July 2021 Pricing Commentary

North American market indices were flat to slightly higher during the month of July with U.S. equities outperforming Canadian comparables. The three ABC Funds outperformed their respective index benchmarks during this period mainly due to four appreciating sectors comprising health care, consumer staples, technology, and industrial products.

Our two top performing Canadian stock positions during July were Algonquin Power & Utilities and Brookfield Asset Management, which significantly bolstered investment returns for all three ABC portfolios. Our main U.S. equity outperformers included: Boston Scientific, Danaher, Thermo Fisher Scientific, and Zoetis in healthcare; PepsiCo and McDonalds in the consumer sectors; industrial companies Waste Management and Honeywell; and Mastercard, Visa, Google, and Microsoft in the technology sector.

Looking ahead, while we anticipate periodic price volatility, we believe that common stocks remain in a primary uptrend. It is our view that occasional market sell-offs will provide attractive buying opportunities, as we contend that there are several years remaining in this secular bull market for equities. Consequently, we are maintaining our bullish equity stance and are committed to our fully invested portfolio positioning.

Irwin A. Michael Signature

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

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