Category - Weekly Updates

Market Update: 09-26-22

No Place to Hide!

Check out my Strategy Video (5 minutes), and let me know what you think! 

The Issachar Fund is content in Cash, 100%! The major indexes dropped slightly above the June 17th bottom, and it feels like the bottom will not hold. The S&P 500 is down over -21% YTD, Gold is down about -20% since 3/8/22, and 20-year Treasury Bonds are down over -30% since 12/3/21, so there has been no place to hide. The market is very oversold, but it can get more as investors throw in the towel and sell at any price. We have not seen this type of capitulation selling yet, but it could happen this week. This is a Bear Market, and we are in a downtrend, so the best thing to do might be to watch from the sidelines because it could get worse. I expect to see more selling because the fundamentals driving this market lower does not appear to be getting better or changing. The administration’s policies have made inflation worse while the economy struggles in a recession, creating a stagflationary environment with no credible exit plan. I put my faith in God and pray for new leadership in November because our current leaders keep making bad decisions. Maybe their goal is to collapse the system so people will be more dependent on them to “fix” the problems bad decisions have created. I believe there are people in current leadership making evil decisions that try “steal, kill and destroy” our way of life, BUT there is hope! The calvary is coming in November, so please vote for common sense, Godly leaders who love America by committing to follow our Constitution. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.) 

The Fed’s balance sheet decreased by $15 billion last week, wiping out a $10 billion increase the prior week! I thought the Fed had one foot on the gas expanding the balance sheet and one foot on the brake raising rates, but that has changed, and I now expect the market to break the June 17th level of support. The market expects the Fed to raise rates another 75bps on November 2nd, one week before the November 8th elections. If the Fed keeps raising rates to slay the inflation dragon, they will likely kill the economy, which could throw us into a long-term recession/depression as we have never seen. Keep in mind the Fed bailed us out of the 2008 Financial Collapse by increasing its balance sheet and reducing rates to near zero. This time is different! They are raising rates and decreasing their balance sheet!

Tidbits! More than 33 million puts (betting the market will head lower) traded on Friday, the highest single day of put volume since data began to be collected roughly 30 years ago. Retail traders are holding $46 billion worth of index futures net short, a record. Leveraged traders are betting on very, very bad things happening soon.

Bottom Line: Issachar is in Cash waiting for the next leg lower. Bad policies got us to this point, and it will take Godly leaders to get us back on the right track. I believe the market could fall another 2% to test the June bottom, which might not hold if capitulation selling takes over. After weaker hands get shaken out, and the market can anticipate some potential fundamental changes, it might be time to get back in. Until then, I will continue to look for opportunities on the short side. Cash is King! Grace & Peace to Everyone!

Links: Fact Sheet, Performance, Blogs, Strategy, My Story, Docs, BRI

Issachar: A Buy & Hold Alternative Actively Managed Like A Hedge Fund!

For I know the plans I have for you, declares the Lord, plans to prosper you and not to harm you, plans to give you hope and a future. Jeremiah 29:11

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: 4073-NLD-09/26/2022.

Market Update: 09-19-22

Please Don’t Fight the Fed/Fundamentals! The Issachar Fund is comfortable in Cash, 100%! In a Bear Market, almost all stocks eventually succumb to the selling pressure; therefore, I chose to sit patiently on my hands. However, I am stalking junk bonds and emerging markets on the short side. I have seen bear markets like this in my 32 years of actively managing risk, and the uglier it gets on the downside, the better the opportunity after the market bottoms. We need to find a bottom, but the Fed/Fundamentals may not be favorable until the market senses the Fed is done raising rates. The Fed is expected to raise rates by 75bps on Wednesday, fighting the inflation they created, so the cost of doing business will likely increase on Wednesday. Companies may raise prices to maintain profit margins when costs go up, creating collateral damage like layoffs. One way for the Fed to bring inflation down from 8.3% to 2% is to create a recession/depression. Unfortunately, I believe the Fed could overshoot its 2% inflation objective, and unemployment could rise to levels that could produce “the great reset.” Most of the current administration’s policies are counterintuitive and defy common sense. A change of Constitutional minded leadership in November could put the economy and the market back on the right track. Evil prevails when good men do nothing. I pray for God to appoint his leadership in November and save this great country from the failures of socialism. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)        

