Market Update: 11-22-21

The Issachar Fund is invested in leading growth stocks with sound fundamental and technical chart patterns. I sold weaker energy stocks and purchased stronger software stocks as the market paused a bit last week. I still like what I see in the growth area, but the “resistance” high barriers may cause the markets to trade sideways, which would be good. Junk bonds are flashing higher risk as the dollar is signaling higher rates which is not good for fixed income investors. Equities seem to be a good place to be while inflation rears its ugly head. The stock market is concerned with a potential “lockdown” in Europe due to rising COVID cases, but I do not believe America will submit to a “stay at home” Thanksgiving or Christmas. I remain bullish as growth stocks continue to be accumulated by the institutions that move the market. This is a seasonally strong period until the middle of January, so I have an optimistic bullish bias for now. Since the middle of October, we have been making a little headway, so let’s hope the Fed does not leave the party too soon. However, if our stocks come under heavy selling pressure, I will not hesitate to switch from offense to defensive. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The Fed increased its balance sheet by $12 billion last week to another all-time high! There have been talks of Biden appointing Brainard instead of Powell as the new Fed chief who may be a more dovish lower interest rate governor. Biden needs rates to remain low to finance higher spending bills. I suspect Powell wants to keep his job and stay in “power,” so I believe he will keep printing money to buy more bonds to suppress rates until Biden makes the announcement. I do not expect any surprises out of Powell.

Bottom Line: Issachar is invested in growth stocks with sound fundamental and technical charts. The market seems to have “paused” a bit, digesting earnings and potential COVID lockdowns. I am not too worried about America “locking down” again because we are better informed and now more likely to be walking in faith instead of fear. Faith comes by hearing the Truth. We have so much to be thankful for, so I want to wish everyone a Happy and Healthy Thanksgiving!

Trust in the LORD with all your heart and lean not on your own understanding. Proverbs 3:5

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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: 5710-NLD-11/22/2021.

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