Grinding Higher! The Issachar Fund is “back in the black,” with about 70% invested mainly in agriculture, chips, energy, medical, metal, mining, and transportation stocks! The major indexes have been steadily grinding higher since the March 14th low above their 50-day moving averages, albeit on lower volume. This week, I expect to see back-and-fill action as stocks consolidate their recent gains. I do not expect stocks to roll over and retest the low because the Fed has kept its foot on the gas of liquidity. Inflation is a huge concern, so I have a bias towards commodity-related industries. We were experiencing stagflation pressures due to too many dollars chasing too few goods long before Russia invaded Ukraine. Market driven interest rates have been rising faster than the Fed’s ¼ point move because it believes inflation may get out of control. Oil prices had run up too fast, peaking on March 8th and dropping about 20% by March 16th. Oil is up about 50% this year and continues to grind higher. Biden and the far left have demonized fossil fuels oil which I believe may cause gas prices to rise even higher and possibly throw us into a recession. However, the Fed is aware of what Biden is doing to the economy. I believe the Fed will continue to print more “free” money to offset the potentially weakening policy effects of the Biden agenda into the November elections. I expect bonds to continue to decline while the market pushes rates higher, and I expect the commodity-related stocks to continue to outperform. I am bullish and plan to add more positions as I find new opportunities. (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 $8 billion last week to another all-time high! We must always watch what the Fed does despite what they say. While the Fed talks about raising rates to tame the inflation they created, they have also created new money out of thin air and bought bonds. However, market yields have been rising faster than their money creation, indicating that inflation may worsen.
Bottom Line: Issachar is invested in stocks that we believe should benefit from higher inflation. Our stocks have accelerating earnings and sales with double-digit expected growth rates for next year. I believe we are well-positioned to grow if inflation continues its pace. If the market turns against us, I will do my best to manage risk and avoid life-changing losses for all shareholders. I always dance with one eye on the exit in case the lights come on unexpectedly.
A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences. Proverbs 22:3
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: 5284-NLD-03/28/2022.