Market Update: 10-03-22

It’s Not Over!   3rd Qtr. Fact Sheet, Performance & Strategy Update 

The Issachar Fund is complacent in Cash, 100%! This is a Bear Market and Recession, and it ain’t over yet! The market is discounting an inflationary bad 3rd quarter earnings season, and looking ahead, it sees more of the same. Indexes trend higher when they see a clear path to earnings growth, but very few fundamentally strong stock charts look attractive currently. Even the best stocks that have held up well will likely get hit in the next wave of capitulation selling. Cash is king! It is not what you make in a Bull Market but what you keep in a Bear Market that truly allows one to invest/save for the long term. Last year and historical returns are irrelevant because it may be “different this time.” (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The Fed is raising rates and decreasing its balance sheet at a record pace, so “don’t fight the Fed”! What matters is tomorrow and how you are positioned to protect and grow your account. This Bear Market could last until we get new leadership in Washington. Avoiding life-changing losses and taking advantage of the next opportunity is my focus. After managing risk for over 32 years, I have seen the best returns occur after the steepest selloffs, so prepare for what could be a once-in-a-lifetime generational opportunity once this Bear Market runs out of gas. In the meantime, we must preserve mental and physical capital to take advantage of the next great opportunity, so let’s be disciplined and respect risk. I believe patience will be rewarded; this is not a low-risk buying opportunity. Junk bonds are down about -16% YTD, indicating investors have lost their risk appetite. I have a protective/defensive posture at this time, but I will change when the charts change. If you know someone looking for a buy & hold alternative, please tell them about Issachar.

Issachar is down a little for the year, but the indexes are down a lot and could get much worse before the bottom. The S&P 500 (big caps) is down about -24%, the NASDAQ 100 (techs) is down nearly -33%, and the Russel 2000 (small caps) is down almost -26% this year (all at yearly lows). 20-Year Treasury Bonds are down nearly -30%, so risk is high. Far-left “green new deal, climate change” socialist policies have hurt our economic recovery and growth chances, but there is always hope! If Constitution-loving people are elected in November, things could turn around, and America could become the beacon of hope it used to be. By God’s Grace, America was blessed with prosperity, His loving hand of protection is still on us, and I believe He will save us from a tyrannical socialistic government. Amen!

The Bank of England (BOE) became the first central bank to blink and restart QE! Despite raging inflation, the UK’s central bank has now been forced to shore up its dysfunctional, collapsing bond market and currency by purchasing its bonds. The BOE had to restart bond purchases to save overleveraged UK pension funds from getting wiped out due to Gilt yields (the UK’s version of Treasury yields) jacking from 4.5% to a potential 7-8%. Until we see unexpected and unintended consequences that force the Fed’s hand in restarting QE, the words “Don’t fight the Fed” remain words to live by.

The Fed’s balance sheet decreased by $21 billion last week, so the decline continues! The Fed has steadily reduced its balance sheet by $170 billion from a high of $9 trillion on April 19th. The Fed is doing what it promised, trying to slay the inflation dragon they helped create by “printing money out of thin air.” Loretta Mester, president of the Federal Reserve Bank of Cleveland, said a recession would NOT stop the Fed from raising rates. Wow! That is crazy talk! In other words, she may be telling us the Fed could cause a deeper recession before they are forced to reverse course. That means we should expect the Fed to “pivot” from Quantitative Tightening (QT) to Quantitative Easing (QE) in the future, so watch for it.

Tidbits: Lehman Brothers held $600 billion in assets when they crashed in the 2008 Financial Crisis and took the economy with them. Credit Suisse (CS) and Deutsche Bank have $2800 billion in assets, and the CS CEO says CS is at a “Critical Moment.” Could CS be the next domino to fall, creating more downside risk? If Biden blew up Russia’s gas pipeline, would Putin strike back with nuclear force? Is the World Economic Forum using the “green new deal and climate change” to collapse the world to ensure a global “reset”? Will they force everyone to use their digital currency to control and track everything we do? God gave us the freedom to choose good or evil; unfortunately, some of our leaders choose evil. Let’s pray for God to change hearts so everyone can experience more of His gift of Love, Peace, and Grace.

Bottom Line: Issachar shareholders are comfortable in Cash while the market trades below the June 16th low area of support on above-average volume. The market is looking ahead and does not like what it sees, so it could drop hard and fast now that support has been broken. The Fed is raising rates to fight inflation in a recession, so I do not see this Bear Market ending soon. Please support and pray for God-fearing leaders to take charge in November and hopefully put us back on the right path to freedom and prosperity. My opinions do not matter. Everything known is in the price chart, so I rely on the charts to tell me what to do. Charts do not lie (people do), and the charts tell me to sit on my hands patiently. I see a great opportunity in the making, but we must protect mental and physical capital. Until then, Cash is King! Grace & Peace to Everyone!

Links: Performance, Fact Sheet & Strategy, Blogs, My Story, Docs, BRI

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

The Lord is compassionate, gracious, slow to anger, and abounds in love. Psalms 103:8

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: 4084-NLD-10/03/2022.

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