Issachar Update: Issachar is fully invested in fundamentally/technically strong stocks with healthy chart patterns, expecting the rally to continue! Some of our stocks are extended/overbought and could stay this way longer than expected, so they are on hold. We own stocks with accelerating earnings and sales; most are firing on all cylinders and expect more gains. If a stock rolls over in a downtrend, I plan to sell and look for a better one if the market is still healthy and rewarding risk as it is now. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
Market Update: The S&P 500 and NASDAQ indexes are trading at all-time highs, and I expect them to break out shortly! The market fundamentals (earnings/sales) are strong as companies report 4th quarter results. Stocks are breaking out of sound bases on above-average volume and not giving up price gains like in recent quarters. This is a healthy sign of institutional accumulation, which has not been present in most stocks over the last two years. We are in a new bull market that started after Jay Powel pivoted in November from a rate-raising posture to one of lower rates and possibly more quantitative easing (QE). QE is when the Fed expands its balance sheet, creating more liquidity to grease the market wheels.
Despite the hot CPI and cool PPI numbers last week, the market had a chance to sell off but took a healthy deep breath and flatlined. Shrugging off a chance to get volatile and inching higher is a sign of accumulation where buyers outnumber sellers. The NASDAQ is up six days in a row, flirting with 12/28/23 resistance, so I expect a minor pullback before breaking out to higher highs. A slight pullback could be a great buying opportunity if you believe this bull market is ready to run higher. Financial stocks getting in the game is another signal that breath is healthy. Junk bonds are also participating and would not be doing so if a recession were on the horizon. Packaging and boxing stocks are forward-looking and gaining ground, further confirming my bullish bias.
Bottom line: Issachar is all in, expecting the indexes to break out above all-time high resistance and resume their uptrend! This type of bull market behavior could lure cash off the money market sidelines in a fear of missing out (FOMO) rally to new highs. I expect Jay Powell (Federal Reserve Chairman) to keep rates artificially low and monetize our debt (print money to buy Treasuries) to keep the economy and stock market humming until the November election. Our $34 trillion National Debt is not a problem for the market today, but it will be one day. Managing risk to avoid life-changing losses is more important than swinging for the fences at the risk of striking out. The only Fund I buy, and hold is Issachar. Grace and Peace to You and Your Loved Ones!
Let all that you do be done in love. 1 Corinthians 16:14
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 IssacharFund.com. The Prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., a member of 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 IssacharFund.com. 3022-NLD-01/16/20024
Dexter Lyons, Portfolio Manager
Issachar Fund (LIONX & LIOTX)
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