Category - Weekly Updates

Market Update: 07-19-21

The Issachar Fund is partially invested in the Medical, Real Estate, Retail, and Software Sectors as the indexes decline.  I do not like to predict what the market will do; I try to interpret what the market is doing and position accordingly.  There has been a lot of individual stock deterioration or poor breath while the indexes were making news highs, and now the indexes are under pressure.  This stealth decline stopped us out of many growth stocks in the last two weeks, and I was not finding stocks with attractive buy points, so I began looking elsewhere.  The Real Estate Sector has been trending up nicely with smooth day-to-day serial price correlations that appear to be attracting institutional money.  Investors seeking higher yields have been slowly and steadily buying real estate investment trust (REIT) stocks, and I believe this trend may continue in this low-interest-rate environment.  If the REITs reward us, I plan to add more exposure to this sector.  If this market “pull back” turns into a correction, I expect the REITs to follow the market indexes, but I do not plan to hold any long positions in a correction.  I believe this decline will be a minor one, and it is not the start of a major correction because the Fed has stepped on the gas of liquidity once again. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)        

Last week, the Fed increased its balance sheet by $103 billion to an all-time high of $8.2 Trillion!  This “new money” has to go somewhere, and I believe some will find their way into the market, lifting many boats.  It amazes me how the Fed keeps printing money, and it seems that no one cares or questions their motives.  Maybe it is easier for those in power to kick the can down the road.  I am starting to conclude that the Fed is trapped in a “print or die QE-Infinity” mode, and negative interest rates are a viable option!  I hope and pray that I am wrong.  Now would be a good time for us to be the light in “woke” darkness and share the love of Jesus with our neighbor.        

Bottom Line: Issachar is partially invested in stocks that appear to be under accumulation.  If this market decline turns ugly, I do not plan to ride it lower.  If the Fed’s massive liquidity injection is effective, I expect the indexes will rebound and trend higher. Either way, I will do my best to capture most of the uptrend and avoid any life-changing losses.  I believe America is the best country globally because God’s love, grace, mercy, and hand of protection are still on us.     

Be strong and courageous. Do not be afraid, for the LORD your God is with you; he will never leave you nor forsake you. Deuteronomy 31:6  

Links: Fact Sheet Performance Blogs Strategy My Story Docs BRI/ESG

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Issachar Fund. This and other important information about the Fund are contained in the Prospectus, obtained by calling 1-866-787-8355 or visiting www.IssacharFund.com.  The Prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc. (HCM) is not affiliated with Northern Lights Distributors, LLC. 

Important Risk Information: Mutual Funds involve risks, including the possible loss of principal.  An investment in the Fund may not be appropriate for all investors.  The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly, and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions.  The Adviser’s judgment about the attractiveness, value, and potential appreciation of particular asset classes and securities in which the Fund invests may prove incorrect and may not produce the desired results. Past performance is no guarantee of future results.  Ratings are only one form of Fund performance and should not be used as the sole consideration in making an investment decision.  Opinions expressed are subject to change and are not guaranteed and should not be considered investment advice. For more information regarding the fund, including current performance, please visit www.IssacharFund.com.   Review Code: 5450-NLD-07/19/2021.

Market Update: 07-12-21

Earnings Season Starts!      Fully Invested!   

The Issachar Fund is fully invested in growth stocks in the Energy, Medical, Retail, and Software Sectors.
2nd quarter earnings season kicks off this week, and I expect earnings to come in better than expected, providing a catalyst for the market to trend higher.  The reopen trade seems to be fading, and the growth trade, especially in the cloud space, appears to be in favor.  Treasury yields have been declining since March, which tells me that economic growth will not be as robust as expected, and inflation may be transitory like the Fed indicated.  I do not believe we are headed for negative rates like in Europe.  However, the Fed distorts many historical norms by purchasing unprecedented amounts of bonds, so negative rates are a concern.  Higher bond demand increases bond prices, creating lower yields, so a considerable portion of the Treasury yield decline could be a function of the Fed’s money creation experiment.  If that is the case, I expect the economy to slowly recover while growth stocks continue to be accumulated, which could bode well for Issachar. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

Last week, the Fed increased its balance sheet by $19 billion to an all-time high of over $8 Trillion!  This newly created money has to go somewhere, and a lot of this “free” money is finding its way into the major stock market indexes.  Last Thursday, the market gapped down but recovered about half of its losses before the close.  Then on Friday, the market gapped higher and finished strong.  After critical historical post-trade analysis, I have tweaked my strategy to avoid “risk management” selling during steep declines while in a confirmed uptrend with an accommodative Fed.  I believe this change will help improve performance.  I have been blessed with a teachable spirit that strives to get better so God can be glorified.               

