Ready to Roll! The Issachar Fund is 35% invested in growth stocks in top industries! The market seems to have worked out an oversold condition and may be ready to roll higher. Fed President Bostic said he thinks they can keep interest rate hikes to 25bps versus the 50bps hikes the market anticipated, and the market rallied Thursday and Friday. The S&P 500 tested and held support three times last week at its 200-DMA on above-average volume, signaling institutions actively supported this critical long-term average. The market also held support at its October up-trend line converging near the 200-DMA, so this was a significant level of support that held. The averages are in “rally mode,” and many individual stock leaders are breaking out on big volume. I am encouraged when I see leaders leading because this may be a sign investors’ appetite for risk is increasing. 20-year Treasury Bond prices spiked 2.4% on Friday after yields spiked above 4% on Thursday, indicating yield trends may be headed lower, pushing stocks higher. I plan to increase exposure if the market continues to reward us but with one eye on the potential risks involved, as always. (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 $43 billion last week, so QT is still in play! I am encouraged when I see the market rally while the Fed drains liquidity. This usually indicates more money is coming into the market (demand) than going out (supply), which could lead to a favorable time to be invested in growth stocks. If the market responds favorably to the jobs report this Friday (3/10/23), I expect to get us more invested. I have opinions on what I feel the market should do, but I remain flexible and follow price and volume charts because price is the only indicator that pays.
Bottom Line: We are lightly invested, but I hope to be fully invested by Friday if the market continues its uptrend! Market breadth has been strengthening, and sentiment has shifted for us to “risk on,” so I am looking for more stocks to buy. Our goal in last year’s Bear Market was to survive and cut losses small, but this year is different. I believe we have started a new bull market for stock pickers, and growth stocks could do very well in this inflationary environment. Inflation can seem like a hidden tax on everyone as it robs us of our dollar’s purchasing power. Growth stocks can offer a way for investors to beat inflation with superior returns. May God bless you with His unconditional love, then share it with your neighbor.
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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: 5255-NLD-03/06/2023.