On the 50! The Issachar Fund remains about 20% in growth stocks and 80% in a high-yielding short-term fixed-income ETF! The S&P 500 and NASDAQ 100 indexes are trading near their respective 50-day moving averages (DMA), so the uptrend has flat-lined. Historically, September is a weak month for stocks, possibly due to investors selling to pay quarterly taxes. Our positions hold small gains but could quickly disappear if the indexes break their 50-DMA on above-average volume. The Artificial Intelligence (AI) meme theme stocks have fallen on big volume, indicating institutional distribution, which is not a good sign for the bulls. My conviction level is low, so I do not plan to invest more in growth stocks until the market changes character and starts rewarding risk. Risk is the only thing we can attempt to control. The market decides everything else, and we are ready to get “all in” when the charts say so. All my investable assets are in Issachar, so I am “all in” and eat my cooking! (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
Over the next year, a record $7.6 TRILLION US debt is set to mature! In other words, 31% of all outstanding US government debt will mature over the next year. Previously, this was not a problem as we have had historically low rates for 15+ years. This debt would be refinanced at the same or even lower interest rates. Interest rates have more than doubled over the last two years, and refinancing this debt has become a bigger problem. US interest expenses are about to skyrocket. The US is now paying ~$2 billion PER DAY in interest expenses on federal debt. This has doubled since the pre-pandemic levels of ~$1 billion per day. Since 2020, the US has added a historic $9.1 TRILLION to the national debt. This level of spending is not sustainable, and it is quickly becoming a problem that may affect everyone. Hyperinflation will eventually weaken the dollar, and gold may be a place to ride out the storm. I plan to buy a lot of gold in Issachar when the time is right.
With the new debt ceiling bill, the limit is UNCAPPED until 2025! June 2nd, the debt ceiling “crisis” ended after Congress lifted the debt ceiling. At the time, total US debt was at $31.4 trillion. Now, US debt is at $32.7 trillion, up a massive $1.3 TRILLION. The US has added $13 billion per DAY to the national debt since the crisis “ended.” The debt crisis is far from over, and our debt to GDP is over 122%! Here is our Debt Clock that keeps on ticking.
The US Strategic Petroleum Reserves (SPR) now stand at their lowest since 1983! The SPR currently holds just 46 days of supply, the lowest on record. In May 2020, before the SPR depletion began, it had a record 92 days of supply. The historical average is 65 days of supply. What happened to refilling the SPR?
The Fed dropped its balance sheet of bonds by another $20 billion last week, still fighting the inflation they created! In February 2020, Saudi Arabia’s US Treasury holdings peaked at $184 billion and are now down 41% to $108 billion. China’s Treasury holdings fell to $835 billion, a fresh 14-year low. Chinese holdings of US Treasuries are also down 40% from their highs and quickly dropping. The global flight out of US Treasuries is more than concerning.
Bottom line: We are in, but if the wheels come off the market wagon, we could be forced out/short. I have learned to respect risk because that is all we can control. Cutting losses small and letting winners run is a recipe for long-term financial success. The more the Fed and other countries sell our Treasuries, the higher yields rise, and rising yields are not constructive for bull markets. Our oil stocks are doing well now that oil prices are rising. However, rising rates and oil prices are not good for the stock or bond market, but gold may soon start to shine in the Fund. Grace and Peace to everyone!
- Open/Transfer an online account or purchase LIOTX @ Schwab, Fidelity, TDA, etc.
- Questions, comments, or concerns: Dexter@IssacharFund.com, Office: 337-983-0676.
- 2020: 1st full year of Biblically Responsible Investing (BRI) Strategy
God is love, and whoever abides in love abides in God, and God abides in him. John 4:16
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: 3335-NLD-09/11/2023