Update: 03-18-24

Distribution & Inflation!    Issachar Update: I harvested some gains in a few stocks we had profits in and purchased more growth stocks to remain nearly fully invested! AI-related and software stocks have come under selling pressure as investors rotate out of leading stocks into a new crop of potential leaders. Issachar holds positions in the aerospace, building, chips, energy, finance, insurance, medical, mining, retail, software, and transportation sectors. We have about 15% in Gold with an eye on Bitcoin. Gold and Bitcoin could continue to shine as the dollar loses purchasing power due to inflation caused by printing too many dollars. Until Congress is forced to cut spending or we enter a recession, inflation will likely continue to rise. Growth stock investing has historically provided a way for investors to stay ahead of inflation. (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 show signs of distribution (price declines on above-average volume), but liquidity remains strong due to irresponsible deficit spending. The more money Congress spends, the more liquidity is added to the market, translating into higher index prices. Big institutional money (hedge funds and pensions) can borrow cheap Fed-created cash from banks and use this new money to leverage their portfolios. The cheaper money is extended to hedge funds, the more likely they are to buy more stocks, which fuels the market higher. However, it could get ugly when liquidity dries up, so risk should be managed and never ignored.

Stocks ended the week on a sour note following a hot Producer Price Index (PPI) report on Thursday and heavy triple-witching options expiration on Friday. After a week of higher-than-expected inflation data, we will get a chance to see how these figures affect the Fed’s thinking when they release their latest policy announcement on Wednesday. The market does not expect the Fed to lower rates on Wednesday. Higher rates for longer due to persistently high inflation levels may slow the uptrend, as weakness has been observed in several leading stocks.

We could see the major indexes decline another 2 to 3% to find support at their 50-day moving averages. This would be the first pullback test of the 50-day since the rally began last November and could provide an entry for investors who missed the rally. Historically, the first decline to the 50-DMA in a new bull market could offer a lower-risk investment opportunity.

Bottom line: We took some profits and reinvested the proceeds in potential new growth stock leaders! Gold is our biggest position as it has broken out of a multi-year base and is trading near all-time highs. Gold and Bitcoin are inflation hedges and alternative currencies against a devaluing dollar. The more Congress spends, the more liquidity (cash) is added, which supports higher stock prices. When liquidity begins to dry up, the indexes will decline, and that is when risk should be respected and managed. The Issachar Fund is a mutual fund managed like a hedge fund seeking to participate on the upside and avoid life-changing losses on the downside. If you like my approach, please consider purchasing more LIONX/LIOTX shares or opening a new account at Schwab, Fidelity, or Direct. Thanks for your trust and business. Grace and Peace!

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

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. 3233-NLD-03/18/2024

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