Category - Weekly Updates

Market Update: 02-18-20

The Issachar Fund (LIONX), is about 99% invested in a diverse group of leading growth stocks, about 50% in Muni Bond ETFs and about 30% Short Technology.  I purchased more stocks and muni bonds and put on a hedge (30% short) seeking to limit some downside risk should the market turn south on escalating coronavirus fears.  If the “fears” diminish, I plan to remove the hedge and stay long.  I am of the opinion that Chinese and US central banks will flood the market with liquidity as needed to squash virus fears seeking to instill hope and prosperity into the markets.  The Fed currently has the ability to increase its balance sheet by creating money out of thin air without anyone auditing its records.  Sooner or later, there will likely be a price to pay for this excess money creation, but I do not believe the time is near.  I plan to ride this liquidity wave as long as it lasts.  However, I will not stick my “head in the sand” and pretend that this will continue forever.  Risk management has not been “valued” since the financial collapse in 2008 but I believe it will be “respected” during the next correction/bear market.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.)

The Fed’s balance sheet increased by $16 billion last week and $422 BILLION since 8/30/19!  As long as the Fed keeps expanding its balance sheet, I believe it will be hard for the market to correct.  When the Fed creates liquidity out of nothing, I believe it usually finds its way in the stock and bond markets where it is being welcomed with open arms.  If the coronavirus causes earnings to contract more than anticipated, I believe stock prices could still continue higher due to an expanding Fed balance sheet causing P/E ratios to expand. 

This bull market could end with a parabolic move higher!  While many pundits believe P/E ratios are high and stretched and ripe for a sharp correction, I believe the market could go higher if the Fed remains on our side.  I believe the Fed has our back and will use all tools in its market bag to support an upward slopping stock market into the November election.  If I am right, this bull market could extend its gains higher and end with a parabolic move into November.  If that were to happen, I believe Trump would be reelected and both Houses would be ruled by Republicans for more than four years.  However, I will continue to manage risk on a daily basis seeking to avoid life-changing losses. 

Party like its 1999!  The Fed expanded its balance sheet similar to what it was doing right before the year 2000.  There was great fear percolating through the markets at the end of 1999 as investors feared computers would not function properly when the clock strikes midnight on December 31, 1999.  The worst fears were not realized in January, but the market topped on March 24, 2000.  From 3/24/2000 to 9/21/2000, the market dropped over 35%!  History has a way of repeating and rhyming so let’s keep our eyes on the road and never fall asleep at the wheel stuck on “buy and hold” cruise control.                        

China is learning how to play the QE game!  China dropped about $29 billion into their repo market on Monday, February 17, 2020.  They also lowered their interest rates by 10 bps.  I believe the Chinese could be learning how to play the QE game better than their rivals at the Federal Reserve.  Think about it, if no one knows the limits of QE (printing money out of thin air) then why not push the limits to see how much the market will stand.  I believe that is where we are.  When a country gets in a bind, they just print more of their currency hoping the “market” will “take it”.  Central banks understand if they reach an inflection point by printing too much currency they are doomed.  I believe it is the “secret” no one wants to talk about because there is no “Plan B”.  If central banks get to a point where the world does not accept their currencies, then the whole system could implode.  We are not there yet, but I believe we are headed in that direction.  Managing risk daily and letting the market determine the return has helped me to avoid life-changing losses.          

Junk bonds are still confirming the uptrend in the stock market!  The junk bond market is like a “canary in the coal mine” that has historically revealed to us the “risk” in the market.  The junk bond market is trending higher and just reached an all-time high.  This tells me that investors may still have an appetite for risk and their hunger could be growing.  The market is also trading near an all-time high and I see no alarming signs of the trend ending any time soon.  I believe there are times to be in the market when the risk is low and there are times to sit in cash when the risk is high.  I view the risk as low because the economy appears to be firing on all cylinders and I believe the Fed will do whatever necessary to keep this train rolling into the November election.  It is hard to stop a train once it is rolling!             