The Fed’s balance sheet Increased by $10 billion last week! The Fed knows that simultaneously raising rates and decreasing its balance sheet will likely produce slower economic growth and reduced inflation. Therefore, the Fed may be slowly taking its foot off the brakes of liquidity by letting its balance sheet expand. Raising rates slows economic growth and increases the cost of servicing our debt, so the Fed may be stuck between a rock and a hard place. The hope of a “soft landing” may result in a “crash-landing” unless a miracle happens.   

Tidbits: Our Consumer Price Index (CPI) is now at 8.3% YoY versus the Fed Funds rate of 2.5%. The past eight cycles saw the Fed continue to hike until above CPI. Ouch! Rates are rising at the fastest pace in history into a recession. Mortgage rates are at the highest since 2008. Congress is taking too much money out of the economy in the form of taxes. Every time taxes have gone above 18% of GDP (since the 1930s), we have had a recession. Credit card debt is near a record $1 trillion. Historically, September has been the worst-performing month of the year. Fund managers are more pessimistic about corporate profits than ever in the past 40 years and expect profits to fall over the next 12 months. Apple has over $18 billion of bearish bets against it, making Apple the most shorted stock. Wow!

China has been a net seller of US Treasuries for over a decade and now holds only 4% of all outstanding US Treasuries–down from 14% ten years ago. Since the pandemic, homes are selling below the asking price for the first time. No extractive industry, oil, coal, iron ore, gold, copper, silver, etc., has ever been able to increase output by 300-500% in less than a decade, which must happen for a sustainable transition to green energy. Politicians don’t get this. No matter how good we “feel” about “saving the planet” and “climate change,” China and India will keep building coal-burning electric plants five times faster than we reduce our dependency on fossil fuels. I believe the “climate change” scare is a “feel good” scam designed to rob us of our money and God-given freedoms. Once you know the Truth, it is hard to believe the lies.  

Bottom Line: Issachar is in Cash waiting for the next opportunity, possibly on the short side. The Fed is slowly taking away the punch bowl of liquidity from the party. Many investors are sticking their heads in the sand, and some are in denial doing shots before the inevitable “last call,” then the lights will start coming on. The Fed saved the day in the 2008 financial collapse by increasing liquidity and lowering rates to near zero, bringing the stock and bond market to record highs. This time is different! The Fed is raising rates and decreasing liquidity. Grace & Peace to Everyone!

Links: Fact Sheet, Performance, Blogs, Strategy, My Story, Docs, BRI

Issachar: A Buy & Hold Alternative Actively Managed Like A Hedge Fund!

For the Grace of God has been revealed, bringing salvation to all people. Titus 2:11

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: 4061-NLD-09/19/2022.

Market Update: 09-12-22

Bear Market Rally! The Issachar Fund is in Cash, 100%! Natural gas dropped below our sell stop, and junk bonds rallied past our short stop, so both positions were sold. I want to be in the game (offense) when the market rewards us for taking risk and on the sidelines (defense) when the perceived risk is high. We can’t control what the market gives and takes, but we can attempt to manage the risk we expose our money to. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)  

The NASDAQ (stocks listed on the NASDAQ electronic exchange) is down about -23% YTD and up about 13% since the June 19th bottom. I believe the 4% NASDAQ gain last week was an oversold below average, low-volume rally into the 50-day line within the context of a down-trending bear market. However, the 4% S&P 500 (big-caps) and Russell 2000 (small-caps) index gains broke above their 50-day lines, which is encouraging. Junk bonds are in a downtrend (-10% YTD) and trading below their 50-day lines, which indicates investor’s appetite for risk is low. The Fed is in a rate-raising balance sheet unwinding mode to slay the inflation dragon, so it will be difficult for the market to rise above this bear market until fundamentals change. A change of leadership come November could turn things around, so I will watch for more signs of hope. Let’s pray for God to send His people to power and put us back on the right track.     

