Category - Weekly Updates

Market Update: 06-01-20

The Issachar Fund (LIONX), is about 65% invested in 40 growth stocks as of 5/31/20!  (Listen to this Blog) The market rallied into the close on Friday as portfolio managers did some month-end “window dressing” by buying stocks with big gains.  I locked in some profits last week with plans to potentially buy back many of these leading growth stocks if they dip lower in price.  Fundamentally, I believe the stocks I sold were sound, but they had run up too far and too fast in price, so I took some chips off the table in this rare opportunity.  I am still seeing the “work from home” theme stocks appearing to be under institutional accumulation as volume and price rise in unison.  LIONX has its largest weightings in the software, retail, and medical sectors.  While the economy appears to be “stuck in the mud”, certain stocks are doing well and that is where I am focused.  If we get another unexpected “black swan” event like COVID-19, I will do my best to avoid any life-changing losses by going to cash as I did from 2/25/20 to 3/25/20.  I am actively managing the risk in LIONX and taking gains as the market gives.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

Fear trumps danger!  It is critical to be able to distinguish between fear and danger.  Fear is the emotional risk that we perceive, and it is often blind to the facts.  For example, the chances of dying from a shark attack are small, but the thought may cross one’s mind while swimming in the ocean.  Danger is measurable, and in the case of sharks, the danger is low, even if the fear is sometimes high.  Many people have made decisions based on the fear of COVID-19 and not the actual data.  According to the CDC, 81% of deaths in the US are people over 65, most with preexisting conditions.  For those below age 55, the death rate is currently around 0.0022% or one in 45,000 people.  Below 25 years of age and the death rate of COVID-19 is currently around 0.00008% or roughly one death in 1.25 million people.  Yet, we have shut down all schools and day-care centers and sadly some of them may never open again.  All life is a precious gift from God and no death should be ignored, but I believe we may have allowed the spread of fear to cause damage far greater than the actual danger of the virus.  I hope we learn from this mistake and never make it again.  While many fear that the market will retest the March 23rd low, the fact is the technology index is less than 2% from an all-time high!  I am still very bullish on the stock market!  I believe this is a stock piker’s market and those who are disciplined at doing their homework should potentially do well in this environment.      

Bottom line:  Growth stocks still appear to be in favor and that is where I expect to continue to find the best opportunities.  The Fed continues to print “new money” and a lot of this cyber money is finding its way in the stock market.  Until I see a change in the current uptrend, I will continue to put new money to work in what I believe are the best growth opportunities.  Liquid stocks with three consecutive quarters of earnings and sales increases and double-digit earnings estimates for next year are at the top of my list.  By the Grace of God, I get to pursue my passion for managing money.  I pray that you have a blessed and productive day!                  

Whatever you do, work heartily, as for the Lord and not for men.  Colossians 3:23

(Listen to this Blog/Podcast Here or Subscribe on Charisma Podcast Network, Spotify, or iTunes.) 

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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.LIONX.net.  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 to be incorrect and may not produce the desired results. Past performance is no guarantee of future results.  For more information on LIONX, please visit LIONX.net.   NLD Review Code: 3631-NLD-6/1/2020

Market Update: 05-18-20

The Issachar Fund (LIONX), is about 31% invested in 13 growth stocks as of 5/17/20(Listen to this Blog) I have been actively managing risk by locking in some recent stock gains and buying new stocks as I seek lower-risk entry points.  My preference is to sell stocks when I can and not when I have to.  I try to listen to the market and let the market push me out of stocks when it is time to sit on the sidelines.  However, the large-cap index has been in a 4% trading range since the end of April and I believe it may be ready to head higher.  Now that earnings season is behind us, I am eager to ramp up to a more fully invested position in leading stocks with sound fundamentals and technicals. Stocks that exhibit 2-3 consecutive quarters of increasing sales and earnings with double-digit next year estimated earnings are at the top of my buy list.  I believe this week could be a good time for us to go “shopping”.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.) 

The Fed’s balance sheet increased by $212 billion to over $6.7 trillion last week!   The prior week saw an increase of “only” $65 billion so the Fed’s rapid acceleration last week could be telling us that there may be more bad news on the horizon.  The good news is some of that “easy” money appears to be finding its way in the stock market floating many boats higher.  I plan to look for opportunities and find stocks that may benefit from this abnormal “new normal” environment we find ourselves in. The “work from home” and “cloud” stocks seem to be attracting a lot of investor interest as many of these theme stocks are trading near all-time highs. 

