Getting More Invested! The Issachar Fund is about 40% invested, about 15% in a Gold ETF, and the remainder in growth stocks with positive fundamentals and technical chart patterns. Interest rate-sensitive home-building stocks have been moving higher. The market may be anticipating one more 25 bps rate increase and then a pause from the Fed. The home builders typically do not do well if the market expects higher rates, so when they rally, I pay attention. The semiconductor stocks have been trending higher, which tells me we could be in the early stages of a new bull market. The major indexes have been trading above their 50 DMAs on higher volume as newly created Fed money finds a happy home. The junk bond market is trading above its 50 DMA, indicating that investors’ appetite for risk has increased. Investor’s Business Daily (IBD) declared a “Follow Through Day” (FTD) last week, indicating it may be a good time to get back in the market. IBD studies show that an FTD has preceded every bull market. The odds have been stacking in our favor, and I plan to get more invested as we are rewarded for taking risk. I am bullish and expect the rally to continue as new money is allocated in the 2nd quarter. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
Banks are losing deposits to higher-yielding money market brokerages, and I expect that trend to continue! The deposit “run” into money markets funds slowed to about $67 billion last week, which is huge. The three-week run on the banks topped over $300 billion as money flowed to a happier place. This flood of new money into brokerage houses could be used to fuel a new bull market. However, a run on the banks could lead to a pullback in bank lending (aka credit crunch).
The Fed decreased its balance sheet by $28 billion last week after soaring $392 billion in the prior two weeks! The Fed has been talking down the market through higher rates to fight inflation while stepping on the gas of liquidity (QE), propping up the stock market. The Fed says they do not have the mandate to support the stock market, but its actions speak otherwise.
Bottom Line: We added more positions last week, and I plan to get more invested as the market rewards us for taking risk. I do not intend to add more to our gold position. I would like to own more growth stocks with accelerating sales and earnings displaying signs of accumulation in their price/volume charts. The bear market could be over, and we could be in the early stages of a new bull market. Growth stocks peaked in February of 2021 and could be on the verge of a multi-year bull run. I am bullish! Grace and Peace to you and your loved ones because He is alive! Happy Easter!
Here is a link to the 1st Qtr 2023 Issachar Fund Fact Sheet
Links: Performance, Fact Sheet & Strategy, Blogs, My Story, Docs, BRI
Issachar: A Buy & Hold Alternative Actively Managed Like A Hedge Fund!
He is not here, for He has risen, just as He said. Come, see the place where He was lying. Matthew 28:6
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: 5301-NLD-04/03/2023.