The Fed decreased its balance sheet by $4 billion last week. $4 billion is not a lot, but the Fed’s balance sheet has been in a steady downtrend losing over $143 billion since May. That fundamental trajectory will not likely change in the near term unless a black-swan event causes the Fed to crank up the printing presses once again. The market is digesting this new phenomenon of declining Fed liquidity, and it may take a while before a new source of liquidity replaces the Fed since 2008. I believe the Fed’s fight to reduce inflation will result in a stock and bond market grind lower or sideways at best. However, I reserve the right to change my opinion tomorrow if the weight of the evidence changes.

Tidbits: The European Central Bank raised rates 75bps Thursday after ten years of 0 to negative rates, and the dollar declined. A favorable CPI report this week may not signal the Fed is almost done raising rates. The average mortgage rate in the US hit 5.9%, its highest level since 2008. Houses are selling below asking on average, the first since 2020. Housing prices are down less than 5% from their peak. Housing starts in July, down 19%. Housing inventory is at its highest since 2020. Existing home sales were down 26% in 6 months. The average mortgage payment has been up 40% since last year. These housing trends could be an omen. 

Bottom Line: Issachar is in Cash waiting for the next opportunity. Sometimes the hardest and best thing to do is sit on your hands. Winning by losing less is still losing, and that is not fun. We are on defense because this is a bear market, and we were not being rewarded for risking our capital. Sometimes, it is easy to make money, and this is not one of them, so we will watch from the sidelines until it is time to go back on offense. Grace and Peace to everyone!

Links: Fact Sheet, Performance, Blogs, Strategy, My Story, Docs, BRI

Issachar: A Buy & Hold Alternative Actively & Defensively Managed Like A Hedge Fund!

May God our Father and the Lord Jesus Christ give you grace and peace. Romans 1:7

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: 4045-NLD-09/12/2022.

Market Update: 09-06-22

Powell Plummet Persists! The Issachar Fund is about 10% invested and very concerned! Junk bonds sliced through their 50-day moving average after Powell’s scary inflation talk two Fridays ago. The S&P 500 index rallied into its 50-day moving average on Friday and quickly reversed lower on heavy volume, a sign of distribution. I believe the market could be headed lower to test the June 16th bottom, which is about 8% lower. We were not rewarded for taking risk, so I sold down to my conviction level. I believe natural gas is in an uptrend supported by strong fundamental demand, so we have about 5% in a natural gas ETF. The “green new deal” plan to demonize fossil fuels will likely backfire and force us to rely more on natural gas to produce the electricity we need to survive. My other 5% conviction trade is an ETF that shorts junk bonds. Investors are losing their appetite for risk and have been selling their junk bond positions. I expect more selling as investors de-risk. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)  

Powell is fighting inflation by raising rates and decreasing its balance sheet. I see no reason to hold bonds that will go down in value while the Fed promises to raise rates until inflation is “under control.” Higher rates also make it more expensive and less profitable for companies to borrow money for expansion, especially when the economy is mired in a recession. A stagflationary environment of higher rates and slower growth is not conducive to increased earnings or P/E expansions. Therefore, I have decided to focus on the short side, expecting to make money if stocks decline. Shorting emerging markets has caught my attention, and I plan to act accordingly if things unfold as I expect.

The Fed DECREASED its balance sheet by $25 billion last week, which concerns me! I am concerned because the Fed is finally doing what it promised: to unwind its balance sheet fighting inflation. When the Fed reduces its balance sheet, they remove liquidity from the system, and the whole system thrives on liquidity. The Fed has reduced its balance sheet by $139 billion since 4/19/22, and the S&P 500 is down 11%. I do not see an easy way out of stagflation other than a prolonged recession/depression. The market has always bounced back to new highs, but this time may be different. Please support and pray for God-honoring men/women to get us out of this problem irresponsible leadership has caused.   

