The month of April was characterized by significant volatility, driven by concerns over tariffs, economic uncertainty, and bond yields. However, investors’ worst fears did not materialize, and financial markets staged a remarkable recovery in the latter part of the month.
Amid the market turbulence, several positive developments emerged, including declining interest rates, solid corporate earnings and forward guidance, and growing optimism about pending international trade deals.
Following the month’s close, key ABC Funds holdings—Microsoft, Meta, and Amazon—delivered exceptional financial results, acting as a “white swan” catalyst for an early May market rally.
Additionally, the demand for artificial intelligence continues to accelerate faster than expected, with increasing needs for both hardware and software. We believe this sustained demand will serve as a major tailwind for our portfolios, benefiting core holdings such as NVIDIA, Broadcom, Micron, and ServiceNow.
Through the volatility, we remain focused on maintaining our disciplined approach and staying true to our strategy. We are confident in our portfolios and steadfast in our belief that we are well-positioned to navigate the current environment.
Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.