Bottom line:  The market appears to be firing on all cylinders with plenty of gas still left in the tank!  I remain optimistic and believe the trend (the Fed and QE) is my friend.  However, there is always the possibility of a Black Swan event so stay alert and focused on the prize.  I wish you all a healthy and prosperous week! Grace & Peace to Everyone!   

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.  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.

Member organizations: KA, NACFC, CIF, OSC, NAAIM. 

Here is a Podcast of “My Interview on The Real FBI. 

Links to My Story, My Strategy and My Blogs.

LIONX Performance and Fact Sheet

I Believe: The God of heaven and earth is my Father and I am a Son.  Jesus is my Savior and the Holy Spirit is my Helper.  We are all under the New Covenant of Grace and there is nothing we can do or not do to make God love us any more or less.  I try really hard to Rest daily in His Grace & Peace and Love my neighbor the way Jesus Loves Me!  I pray that you would accept the Love of my Father because I Believe You are a Son/Daughter that is totally forgiven and unconditionally Loved Forever! Amen!              

May God our Father and the Lord Jesus Christ give you Grace and Peace. 1 Corinthians 1:3  

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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. 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. The Inspire Impact Score utilizes both positive inclusionary and negative exclusionary screens in the scoring process. The result is a rules-based system of finding companies that are operating as blessings to their customers, communities, workforce and the world and excluding companies that are operating at odds with biblical values.   NLD Review Code:3270-NLD-2/18/2020   Dexter P. Lyons, Portfolio Manager (LIONX) Monday, February 17, 2020.

Market Update: 02-10-20

Here is a revised link to My Strategy.

The Issachar Fund (LIONX), is about 80% invested in a diverse group of leading growth stocks and about 40% in Muni Bond ETFs.  I covered the Short “hedge” position last Monday as China and the Fed opened their spigots of QE amid escalating coronavirus fears.  The flood of new money helped the market rally strongly from Monday through Thursday and then took a breather on Friday.  I believe we are in an expansion cycle where growth stocks outperform value stocks, so my focus is on growth.  I am finding a lot of stocks with attractive chart patterns showing signs of institutional accumulation.  These stocks are delivering at least three consecutive quarters of accelerating sales and earnings and double digits estimated earnings for next year.  This kind of fundamental and technical analysis makes sense to me and it helps me understand why these stocks could continue higher in this environment.  I monitor all positions very closely during market hours, so I have a “feel” for how the NAV may be impacted.  When I sense that LIONX may be down more than my “comfort level”, I tend to hedge/sell positions in an effort to prevent deeper losses.  I firmly believe that risk management is the key to long-term success in the stock market.  We know that it is not about what you make, it is what you keep that counts.  LIONX Performance and Fact Sheet (Portfolio holdings are subject to change at any time and should not be considered investment advice.)

Muni bonds have been steadily climbing higher since January!  I added a couple of muni bond ETFs to LIONX last week and may add more if the slow and steady low volatility up-trend continues.  I believe muni bonds are under accumulation because the market is expecting the Fed to lower rates.  Actually, Fed Futures are calling for a 10% chance of a ¼ point rate cut in the next 37 days.  If the Fed lowers rates, then I would expect muni bonds to appreciate in value.  Muni bonds also produce federal tax-free income.  

Junk bonds are trading near all-time highs indicating investors still have an “appetite” for risk!  Junk bonds are telling me that investors are okay with the stock market trading near all-time highs and “fear” is not on the minds of junk bond investors.  If the junk bond average was trading below its 50-day moving average, then I would probably not be so optimistic and long but it is not.  In the meantime, I plan to continue riding the wave.    

The Fed increased its balance sheet by about $15 billion last week and it is higher by $406 BILLION since 8/30/19!  This newly created money has to go somewhere, and I believe most of this excess liquidity finds its way in the stock market bidding up prices.  No one knows how long this “QE party” will last but I would bet that it will not be a pretty sight if the Fed decides to reverse course.  I do not subscribe to the buy-and-hold philosophy.  I plan to manage risk daily and do all I can to earn and maintain your trust.       