Tidbits: Natural gas prices soared 30% Monday after Russia said it would not reopen its gas pipeline to Germany until sanctions were lifted. Treasury yield curves are inverted! Banks paying higher interest rates on deposits and lending at lower rates is unsustainable. In each of the last 7 Bear markets, the S&P 500 did not bottom until AFTER the Fed began cutting rates, and I do not see the Fed doing that anytime soon. We need to cut the size of the Government, and the Fed must stop monetizing (printing money to buy debt) the Government spending; otherwise, it could end badly. 1/3 of U.S. homes sold in Q1 went to investors, not people intending to live in them. Goldman Sachs predicts U.K. inflation may hit 22%. Global recession?

Bottom Line: Issachar is lightly invested in natural gas and short junk bond ETFs. Liquidity is declining, and the market has responded negatively. I believe the market is headed lower to test the June 16th bottom. This high inflation and negative GDP growth (stagflation) environment will likely create life-changing losses for investors who do not manage/respect risk. I have been managing risk for over 32 years, and this is the worst D.C. leadership of incompetence I have ever seen. We need a change of God-honoring leaders to right the ship before it sinks. I expect to profit in this environment by making money on the short side (betting prices will fall). I pray for God’s Wisdom to be on our leaders. Grace and Peace to everyone!

Links: Fact Sheet, Performance, Blogs, Strategy, My Story, Docs, BRI

Issachar: Active Alternative & Defensively Managed Like A Hedge Fund!

For the foolishness of God is wiser than men, and the weakness of God is stronger than men.
1 Corinthians 1:25

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: 4026-NLD-09/06/2022.

Market Update: 08-29-22

Powell Plummet! The Issachar Fund is about 67% invested and concerned! Junk bonds are trading below their 50-day moving average, indicating investors have lost their risk appetite and the market may be headed lower. I added a small junk bond short ETF as a hedge against further stock declines. Issachar owns stocks in the oil, gas, coal, solar, chemicals, and fertilizer space which have been holding up relatively well. However, I follow the charts, do not buy and hold anything, and always have an exit strategy. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

We could be in the third and final bear market wave lower to test the June 16th bottom, which is another 11% lower! I make daily decisions managing risk, and the market determines the return. Jay Powell (Fed Chair) said, “there will be a pain to households and businesses as they fight inflation.” Ouch! Powell spooked the market with more words like “forcefully” and “until the job is done” on Friday, and major index ETFs dropped over -3% on above-average volume. This drop could be a simple “shake-out bull-trap” designed to scare investors out of their positions or a new leg lower. If the market were worried about Powell raising rates higher than the 75bps that may already be priced in, the bond market would have tanked, but it didn’t. Instead, 20-yr Treasury bond prices went up ¾% on Friday, indicating a more ominous flight to safety. No one knows. I believe the Fed could raise rates 75bps at their next meeting in September and do nothing before the November elections to not appear political. However, it seems people of power may influence the Fed in office, and he may do their bidding to keep his job.

The Fed increased its balance sheet by $2 billion last week! I expected the balance sheet to shrink faster, like the prior week. The Fed indicated they would decrease their balance sheet by $60 billion/month starting in September. This could be bad for stocks and bonds if they do what they say. Maybe they are trying to achieve a “soft landing” and not crash the economy and stock market ahead of a major election in November. The market is always looking ahead, and when new data from the Fed appears, the market adjusts accordingly. Higher rates hurt higher growth stocks with higher debt, so they typically get hit the hardest, like on Friday.

Tidbits: We depend on hydrocarbons for 84% of all energy, which is only 2% lower than 20 years ago. Wind and solar technologies supply about 5% of global energy. Electric vehicles offset less than 0.5% of world oil demand. Is the “climate change” scare another hoax like “Russia Collusion?” Electricity in Europe has risen about 800%, which is unaffordable. Natural gas in Europe is priced at 580% the price of oil, up from 400% a few weeks ago. What will happen to natural gas prices when winter hits? Europe could be flirting with a deep depression, while the US could be stuck in stagflation battling with negative GDP growth and high inflation. The S&P 500 index has been up less than 1% since 4/9/21. Please financially support and vote for people of integrity in November who do what is right in God’s eyes, not what is popular.    