The market is like our parents, we need to listen and not talk back!  I believe the market is more right than not because it collectively knows everything knowable, and it is reflected in the price of a stock.  We are all entitled to our own opinions, but we are not entitled to our own facts.  The fact is the major large-cap index is less than 15% from an all-time high and it currently appears to be in a short-term uptrend.  I attempt to follow trends and not opinions.       

The U.S. Treasury plans to issue an unprecedented $1 trillion of debt over the next 3-4 weeks!  Who will buy our debt?  If the likes of China and Japan do not show up to buy our debt, interest rates could zoom higher.  However, I assume the Fed will “monetize” the debt and be the buyer of last resort with money that it creates out of thin air keeping rates at historic low levels keeping borrowers happy.  The Fed monetizes the debt by purchasing Treasury Bonds with money it creates by adding zeros to its balance sheet and no one seems to care. I believe the Fed may be “pushing on a string” by creating excess liquidity that the banks will not be able to lend due to the lack of creditworthy borrowers thanks to the mandated “lock-down”.  It may seem crazy that the Fed can create money out of nothing to buy debt from the Treasury so politicians can spend money we do not have without a way to pay it back but that is “reality”.  We do live in interesting times with gold and silver looking very appealing in this America 2.0 New Normal.  As long as the dollar remains strong against other currencies, trading less than 4% from an all-time high, congress is likely to continue spending money until the world says enough!  I do not believe we are there yet but one day there will likely be a huge price to pay for all this irresponsible spending with no plans to stop or even slow down.  I do not believe this economic crisis was caused by a virus.  I believe this economic crisis was caused by politicians spreading fear trying to hurt President Trump’s chances of reelection in November.  Hate for another human in one’s heart cannot be a healthy way to live.  I believe we were all created by God to receive and share His love.                    

Bottom line:  The trend currently appears up, and I plan to continue buying growth stocks with sound fundamental and technical chart patterns.  I believe the Fed has our back and they will do what it takes to keep us going in the right direction.  It may be time to consider gold and silver as the Fed monetizes more U.S. Treasury debt.  Politicians have taken away our freedom in “lock-down” and it is time we take it back while we still can.  I believe that God is still in control and He will right the wrongs and never leave us as He walks with us through this fear crisis.  I pray you accept God’s Grace and Peace and put your faith in Jesus!  

There is no fear in love. But perfect love drives out fear because fear has to do with punishment. The one who fears is not made perfect in love.  John 4:18

(Listen to this Blog/Podcast Here or Subscribe on Charisma Pod Cast Network, Spotify or iTunes.) 

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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.LIONX.net.  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 to be incorrect and may not produce the desired results. Past performance is no guarantee of future results.  For more information on LIONX, please visit LIONX.net.   NLD Review Code: 3604-NLD-5/18/2020

Market Update: 05-11-20

The Issachar Fund (LIONX), is about 80% invested in 34 growth stocks as of 5/10/20!  I have been “trimming” my “slow runners” and trying to trade up to faster horses as the stock market “melts” higher on light volume.  The market seemed ready for a “pull back” last week Wednesday, but the market made history on Thursday as the Fed Funds Futures moved into negative interest rate territory.  The Fed futures began to predict negative interest rates in the coming months and that “spooked” the market a bit.  It seemed like the QE “algos” (computer-driven trades) were swamping the market with buys orders on Thursday as the indexes closed above 1%.  Friday’s brutal jobs number saw 20.5 million jobs disappear, but buyers overwhelmed sellers and pushed prices higher again on Friday albeit on low volume.  In the old days, price discovery was determined by a limited number of buyers and sellers.  However, I believe this “QE to infinity and beyond” experiment is distorting the way the markets operate due to its ability to create unlimited amounts of “free money” seemingly at will.  Two weeks ago, we saw an unprecedented move in the oil futures as it traded below zero.  We have now just seen a negative future interest rate scare here in the US and I pray we never see that again.  Germany’s economy has been stagnated thanks to negative rates, but I believe Trump sees the problem and he will get us back on track shortly.  Negative rates make no sense to me, but here we are, and my job is to manage risk seeking opportunities wherever I can find it. Even a nonsensical rally is still a rally indeed.  I am excited about the opportunities I am currently finding in the stock market.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)   

This appears to be the “new normal” so it may be time to adjust our sails!  The stock market has historically been a “forward-looking” discounting mechanism pointing us to where the “puck is going” instead of where it is. With the Fed’s massive QE “interference” program, they may be distorting the market’s historical ability to discount the future.  One thing is clear: the flood of “free money” (QE) has done a great job at reflating stock prices.  I believe this may be the “new normal” until we get another “black swan” (unpredictable) event, so it may be time to adjust your sails if you have not already done so.        

