Market Update: 03-21-22

Powell, the Magician!    The Issachar Fund is about 25% invested mainly in energy, agriculture, and transportation stocks! The S&P 500 Index rallied strongly for the last four days into resistance at the 200-day moving average, so I would not be surprised to see some profit-taking. The beaten-down stocks hit the hardest in the correction bounced the highest due to short covering. I do not expect these “bouncers” to have “legs,” but I expect stocks with the best earnings and sales to lead us in this new advance. We are positioned in stocks with accelerating earnings and sales with strong technical chart patterns, and I hope to buy more stocks as we are rewarded for taking risk. I believe a bottom is in, and the risk is worth the potential reward. If I am wrong, I do not plan to stay wrong. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The Fed increased its balance sheet by another $44 billion last week to another all-time high! The Fed raised the Fed Funds rate from zero to 1/4% as expected, and the market cheered. While “Powell the magician” taps the inflation brakes raising rates, on the one hand, he steps on the gas of new money creation on the other hand. I believe Powell is trying to distract us with small rate moves, so we do not focus on what the other inflation creation hand is doing, which tells us what he really thinks. If the Fed were serious about taming inflation, they would not be creating “free” money out of thin air to support the markets. Only reducing the balance sheet or credit tightening will reduce inflation, but that is not happening. I pray Biden does not impose price controls like President Nixon in 1971 because it could be another disaster. The Fed is not supposed to be “political,” but I believe they are, and they want to prevent a recession before the November election, so they will continue to say one thing while doing another. Even if the Republicans sweep both houses of Congress in November, the Senate would not have a 2/3rd veto override to stop Biden’s “green climate” agenda. However, I believe the people will send a clear message in November that we are against the far-left radical agenda hurting America at the pump and grocery stores. There is no reason we can’t be energy independent again, and I believe it will happen soon enough. If I am right, inflation will moderate, and we will begin to take back our country from the far-left fringe of government currently calling the shots. America was founded on Godly principles, and I believe God still has his hand of favor on us, and we can be the “light of the world.” By the Grace of God, we are blessed to receive His love and share it with our neighbors!

Bottom Line
: Issachar is invested in the top sectors showing strong growth, and I hope to get more invested as we are rewarded for taking risk. The Fed has stepped on the gas of liquidity again, and the market seems to have put in a tradable bottom. I am encouraged by what I see in the market. I will not hesitate to do what is right to prevent life-changing losses if I am wrong.

You are the light of the world. A city set on a hill cannot be hidden.
Matthew 5:14
 
Links: Fact Sheet, Performance, Blogs, Strategy, My Story, Docs, BRI/ESG

Issachar: Alternative Defensive Mutual Fund Managed Like A Hedge Fund!

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: 5269-NLD-03/21/2022.

Scroll to Top