The Issachar Fund (LIONX & LIOTX) is 75% invested in 49 stocks (25% Cash) on Sunday, March 21, 2021, with $63mil in AUM @ $11.98/shr. From 10/30/20 to 3/17/21, oil was up over 73%, then had its worst drop on Thursday by over -7.5%. On Friday, oil prices rebounded over 3% higher, and I believe we may have just experienced a technical correction to shake out short-term investors. Issachar holds stocks in the Oil & Gas, Retail, Transportation, Steel, Medical, Finance, and Metals Industries, which could be poised for a nice rebound rally. I believe the stay-at-home tech trade that worked well for us last year may underperform the back-to-work reopen trade in which we are invested. The $1.9 Trillion spending bill has to go somewhere, and some of it may end up in the stock market lifting many boats. I believe we are well-positioned to benefit from a rising tide of liquidity that may reward us for taking risk. If the tide changes, I will readjust the sails to maximize our gains and minimize losses. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
The Fed did it again! The Fed increased its balance sheet last week by $113 Billion to a record $7.7 Trillion! Now that the Fed has purchased $113 Billion of bonds from investors, this money has to go somewhere, and a lot should end up in the stock market, again bidding up stock prices. No one knows how long the Fed will be allowed to keep printing “free” money, so I plan to enjoy the ride while it lasts. If the dollar would start to free-fall, signaling possibly the Fed has printed too much; then we could be close to the mother of all bear markets. However, I do not see the warning signs, but I will keep my eyes and ears open for clues.
Bottom Line: Issachar is 75% invested in cyclical and small-cap stocks with accelerating earnings and sales that appear to be under institutional accumulation. I believe we just experienced a technical correction, but the fundamentals and new money creation should help to bid up stock prices. Yields are still rising, and it has not derailed the stock market, but it could if the rate of increase accelerates. If the market responds positively to the excess liquidity that was newly printed, I expect to increase exposure. I plan to let stocks pull me in as prices rise and push me out as stops are hit. If the market thinks the Democrat proposed higher taxes and increased regulation will kill the economic recovery, stocks could fall into a steep correction. However, I believe the excess liquidity will boost stock prices, and the uptrend will resume, so I am positioned accordingly. If I am wrong, I will do my best not to stay that way. I continually pray that God’s Wisdom would steer us in the right direction and away from danger.
For I know the plans I have for you, declares the Lord, plans for welfare and not for evil, to give you a future and a hope. Jeremiah 29:11
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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, which can be obtained by calling 1-866-787-8355 or visiting https://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. S&P 500 Index measures the stock performance of 500 large companies in America. For more information regarding the fund, including current performance, please visit www.IssacharFund.com. NLD Review Code: 5143-NLD-3/22/2021