Update: 03-04-24

Global Liquidity Drives Market Higher!    Issachar Update: We are fully invested in growth stocks, trying to outpace inflation! Our positions in artificial intelligence (AI), cyber security, medical, insurance, and software stocks appear to be under institutional accumulation. Many stocks are extended in price and due for some profit taking. I expect to sell some of our winners and reinvest in new leaders as I find stocks breaking out of proper base pivot points. Putting hay in the barn before it rains is not a bad idea. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The S&P 500 and NASDAQ indexes are trading at all-time highs as global liquidity fuels the fire! Central banks continue to print more fiat (paper) money because that is how they solve problems. Politicians want to get reelected, so they kick the can down the road, spending more money than they collect in taxes. The Fed has been decreasing its bloated COVID balance sheet (monetary spending), but the White House and Congress (fiscal spending) are spending about $22 billion more than the Fed’s balance sheet unwind. This net liquidity injection finds its way into the stock market before it shows up in the economy.

The US treasury is paying $1 trillion annually in interest on debt we already spent. 40% of all our tax payments go down the drain to pay interest. We have $7.6 trillion of debt to refinance in 2024, which will be done at higher rates. Since foreigners have less appetite for our paper, the Fed will likely create more fiat money to buy most of the newly issued treasury bonds (debt monetization). We can’t keep doing this, yet we do. The only way out of this mess is a devalued dollar. More money chasing fewer goods creates inflation, and that causes the dollar to have less purchasing power (devaluation). Inflation has been constant, and one way to slow its pace is through a recession/depression, which no one wants but seems almost inevitable. Do not ignore risk; instead, follow a strategy to manage risk, or life-changing losses could derail your retirement.

Bottom line: Growth stocks have historically outpaced inflation, and we are riding the wave of global liquidity, planning to lock in profits to buy on the dip when it arrives! The Fed’s contractionary monetary policy is somewhat muted by the government’s extreme expansionary fiscal spending as the national debt heads for at least $35 trillion in 2024. Government spending in the $6-7 trillion range with deficits well above $1 trillion or more effectively acts as fiscal quantitative easing (QE). This massive liquidity injection of new money is causing a high tide lifting many stock market boats. Gold and bitcoin also ride the liquidity waves and may have a more significant role in our future allocations. I see many goldmines ahead, but there are also signs of landmines, highlighting the importance of risk management. Thanks for your trust and business. Grace and Peace!

It is better to take refuge in the Lord than to trust in man. Psalm 118:8

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 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. 3199-NLD-03/04/2024

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