All In! 100% Biblically Responsible Investing
The Issachar Fund is 98% invested in 58 growth stocks with great fundamental/technical chart patterns! We own stocks with accelerating earnings, sales, and profit margins exhibiting strong group (industry) strength. Our heaviest weightings are energy, metals, machines, finance, electronics, medical, and building. After three days of selling, the market rebounded Friday nicely into its down-trending 200-DMA line of resistance on above-average volume. I believe the market is poised to break out of its downtrend line of resistance that started on 12/31/21, and we are positioned accordingly. If I am wrong, I plan to hedge (with inverse ETFs) or sell positions to my level of conviction. I believe the stars could be lining up, a new bull market could be in the making, and we are all in! (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
Fundamentally, sound stocks are breaking out on strong volume holding and their breakouts! This S&P 500 breakout attempt seems different from the previous four tries to break out of this extended bear market downtrend. The short-selling algorithms are still hitting stocks, but they seem less active than prior attempted breakouts. Stocks breaking out seem more “sticky” in holding their gains, which is encouraging. Though I am more optimistic than I have been in a while, our sell triggers are still in place according to our rules, if I am wrong, to keep mitigating risk.
Last week, the Fed decreased its balance sheet by $19 billion, so they are still removing money from the system to fight inflation! I believe the market is pricing in a 25bps Fed rate increase on Feb. 1st because inflation seems to be waning, and the Fed may yet achieve a soft landing. Many are predicting a recession, but that is not what I see. I believe the House will hold tight on the purse strings to prevent Biden from any more frivolous spending, and the market may be anticipating this new change of leadership in Washington.
Institutions must stay fully invested for the most part, and they are still piling in the energy space even after a great run in 2022! Variable sun and wind cannot compete with the energy storability of on-demand oil and gas as an energy source. The more oil and gas are demonized, the higher the prices will likely climb for companies that supply, produce and service the oil and gas industry. I am bullish on energy! The dollar has been in a downtrend since October 2022, putting upward pressure on commodities like oil and gold. No one knows if the dollar will lose its global currency reserve status, but something seems to be brewing to replace the dollar in world oil and gas trading.
Bottom Line: Issachar is all in, and so am I. The market may have enough momentum to break through its downtrend this time, and if it does, we are poised to participate. Energy and gold are my favorite sectors, but if they disappoint my narrative, I will take protective action. Issachar is a mutual fund, but I designed it to be managed like a hedge fund. When the market rewards us for taking risk, I am all in! Grace & Peace to everyone! Dexter@IssacharFund.com Actively managing risk since 1990!
Fear of the LORD is the foundation of Wisdom. Knowledge of the Holy One results in good judgment. Proverbs 9:10
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: 5125-NLD-01/23/2023.