Update: 05-13-24

Rate Cut Hopes Push Stocks Higher    Issachar Update: We are about 90% in growth stocks with accelerating earnings and sales, and I expect to get more invested this week. The market has been rewarding us for taking risk, and that is confirmation to buy more stocks coming out of sound base patterns at proper price pivots. I follow a time-tested money management system designed by a self-made billionaire (William O’Neil) who has openly shared his secrets through the company he founded, Investor’s Business Daily. In my 34 years of managing other people’s money, I have not found a better common sense logical stock-picking system than the one O’Neil has written about. If capitalism is not suffocated by communism, O’Neil’s risk management methodology should continue to prosper. (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 are less than 1% away from their all-time highs, and I expect them to break this resistance shortly. Fed chair Powel said they will taper the taper by reducing the Treasury runoff cap from $60 to 25 billion starting in June. The Fed created the inflation they were fighting by printing money, which inflated its balance sheet. Now, they are trying to reduce the money supply by letting fewer bonds fall off their balance sheet as they mature, hoping to prevent a recession. Rate cut hopes after a weak jobs report pushed stocks higher even though few jobs created could mean the economy is slowing. I believe Powel will find a reason to cut rates before the election, hoping to keep the current administration in office and secure his reappointment in January.

We could be headed for an inflationary recession or stagflation if inflation remains stubbornly elevated and economic growth declines. Our national debt is nearly $35 trillion, and our debt to GDP is over 120%, so it is no surprise that we are spending more than we make. Congress is spending about $1 trillion every 100 hundred days. The market does not seem to care about these stats, but one day, it will, and then it may be too late. I am optimistic in the short run, but the Fed will print more money in the next crisis, which will likely create more inflation, so I am not so optimistic in the long run. I do not see a path for Congress to cut spending, so we may have to endure more inflation pain before people change. Managing risk (cutting losses at 8%) is job #1; otherwise, retirement may be a dream.

Bottom line: This week, we expect to be fully invested depending on how the market reacts to the PPI and CPI data. If inflation remains sticky, it will be bearish for the markets since the Fed may postpone the expected two cuts before year-end. Tapering the taper is bullish, but markets remain data-dependent on inflation and signs of weakness or strength in the economy. We could very well end up with a slowing economy and persistent inflation, i.e., Stagflation. Grace and Peace!

Since we have been justified by faith, we have peace with God through our Lord Jesus Christ. Romans 5:1

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. 3370-NLD-05/13/2024

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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