July was a volatile month for equity markets, as geopolitical concerns, fluctuating energy prices, and heightened market uncertainty weighed on investor sentiment. Despite these headwinds, the economic backdrop continues to demonstrate resilience while summer trading volumes amplify market volatility.
A bright spot during the month was positive corporate earnings results from several ABC Funds’ holdings including Microsoft, Alphabet, Boston Scientific, Thermo Fisher, and Visa. These company results exceeded investor expectations, reinforcing the strength of the high-quality businesses held across the ABC Funds.
We believe semiconductor stocks were overly punished during the month of July and remain undervalued despite their underlying fundamentals. We continue to believe that artificial intelligence and advanced computing remain among the most compelling long-term investment themes.
As we enter August, the stock market has begun to recover, supporting our view that July’s weakness was primarily driven by short-term sentiment rather than fundamentals. Looking ahead, we remain very optimistic and believe the second half of 2026 offers an attractive environment for long-term investors.
Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.