Time to Buy! The Issachar Fund is about 40% invested in energy, agriculture, retail, transportation, and utility stocks! We have been in cash since 4/21/22, and now it seems the market may have put in a tradeable bottom. The S&P 500 declined for seven weeks, then turned positive last week, so stocks were ready to bounce. The market is historically a forward-looking discounting mechanism. Maybe it is telling us that inflation may have peaked, causing Powell not to raise rates as aggressively as the market was anticipating. That is my current read on the market, so I have purchased stocks that could benefit if the Fed does not hit the inflation brakes too hard. I believe the Fed is political and Powell is a politician with political friends invested in the stock market, so he will likely do what is necessary to appease his people. Junk bonds are trading above their 50-DMA, indicating that investors have increased their risk appetite, which could be good for us. Treasury bonds (TLT) bottomed on 5/6/22, and the dollar is down over -3% since peaking on 5/12/22, which tells me that rates may have peaked. I have been actively managing risk since 1990, seeking to make money when the trend is up and avoid life-changing losses when the trend is down. The short-term trend is up, so I have dipped my toe in the water and will buy more if we are rewarded for taking risk. If I am wrong and our positions do not work out as planned, I do not intend to stay wrong. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
William O’Neil founded Investor’s Business Daily (IBD) to share his money management secrets that helped him become a self-made billionaire. IBD declared last Thursday a Follow Through Day (FTD), which is a 1% index gain on greater volume at least four days after a bottom. IBD claims that every bull market started with an FTD in the last 100 years, but not every FTD leads to a bull market. Since no one knows if the FTD will work, the system suggests followers buy stocks with great fundamentals and technical chart patterns and add to them if they are profitable. I have studied several systems and models that have worked very well for many years until they don’t, and no one rings a bell when they stop working. I follow O’Neil’s time-tested system because I believe it is logical, and I understand how and why it works. I use O’Neil’s Market Smith program and highly recommend it to anyone passionate about managing risk to grow and protect their hard-earned assets.
The Fed’s balance sheet surprisedly dropped by $32 billion last week! The Fed has indicated it will start to unwind its balance sheet beginning in June, so maybe it will slowly decrease its balance sheet and only raise rates two more times. I believe the Fed can manufacture a soft-landing and avoid a throwing us into a deep recession, which may be what the market is excited about. I believe there are evil forces in the market trying to crash the economy and stock market to bring in more government power and control (Marxism/Socialism). However, I believe good overcomes evil, the light will reveal the darkness, and God will be glorified.
Bottom Line: It is time to buy! We had an FTD, and our positions have been working, so we will add more if the market continues to reward us for taking risk. If this turns out to be a failed FTD, we will cut our losses and patiently wait for the next opportunity. I believe the bear market decline could be over, and we could put some hay in the barn. Also, I think the 18,465 crypto-currencies and Non-Fungible Tokens (NFTs) resulting from a $9 trillion “free money” bloated Fed balance sheet has caused the biggest bouquet of tulips (Tulip Bulb Mania 1634) I have ever seen. The cards lying face-up on the table tell me that crypto and NFTs could vaporize at some point, so I plan to invest in things that I understand.
The sons of Issachar were known for their understanding of the times…. 1 Chronicles 12:32
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 making 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: 5498-NLD-05/31/2022.