February is historically a weaker period for equities and this month was no exception. As a result, all major North American stock indices were negative for the month. Several factors contributed to the volatility, including tariff concerns, geopolitical confusion, interest rate uncertainty, sticky inflation, and general investor anxiety.
However, there were notable positives, including corporate earnings beats, lower yields, and remarkable advances in technology, particularly in areas like artificial intelligence, robotics, and healthcare. Top ABC Funds performers in February included McDonald’s, Mastercard, Visa, Otis, Waste Management, and Apple.
Looking ahead, despite the ongoing market volatility, we remain quite optimistic. Our portfolios, well-diversified with large-cap companies that have strong growth prospects, solid balance sheets, and dominant market positions, are strategically positioned to navigate this uncertainty and to take advantage of long-term opportunities.
Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.