October 2023 Pricing Commentary (Audio version now available – use the controls above.) Navigating through the month of October, the markets faced a number of challenges, including rising yields, persistent inflation, and geopolitical turmoil. Despite these conditions, our three ABC Funds outperformed their respective benchmarks. The completion of Microsoft’s $69 billion acquisition of Activision Blizzard, held in all three portfolios, marked an important development in the tech sector this month. Both were significant holdings in our portfolios and the takeover at $95 USD added to our October returns. On the earnings front, a number of our core holdings, including Amazon, Meta, Microsoft, Visa, and ServiceNow, reported strong results and offered positive forward guidance. Additional portfolio outperformers included Broadcom, Adobe, Waste Management, and ASML. As we look to the final months of the year, we are optimistic. Historically, November and December are strong months for the markets, and we believe current conditions have created attractive opportunities in equities. Furthermore, we anticipate a stabilization in yields and subsiding inflationary pressures, creating a conducive environment for corporate earnings growth. Technological advances, particularly in AI, remain a focal point of our strategy, as we see these innovations driving future earnings and share price increases. Our portfolios remain fully invested, reflecting our confidence in our strategy and outlook. We are committed to maintaining our focus on quality and performance as we close out the year. Irwin A. Michael, PresidentI.A. Michael Investment Counsel Ltd.
