February 2024 Pricing Commentary

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February was another positive month for equities, with global indices continuing their ascent. Our three ABC Funds not only outperformed their respective index benchmarks but also achieved new all-time highs, marking a continuation of our funds’ strong performance.

The standout event of February was NVIDIA’s blowout earnings report, which propelled the stock to new record highs. NVIDIA has emerged as the uncontested leader of the current bull market advance and is uniquely positioned at the heart of the artificial intelligence revolution. The company’s influence extends far beyond AI, playing a critical role in drug discovery and healthcare, robotics, industrial automation, interactive gaming, and automotive.

Jensen Huang, founder and CEO of NVIDIA, captured the company’s momentum in the earnings release when he stated:

“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries, and nations.”

His remarks underscore the magnitude of the technological shift underway. We believe this represents the greatest advancement in technology since the industrial revolution and has presented our funds with unparalleled investment opportunities.

NVIDIA has been a cornerstone of ABC Funds for many years and remains a top pick, reflecting our strategic commitment to identifying and capitalizing on industry leaders. In addition to NVIDIA, other ABC Funds holdings that contributed notably to our February performance included Meta, Amazon, ASML, Broadcom, Waste Management, and Canadian Pacific Kansas City.

Moreover, the technicals remain bullish, with a broadening rally that now encompasses the industrials, healthcare, and financial services sectors, indicating strong market internals. This expansion reinforces our positive economic and investment outlook.

Looking ahead, we remain confident with our three well-diversified portfolios and expect their positive performance to continue throughout 2024.

Irwin A. Michael Signature

Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.

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