Market Update: 02-06-23

The Issachar Fund is about 98% invested in 43 growth stocks in top industries with great fundamental/technical chart patterns! I sold our energy and gold-related positions after stops were hit due to heavy institutional selling. I believe money is rotating out of energy into technology as the dollar rallies, putting pressure on commodity prices. Oil trades in dollars, so when the dollar strengthens, commodity prices like oil tend to fall in price. Declining oil prices are a headwind for energy stocks, so I did not want to overstay our welcome in energy. A rising dollar also pressures emerging market equities, so I expect money to flow back into the US, supporting equity prices. I like how stocks have been breaking out on strong volume after earnings, and these stocks have been holding their gains, unlike last year. I am optimistically bullish as the technical chart pattern evidence tells me that a new bull market may have already begun. I believe this bull is long-winded, so it is not too late to join the party. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

Jay Powell (Fed Chairman) uttered the word “disinflationary” at his Wednesday press conference, and the market rallied above its January 2022 downtrend! The market gapped higher Thursday on above-average volume. On Friday, a surprise Bureau of Labor Statistics jobs number of 517,000 vs. expectations of 187,000 sent the indexes down about 1% after three days of above-average volume. When the indexes rise on higher above average volume, I get excited because that is a sign of “big money” coming to the party.

The Fed decreased its balance sheet by another $37 billion last week, the Fed raised rates Wednesday by 25bps, and the market rallied! When the market goes up on bad news, that is a good sign the bulls are in charge. The market believes the Fed may NOT throw us into a recession, and money is flowing back into growth stocks. I would not be surprised to see a stock market “melt-up” if money comes out of bonds especially emerging market bonds.

Bottom Line: Issachar is content being all in. As new money flows into Issachar, I am finding opportunities in the home building and tech stocks. The market has been rewarding risk-takers this year, unlike last year, while we mainly hid in cash. Growth stocks are outperforming value, and small caps are participating nicely in this rally, so I feel good about where we could be headed. Grace & Peace to everyone, and may God bless your next move.

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Issachar: A Buy & Hold Alternative Actively Managed Like A Hedge Fund!

For all have sinned and fall short of the glory of God, and all are justified freely by his grace through the redemption that came by Christ Jesus. Romans 3:23

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 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   Review Code: 5185-NLD-02/06/2023.

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