Holding Support! The Issachar Fund is about 75% invested in fundamentally/technically sound growth stocks and expecting a rebound this week! The US debt was downgraded last week, and the market retreated on above-average weekly volume. The NASDAQ Composite Index (mostly technology stocks), which has led the market higher this year, found key support around the high reached on 6/16/23. Based on how the market has favorably responded to key earnings reports thus far, I expect it to hold support and resume its advance. If I am wrong and our stocks trigger sell rules, I will take prudent action to mitigate losses. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
The Fed decreased its balance sheet by another $37 billion last week, still trying to tame inflation! The market expects the Fed to “pause” and not raise rates at their next meeting. However, the Fed continues to drain the excess liquidity they created to get us through the COVID panic. New liquidity has come from money markets (sideline cash) that may have missed the Artificial Intelligence (AI) led rally. I am encouraged by how the market has been rewarding growth stocks after earnings releases and management guidance. This could be a healthy pause that refreshes.
Bottom line: I expect the market to hold support levels and bounce higher. If the market does not hold support and breaks lower on above-average volume, that might indicate institutional distribution. When the “big money” goes on defense, it may be time to pull in my bullish horns. My opinions are based on what I hear, read, and see in the charts, but the market knows best, so I follow price because price is the only thing that pays. Grace and Peace to everyone!
May the God of hope fill you with all joy and peace in believing, so that by the power of the Holy Spirit you may abound in hope. Romans 15:13
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: 3283-NLD-08/07/2023