The Issachar Fund is 100% in Cash!
Here is a link to the 4th Quarter 2022 Issachar Fund Fact Sheet
Risk management remains the key to reaching long-term financial goals, and cutting losses short is rule number one! I learned this lesson in 2021 and have developed rules and disciplines to keep me focused on not repeating mistakes. My edge is a variant of William O’Neil’s trading system that invests in leading stocks with outstanding fundamental and technical chart patterns. William O’Neil is a self-made billionaire who wrote several books and published a newspaper to help investors achieve their financial dreams. I believe O’Neil’s trading system of rules and disciplines is the best on the market available to the public. If managing risk by diversification is not working and you are looking for a proven trading discipline, check out his books and videos or invest in Issachar. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
We are still in a down-trending bear market, and I do not see anything fundamentally on the horizon that could change the trend! Therefore, I plan to keep building my watch list of stocks to buy and ETFs to short. The S&P 500 lost over -18% (the largest loss since 2008), and the NASDAQ 100 lost over -32%, while we lost less than -8% in 2022. January is when institutional money typically repositions itself for the new year, so I will study where big money flows to gain an edge. When “big money” buys or sells a stock, they do so by leaving “footprints in the sand” that I like to follow. Big mutual funds and pension plans create the trends I want to follow. Ships can’t turn as quickly as a kayak, and kayaks can get out of the water when it is unsafe. The water is not safe currently. However, there will be another incredible opportunity once the market bottoms and a new uptrend begins, but we should protect capital until then. Buying the dips has worked every time, but one.
The stock market is like trying to beat the casino at its own game! The “house” usually wins in the long run unless you have an edge. Luck and hope may lure you into the casino but remember how they pay for those “free drinks and hotel stays.” The casino/house knows and plays to odds betting that most people do not know the cards are stacked against them. The house usually wins if gamblers play long enough. Trading without an edge is like catching a falling knife.
The Fed reduced its balance sheet by another $13 billion last week as they continue to drain liquidity! The Fed is expected to raise rates again on February 1st, which is fundamentally bad for stocks and bonds. Higher rates cause P/E ratios to contract, and growth stocks typically fall the hardest. TSLA crashed over -65%, AAPL fell more than -26%, and AMZN dropped over -49% in 2022. I do not see these former leaders returning anytime soon.
Bottom Line: Issachar is in Cash, keeping our powder dry for the next opportunity! The Fed is still fighting inflation by raising rates and decreasing its balance sheet, which drains liquidity, making it hard for stocks to advance. The market is a forward-looking discounting system; if the price/volume charts look like “big money” is coming back, I will put my opinions aside and follow the money. Sometimes we win by not losing. Grace & Peace to everyone, and Happy New Year! (If you have questions or comments, please call 337-983-0676 or Email: Dexter@IssacharFund.com)
Links: Performance, Fact Sheet & Strategy, Blogs, My Story, Docs, BRI
Issachar: A Buy & Hold Alternative Actively Managed Like A Hedge Fund!
For it is by grace you have been saved, through faith, and this is not from yourselves, it is the gift of God not by works so that no one can boast. Ephesians 2:8-9
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Issachar Fund. This and other important information about the Fund are contained in the Prospectus, obtained by calling 1-866-787-8355 or visiting IssacharFund.com. The Prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC. Horizon Capital Management Inc. (HCM) is not affiliated with Northern Lights Distributors, LLC.
Important Risk Information: Mutual Funds involve risks, including the possible loss of principal. An investment in the Fund may not be appropriate for all investors. The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly, and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions. The Adviser’s judgment about the attractiveness, value, and potential appreciation of particular asset classes and securities in which the Fund invests may prove incorrect and may not produce the desired results. Past performance is no guarantee of future results. Ratings are only one form of Fund performance and should not be used as the sole consideration in an investment decision. Opinions expressed are subject to change, not guaranteed, and should not be considered investment advice. There is no assurance these opinions or forecasts will come to pass, and past performance is no assurance of future results. For more information regarding the fund, including current performance, please visit IssacharFund.com. Review Code: 5000-NLD-01/03/2023.