March 2024 Pricing Commentary

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Equity markets in March closed out the first quarter of 2024 on a strong note. This advance enabled the ABC Funds to rally to new all-time highs.

The month was characterized by broad-based gains which encompassed a wide range of sectors and geographies, reflecting robust global economic momentum and stock market resilience.

A notable investment decision taken early in the month was the addition of Micron Technology for all three ABC Funds. Micron stood out to us as an undervalued stock poised to benefit significantly from the artificial intelligence revolution. Furthermore, it was our view that Micron had been overlooked by investors given that the company offered excellent growth potential and a major turnaround opportunity. We believed the demand for high-bandwidth memory, essential for AI applications, positioned Micron as a key player, especially through its strategic partnership with NVIDIA for advanced memory solutions. On March 20th, Micron reported its quarterly earnings results announcing a spectacular beat and delivering an unexpected profit which lifted the stock to new all-time highs. Micron ended the month with a 30% gain, the highest in the S&P 500 for March.

Beyond Micron, March saw strong performances from other key ABC Funds’ holdings including NVIDIA, Microsoft, Alphabet, Amazon, ASML, Canadian Pacific Kansas City, and Bank of Montreal.

Entering April, our positive outlook is underscored by expanding market breadth, solid corporate earnings results, continued North American economic growth, and significant uninvested investor cash reserves, all indicative of a robust and sustainable rally. Additionally, the spring is historically a strong seasonal period for stocks, especially in a presidential election year.

As we advance into the second quarter, we remain optimistic and fully invested in our well-diversified equity mix. Furthermore, our ABC Funds are strategically positioned and committed to key secular market trends and industries driving growth.

Irwin A. Michael Signature

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

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