The Issachar Fund is partially invested in the Medical, Real Estate, Retail, and Software Sectors as the indexes decline. I do not like to predict what the market will do; I try to interpret what the market is doing and position accordingly. There has been a lot of individual stock deterioration or poor breath while the indexes were making news highs, and now the indexes are under pressure. This stealth decline stopped us out of many growth stocks in the last two weeks, and I was not finding stocks with attractive buy points, so I began looking elsewhere. The Real Estate Sector has been trending up nicely with smooth day-to-day serial price correlations that appear to be attracting institutional money. Investors seeking higher yields have been slowly and steadily buying real estate investment trust (REIT) stocks, and I believe this trend may continue in this low-interest-rate environment. If the REITs reward us, I plan to add more exposure to this sector. If this market “pull back” turns into a correction, I expect the REITs to follow the market indexes, but I do not plan to hold any long positions in a correction. I believe this decline will be a minor one, and it is not the start of a major correction because the Fed has stepped on the gas of liquidity once again. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
Last week, the Fed increased its balance sheet by $103 billion to an all-time high of $8.2 Trillion! This “new money” has to go somewhere, and I believe some will find their way into the market, lifting many boats. It amazes me how the Fed keeps printing money, and it seems that no one cares or questions their motives. Maybe it is easier for those in power to kick the can down the road. I am starting to conclude that the Fed is trapped in a “print or die QE-Infinity” mode, and negative interest rates are a viable option! I hope and pray that I am wrong. Now would be a good time for us to be the light in “woke” darkness and share the love of Jesus with our neighbor.
Bottom Line: Issachar is partially invested in stocks that appear to be under accumulation. If this market decline turns ugly, I do not plan to ride it lower. If the Fed’s massive liquidity injection is effective, I expect the indexes will rebound and trend higher. Either way, I will do my best to capture most of the uptrend and avoid any life-changing losses. I believe America is the best country globally because God’s love, grace, mercy, and hand of protection are still on us.
Be strong and courageous. Do not be afraid, for the LORD your God is with you; he will never leave you nor forsake you. Deuteronomy 31:6
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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: 5450-NLD-07/19/2021.