovery, as common stocks rebounded strongly, underscoring their resilience and continued upward momentum. All three ABC Funds exceeded their index benchmarks during the month, but more importantly we were particularly pleased with their year-to-date outperformance. In November, numerous holdings within our ABC Funds portfolios reached new 52-week and all-time highs, significantly bolstering our results for the month. The market’s leadership was particularly strong in the technology and communication services sectors, areas where our portfolios are strategically overweight. This sector strength was exemplified by standout performances from Apple, Microsoft, NVIDIA, Amazon, Broadcom, ServiceNow, Visa, Mastercard, Adobe, S&P Global, Thermo Fisher Scientific, and Zoetis. The market narrative for November was characterized by a confluence of positive factors: robust corporate earnings, a significant easing of inflationary pressures, and a substantial shift in interest rate expectations. Interestingly, the market has shifted from bracing for further interest rate hikes to now anticipating rate cuts in 2024. This realignment highlights the increasing confidence that monetary authorities have successfully steered the economy towards a soft landing. We believe that any reduction in interest rates will be enthusiastically received by investors, serving as a major catalyst for higher equity prices. Furthermore, these positive macroeconomic developments in the month of November effectively pivoted investor sentiment away from the pervasive pessimism of October and towards a more optimistic and opportunistic view. As we enter the final month of the year, we see the combination of renewed investor confidence, traditionally lower seasonal volumes, and substantial cash reserves on the sidelines as precursors to a potential end-of-year rally, setting a favourable stage for 2024. Consequently, we remain fully invested and committed to our new value investment philosophy. Irwin A. Michael, PresidentI.A. Michael Investment Counsel Ltd.
