Update: 03-25-24

Issachar Update: I took more profits from stocks with gains and reinvested in more growth stocks! Our positions are doing well, and we remain fully invested, expecting the uptrends to continue. Our dominant sectors are building, energy, finance, insurance, medical, software, and transportation. Most of our stocks have great-looking technical chart patterns with accelerating earnings and sales and positive forward estimates. We have exposure to Gold and Bitcoin as insurance against the dollar’s loss of purchasing power. I continue to focus on opportunities that exceed inflation’s erosional forces. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

Market Update: As expected, the Fed did not cut rates last week! Chairman Powell indicated rates have likely peaked for this tightening cycle. If the Fed were to start lowering rates prematurely while stealth quantitative easing (QE) remains in place and debt continues to climb to record levels, inflation could return with a vengeance. Congress continues to spend money in an accelerated fashion as the budget deficit stands at $1.8 trillion. By contrast, between 1980 and 2019, or nearly four decades, the deficit typically ranged between a surplus of $255 billion and a deficit of $1.4 trillion. COVID created a deficit of more than $4 trillion, but since then, despite tightening, spending has never returned to baseline. Overspending seems to be the new norm while the federal deficit continues to reach new highs, as interest payments now represent more than the total outlay for annual defense spending in the US.

Overspending increases the amount of dollars in circulation, and this rising tide of excess liquidity can be seen lifting stock prices. The Fed keeps printing money when not enough buyers bid for the bonds Treasury issues. When foreign central banks do not show up to buy our newly issued bonds, the Fed creates fiat money to purchase the bonds no one wants, called debt monetization. Monetizing our debt will continue until it doesn’t.

Gold and Bitcoin holders will likely win big when the world has enough fiat money. The more fiat money is created out of nothing and backed by nothing; the more inflation will accelerate. Inflation is here to stay, so maybe we should focus on investments like growth stocks, gold, and Bitcoin.

Bottom line: We are fully invested in stocks with excellent fundamentals and sound technical chart patterns, and we have a small exposure to gold and Bitcoin. Congress continues to pass spending bills, forcing the Treasury to issue bonds fewer investors want. The Fed creates dollars to buy these bonds (debt monetization), which creates an invisible inflation tax imposed on everyone. Sooner or later, there will be a huge price to pay, but for now, the market is sticking its head in the sand and looking the other way. I am not willing to bet my life savings on a buy-and-hold strategy because it has always worked. There are no guarantees, so I have always believed risk should be managed and never ignored. Issachar seeks to capture most of the up move and avoid life-changing losses. 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!

The law was given through Moses; grace and truth came through Jesus Christ. John 1:17

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. 3242-NLD-03/25/2024

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