Update: 03-11-24

Issachar Update: I took some profits in AI-related stocks and purchased about 21% of Gold last week! Gold has risen to an all-time high on above-average volume as inflation-conscious investors seek refuge in hard assets. There has been some distribution (price declines on above-average volume) in leading stocks and major indexes, signaling a possible short-term top. I try to cut losses near -5% and sell stocks after they reach 20% gains. I am finding fewer growth stocks to buy at proper base pivots, confirming a price consolidation (5-10%) may be in the cards. Lower P/E stocks are setting up nicely, so that is where I see our next opportunity. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The NASDAQ and S&P 500 Indexes posted ugly outside reversals on Friday after hot jobs! An outside reversal is when today’s price range (high to low) exceeds yesterday’s range. Several leading growth stocks had big outside reversals on above-average volume, a sign of institutional selling. Institutions (big money) make the trends we like to follow, so we pay attention when they sell.

The Friday jobs report came in better (hotter) than expected, indicating less need for lower Fed rates. However, another massive job revision in the prior month (12 down revisions in a row!) was the largest downside revision in two years. Investors are losing confidence in these government figures because the job numbers have consistently been fudged higher, appearing to make the economy stronger than reality.

Central banks create inflation by printing paper/fiat money to finance spending bills passed by Congress. Inflation is a hidden tax on everyone and does not decline unless we go through a recession/depression, which is not good for anyone. More than $7.5 trillion (30%) of Federal debt is due in 2024, and the Treasury is reissuing short-term debt to replace longer-term maturities. There is little appetite for long-term US debt besides the Fed, so the Treasury is forced to issue more expensive (higher rate) debt to finance irresponsible spending. Our largest international treasury holders, China and Japan, have been reducing Treasury holdings. China is nearing $800B in total US debt holdings (down from $1.25T), with Japan dropping to almost $1T. The Fed may be forced to keep rates higher for longer due to the inflation it created, and the stock market may need to adjust (decline) prices since it may not get lower rates. If the Fed keeps rates high, they could push us into a recession, but if they cut rates, they risk inflation returning with a vengeance. The Fed appears stuck between a rock and a hard place, but they created the inflation they are trying to tame.

Bottom line: Issachar realized some gains and added to our Gold (the commodity, no stocks) position (~21%) as institutional selling (outside reversals) hit leading stocks! Gold has broken out of a multiyear price consolidation pattern on big volume trading near $2,220/oz. Investors invest in hard assets like Gold because inflation decreases the dollar’s purchasing power. We have a small indirect exposure to Bitcoin as it trades near all-time highs around $70,000. Let this sink in 40% of our tax dollars are being used to pay interest on $34.5 trillion of debt. Is Gold and Bitcoin trying to tell us that we need to cut spending? Gold and Bitcoin could be viewed as an insurance policy against a declining dollar. One ounce of Gold can purchase the same amount of bread today as when Jesus walked the earth over 2,000 years ago. Now, that is what I call intrinsic value! Thanks for your trust and business. Grace and Peace!

How much better to get Wisdom than Gold! Proverbs 16:16

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. 3222-NLD-03/11/2024

Dexter Lyons, Portfolio Manager
Issachar Fund (LIONX & LIOTX)
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Strategy, My Story, Biblically Responsible Investing (BRI)

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