Update: 05-06-24

Patience & Stagflation    Issachar Update: Our gold, silver, and inverse 20-yr Treasury Bond ETF positions hit sell stops, so we went to cash. We are doing fine YTD and do not want to give up our gains, so I errored on caution. I follow my discipline, patiently waiting for stocks with accelerating earnings and sales to break out of sound chart patterns. My watch list is full of potential new leaders waiting for lower-risk price pivots, which could occur this week. Market sentiment appears to be changing from bearish to bullish, so I am eager to redeploy our assets. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

Market Update: The Friday jobs report came in at 175,000 vs. expectations of 250,000 jobs created, and the market loved the bad news. The weak jobs number revived hopes that the Fed is ready to blow another bubble by lowering rates before the election. Lower rates will add liquidity to a system that is already awash in absurd levels of government spending and will create more inflation. The Fed wants to appease the market so they may raise their inflation target from 2% to 3% to justify lowering rates before the November election. Powel will do all he can to stay in power and may do what the market expects, such as cut rates to get reappointed in January.

Based on Fed rate cut expectations, the S&P 500 and NASDAQ indexes rallied into their 50-day moving averages Friday on stronger volume. The market was digesting no rate cuts, but a weakening economy/jobs could give the Fed room to cut, hoping to spark an economic boom before the election. The Fed claims not to make decisions based on politics, but I trust what they do and not what they say.

Bottom line: We are patiently waiting for proper setups to buy if the market continues its advance after Friday’s impressive rally. The Fed will reduce its bond holdings by about $95 billion monthly, putting downward pressure on rates to reduce inflation. However, inflation remains sticky and is not expected to decline anytime soon. Debt continues to grow by about $1 trillion every three months, which is not sustainable, so something will need to break and cause pain for Congress to change its irresponsible spending habits. We could end up with a slowing economy and persistent inflation, i.e., Stagflation. Grace and Peace!

The fruit of the Spirit is love, joy, peace, patience, kindness, goodness, faithfulness. Galatians 5:22

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. 3349-NLD-05/06/2024

Dexter Lyons, Portfolio Manager
Issachar Fund (LIONX & LIOTX)
Buy Issachar Fund @ Schwab, Fidelity, or
Fully Committed to Biblically Responsible Investing (BRI)

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