Bottom line:  The coronavirus fears seem to be fading.  The stock market is trading near all-time highs and muni bonds are in low-volatility up-trend.  I am optimistic and excited about the opportunities that I am seeing in the market.  If you are an existing LIONX shareholder, Thank You and please consider adding to your account.  If you are not a shareholder, please consider a small allocation to LIONX making it a core portfolio holding.  I appreciate each one of you and pray that you would have a Blessed and Prosperous Week!    

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.  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.      

Member organizations: KA, NACFC, CIF, OSC, NAAIM. 

Here is a Podcast of “My Interview on The Real FBI. 

Links to My Story, My Strategy and My Blogs.

For God has not given us a spirit of fear, but of power and of love and of a sound mind. 2 Timothy 1:7

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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. 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. The Inspire Impact Score utilizes both positive inclusionary and negative exclusionary screens in the scoring process. The result is a rules-based system of finding companies that are operating as blessings to their customers, communities, workforce and the world and excluding companies that are operating at odds with biblical values.   NLD Review Code: 3210-NLD-2/10/2020   Dexter P. Lyons, Portfolio Manager (LIONX) Sunday, February 9, 2020.

Market Update: 02-03-20

The Issachar Fund (LIONX), is about 40% invested in a diverse group of 21 Leading growth stocks hedged with a 35% SHORT in a Large-Mid Cap Value Index.  In theory, we are about 5% net long stocks going into Monday.  The market took a little wind out of our sails this past week as the corona virus infected the stock market.  Some stocks were immune to the virus, but I believe they will likely fall if the corona virus fears are not contained in short order.  The corona virus was not getting better and the stock market responded in panic selling on Friday.  I considered selling all stocks but decided to not overreact and instead put on a hedge seeking to minimize further declines.  A hedge seeks to reduce the risk of adverse price movements and normally consists of taking an offsetting position in related securities.  The three major indexes are negative for the year after reaching about 3% by mid-January, so the market was due for a “pull-back”.  The small-cap index is down over 5% from its peak in mid-January so the smaller stocks are taking more of a beating than the large-mid caps.  If the market determines that the corona virus is not as bad as expected, then I would expect the market to resume its bullish advance and I would likely remove the hedge.  If the market uncertainty increases, then I will consider keeping the hedge while the market digests the ramifications of more fear being spread.  If this “pull-back” turns into a “correction” then I will likely sell all positions and sit in cash until I get a clearer picture of where the market is headed.  In summary, I will do my best to manage the risk-seeking to avoid life-changing losses.  The market controls the return and I attempt to control the risk.  LIONX Performance (Portfolio holdings are subject to change at any time and should not be considered investment advice.)

The Fed increased its balance sheet by about $5 billion last week and is down $25 billion from the January 21, 2020 peak!  I am very concerned that the Fed may be taking its foot off the QE pedal and that may be enough to allow the market to go through a serious correction.  I believe the Fed and other central banks have been providing massive liquidity injections to support higher stock prices while creating a massive thin-skinned debt bubble just waiting to be pricked.  The corona virus could be the pin that pricks the bubble so strap your seatbelts and get ready for a potentially wild and scary ride.  On the other hand, central banks see what we see, and they can print unlimited amounts of money hoping to calm fears and shore up confidence so keep that in mind as well.  Cash is a position and we may be there by the time you read this Blog.              

The market’s character is changing!  Since the Fed started aggressively expanding its balance sheet on September 1, 2019 ($390 Billion), the market has been trending higher at about a 65% annualized pace.  However, that uptrend has been broken and we are now in a downtrend defined by two declining peaks in the last half of January.  The Fed could inject a ton of liquidity on Monday and that could abort the downtrend but that may be short-lived if fear is still in the air and selling begets more selling.  Caution reigns! 