Bottom Line: Issachar is fully invested as earnings season begins, and I expect the bull market to continue.  The Fed remains accommodative, giving me great conviction to go with the flow and not “fight the Fed.”  I believe growth stocks will continue to lead the market higher, and the value/cyclical stocks will lag.  If I am right, Issachar could do well.  If I am wrong, I do not plan to stay that way.  I rely on God’s Wisdom daily to help make the right decisions to prosper His Fund and bring honor to His Son, Jesus. 

Whatever you do, do all to the glory of God.  1 Corinthians 10:31

Links: Fact Sheet Performance PodCasts Blogs Strategy My Story Docs BRI/ESG

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Issachar Fund. This and other important information about the Fund are contained in the Prospectus, obtained by calling 1-866-787-8355 or visiting www.IssacharFund.com.  The Prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc. (HCM) is not affiliated with Northern Lights Distributors, LLC. 

Important Risk Information: Mutual Funds involve risks, including the possible loss of principal.  An investment in the Fund may not be appropriate for all investors.  The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly, and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions.  The Adviser’s judgment about the attractiveness, value, and potential appreciation of particular asset classes and securities in which the Fund invests may prove incorrect and may not produce the desired results. Past performance is no guarantee of future results.  Ratings are only one form of Fund performance and should not be used as the sole consideration in making an investment decision.  Opinions expressed are subject to change and are not guaranteed and should not be considered investment advice. For more information regarding the fund, including current performance, please visit www.IssacharFund.com.   Review Code: 5385-NLD-7/12/2021.

Market Update: 07-07-21

Subject: Stock Pickers Market!       Trending Higher!   

The Issachar Fund is fully invested in growth stocks with solid fundamentals and technical chart patterns!  The large-cap and tech indexes have been trending higher, while the small-cap index has oscillated in a trading range since March.  I believe this is a stock pickers market, and Issachar is positioned to benefit from a rotation into growth stocks as rates continue to decline.  20-year Treasury rates have been declining since March, and I do not expect them to start rising anytime soon.  The recent inflationary commodity and lumber price advances have diminished, and I believe the inflation scare was indeed “transitory.”  The Fed has its foot on the gas of liquidity while team Biden is pumping the brakes with talks of higher taxes and more regulation.  As long as the Fed continues to “liquefy” the market, the economy and stocks will likely continue to perform well.  However, there will be a price to pay for irresponsible spending, but for now, let’s enjoy the ride.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The Fed’s balance sheet declined a meager $23 billion last week! I keep a close eye on the Fed’s ability to create money with no physical backing because I believe they are the invisible hand that holds all boats afloat.  However, there will be a day that the tide will go out again, and we will get to see who is swimming naked.  It will not be a pretty sight! For now, the Fed seems committed to keeping rates near zero by printing money to buy more bonds that in turn suppress rates.  All good for now!   

 Bottom Line: Issachar fully invested in stocks with solid fundamentals and technical chart patterns. Growth seems to be outperforming Value, and that should bode well for Issachar.  I continue to remain focused, disciplined, flexible, and humble with a teachable spirit.  After doing some post-trade analysis, I added a new rule not to buy a stock if its Industry Group chart shows signs of distribution.  Lessons learned!  By God’s Grace, I continue to be humbled as He shapes and molds me into the man, He created me to be.  Praise Jesus, and thanks for your patience to trust me with your hard-earned assets.     

God opposes the proud but shows favor to the humble.  James: 4-6

Links: Fact Sheet Performance PodCasts Blogs Strategy My Story Docs BRI/ESG

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Issachar Fund. This and other important information about the Fund are contained in the Prospectus, obtained by calling 1-866-787-8355 or visiting www.IssacharFund.com.  The Prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc. (HCM) is not affiliated with Northern Lights Distributors, LLC. 

Important Risk Information: Mutual Funds involve risks, including the possible loss of principal.  An investment in the Fund may not be appropriate for all investors.  The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly, and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions.  The Adviser’s judgment about the attractiveness, value, and potential appreciation of particular asset classes and securities in which the Fund invests may prove incorrect and may not produce the desired results. Past performance is no guarantee of future results.  Ratings are only one form of Fund performance and should not be used as the sole consideration in making an investment decision.  Opinions expressed are subject to change and are not guaranteed, and should not be considered investment advice. For more information regarding the fund, including current performance, please visit www.IssacharFund.com.   Review Code: 5322-NLD-7/7/2021.

