Update: 12-04-23

The Issachar Fund is 100% invested in stocks with increasing earnings and sales, and we are expecting this bull run to finish strong in 2023! Before earnings announcements, I sold a few stocks to avoid potential downside surprises and replaced them with potential winners. I am always looking for leading stocks in top industries, skating to where the puck is going, not where it has been. Yesterday’s gains are history, so all that matters is how we are positioned for the future. I look for stocks with accelerating earnings and sales coming out of sound base pattern pivot points. Everything known about a stock is reflected in its price, so I focus on price, and volume tells me who is behind the buying. When I see a stock breaking out on above-average volume, these signature “footprints” excite me because they tell me “big money” feels left behind, and they want in. My watch list is full of stocks ready to buy if I had more money to invest. If you have been waiting to buy on a dip, you may be buying at higher prices because you are not alone. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The S&P 500 and NASDAQ 100 have been consolidating gains and trading sideways, which is far better than a price drop! This healthy price action on low volume tells me that sellers are happy holders and buyers are eager to buy. The inflation, deficit, and border crisis headline news is bad, but the chart trendlines show us a different picture. The major indexes and leading stocks are in bull market uptrends, so I chose to focus on that. Inflation is not going away because the Fed will continue printing money (monetizing debt) to pay for Congress’s irresponsible deficit spending. The market will be forced to deal with our massive national debt problem one day, but it is sticking its head in the sand for now. I believe the smart “big money” will anticipate the next big problem before it happens, and they will reposition themselves to avoid the most damage. However, most managed money in the market today must stay fully invested regardless of the potential danger they see. Once you see something, you cannot unsee it, so please do not ignore the potential land mines that are still present. Risk should be respected and must be managed to avoid life-changing losses. Just because something has always happened in the past does not guarantee it will occur in the future. Issachar is a mutual fund managed like a hedge fund in the alternative space seeking to profit in all markets by going long (buying stocks) or short (selling stocks).

Gold makes an all-time high as the dollar weakens! A weak dollar typically leads to higher commodity (gold) prices. As the Fed continued to raise rates (until a few weeks ago) fighting inflation, the dollar remained strong against other currencies because higher rates typically attract foreign capital to buy our higher relative rate bonds. However, the dollar’s purchasing power/value has continued to decline since coming off the gold standard in 1971. Gold stocks typically lead gold prices higher because stocks anticipate future earnings, but this time is different. Gold stocks should be heading higher because oil prices have been in a downtrend, and oil/diesel is a huge expense in gold mining/extraction, but gold stocks are lagging. Gold (the commodity) at an all-time high may tell us that inflation will keep rising faster, so gold becomes a hedge against inflation. The downtrend in yields could be anticipating future rate cuts by the Fed predicting a recession. However, bond prices will likely decline, this time, if we go into a recession due to rising inflation (stagflation). While I do not own gold, I will look for ways to buy gold, not necessarily gold stocks.

Bottom line: Issachar is fully invested in growth stocks and expects the rally to continue after a potential 3-5% overbought pullback! Consumers are still spending on Christmas with a buy now and pay later attitude. Gross Domestic Product (GDP) came in strong (a false positive) last week. Most of the growth came from government spending (Cares Act), which increases our deficit, which increases inflation, which decreases the purchasing power of our dollar. Sooner or later, we will be forced to deal with the elephant in the room (inflation/printing money), but for now, the market is choosing to look away (ignoring risk). Argentina recently experienced over 140% inflationary pain before electing a new conservative president promising to reduce government spending and promote capitalism over socialism. Sticking our heads in the sand does not change the fact/truth that our national debt will only continue to expand, and interest will be paid with more inflated/printed dollars, creating more inflation. I do not own gold, but I am looking for ways to buy on the dip and focus on the trendlines over headlines. Grace and Peace to You and Your Loved Ones, and Merry Christmas!

The Word became flesh and dwelt among us, and we have seen his glory as the only Son from the Father, full of grace and truth. John 1:14

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.  3593-NLD-12/04/2023

Dexter Lyons, Portfolio Manager
Issachar Fund (LIONX & LIOTX)
Actively Managed 100%, BRI Fund!
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