AI Gold Rush! The Issachar Fund is now 100% invested in a high-yielding government money market fund! I sold our Gold ETF because it was not performing as expected. The dollar gained about 2.2% in the last ten trading days, and gold went in the opposite direction (negatively correlated) as many investors believe the Fed may raise rates on June 14th. Higher rates typically cause a country’s currency to appreciate as big money demand exchanges into higher-yielding currency. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
Big money is still seemingly concentrated in a handful of big tech companies that seem to be embracing Artificial Intelligence (AI)! It looks like the Generals (big tech influencers) are headed up the hill, and the troops are still at camp drinking coffee. As more companies use AI, more people will most likely be replaced, which could lead to higher sales and earnings, translating into higher stock prices. AI could be a game changer like the Model T to the horse and buggy era, so we should learn to adapt, or risk being left behind. This new AI meme theme reminds me of the late 1990s dot-com bubble/bust, so maybe AI is ready to pop and drop. My buy list is loaded with AI-related companies, but most are extended in price and due for some corrective action, so I wait patiently. The major indexes are still down double digits since 12/31/21, but I am optimistic and plan to capitalize on the opportunities ahead.
The Fed decreased its balance sheet by about $46 billion last week! My biggest concerns are sticky inflation, an inverted yield curve/recession, an unfriendly FED, and tightening credit conditions! Monetary changes are typically the determining factor for sizeable uptrends/downtrends. Regional banks still have some issues left to contend with, as Treasury Secretary Janet Yellen warns bank CEOs that more mergers in the sector may be necessary to maintain stability, i.e., potentially more bank failures. The threat of a US debt default is keeping the market nervous. I pray that saner minds prevail and the budget is balanced without another increased debt ceiling.
Bottom Line: We are in cash, but my eyes are on stocks that may benefit from AI. While AI is transformational tech, so was the internet, and the present over-promising hype may exceed reality. AI could be the new dot com gold rush. However, I do not like how evil minds could be exploiting AI, but I believe God will shine His light on the darkness, and good will overcome evil. Grace & Peace!
God said, “Let there be light,” and there was light. And God saw that the light was good. And God separated the light from the darkness. Genesis 1:3-4
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: 5472-NLD-05/22/2023