Still Going Strong! Fed Steps on the Gas!
The Issachar Fund is fully invested in leading growth stocks, and the indexes are near all-time highs! I sold a few stocks before their earnings were released last week and purchased new ones that appear to be under accumulation. The consumer price index (CPI) surged 6.2% in October, the most since November 1991, with energy prices up 30%. This inflationary news shocked the market on Wednesday; then, the market rebounded nicely on Thursday and Friday. This kind of action tells me that buyers were in control, and the uptrend has room to run. This is a historically good time of year to be invested, so we have “seasonality” forces working in our favor. If I had new money to invest, I am still finding stocks with great fundamentals and technical chart patterns. The dollar has been rising in anticipation of higher rates due to higher inflation. Sooner or later, higher rates could be a huge hurdle for the stock market, but it does not seem to care at this time. The junk bond market is sending mixed signals, but growth is being rewarded, so I plan to make a little hay while the sun is still shining. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
The Fed increased its balance sheet by $88 billion last week to another all-time high! I was shocked to see that the Fed stepped on the gas of liquidity, especially after saying it plans to taper its bond purchases. The Fed’s balance sheet now equals about 37% of the US’s GDP vs. the Bank of England’s 41% and the European Central Bank’s 80.5%. The Fed is printing “relatively” less money than the BOE and ECB, which may be why the dollar is still the tallest midget. I watch what the Fed does (still printing) rather than what they say. I believe Jay Powell wants Biden to reappoint him in February, so Powell may print more “free” money to buy more bonds to keep rates artificially low, which fuels inflation, hurting the little guy. The Fed is not supposed to be influenced by politics, but I believe they are, and the cost of living will likely continue to rise for all Americans. Inflation is a “hidden” tax on everyone, but it affects lower-income earners more than upper-income earners. The more government spends money; we do not have to buy things that are slow to be delivered; the more prices will likely continue to rise. I say stop the spending, decrease regulation, and shrink the size of government to Make America Great Again! I believe God still has his hand of favor on America, and he will get us back on the right track sooner rather than later.
Bottom Line: Issachar is fully invested in growth stocks that appear to be under institutional accumulation, and we are being rewarded for taking risk. The leaders are leading, and it feels like 2020, where growth stocks led the way higher. Powell is on our side printing like crazy, but it will not always be that way, so let’s put some hay in the barn before the clouds of rain arrive on the scene.
Faith is the assurance of things hoped for, the conviction of things not seen. Hebrews 11:1
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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: 5697-NLD-11/15/2021.