Lion

MARKET UPDATES

Directly from Dexter Lyons, Portfolio Manager

Market Update: 07-08-19

The Issachar Fund is fully invested in Muni Bonds with a small allocation in Preferreds (15%) and Stocks (5%).  Munis and preferred stocks are still acting well as they appear to anticipate further rate reductions. I added a small 5% position in a handful of stocks last week as I became more convinced that QE may not be ending anytime soon.  These five stocks have had great fundamentals of sequential quarterly earnings and sales increases along with attractive looking technical chart patterns.  I hope to be able to add to …

Market Update: 07-01-19

The Issachar Fund is fully invested in Muni Bonds and a small allocation in Preferreds.  I did not make any changes last week however, I do plan to make a few changes this week depending on my conviction level.  There are a few individual stocks in the software space that look attractive, but I want to see how they respond to the China trade news.  Muni bonds appear to still be under accumulation albeit at a slower pace but nevertheless there still appears to be more buyers than sellers.  Our …

Market Update: 06-24-19

The Issachar Fund is fully invested in Muni Bonds with a small allocation in Preferreds.  I continue to see money flowing into the muni bond space as investors seeking yield find a place to rest.  Munis have been trending higher at a low double-digit annualized yield since the beginning of November with low drawdowns.  I have my eyes on a few stocks that I would like to buy if they set up properly.  The preferred stock area also looks attractive and I plan to add to our positions if they …

Market Update: 06-17-19

The Issachar Fund is fully invested in Muni Bonds with a small allocation to Preferreds.  My conviction level in munis remains high with a moderate level of conviction in Preferred Stock ETFs.  Preferred stocks entitle the shareholder to a fixed dividend, whose payment takes priority over that of common-stock dividends.  Preferred stocks have a historical tendency to do well when bonds and stocks trend higher.  If the preferreds perform as expected, I plan to increase our exposure.  If things do not go as planned, I will not hesitate to do what is necessary …

Market Update: 06-11-19

The Issachar Fund is 195% invested with 70% in Muni Bond Mutual Funds, 123% in Muni ETFs and 2% in stocks.  My conviction level in muni bonds increased so I added to our muni exposure via Total Return Swaps.  We have a Total Return Swap agreement with a bank that charges us interest to buy the ETF in their account and we make or lose what the ETF returns.  I like to use leverage on muni and junk bonds whenever they are trending and when I perceive the risk/reward relationship is skewed in …

Market Update: 06-03-19

The Issachar Fund holds 165% in Muni Bond Mutual Funds (70%) and ETFs (95%).  I purchased more municipal (muni) bond ETFs last week due to the accelerated price slope I am seeing in the muni space and the continued price deterioration exhibited in the stock market.  We are using leverage because I feel the potential gain from a continued uptrend in muni bonds outweighs the cost of leverage.  Muni bonds have historically produced good day-to-day serial price correlations and I find that very attractive in this market environment.  Muni bonds are historically issued …

Market Update: 05-28-19

The Issachar Fund holds 115% in Muni Bond Mutual Funds (70%) and ETFs (45%).  The stock market peaked on October 3rd and High Yield Muni Bonds bottomed on October 10th and they have been trending higher (double-digit annualized rates) ever since.  Maybe the bond market was predicting that if the Fed raised rates as they indicated, the economy would slow and low and behold, I think the bond market was right. The Fed raised rates in Q-4 and the stock market dropped about 19% while the munis continued to attract money and trend higher.  …

Market Update: 05-20-19

The Fund holds 15% in Muni Bond ETFs and 85% in Cash.  I like what I am seeing in the muni bond space, especially high yield muni bond ETFs and mutual funds.  I added two muni ETFs as a starter position with plans to possibly add more if things work out the way I anticipate.  I typically “test the waters” with small positions and if they “work” then I try to add bigger positions as I get more conviction in the trade.  On a risk-adjusted basis, the muni bond sector looks attractive at …

Market Update: 05-13-19

The Fund holds 100% in short maturity cash equivalents.  Cash is a position!  I sold all stock positions last week as the market declined following a Trump Tweet promising to raise tariffs on Chinese imports by Friday if the Chinese did not give into his demands.  The market lost about 2% last week.  When the market is not rewarding me for taking risk, I prefer to reduce exposure or simply step aside and let the market do what it needs to do.  Imagine doing a planned retreat to hilltop on a battlefield to …

Market Update: 05-06-19

The Fund holds about 85% in short-term bonds and about 15% in stocks.  I sold stocks that were not performing as expected last week and purchased new ones which appear to have strong fundamentals and sound technical chart patterns.  It has been a frustrating year for risk managers, but I am confident that my strategies can keep us out of major declines and keep us in during major advances.  If my current positions start to work (make money) then I plan to increase exposure if we are rewarded for taking on more …