There appears to be a ton of money that may be invested in “growth”!  Many growth investors including myself, seek companies with increasing sales and earnings expecting their stock prices to rise as buyers overtake sellers.  I believe the market is telling us that “cloud” and work-from-home (WFH) companies have adjusted their “sails” and they may likely have the ability to profit from this “new normal”.  I believe, QE acts like a wind at our backs keeping our sails flying high and pushing us forward. Some may say the PE ratios are too high, but I believe there is a potential for them to go even higher if demand outstrips supply.

The economy is looking like it will have a U-shaped recovery!  However, the stock market has already had a  V-shaped recovery.  The large-cap index has bounced over 31% since the 3/23/20 low and is only about 13% from its all-time high reached on 2/19/20.  V-shaped recoveries in the stock market are becoming a common feature in this New Age of QE.  I may have opinions on where I think the market is headed, but I pay close attention to price and volume.  Currently, price is telling me that the trend is up and possibly headed higher, so I remain bullish and optimistic.

Hot off the Press! If you want to listen to my Blogs on Charisma Podcast Network, iTunes, or Spotify please click these links and Subscribe for Free. 

Bottom line:  Technology stocks have led the rally off the lows and the work-from-home theme has continued to drive the “cloud” names higher.  The Fed continues to increase its balance sheet by printing more money ($65 billion last week) and I believe this “free money” has a way of trickling through the stock market.  I plan to stay focused on the bottom line and “tweak” positions as needed.  I do not believe there will ever be a model or computer than can predict market outcomes consistently given “black swan” events like the Covid-19.  However, the Wisdom that God freely gives us is capable of adapting to “black swans”.  I wish you well and may God Bless You More Abundantly.

Quick Links to My Story, Strategy, Blogs, Interview, Fact Sheet and Press Release

Grace and peace be yours in abundance through the knowledge of God and of Jesus our Lord. 2 Peter 1:2

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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.LIONX.net.  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 to be incorrect and may not produce the desired results. Past performance is no guarantee of future results.  For more information on LIONX, please visit LIONX.net.   NLD Review Code: 3564-NLD-5/11/2020

Market Update: 05-04-20

The Issachar Fund (LIONX), is about 90% invested in 41 growth stocks as of 5/03/20. The largest LIONX stock theme weighting leans towards the “cloud” (internet) and “work from home” (teleconferencing) areas of the market.  These stocks have been the recent leaders and that is why I like to “follow the money” when investing LIONX assets.  The “leaders” are stocks that appear to be under accumulation by institutions as measured by above average volumes.  When large institutions decide to own a particular segment of the market like the “cloud” space, they will typically buy (accumulate) stocks over time.  They normally attempt to “fly under the radar” to not make a “big wave” and bring attention to their purchases.  I try to identify these “leaders” and stay in sync with the major trends seeking to ride the “coat-tails” of the “big boys” assuming they know what they are doing.  Basically, “big money” makes the trends I like to follow and when I see “distribution” (selling), I try to step aside and wait for the next opportunity.  As I see it, the trend is up since the March 23rd bottom and if I sense a trend change, I will adjust my sails accordingly. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.) 

The coronavirus induced “fear” changed to the Fear of Missing Out (FOMO)! Last Monday, Tuesday and Wednesday produced a FOMO gain of about 6% in the small caps then it evaporated to a -7% loss by Friday.  Some big stock tech names released earnings late last week and the “perception” was not good so “big money” appeared to do a lot of selling.  Semiconductor stocks were “hot” into Wednesday then they were scrambling into Friday as their gains quickly evaporated on higher volumes.  The good news is I believe the big money is just reshuffling the deck (moving to other areas) and not going to cash at this time.  The cloud names appear to be a beneficiary of the move out of small caps, so I plan to sit tight until I see the tide changing. 

