Equity markets were volatile in the month of November, as investors weighed mixed economic data, interest rate uncertainty, and embraced a more cautious tone heading into year-end.
Despite the volatility, several core ABC Funds holdings stood out with strong gains. Our top contributors during the month included Alphabet, Broadcom, Micron, Apple, Thermo Fisher Scientific, and Royal Bank of Canada.
NVIDIA, a longstanding core position across all ABC Funds, reported stellar quarterly earnings in November. The company exceeded expectations on revenue, profit, and forward guidance, reinforcing its position as the leader in artificial intelligence. Furthermore, NVIDIA’s upcoming Vera Rubin platform should drive a huge new wave of advancement and accelerate the AI revolution which we believe is one of the most important and transformative investment themes of our time.
While investors were skeptical about AI-related stocks in November, we believe the pullback presents an excellent opportunity as the market is underappreciating the scale, speed, and long term impact of AI.
In the meantime, interest rates and inflation remain stable, and corporate earnings reports continue to provide a solid foundation for equity performance.
As we approach year-end, we remain confident in the positioning of our portfolios. With a diversified mix of high-quality, large-capitalization holdings and long-term exposure to important secular tailwinds, we believe the ABC Funds are well-positioned for the opportunities ahead.
Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.