The Issachar Fund (LIONX), is about 90% invested in stocks and seeking more opportunities! I added about 20% more individual stocks last week. I am buying stocks that have produced three consecutive quarters of increases in sales and earnings and forecasting double digit earnings for next year. I remain bullish as the market rotates out of one sector into another digesting recent gains. LIONX is a BRI, Trend Following, Liquid-Alternative Mutual Fund that is Actively Managing Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes. When my Strategy identifies a low risk environment, I seek to invest in junk bonds/growth stocks with strong technical chart patterns and sound fundamentals. During high risk environments I seek to avoid Life-Changing losses. The Issachar Fund seeks moderate capital appreciation consistent with capital preservation. The Fund Adviser is Celebrating 30 Years of Actively Managing Risk! (Portfolio holdings are subject to change at any time and should not be considered investment advice.)
The Fed’s balance sheet is still trending higher since September but declined slightly last week! The Fed said it plans to keep adding about $60 billion of liquidity in the market at least until March 2020. That gives me conviction to hold what I have and expect more gains. This newly printed QE has to go somewhere, and I am finding some of that “free money” printing in the chart patterns of LIONX positions. LIONX has about 70 individual stocks (90% invested) with sound fundamentals and strong technical chart patterns. I plan to let current positions “prove” themselves before getting more invested.
Fed futures are showing a 6% chance of a rate increase at the next Fed meeting and a 0% chance of a rate cut. I believe the Fed will do all it can to support a Trump reelection in 2020 which should translate into a continued “easy money” policy. Fed Chair Jay Powell should be unbiased and without a conflict of interest but that may not always be the case. I believe Powell will do what he feels is right and keep increasing liquidity in the market that may likely spill over into a robust economy. I believe we all have some form of “bias” and that Powell will be reminded that Trump gave him the job he currently holds. Behind the President of the USA, the Fed Chair could be the second most powerful person in the world. To some, power is more important than money and power has the ability to create wealth.
Junk bond trend, sideways! The junk bond average has slowed its recent accent and is now going sideways which I believe is good. Sideways is better than going down. Junk bonds have been a good indicator of investors appetite for risk. When the perception of risk is high, (junk bonds trending lower) the market has tended to struggle to make and keep its gains. When junk bonds are trending higher, it has historically been a good time to be invested in stocks. However, when the junk bond trend is uncertain, (like now) it has been a good time to just be patient and let the market do what it needs to do. I remain optimistic that the uptrend in stocks will resume. Christmas is right around the corner and it seems like the market could be gearing up for a Santa Clause Rally.
Bottom line: QE appears to still be alive, and risk seems uncertain, but I am optimistic that the market may head higher into the new year. I Pray that you Have a Happy and Blessed Thanksgiving! By the Grace of God, we breathe.
Here is a link to the latest 3rd Quarter Issachar Fund Fact Sheet
Biblical Responsible Investing (BRI) is the term used to describe the activities of Christian investors who purposely align their investment choices to support their Christian beliefs. The Fund is ESG (Environmental Social Governance) conscious, pro-life and pro-family and will not invest in securities with a negative InspireImpact Score.
The Spirit of God has made me, And the breath of the Almighty gives me life. Job 33:4 (Life is a Gift from God so let’s share the Love that He so freely gives.)
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, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net. 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, Inc is not affiliated with Northern Lights Distributors, LLC. Important Risk Information. Mutual Funds involve risks including the possible loss of principal. 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. If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss. The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments. The Adviser’s judgment about the attractiveness, value and potential appreciation of particular asset classes and securities in which the Fund invests may prove to be incorrect and may not produce the desired results. Past performance is no guarantee of future results. If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss. The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments. NLD Review Code: 3880-NLD-11/25/2019