Oil prices have not recovered and are down over 80% YTD!   Oil prices will likely not bottom until the market perceives a pick-up in demand.  There are a lot of people that “hate” on oil because it is a “fossil fuel” and supposedly destroying our planet, however, there is limited alternative options for fuel to fly planes, trains, and automobiles.  We need oil and we value the many good people that work in the oil industry.  I am a little biased because I used to be a diesel mechanic in the oil field until God changed my life.  Watch My Story if you are interested.      

The Federal Reserve (Fed) owns the largest percent (13%) of our $24.9 TRILLION National Debt!  China and Japan each own about 7% of our national debt, however, the Fed’s ownership is increasing rapidly as Congress approves more stimulus spending.  I do not believe we can ever pay off this kind of debt that equates to about $800,000 per American.  Sooner or later, I believe there will be a price to pay for this unprecedented spending.  For now, the market does not seem to care so I plan to just go with the flow until it changes.    

Bottom line:  The Fed said it will do anything it takes to support a U.S. economy in dire straits, so I am counting on the Fed to have our backs.  This rally could have been based on hope and psychology and now the balloon possibly is ready to pop, who knows?  Whatever happens, I seek to lock in gains and always attempt to avoid life-changing losses.  I believe God is still in control (after slinging planets into orbit) and He will get us through this difficult period just like every other time.  I wish you well and God Bless!          

Links to: My Story, Strategy, Blogs, Interview, Fact Sheet, and Performance Press Release

Everything is possible for one who believes.  Mark 9:23

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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.LIONX.net.  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 to be incorrect and may not produce the desired results. Past performance is no guarantee of future results.  For more information on LIONX, please visit LIONX.net.   NLD Review Code: 3539-NLD-5/4/2020

Market Update: 04-28-20

Check out my latest Performance Press Release!

The Issachar Fund (LIONX), is about 60% invested in 23 growth stocks as of 4/26/20!  I am a risk manager, so I try to invest in positions that can be sold quickly when it is time to get out.  I reduced market exposure after the S&P 500 dropped over -3% last Monday in response to a historical oil price drop that rang loud across the globe.  Normally future oil prices (futures) in forward months are lower than current “spot” prices, but we just witnessed the unimaginable.  West Texas Intermediate (WTI) Crude Oil prices lost more than -250% to trade below -$40 a barrel as futures contracts expired last Monday!  Yes, oil producers were paying more than $40 a barrel to take their oil because they could not find a place to store it fast enough (backward contango).  We have seen future oil prices trade above spot prices (contango), but oil trading below zero was unprecedented.  We knew oil storage was “at capacity” due to the COVID lockdown oil demand reduction, but now we know how “full” the oil tankers are.  This is just one of the many unintended consequences of shutting down an economy.  Now I hear that they are forcing Futures and Options traders out of their forward month contracts.  A major global oil drilling company, Diamond Offshore, filed for bankruptcy. I wonder what other “second-order effects” are looming?  However, I am still bullish on growth stocks and looking to get more exposure because the trend appears up.  We do live in interesting times! (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)    

Stocks are breaking out on above-average volume after earnings and that is a good sign to me!  I am finding many growth stock “leaders” trend higher in price on what appears to be institutional demand so that is where I am focused.  While I hear “opinions” that “we need to test the lows”, I am going with the “tell” of price and volume action and it is telling me that uptrend may continue.  The Fed has the unique ability to create money out of thin air so there is theoretically no limit on how much money they can create in fact, the Fed’s balance sheet increased by over 200 billion last week alone!  The Fed and Treasury recently got together and created a Special Purpose Vehicle (SPV) that allows the Treasury to sell bonds to the Fed.  The proceeds of the bond sales are placed in the SPV which allows the Fed to “lever up” and spend about 10 times more than what is in the SPV on basically anything it wants to.  I am seeing evidence that the Fed is buying corporate bonds, muni bonds, junk bonds, and ETFs of all shapes and sizes to support the markets and send a signal to those nasty short sellers trying to drive prices lower.  I honestly believe the Fed “has our back” and they will do “what is necessary” to spur economic growth at all cost.  After this latest round of $484 billion of stimulus spending, it appears that the small caps are outperforming the large caps on a relative strength basis and that is a good sign to me.  We may be witnessing the Fed’s “invisible hand” at work fighting the “invisible coronavirus enemy”.  However, I am confident that we will win because we are America and that is what we do!  We Win!         