Alternative currencies: Apple, Google, Facebook, Microsoft, and Amazon!  I believe these five companies have received a large amount of the liquidity (free money) the Fed has created as this money must find a home.  These five companies are in all the major indexes so accumulating positions in these big-stock names may be a fast and easy way to put large sums of money to work, i.e. “alternative currencies”.  Massive buying in these stocks has historically tended to create the slow and steady uptrends we have been seeing in the major indexes since September, but that could be coming to an end.  The concern I have is four of these five “alternative currencies” have been seeing massive amounts of high-volume distribution selling in recent days and that is one more reason to raise the caution flag.  Cash is indeed a viable position!  

Tidbits: Market psychology can be more important than earnings and sales and most of the metrics that most of the fund managers use.  The Chinese plan to inject about $176 billion of QE into the market hoping to minimize panic selling when their markets open Monday after being closed for the Chinese New Year.  Junk bonds are flashing a “risk-off” caution signal as investor’s appetite for risk seems to be diminishing.  Crude oil prices are down over 15% YTD.  If global growth declines as a result of the corona virus spreading, oil demand may decline further than expected and oil prices could decline even further.  The Fed reported they would continue buying T-bills until the 2nd quarter.  However, a $22 billion decline in their balance sheet since January 1st speaks louder than their words.  Consequently, the reduced balance sheet coincides with a flat to negative return in major stock market indexes YTD.  Caution lights are flashing, and I would not “speed up and run through the lights”.  

Bottom line:  The corona virus could be the contagion that brings the house of cards down so please do not buy the lie that “the market will always come back”.  It could be different this time and when it is “different” how will your portfolio survive?  Either way, I will do my best to manage the risk every day seeking to avoid life-changing losses for myself and all shareholders in LIONX.  Thanks for Your Trust and I wish You a Blessed and Profitable Week!    

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 a lot of incentive to manage risk and avoid life-changing losses when the next recession/bear market occurs.      

Here is a link to the latest 4th Quarter Issachar Fund Fact Sheet.

Member organizations: KA, NACFC, CIF, OSC, NAAIM. 

Here is a Podcast of “My Interview on The Real FBI. 

Here is a link to a video of “My Story”. 

Here is a link to “My Blogs”.

Before June 2019, I was not honoring God by investing in companies that support abortion, pornography, human trafficking, etc. God touched my heart and revealed to me how to make Issachar a BRI Fund.  I stopped pretending that God was not concerned with how I invested His money and decided to try and honor Him instead.  Biblical Responsible Investing (BRI) is the term used to describe the activities of Christian investors who purposely align their investment choices to support their Christian values. LIONX is ESG (Environmental Social Governance) conscious, pro-life and pro-family and will not invest in securities with a negative InspireImpact Score.     

Trust in the LORD with all your heart and lean not on your own understanding; in all your ways submit to 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.  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. 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. The Inspire Impact Score utilizes both positive inclusionary and negative exclusionary screens in the scoring process. The result is a rules-based system of finding companies that are operating as blessings to their customers, communities, workforce and the world and excluding companies that are operating at odds with biblical values.   NLD Review Code: 3169-NLD-2/3/2020    This Blog is written by Dexter P. Lyons, Portfolio Manager (LIONX) on Sunday, February 2, 2020.

Market Update: 01-27-20

The Issachar Fund (LIONX), is about 35% invested in a diverse group of 22 individual growth stocks.  I “rang the register” last week and realized some stock gains in LIONX as the market appeared vulnerable to some profit taking.  I am comfortable with current positions but will not hesitate to sell more stocks should the market sell-off escalate to unacceptable levels of risk.  I define risk as potential loss and my job is to manage the risk while letting the market determine the return.  The market was down a little less than 1% on Friday on news that the Corona Virus was getting worse.  I believe investors used this as an excuse to take profits after a nice run up since September.  However, the Fed took its foot off the gas last week as its balance sheet declined about $30 billion from the prior week and that has not been a welcomed event in the past.  A sudden decline in market liquidity can be a recipe for a “correction” and we just may be getting a highly anticipated 3% to 5% decline.  This could be an “inflection point” in the stock market so I am on alert.  No one knows the future, so I believe assessing risk one day at-a-time and acting accordingly is a good defense.  I promise to keep my “hands on the wheel” and do my best to avoid any life-changing losses for all LIONX shareholders of which I am one.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.) 

