Market Update: 03-07-22

Stagflation Arrives!     The Issachar Fund is about 30% invested in energy-related stocks, and we are off to a good start in 2022! While the major indexes trade in correction (-10%) territory, there seems to be a bull market in the energy and commodity space. The world is seemingly turning on Russia due to their invasion of Ukraine as Putin gets “canceled.” Commodities like oil, wheat, and corn have soared to record levels, and that will likely result in more inflation and slower growth, called stagflation here in the US. The Fed announced they would attempt to tame inflation by raising rates 1/4% instead of 1/2%, and the market rallied on the news but then faded. It seems the market believes the Fed may not have tools to deal with stagflation, so many growth stocks have been getting whacked. A “ceasefire” could cause profit-taking in the energy/commodity space, but I believe it will be short-lived. If oil prices keep climbing at the current pace, Biden could be facing a recession before the mid-term elections in November, which would likely hurt the democrats. Biden will soon decide if “hating” on fossil fuels to appease the “green left” is worth sabotaging his party’s power grab. I believe Biden could be forced to restart the Keystone Pipeline and remove the oil and gas restrictions that he imposed. Even if that happens, we will likely still be stuck with higher prices at the pump, which would not help his voting bloc in November. The Republicans could potentially sweep both houses in November, and we then could Make America Great Again! As long as God, who is the essence of Love, is still on the throne, there will always be Hope! (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The Fed reduced its balance sheet by $23 billion last week, which is little compared to $9 trillion! If they hit the brakes on money creation and raise rates, I will get concerned, but I do not see that happening anytime soon. The Fed Funds rate is zero, and the balance sheet is bloated, but I like how the dollar is spiking higher, which could be a nice addition to our positions. The Fed may use the Russian war as an excuse to do nothing because they are more fearful of stagflation; they might be feeling trapped in a box without a box cutter. Maybe the Fed will issue its own digital currency to create free “helicopter money” for everyone to spur economic growth. It is an unfortunate possibility!

Interestingly, there are over 9,645 cryptocurrencies which are just 793 fewer than the number of stocks traded on ALL exchanges combined today. I have no interest in NFTs or cryptocurrencies, but I am watching gold for an entry position. Gold is trading near the $2,000/oz area, which is a 52-week high, so maybe gold is trying to tell us that inflation may get out of hand. If you are concerned about feeding your family in a food crisis, check out My Patriot Supply.

Bottom Line: Issachar is participating in the energy advance, and I believe stagflation has arrived. Why are we still buying oil from Russia and negotiating with Iran and Venezuela to buy their oil? This makes no sense to me. Why are we no longer energy independent like we were under Trump? Pete Buttigieg said domestic drilling was off the table, and sure enough, there were zero rigs added last week! European Union natural gas went up 89% last week! We need some real Men and Women of God to lead this country in the right direction before others lead us into recession/depression and then socialism. I pray for God’s mighty hand to bless, protect, and give us the wisdom to defeat all forms of evil. In Jesus’ Mighty Name!  

Those who hope in the LORD will renew their strength. They will soar on wings like eagles; they will run and not grow weary; they will walk and not be faint. Isaiah 40:31

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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 www.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 making an investment decision. Opinions expressed are subject to change and are not guaranteed and should not be considered investment advice. For more information regarding the fund, including current performance, please visit www.IssacharFund.com.   Review Code: 5251-NLD-03/07/2022.

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