Yields Rise! Fed Keeps Printing!
The Issachar Fund is fully invested in the Chips, Machine, Medical, Real Estate, Retail, and Software Sectors. The employment numbers came in better-than-expected Friday, and yields spiked, indicating the Fed may have to raise rates sooner than expected to tame inflation. Mr. market seems to be hooked on low rates, so any hint of higher rates has spooked the market into profit-taking mode. I am not too concerned because I believe Jay Powell will do what it takes to keep rates low and liquidity flowing to increase his chances of getting reappointed as Federal Reserve Chairman next year. I like the way the market is rewarding growth stocks which is where we are positioned. The market seems healthy and poised to continue its advance. However, I would not be surprised to see some backing and filling as stocks digest recent earnings announcements, which have been better than expected. I see no high-risk flags and remain optimistic with a glass-half-full outlook. The skies are clear, and the sun is shining, so let’s stay a little longer at the beach. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
The Fed increased its balance sheet by $13 billion last week to an all-time high of $8.3 Trillion! The Fed created $872 Billion of new money out of thin air this year and over $3.2 Trillion last year, so that money has to go somewhere. Do you think that some of that “free money” ends up in the stock market, increasing stock prices? I certainly believe it does, and this free money printing experiment is the primary source behind this bull market advance. I also think if the Fed were to remove the punchbowl of liquidity from the market too soon, we would see an unwinding of stock prices as we have never seen. However, I do not plan to ride the market down in the next bear market or recession, and I pray you also have an exit plan. Issachar is a mutual fund, BUT it is managed like a hedge fund that can be long or short depending on the risk levels. Issachar has not been short in a very long time, but it could be if the market changed its character.
Bottom Line: Issachar is fully invested and dancing at the party with one eye on the exits at all times. I follow price and volume, and it is telling me that all is well for now. This market has been incredibly resilient, finding a floor of support (buying) at every recent dip, so buying on the dips has been working well. If the market continues higher, I plan to ride the wave, but I do not intend to sit still as the wave crashes. If you like my way of thinking and know of someone who might benefit, don’t hesitate to get in touch with them or me to share the good news. Speaking of Good News, please help me spread the Word that Jesus unconditionally loves everyone the same.
My only aim is to finish the race and complete the task the Lord Jesus has given me – the task of testifying to the good news of God’s grace. Acts 20:24
Links: Fact Sheet Performance Blogs Strategy My Story Docs BRI/ESG
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: 5495-NLD-08092021.