Bought the Dip! Fed Steps on the Gas!
The Issachar Fund is invested in the Business Services, Chips, Energy, Finance, Internet, Medical, Real Estate, Retail, Software, and Transportation Sectors. I continue to sell stocks that have met my sell criteria and buy growth stocks that seem to be under institutional accumulation. This has been going on for several weeks, and we have been rewarded for those efforts, so I plan to continue tweaking the portfolio until the market changes character. I am bullish mainly because growth stocks appear to be back in favor, and the Fed has stepped on the gas of liquidity, once again. Due to options expiration, I am discounting the negative action on Friday, but I stand ready to sell if conditions change. The S&P 500 Index (big-cap stocks) traded slightly below its 50-day moving average on heavy above-average volume on Friday, so that is a little concerning. However, since the COVID low in March 2020, the index has flirted with its 50-DMA about six times and every time has been a “buy the dip” opportunity. This time could be different, but I believe it is an opportunity because I “bought the dip.” (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
The Fed stepped on the gas of liquidity last week by increasing its balance over $91 billion! That is a massive amount of money created from nothing that has to go somewhere, and I believe most of it will find its way into the stock market. It seems like the US, German, UK, Chinese, and Japanese central banks are racing to see who can print more money the fastest without “breaking the bank.” One day this excessive free money printing experiment will likely end badly, but I do not see it happening any time soon. However, I do believe it will happen in my lifetime. My job is to manage the risk every day and let the price and volume action tell me when to get out, hedge, or go short. It is only by the grace of God that I see what He wants me to see. I pray that God will reveal more truth to you today!
Bottom Line: I am still bullish, and the Fed appears to be on our side by keeping the printing presses flowing with a fresh supply of new money. Growth stocks appear to be back in favor like 2020, so this could be a good time for the Issachar Fund to bring glory to God. Keep the faith and never lose hope because God is still on the throne, which will never change. Grace and Peace to everyone!
Heaven is My throne, and the earth is My footstool. Isaiah 66:1
The Issachar Fund is 100% committed to Biblically Responsible Investing (BRI) stocks.
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