Crude Oil prices are down over 10% YTD!  Just because oil related stocks performed badly last year does not mean that they will rebound this year.  I believe oil prices and oil stocks are declining because we have an oversupply of oil due to “fracking”.  Fracking is just another way to get more oil and gas out of older existing wells for a fraction of the cost of drilling a new well.  Fracking has helped the US become energy independent and we are now a net exporter so we can Thank God for new technology and fracking.  Lower crude oil prices can also translate into lower gas prices at the pump.  The more money Americans save at the pump filling up their vehicles, the more money they have to spend and the better they may feel about reelecting Trump in November.  Trump understands this and I believe he will continue to cut regulation and taxes, in the hopes to benefit the majority of Americans who will continue to prosper.              

Bottom line:  The Fed took its foot off the gas and the market does not appear to like the consequences.  I believe increasing liquidity is a primary driver of higher stock prices and the opposite is true when liquidity declines.  We may be going through a temporary correction or we may have hit an inflection point and could experience a deeper decline.  Either way, I will manage the risk in an effort to avoid life-changing losses.  Thanks for your Trust and I wish You a Blessed Day!    

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!  The Lyons family are the largest LIONX shareholders, so I have incentive to succeed.                

Member organizations: KA, NACFC, CIF, OSC, NAAIM. 

Here is a link to the latest 4th Quarter Issachar Fund Fact Sheet.

Here is a Podcast of “My Interview on The Real FBI. 

Here is a link to a Video of “My Story”. 

Here is a link to “My Blogs”.

Prior to June 2019, I was not honoring God by investing in companies that support abortion, pornography, human trafficking, etc. God touched my heart and revealed to me how to make Issachar a BRI Fund.  I stopped pretending that God was not concerned with how I invested His money and decided to try and honor Him instead.  Biblical Responsible Investing (BRI) is the term used to describe the activities of Christian investors who purposely align their investment choices to support their Christian values. LIONX is ESG (Environmental Social Governance) conscious, pro-life and pro-family and will not invest in securities with a negative InspireImpact Score.     

You are no longer a slave, but a son; and if a son, then an heir through Christ.  Galatians 4:7

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, 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.  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’s 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.  Past performance is no guarantee of future results.  If the Fund’s 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. Quantitative easing (QE) is a monetary policy whereby a central bank buys predetermined amounts of government bonds or other financial assets in order to inject liquidity directly into the economy.

 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. The Inspire Impact Score utilizes both positive inclusionary and negative exclusionary screens in the scoring process. The result is a rules-based system of finding companies which are operating as blessings to their customers, communities, workforce and the world, and excluding companies which are operating at odds with biblical values.   NLD Review Code: 3147-NLD-1/28/2020 

Blog written by Dexter P. Lyons, Portfolio Manager (LIONX) on Sunday, January 26, 2020

Market Update: 01-22-20

Here is a link to the latest 4th Quarter Issachar Fund Fact Sheet

The Issachar Fund (LIONX), is about 70% invested in a diverse group of individual growth stocks.  I sold the index Short that was not helping returns as the Fed “stepped back on the gas pedal”.  I have been tweaking the portfolio recently, seeking to lock in some gains ahead of earnings announcements and buying stocks that have already reported good results.  I have been buying stocks that have consistently increased their sales and earnings for the last two quarters and have, what I view as, sound chart patterns of accumulation.  I believe Trump and the Fed want to keep the economy and the stock market “humming along” into the November election and they will do all they can to secure a reelection.  If the Fed “steps on the brakes” or the Trump impeachment turns south, we could see a nasty correction, but I do not see that “in the cards” at this time. (Portfolio holdings are subject to change at any time and should not be considered investment advice.) 

