May 2024 Pricing Commentary (Audio version now available – use the controls above.) The month of May brought forward a significant recovery in equity markets, with global stock indices rebounding from April’s declines. Additionally, all three of our ABC Funds outperformed their benchmarks in May, setting new all-time highs. The month saw standout sector performances from information technology, utilities, and communication services. We believe these sectors are at the forefront of the current bull market advance and are powering the artificial intelligence revolution. NVIDIA, our funds’ most significant holding, continues to lead this charge. After the market close on May 22, NVIDIA delivered another exceptional ‘beat and raise’ earnings report which showcased the relentless demand for its AI solutions and its unrivalled dominance in driving technological innovation. Jensen Huang, NVIDIA’s founder and CEO, aptly noted, “The next industrial revolution has begun — companies and countries are partnering with NVIDIA to transform traditional data centers into AI factories.” Furthermore, the company announced a 10-for-1 stock split and increased their dividend. Reflecting these positive developments, NVIDIA’s share price surged over 25% in May. Other notable contributors to our funds’ strong performance this month included Apple, Micron, ASML, Meta, Otis Worldwide, Royal Bank of Canada, and Brookfield Corporation. Looking ahead, summer is traditionally a seasonally bullish period for equities, especially in a US election year. We remain optimistic and confident in our diversified, liquid, large capitalization portfolios. More importantly, we believe our funds are well-aligned with the sectors poised for future growth. Irwin A. Michael, President I.A. Michael Investment Counsel Ltd.