Bottom Line: Issachar is invested, but that could change if the market continues its high-volume sell-off from Friday. Since the Fed started lowering rates and printing “fake money” to save us from the 2008 financial collapse and blowing up their balance sheet from $1 trillion to over $9 trillion on 4/19/22, the market has rewarded the V-shaped dip buyers. The Fed has been raising rates and decreasing its balance sheet to reduce the inflation it helped create, so “this time is different.” We may be in a U-shaped stock market recovery era where stock picking outperforms index buying. I am concerned that a recession in Europe may create a worldwide recession unless we elect God-honoring people to get us back on track. God gives us free will to make good or bad choices, and bad decisions can create generational chaos. Let the Holy Spirit be your umpire and guide you to a position of peace. Grace and Peace to everyone!

Links: Fact Sheet, Performance, Blogs, Strategy, My Story, Docs, BRI

Issachar: Active Alternative & Defensively Managed Like A Hedge Fund!

Let the peace that Christ gives control your thinking. It is for peace that you were chosen to be together in one body. And always be thankful. Colossians 3:15

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: 4020-NLD-08/29/2022

Market Update: 08-22-22

Time to Hold, But!

The Issachar Fund is about 67% invested, but indexes are weak! The Russel 2000 index of small-cap stocks broke out above its 200-day moving average (DMA) two Fridays ago, and it looked like the S&P 500 index of large-cap stocks would follow suit after $1 trillion of new spending was passed. However, all major indexes are now trading below their 200-DMAs, and it feels like the market has a downward bias. We are invested, but that could change if we do not get some follow-through buying this week in the leaders. Oil & gas, biotech, and solar stocks have been leading the market higher, but they could fall if liquidity does not come in quickly to support this rally off the June 16th low. The action in the market this week could be pivotable. Liquidity is the key! (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The Fed decreased its balance sheet by $29 billion last week, which might be a bad sign! The Fed has drained $116 billion of liquidity from the market since April 19th, and I believe this bear market rally is feeling the effects of less liquidity. It is widely expected the Fed will raise rates at its next meeting, but it now appears they may be tapping the brakes of liquidity to fight the inflation they created. The 10-year treasury yield ended the week at 2.989%, and growth stocks with lots of debt typically do not do well in a rising rate environment. The US Debt Clock shows that the interest paid on the record $30.7 trillion of debt could exceed the US federal tax revenue if rates exceeded 3.5%. I believe the Fed has painted itself into a corner and will inevitably have to continue to print “fake” money because it can’t afford to raise rates above 3.5%. Where would growth come from if all federal tax revenue went to servicing our $ 30-plus trillion debt? We could already be in a life-changing recession with high inflation, and that kind of stagflation could be challenging for people who believe the narrive coming from Washington.

If the decisions out of Washington defy your common sense, then you are blessed and should Thank God! If you see the wrong and want to do something, run for office or support those who share your views. Please stand with me, and pray for God to restore worldly hearts to Him. Pray for God to send us new leadership in November to get this great country back on track and share His love with our neighbors.

Bottom Line: I may have been a little too optimistic last week, but I am not afraid to change my opinion when conditions change. We still hold positions on a short leash and dancing close to the door. The S&P 500 index hit textbook resistance at the 200-DMA on Tuesday and backed off below the 10-day Line on higher options expiration on Friday, which may not be a good sign. The Fed’s plan to address inflation may be to remove liquidity, crash the economy, and collapse demand. Twelve years of Fed-induced liquidity injections producing a bull market in stocks and bonds may be unwinding before our eyes. Please pray our leaders will follow God’s wisdom and do what is right in His eyes. Grace & Peace to everyone!

Links: Fact Sheet, Performance, Blogs, Strategy, My Story, Docs, BRI

Issachar: Active Alternative & Defensively Managed Like A Hedge Fund!

Let your conversation always be full of grace, seasoned with salt, so you may know how to answer everyone. Colossians 4:6

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: 5756-NLD-08/22/2022