The Issachar Fund (LIONX, BRI, ESG), is about 60% invested in 29 growth stocks as of Sunday, July 5, 2020! (Click here to Listen to this Blog) (Click here for the LIONX 2nd Qtr. Fact Sheet) I am getting more concerned as to why the Fed is reducing its balance sheet in a struggling economy. If I were Jay Powell, Fed Chair, and I wanted to please the man who gave me my job, Donald Trump, I would certainly not do anything that could potentially hurt his chances of getting re-elected as President. However, the Fed has been reducing its balance sheet in the last three weeks by about $160 billion. From 2/28/20 to 6/16/20, the Fed increased its balance sheet consistently week after week from $4 trillion to over $7 trillion. The market bottomed on 3/23/20 which about three weeks after the Fed started expanding its balance sheet and has been rising in sync with the Fed’s bloating balance sheet. Will the market continue to lag the Fed’s balance sheet growth by three weeks and head lower into the election? I certainly hope not but I will attempt to act accordingly if it does. Hope is not a strategy and I will do my best to avoid the major declines and stay invested during the major up trends. Some of the LIONX leading growth stocks have slowed their accent and that has me concerned a bit. However, I will give them a little room to consolidate recent gains. I am very pleased with the LIONX performance results and draw-down risk for the quarter and year to date returns. Please feel free to add to your account or open a new one today. As a result of new shareholders and Fund performance, the assets under management (AUM) in LIONX has grown from about $11 million on 12/31/19 to about $41mil today! Thank You for your continued support and interest in LIONX! I am blessed and humbled that I get to pursue my God-given passion. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
Now for some performance numbers.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month-end, please call toll-free 866-787-8355. Total annual fund operating expenses are 3.38%.
Bottom line: Yes, I am concerned with the declining Fed’s balance sheet, but I follow the leaders. I try to own leading stocks by letting them pull me in and then push me out. I believe that some of the stocks that led the rally (leaders) off the market bottom on 3/23/20 may be running out of gas and they may take a breather as laggard stocks play catch up. If these leaders back-and-fill a while without serious price corrections, they could build secondary bases to buy from later. However, if the indexes can’t get above near-term resistance then we could see the indexes roll over and the leaders would likely come under heavier selling pressure more so than the indexes. I truly believe there is a higher probability that the leaders could resume their advance into the November election and Trump will be reelected. Only God knows the future and I have faith that He works all things for our good.
I am the Alpha and the Omega, the first and the last, the beginning and the end. Revelation 22:13
All things work together for good for those who love God. Romans 8:28
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, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net. 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 to be incorrect and may not produce the desired results. Past performance is no guarantee of future results. For more information on LIONX, please visit LIONX.net. NLD Review Code 3703-NLD-7/7/2020