Update: 12-26-23

Lock-Out Rally!    The Issachar Fund is fully invested in growth stocks with accelerating earnings and sales, expecting a strong 2023 finish! The market rally continued after the Fed’s surprise announcement (pivot) weeks ago; they are done fighting inflation, and no further rate increases are needed. CME Fed Watch predicts six rate cuts in 2024, with an 85% chance of a 25bps rate cut in March. This unexpected Fed pivot is causing high-yielding money market investors with a bit of FOMO (fear of missing out) to chase the market higher. They were waiting to buy on dips but had not materialized, so they piled into a “lock-out rally,” forcing higher prices. The market dropped hard on Wednesday due to a large put buyer hedging his long exposure or simply betting/hoping prices would fall dramatically. I did not see any fundamental change or busted charts in the Issachar portfolio, and no sell stops were triggered, so I did nothing. The market recovered nicely on Thursday and Friday and looks healthy for the New Year. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The S&P 500 Index is trading near an all-time high after being down -19% in 2022! The NASDAQ 100 Index is 4% higher than its 12/31/21 peak after being down -33% in 2022. This is very encouraging for the bulls, and I expect the rally to continue but not at the current triple-digit rate of advance since the Fed decided to stop raising rates. The adage “don’t fight the Fed” means that it is probably not a good time to invest in stocks or bonds when the Fed is raising rates. However, it may be a good time to invest when the Fed is expected to lower rates, even if it means we may have a recession in 2024.

Bottom line: Issachar is fully invested and expecting the rally to continue! The Fed seems to “have our back” in a rate-cutting mode, and growth stocks with accelerating earnings and sales should stay ahead of the cumulative effects of inflation. The more money the Fed creates, inflation grows, and the more we lose in our dollar’s purchasing power. We need to cut spending, but Congress keeps “kicking the can down the road,” so I will not worry about it until the charts say otherwise. The big/smart money will start to get out when they see the inevitable, and I plan to follow their price/volume chart footsteps. If you see what I see and want to participate, please add to your Issachar account, open a new one, and tell a friend. I hope you had a Merry Christmas full of God’s Grace and Peace! I wish everyone a Happy, Healthy, and Prosperous New Year!

If anyone is in Christ, the new creation has come: The old has gone, the new is here! 2 Corinthians 5:17

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. 3627-NLD-12/26/2023 

Dexter Lyons, Portfolio Manager
Issachar Fund (LIONX & LIOTX)

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