Here is a link to the latest 4th Quarter Issachar Fund Fact Sheet
The Issachar Fund (LIONX), is about 70% invested in a diverse group of individual growth stocks. I sold the index Short that was not helping returns as the Fed “stepped back on the gas pedal”. I have been tweaking the portfolio recently, seeking to lock in some gains ahead of earnings announcements and buying stocks that have already reported good results. I have been buying stocks that have consistently increased their sales and earnings for the last two quarters and have, what I view as, sound chart patterns of accumulation. I believe Trump and the Fed want to keep the economy and the stock market “humming along” into the November election and they will do all they can to secure a reelection. If the Fed “steps on the brakes” or the Trump impeachment turns south, we could see a nasty correction, but I do not see that “in the cards” at this time. (Portfolio holdings are subject to change at any time and should not be considered investment advice.)
The Fed injected about $26 billion of liquidity into the market last week! The Fed drained liquidity the prior week as its balance sheet shrunk by about $24 billion. The Fed stated that it plans to keep adding liquidity until June 2020. I believe that growth stocks will outperform bonds as long as the Fed does not reverse its easy money policy. I was expecting the market to “take some chips off the table” as the Fed reduced liquidity two weeks ago but that changed when I learned that the Fed went back to “printing money”. The stock market loves “cheap” money that it can borrow to expand business or buy-back stock. Either way, low rates have been good for the economy and the stock market.
The Fed created the “tech bubble” in 1999 with massive injections of liquidity! Everyone seemed to be worried about what would happen when computer clocks rolled over from 1999 into 2000. The fear was that old computers would stop running and the world would stop spinning but the fear did not become a reality. It’s been argued that a large majority of the “free money” created by the Fed ended up in technology stocks which led to a tech bubble that eventually burst. All bubbles are looking for a “pin” and when the bubble gets “pricked” it is usually not pretty for the buy and hold crowd. The Fed was preparing for a potential Repo Market crash in the last week of December which turned out to be a non-event. The Fed has increased its balance sheet by $416 billion since 8/30/19 which is about $4.3 billion/day and I believe this “bubble” will eventually burst in ugly fashion. However, I plan to keep my eyes on the road ahead looking for “pins” doing what I love to do.
Bottom line: The Fed’s foot is back on the gas pedal and the market seems content. Earnings are coming in as “expected” with very few “blow ups” so all appears to be well, for now. If you like what you are reading, please help me “spread the good news”. Sign up a friend to receive my Blog here. If you want to be removed from this distribution, please scroll to the very bottom and hit unsubscribe. I wish You the Very Best! Grace & Peace to Everyone!
LIONX is a BRI, Trend Following, Liquid-Alternative, Tactical Allocation Mutual Fund that is Actively Managing Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes. When my Strategy identifies a low risk environment, I seek to invest in growth stocks/junk bonds with sound fundamentals and strong technical chart patterns. During high risk environments I seek to avoid Life-Changing losses. The Issachar Fund seeks moderate capital appreciation consistent with capital preservation. The Fund’s Adviser (HCM) is Celebrating 30 Years of Actively Managing Risk! The Lyons family are the largest LIONX shareholders, so I have incentive to succeed.
Prior to June 2019, I was not honoring God by investing in companies that support abortion, pornography, human trafficking, etc. God touched my heart and revealed to me how to make Issachar a BRI Fund. I stopped pretending that God was not concerned with how I invested His money and decided to try and honor Him instead. Biblical Responsible Investing (BRI) is the term used to describe the activities of Christian investors who purposely align their investment choices to support their Christian values. LIONX is ESG (Environmental Social Governance) conscious, pro-life and pro-family and will not invest in securities with a negative InspireImpact Score.
Whatever you do, do it all for the glory of God.” 1 Corinthians 10:31
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, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net. 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. Important Risk Information
Mutual Funds involve risks including the possible loss of principal. 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. If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss. The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments. The Adviser’s judgment about the attractiveness, value and potential appreciation of particular asset classes and securities in which the Fund invests may prove to be incorrect and may not produce the desired results. Past performance is no guarantee of future results. If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss. The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments. Quantitative easing (QE) is a monetary policy whereby a central bank buys predetermined amounts of government bonds or other financial assets in order to inject liquidity directly into the economy.
The Inspire Impact Score is a faith based ESG (environment, social, governance) security selection methodology that seeks to identify the most inspiring, biblically aligned companies in the world. The Inspire Impact Score utilizes both positive inclusionary and negative exclusionary screens in the scoring process. The result is a rules-based system of finding companies which are operating as blessings to their customers, communities, workforce and the world, and excluding companies which are operating at odds with biblical values.
NLD Review Code: 3128-NLD-1/22/2020 Written by Dexter P. Lyons, Portfolio Manager (LIONX) on Sunday, January 19, 2020