Market Update: 07-07-21

Subject: Stock Pickers Market!       Trending Higher!   

The Issachar Fund is fully invested in growth stocks with solid fundamentals and technical chart patterns!  The large-cap and tech indexes have been trending higher, while the small-cap index has oscillated in a trading range since March.  I believe this is a stock pickers market, and Issachar is positioned to benefit from a rotation into growth stocks as rates continue to decline.  20-year Treasury rates have been declining since March, and I do not expect them to start rising anytime soon.  The recent inflationary commodity and lumber price advances have diminished, and I believe the inflation scare was indeed “transitory.”  The Fed has its foot on the gas of liquidity while team Biden is pumping the brakes with talks of higher taxes and more regulation.  As long as the Fed continues to “liquefy” the market, the economy and stocks will likely continue to perform well.  However, there will be a price to pay for irresponsible spending, but for now, let’s enjoy the ride.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The Fed’s balance sheet declined a meager $23 billion last week! I keep a close eye on the Fed’s ability to create money with no physical backing because I believe they are the invisible hand that holds all boats afloat.  However, there will be a day that the tide will go out again, and we will get to see who is swimming naked.  It will not be a pretty sight! For now, the Fed seems committed to keeping rates near zero by printing money to buy more bonds that in turn suppress rates.  All good for now!

Bottom Line: Issachar fully invested in stocks with solid fundamentals and technical chart patterns. Growth seems to be outperforming Value, and that should bode well for Issachar.  I continue to remain focused, disciplined, flexible, and humble with a teachable spirit.  After doing some post-trade analysis, I added a new rule not to buy a stock if its Industry Group chart shows signs of distribution.  Lessons learned!  By God’s Grace, I continue to be humbled as He shapes and molds me into the man, He created me to be.  Praise Jesus, and thanks for your patience to trust me with your hard-earned assets.     

God opposes the proud but shows favor to the humble.  James: 4-6

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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 www.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 and are not guaranteed, and should not be considered investment advice. For more information regarding the fund, including current performance, please visit www.IssacharFund.com.   Review Code: 5322-NLD-7/7/2021.

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