September 2024 Pricing Commentary (Audio version now available – use the controls above.) The stock market in September was notably volatile, softening initially due to concerns over interest rates, geopolitics, weak third quarter seasonality, and the upcoming U.S. presidential election. However, a significant turnaround occurred in the latter half of the month, leading to positive returns for equity markets and all three ABC Funds. The key event in September was the U.S. Federal Reserve’s unexpected decision to reduce its key lending rate by 50 basis points—signalling a major central bank monetary policy shift. We believe this action should stimulate both consumer and business spending and elongate the investment cycle. Additionally, inflation continued its downward trend during the period, falling to 2.5% and approaching the Fed’s target. Top performers in our ABC Funds for September included Meta, Amazon, Micron, NVIDIA, ServiceNow, Broadcom, Carrier Global, and Otis Worldwide. More importantly, all three ABC Funds are outperforming their year-to-date benchmarks. As we move into the fourth quarter, the combination of global monetary easing, declining inflation, major technological advancements, and a strengthening economic backdrop should set the stage for a period of renewed growth and optimism in the stock market and economy. Irwin A. Michael, PresidentI.A. Michael Investment Counsel Ltd.
