Barely Holding Gold! The Issachar Fund is about 14% invested in an ETF that holds physical Gold, and the remainder is invested in a higher-yielding money market fund! The equally weighted S&P 500 index is up about 3%, while the mega-cap weighted S&P 500 index is up over 8%, YTD after a big down year in 2022. This tells me large asset managers may be parking/hiding assets in the big liquid names like Apple, Microsoft, and Google while the average stock takes a bath. The only thing I have a minor conviction about currently is Gold. When I am bullish on Gold, it is typically not a suitable environment for stocks. Stocks breaking out on favorable earnings have not held their gains; therefore, I conclude risk may be rising. Higher-yielding money markets may be our best bet. If Gold does not start trending higher, I will not have a problem with a 100% cash position. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
The Fed decreased its balance sheet by another $22 billion last week, so they are still draining liquidity! As the Fed raises rates and unwinds its bloated balance sheet to fight inflation, I get more pessimistic about stocks and bonds. The fuel that pushes stocks higher is liquidity, but I get more concerned when liquidity declines. I am worried about where I see the economy/country headed. The current administration seems to be anti-growth, pro-regulation, and bigger government which has not been a recipe for higher stock prices. I hope I am wrong, but sadly I may be right!
Bottom Line: I am barely holding Gold and may go to 100% money markets if Gold does not resume its uptrend. This may be an excellent time to sit and patiently wait and pray for the fundamentals to change. I believe we are in a spiritual war between good and evil, and that is why so many things we see defy common sense. Please stand with me and pray for God to change the hearts of our enemies to the love of Jesus. I still have hope and believe God has already won. Grace & Peace to everyone!
Links: Performance, Fact Sheet & Strategy, Blogs, My Story, Docs, BRI
Issachar: A Buy & Hold Alternative Actively Managed Like A Hedge Fund!
God shows his love for us in that while we were still sinners, Christ died for us. Romans 5:8
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: 1532-NLD-04/24/2023.