The Issachar Fund owns lower P/E growth stocks with strong fundamentals and technical chart patterns! After an incredible 2020 in Issachar, it has been a frustrating 2021, but I am confident that growth investors will be rewarded soon. I have great conviction that my time-tested strategy will work over the long term even though it is underperforming in the short run. I believe that investors looking for growth will want to own the companies we own in Issachar. I look for and own companies with three quarters of accelerating earnings and sales with double-digit earnings estimates for next year. If a company is producing accelerating earnings and sales in this environment, it must be doing something right. I do not like to buy companies trading near the higher end of their five-year P/E range even though the fundamentals are sound, and the chart pattern is in buy position. If a company is trading near the upper end of its five-year high P/E range, it has a strict line of resistance to overcome and may be running out of gas, so I look elsewhere. I believe our low P/E growth companies are ready to rally higher. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
The S&P 500 Index has rallied to an all-time high and appears ready to break through its trading range! The employment report showed fewer jobs created than expected, and the market took that to mean the Fed will keep rates near zero. If the market gets concerned that the Fed may have to raise rates to fight the inflationary pressures the Fed created, I believe this bull market could turn into a vicious bear market. I do not plan to have any long positions in a bear market but instead, own short positions seeking to profit during a decline. I am not concerned about entering a bear market, but I believe it could happen if the tax and spend Biden plan is passed. God help us if Biden bans oil and gas.
The Fed increased its balance sheet by another $32 billion last week to an all-time high of $7.935 Trillion! I was happy to see them continue to print more money that has been ending up in the stock market. However, I am sad because there will be a huge price to pay for this money creation experiment that will likely end badly. I am still dancing with one eye on the exit.
Bottom Line: The S&P 500 Index is trading near its all-time high and appears ready to break out on the upside. Issachar is invested in lower P/E growth stocks with great fundamentals and technical chart patterns prepared to advance. The weight of the evidence has me bullish and optimistic, but I remain flexible in case the market does the unexpected. One thing I am sure of is who I am and who is my Father. I am a child of God, He is my Father, and that will never change. Amen!
And I will be a father to you, And you shall be sons and daughters to Me. 2 Corinthians 2:18
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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, which can be obtained by calling 1-866-787-8355 or visiting https://www.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 making an investment decision. Opinions expressed are subject to change and are not guaranteed and should not be considered investment advice. For more information regarding the fund, including current performance, please visit www.IssacharFund.com. Review Code: 5276-NLD-6/7/2021.