The Fed injected about $26 billion of liquidity into the market last week!  The Fed drained liquidity the prior week as its balance sheet shrunk by about $24 billion.  The Fed stated that it plans to keep adding liquidity until June 2020.  I believe that growth stocks will outperform bonds as long as the Fed does not reverse its easy money policy.  I was expecting the market to “take some chips off the table” as the Fed reduced liquidity two weeks ago but that changed when I learned that the Fed went back to “printing money”.  The stock market loves “cheap” money that it can borrow to expand business or buy-back stock.  Either way, low rates have been good for the economy and the stock market.         

The Fed created the “tech bubble” in 1999 with massive injections of liquidity!  Everyone seemed to be worried about what would happen when computer clocks rolled over from 1999 into 2000.  The fear was that old computers would stop running and the world would stop spinning but the fear did not become a reality.  It’s been argued that a large majority of the “free money” created by the Fed ended up in technology stocks which led to a tech bubble that eventually burst.  All bubbles are looking for a “pin” and when the bubble gets “pricked” it is usually not pretty for the buy and hold crowd.  The Fed was preparing for a potential Repo Market crash in the last week of December which turned out to be a non-event.  The Fed has increased its balance sheet by $416 billion since 8/30/19 which is about $4.3 billion/day and I believe this “bubble” will eventually burst in ugly fashion.  However, I plan to keep my eyes on the road ahead looking for “pins” doing what I love to do.                          

Bottom line:  The Fed’s foot is back on the gas pedal and the market seems content.  Earnings are coming in as “expected” with very few “blow ups” so all appears to be well, for now.  If you like what you are reading, please help me “spread the good news”.  Sign up a friend to receive my Blog here.  If you want to be removed from this distribution, please scroll to the very bottom and hit unsubscribe.  I wish You the Very Best!  Grace & Peace to Everyone! 

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!  The Lyons family are the largest LIONX shareholders, so I have incentive to succeed.                

Member organizations: KA, NACFC, CIF, OSC, NAAIM.  Here is a Podcast of “My Interview on The Real FBI. 

Here is a link to a Video of “My Story”.  Here is a link to “My Blogs”.    

Prior to June 2019, I was not honoring God by investing in companies that support abortion, pornography, human trafficking, etc. God touched my heart and revealed to me how to make Issachar a BRI Fund.  I stopped pretending that God was not concerned with how I invested His money and decided to try and honor Him instead.  Biblical Responsible Investing (BRI) is the term used to describe the activities of Christian investors who purposely align their investment choices to support their Christian values. LIONX is ESG (Environmental Social Governance) conscious, pro-life and pro-family and will not invest in securities with a negative InspireImpact Score.     

Whatever you do, do it all for the glory of God.” 1 Corinthians 10:31 

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.  Important Risk Information

Mutual Funds involve risks including the possible loss of principal.  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’s 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.  Past performance is no guarantee of future results.  If the Fund’s 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. Quantitative easing (QE) is a monetary policy whereby a central bank buys predetermined amounts of government bonds or other financial assets in order to inject liquidity directly into the economy.

 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. The Inspire Impact Score utilizes both positive inclusionary and negative exclusionary screens in the scoring process. The result is a rules-based system of finding companies which are operating as blessings to their customers, communities, workforce and the world, and excluding companies which are operating at odds with biblical values.

NLD Review Code: 3128-NLD-1/22/2020  Written by Dexter P. Lyons, Portfolio Manager (LIONX) on Sunday, January 19, 2020

Market Update: 01-13-20

Here is a link to the latest 4th Quarter Issachar Fund Fact Sheet

The Issachar Fund (LIONX), is 70% invested in a group of growth stocks with a 30% Short in technology.  I reduced exposure last week to lock in profits as I believe the market appears ready for a pull-back.  No one that I know has ever gone broke taking profits.  I added a 30% technology index short as I believe stocks look a little extended and could be subject to some profit taking so this short is designed to potentially minimize volatility.  The market is heading into earnings season and I do not like to hold stocks through earnings, so the earliest reporting stocks were the first to be sold.  I have learned that the risk of holding stocks through “earnings” is a little too “rich for my blood”, so I prefer to sell and not take that chance.  I am still bullish into the November election, but I do not expect the market to advance in a straight line so “wiggles” are expected.  I believe corrections are healthy and they can provide opportunities to get back into stocks that meet my fundamental and technical criteria. The technology index ran out of gas on Friday as the index finished in the red on above average volume, so caution is warranted.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.) 