Bottom line:  The Fed’s massive amounts of QE continues to flood the market in hopes of preventing a recession/depression and I believe they will succeed.  The trend is up, and I plan to go with the flow until it changes.  I remain flexible, unbiased, and focused on the bottom line.  Fear is not from God.  Operating from a position of fear is not wise.  Trust God who loves you unconditionally and receive His love, so you can love your neighbor.       

Links to: My Story, Strategy, Blogs, Interview, and Fact Sheet

Trust in the LORD with all your heart, and lean not on your own understanding; in all your ways acknowledge Him, and He will make your paths straight. Proverbs 3:5-6

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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.LIONX.net.  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.  If the Fund uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss. 

The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments.  The Adviser’s judgment about the attractiveness, value, and potential appreciation of particular asset classes and securities in which the Fund invests may prove to be incorrect and may not produce the desired results.  If the Fund uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss.  The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments.  Past performance is no guarantee of future results. S&P 500 Index is an unmanaged composite of 500 large-capitalization companies.

Biblical Responsible Investing (BRI) describes the activities of Christian investors who purposely align their investment choices to support their Christian values. LIONX is also ESG (Environmental Social Governance) conscious, pro-life, and pro-family. LIONX is a BRI, Trend Following, Liquid-Alternative, Tactical Allocation Mutual Fund that is Actively Managing Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes.  When my Strategy identifies a low-risk environment, I seek to invest in growth stocks/junk bonds with sound fundamentals and strong technical chart patterns.  During high-risk environments, I seek to avoid Life-Changing losses.  The Issachar Fund seeks moderate capital appreciation consistent with capital preservation.  The Fund’s Adviser (HCM) is Celebrating 30 Years of Actively Managing Risk!  99% of my liquid net worth is invested in LIONX, so I have the incentive to avoid life-changing losses when the next recession/bear market occurs.  Before June 2019, I was not honoring God by investing in companies that support abortion, pornography, human trafficking, etc. then God touched my heart.  He revealed to me how to screen out “bad actors” and make His Fund a BRI Fund.  Since partnering with Inspire, LIONX has only invested in companies with positive Inspire Impact Scores and I am very pleased with the results.  The ­Inspire Impact Score is a faith-based ESG (environment, social, governance) security selection methodology that seeks to identify the most inspiring, biblically aligned companies in the world.  I welcome you to join me as a shareholder of LIONX and I promise to treat your money like my very own.  NLD Review Code: 3529-NLD-4/28/20200

Market Update: 04-20-20

Check out these 1st Quarter LIONX Fact Sheet Results!

The Issachar Fund (LIONX), is FULLY invested in about 60 growth stocks as of 4/19/20!  I have taken a “shotgun” approach to buying stocks and plan to “feed” my winners and “shoot” my losers.  I believe the trend is up and massive excessive amounts of QE are driving stock prices higher.  While I may always have an opinion on the market, Price and Volume tell me what is happening, so I try to stay in sync with reality and not what I think the market should be doing.  The market is usually right, and it has a way of telling me who is wrong.  The S&P 500 Index has trended up about 28% since 3/23/20, but it is down -10.49% YTD and down -19.60% in the 1st quarter with a maximum draw-down (MDD) of -33.79%.  However, LIONX was up 1.34% in the first quarter and it is up 5.84% YTD with an MDD of -4.63% and -7.09% since inception on 2/28/14.  LIONX is doing relatively well and I am optimistically bullish looking ahead.  Here are more returns to compare.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.)  

The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month-end, please call toll-free 866-787-8355. 

Total annual fund operating expenses are 3.38%.

