Update: 07-31-23

Resistance & Earnings Ahead!  The Issachar Fund is about 65% invested in growth stocks and looking to get more invested this week! Before earnings were released, I sold a few stocks to avoid surprise price drops. I plan to buy more stocks with accelerating earnings and sales with raised analysts’ estimates from proper pivots. The market responded well to big named leading growth stock earnings releases and a 25bps Fed rate hike last week. The markets’ positive reaction to last week’s rate increase gives me more conviction that we are in a new bull market. We have some big stock earnings releases this week, but the market’s resilience will rotate out of the earnings misses and into the new leaders. The Artificial Intelligence (AI) themed stocks still appear to be under institutional accumulation, and that is where I believe most of the money will be made. I am finding great stock opportunities in the technology, medical, and energy sectors. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)  

The S&P 500 index is about -2% away from its all-time high reached on 1/3/22, which could serve as a significant line of resistance! However, I expect the index to pause and then break through this ceiling and resume its uptrend. I believe the market is pricing in a pause (no rate increase) at the Fed’s next meeting, indicating they may have put the inflation genie back in the bottle and avoided the widely forecasted recession. The official inflation rate is near 3%, and the Fed’s target is 2%, so they would be wise to “pause” and continue to unwind their balance sheet.      

The Fed decreased its balance sheet by another $32 billion last week, and the market went higher! I am encouraged by how the market continues to trend higher while the Fed reduces liquidity in the system. The Fed created over $9 trillion out of thin air, and some of that “free money” found its way into the stock market, lifting many boats. Since the market is rising while the Fed is removing liquidity, that tells me there may be more money coming in off the sidelines to offset the Fed’s drain on liquidity. That is huge, and it tells me there may be more gas left in the tank to keep this bull market going in the right direction.

Bottom line: I plan to buy more stocks this week as I find proper setups. I am more bullish than I have been all year. The Fed may now be finished raising rates, and the market is rewarding risk. I expect the market to rise another 2% or so and then consolidate gains before piercing the overhead line of resistance set on 1/3/22. I plan to get fully invested this week while managing risk to avoid life-changing losses. Grace and Peace to everyone!

Links: Performance, Fact Sheet & Strategy, Blogs, My Story, Docs, BRI

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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., member 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.   Review Code: 3257-NLD-07/31/2023

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