The Fed reduced its balance sheet last week by $24 Billion!  From 8/30/19 to 12/31/19, the Fed grew its balance sheet by $414 Billion and I believe most of that “newly created money” found its way into the stock and bond market bidding up prices.  I also believe that when the Fed reduces its balance sheet like it did last week, prices tend to fall as “liquidity” dries.  Liquidity is nice when it is increasing but not too many investors like it when liquidity is shrinking.  Liquidity to the market is like adrenaline in the blood.  I believe the Fed was very concerned about potential “blow ups” in the Repo (overnight institutional lending) market going into 12/31/19 so they “juiced” their balance sheets to mitigate some of the potential risks they were seeing.  Fortunately, there were no substantial “blow ups” in the Repo market and the market seems to be satisfied with the outcome of the Fed’s decision.  I am a little concerned at how the market will respond to less Fed induced liquidity in the system.  Maybe the market takes a rest as it comes off its “high”.  I pray the market does not get “withdrawals”.  It will be an interesting week.  

Iran was a non-event!  After the United States took out an Iranian terrorist general, Iran fired missiles at our installations in Iraq and Thank God that no American lives were lost.  Actually, Iran notified Iraq and Iraq told us where Iran was going to fire, so we removed our people out of harm’s way.  Trump put severe economic sanctions on Iran and I believe that should be enough to deter them from procuring a nuclear weapon.  I would not be surprised to see the Iranian people overthrow the current regime and put in a new government with more democracy and freedom because they deserve it. 

More good news!  The Senate Finance Committee approved the U.S.-Mexico-Canada Agreement on Tuesday moving the revamped North American trade deal a step closer to a final Senate vote in the coming days or weeks.  U.S. jobless fell to 214,000 from 222,000 a week earlier.  The China trade deal is expected to be signed this week. The appeals court allowed the use of $3.6 billion of military construction funds to continue building a border wall.  Trump is delivering on his promises and the market is cheering.    


Bottom line:
  The Fed’s took its foot off the gas pedal last week and now we wait to see how the market reacts to a reduced balance sheet. Financials (banks and brokerages) are reporting 4th quarter earnings this week.  If the financials rally after earnings, I may look at some bank shorting opportunities.  I believe the Fed will next cut rates and historically that has not been good for the financials as the spread narrows.  Historically, banks tend to make more money when the spread between what they pay for deposits and lend out widens.  Thank you for reading and I wish you the very best of profits! 

LIONX is a BRI, Trend Following, Liquid-Alternative 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!               

Member organizations: KA, NACFC, CIF, OSC, NAAIM.  Here is a Podcast of “My Interview on The Real FBI. 

Here is a link to a Video of “My Story”.  Here is a link to “My Blogs”.    

Prior to June 2019, I was not honoring God by investing in companies that support abortion, pornography, human trafficking, etc.  After I learned more about implementing BRI, God changed my heart and His hand of favor continues to bless LIONX.  Biblical Responsible Investing (BRI) is the term used to describe the activities of Christian investors who purposely align their investment choices to support their Christian beliefs. LIONX is ESG (Environmental Social Governance) conscious, pro-life and pro-family and will not invest in securities with a negative InspireImpact Score.     

The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.  Proverbs 21:

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, Inc is not affiliated with Northern Lights Distributors, LLC.  Important Risk Information.  Mutual Funds involve risks including the possible loss of principal.  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’s 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.  Past performance is no guarantee of future results.  If the Fund’s 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. Quantitative easing (QE) is a monetary policy whereby a central bank buys predetermined amounts of government bonds or other financial assets in order to inject liquidity directly into the economy.   NLD Review Code: 3046-NLD-1/13/2020