The Fed’s balance sheet has exploded to a record high of over $6 Trillion after increasing over $1.9 Trillion since 3/3/20!  We may be witnessing the start of a new Fed bubble that may have lots of collateral damage when it pops.  However, I do not believe we are there yet.  Where will all this QE money go?  Some of this “easy money” appears to be finding a “happy home” in the stock market and I believe this QE “experiment” may eventually lead to inflation …of higher stock prices.  I am currently finding many liquid leading stocks breaking out of sound bases on above-average volume and this tells me that “big money” may be on the move, so that is where I am focused.  If I am wrong, I maintain stop-loss orders, which seek to limit downside losses.  Additionally, I never hold a stock through its earnings report regardless of how I “feel” about a company.  These simple rules have saved me lots of stress and pain in the last 30 years of actively managing risk. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)    

Oil prices are down over 67% YTD!   The price of oil plummeted to a 21-year low Sunday evening as uncertainty mounted around the storage of excess supply.  WTI crude oil plunged as much as 21% to $14.47 per barrel.  Deflation is a major risk the Fed is fighting because it can cause people to not buy now if they might be able to get it cheaper in a month.  I believe that Saudi Arabia and Russia have declared war on the “frackers”.  They are opening their oil spigots to increase supply to drive prices down and ultimately trying to force the oil “frackers” out of business.  The frackers revolutionized the oil drilling industry by “directional” drilling multiple wells from one drilling rig location.  In the old days, it would take 20 rigs to drill 20 wells and now they can do it from one location.  Frackers saved the industry tons of money and produced excess amounts of oil so much so that the US is a net exporter.  I do not consider oil or the oil industry to necessarily be a “good buy” just because the stocks are “cheap”.  I believe the trend of oil is still down and these stocks could become “cheaper”.  I am not a bargain hunter, nor do I like trying to catch a falling knife.  I like to buy stocks under accumulation and attempt to sell them before they come under distribution.    

Bottom line:  I am a trend follower and Price tells me that the “trend is my friend” and it currently appears up.  I do not believe that we have to retest the 3/23/20 low because QE could trump historical precedents.  The wind seems to be at our backs.  I do not want to be on a bull or bear side, I just hope to be on the right side.  I promise to do my best to avoid future life-changing losses.  I believe fear is a stronger emotion than greed.  Sometimes, I have to tune out the bad news, keep an open mind and just follow the trend.  If you know someone who struggles with fear, tell them to ask God to replace their fear with His Courage and then expect a miracle.  It worked for me and it can work for anyone if they simply Trust and Believe in Him who created everything.  

Links: My Story, Strategy, Blogs, Interview, Fact Sheet

Do not be anxious about anything, but in every situation, by prayer and petition, with thanksgiving, present your requests to God. And the peace of God, which transcends all understanding, will guard your hearts and your minds in Christ Jesus.  Philippians 4:6-7

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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.LIONX.net.  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.  If the Fund uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss. 

The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments.  The Adviser’s judgment about the attractiveness, value and potential appreciation of particular asset classes and securities in which the Fund invests may prove to be incorrect and may not produce the desired results.  If the Fund uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss.  The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments.  Past performance is no guarantee of future results. S&P 500 Index is an unmanaged composite of 500 large-capitalization companies.

Stop Loss – denoting or relating to an order to sell a security or commodity at a specified price in order to limit a loss.

Biblical Responsible Investing (BRI) describes the activities of Christian investors who purposely align their investment choices to support their Christian values. LIONX is also ESG (Environmental Social Governance) conscious, pro-life and pro-family. LIONX is a BRI, Trend Following, Liquid-Alternative, Tactical Allocation Mutual Fund that is Actively Managing Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes.  When my Strategy identifies a low-risk environment, I seek to invest in growth stocks/junk bonds with sound fundamentals and strong technical chart patterns.  During high-risk environments, I seek to avoid Life-Changing losses.  The Issachar Fund seeks moderate capital appreciation consistent with capital preservation.  The Fund’s Adviser (HCM) is Celebrating 30 Years of Actively Managing Risk!  99% of my liquid net worth is invested in LIONX, so I have the incentive to avoid life-changing losses when the next recession/bear market occurs.  Before June 2019, I was not honoring God by investing in companies that support abortion, pornography, human trafficking, etc. then God touched my heart.  He revealed to me how to screen out “bad actors” and make His Fund a BRI Fund.  Since partnering with Inspire, LIONX has only invested in companies with positive Inspire Impact Scores and I am very pleased with the results.  The ­Inspire Impact Score is a faith-based ESG (environment, social, governance) security selection methodology that seeks to identify the most inspiring, biblically aligned companies in the world.  NLD Review Code: 3495-NLD-4/20/2020