Risk On – Buy the Dips! (100% Biblically Responsible Investing)
The Issachar Fund is 99% invested in 45 growth stocks in top industries with great fundamental/technical chart patterns! We are “all in” but looking to hedge (buy ETFs that short) as stock prices of big techs are extended ahead of their earnings announcements this week. This week, I expect a profit-taking pullback to lock in some nice YTD gains. Buying the dip might be good if you believe we are in a new bull market. The S&P 500 and NASDAQ 100 have rallied past their 200-DMAs and now flirting with some double-top areas of resistance. This resistance could provide an opportunity for a sell-off as the market expects the Fed to raise rates 25bps on Wednesday. Many high P/E heavily shorted names were squeezed on Friday, which could convince the short-selling algo hedge funds that the bear market of 2022 is over. I believe a new bull market started on January 1, 2023, even though the fear-spreading “news” tells us we are headed for a recession. The market is a discounting mechanism, and it may think there will be no recession. Issachar holds stocks in these top Sectors: Building, Energy, Medical, Metals, and Software. We are not beating the fully invested market this year, but we didn’t lose -18% like the S&P or -32% like the NASDAQ 100 last year. We are trying to capture most of the uptrend in bull markets and preserve profits in bear markets. Managing risk is our focus, and it has been for the last 33 years. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
The Fed decreased its balance sheet by another $18 billion last week! They have removed about $500 billion of liquidity from the market since 4/19/22 to fight inflation they helped cause. Despite the Fed’s liquidity drain and rate-raising experiment, the market has been rallying since January 1, 2023. I am very encouraged to see the market rise despite the Fed’s efforts to reign in the “exuberance.”
Bottom Line: Issachar is all in, but I am looking to hedge as we approach lines of resistance in the market averages ahead of big tech earnings releases and a Fed decision on Wednesday. I believe we are back in a “risk on” environment as the market has rewarded risk-takers YTD. Investors may start “buying the dips” once again if they believe the bear is in hibernation. Those are my opinions, but price and volume charts dictate my actions. Price pays. Grace & Peace to everyone!
If you have a question or would like to schedule a call, please Email me: Dexter@IssacharFund.com.
Links: Performance, Fact Sheet & Strategy, Blogs, My Story, Docs, BRI
Issachar: A Buy & Hold Alternative Actively Managed Like A Hedge Fund!
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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: 5153-NLD-01/30/2023.