Market Update: 07-17-23

The Issachar Fund is about 60% invested in growth stocks with sound fundamental and technical chart patterns! I purchased more stocks last week from proper base pivots and expect to add more this week if the market rewards us for taking risk. The fastest horses that broke out of the gate when this bull market started in April are due for a rest which could happen soon. I expect the faster horses (stocks) to rest a while since they have had a nice run. A second set of sprinters (growth stocks) could jump ahead and take the lead while the fastest horses take a breather. If a sprinter shows any sign of trouble (earnings disappointment), short sellers may hit them hard, trying to take them out of the race. I believe we are in a new Artificial Intelligence (AI) led bull market that could last longer than the 17-month bear market we just witnessed. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

Homebuilding stocks continued to trend higher last week, indicative of a healthy environment despite another expected 25bps Fed rate hike on July 26th! The major indexes are still below their 12/31/21 highs which could be a tough line of resistance to overcome. The 12/31/21 highs could also serve as a bearish double-top formation which could be the start of a pullback for the faster horses.

The Fed decreased its balance sheet slightly last week, which could mean they have put the inflation genie back in the bottle! Inflation appears to be slowing, and the market May be pricing in no more rate increases after July. Rate increases tend to tighten credit and reduce liquidity, and the market thrives on liquidity. There is also about five trillion of cash sitting in money markets looking to buy on dips. However, the dollar has been falling fast as further rate hikes are discounted. Brazil, Russia, India, and China (BRIC) believe America is politically weak and plan to issue a gold-back currency for trading oil and other commodities. A weak dollar could cause commodity prices to rise and further increase inflation. The Fed can manipulate short-term interest rates to impact inflation. However, the Fed is limited in stopping foreigners from selling dollars to buy a gold-backed currency. A falling dollar could weaken our economy and stock market, so I am very concerned.

Bottom line: We are invested and expect to get more invested if the market rewards us for taking risk. If our stocks trigger sell signals, we will act accordingly to manage risk. I don’t particularly appreciate how the dollar has been in free-fall since July 6th, but it is due for a bounce, so we should know soon what the market thinks. Grace and Peace to everyone!

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Issachar: A Buy & Hold Alternative Actively Managed Like A Hedge Fund!

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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 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   Review Code: 3206-NLD-07/17/2023

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