Market Update: 06-28-21

Subject: Growth Looking Good!       Liquidity Still Strong!   

The Issachar Fund is almost fully invested in growth stocks with strong fundamental and technical chart patterns!  I am seeing value stocks take a rest and growth stocks getting back in the game.  Yes, there is a lot of rebalancing and quarter-end window dressing where portfolio managers buy stocks with the biggest gains to make their portfolios look good.  However, I still like what I am seeing and how it is impacting Issachar’s bottom line.  This could be a time for Issachar to play catch-up, and I welcome the challenge as the economy continues to reopen.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The Fed continues to print more money, over $37 billion last week, and no one seems to care!  I believe the Fed will continue to create money until the market says it has had enough.  However, I see no warning signs, so let’s keep dancing at the party while it lasts.  Junk bonds are trading above their rising 50-day moving average, indicating that investors still have a strong appetite for risk, so it’s “risk-on” for now.  The news tells us what is happening, but the 10-year yield tells us what may happen.  The lower 10-year Treasury yields tell me that inflation may indeed be “transitory,” just like the Fed has been telling us.  There has been robust demand for our five- and seven-year Treasuries at recent auctions, so that means me, investors, still want our paper. Our Treasury yields are higher than other developed countries, so global investors needing higher yields have been flocking to our Treasury markets.      

Bottom Line: Issachar is near fully invested in stocks with strong fundamental and technical chart patterns that appear to be under accumulation.  Growth stocks appear to be leading while Value and Cyclical stocks may be taking a breather which could be favorable for Issachar.  The Fed continues to print more and more free money, which gives me conviction that we are well-positioned.  Only by God’s Grace do I get to pursue my passion of managing money, and I pray that you are pursuing your God-given passions.  Thanks for Your Trust and Business, and may God Bless you and your loved ones!      

Whether you eat or drink, or whatever you do, do all to the glory of God.   1 Corinthians 10:31   

Links: Fact Sheet Performance PodCasts Blogs Strategy My Story Docs BRI/ESG

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Issachar Fund. This and other important information about the Fund are contained in the Prospectus, which can be obtained by calling 1-866-787-8355 or visiting https://www.IssacharFund.com.  The Prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc. (HCM) is not affiliated with Northern Lights Distributors, LLC. 

Important Risk Information: Mutual Funds involve risks, including the possible loss of principal.  An investment in the Fund may not be appropriate for all investors.  The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly, and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions.  The Adviser’s judgment about the attractiveness, value, and potential appreciation of particular asset classes and securities in which the Fund invests may prove incorrect and may not produce the desired results. Past performance is no guarantee of future results.  Ratings are only one form of Fund performance and should not be used as the sole consideration in making an investment decision.  Opinions expressed are subject to change and are not guaranteed, and should not be considered investment advice. For more information regarding the fund, including current performance, please visit www.IssacharFund.com.   Review Code: 5306-NLD-6/28/2021.

Market Update: 06-21-21

Subject: Inflation Trade Dies!     Growth Trade Comes Alive!   

The Issachar Fund is lightly invested as stops were triggered and stocks were sold.  The Fed repeatedly told us that inflation (higher prices) was transitory (short-term), and I did not believe them initially, but now I do.  I saw gas, lumber, metals, and food prices spike and assumed it would continue because the Fed created massive amounts of new money that had to go somewhere.  The inflation trade of buying companies that would benefit from rising cyclical and commodity-related stocks may have been the place to be, but that trade may be dead.  The inflationary traded stocks of energy, gold, banks, retail, and building sectors now appear to be under heavy distribution.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The Fed printed over $111 billion last week to an all-time high!  Some of that new money is finding its way into last year’s winners.  I am now seeing a rotation out of the inflation trade into the higher P/E growth stocks, and that is encouraging.  The S&P 500 Index (big-caps) is currently trading below its 50-day moving average, but the NASDAQ 100 is trading near an all-time high.  The junk bond index is trading above its 50-day moving average, indicating that investors still have an appetite for risk, bullish. 

The 10-year Treasury yield dropped over 4.5% on Friday to a yield of 1.45%!  Last week, the dollar spiked above 1.9% as investors converted overseas stock gains into dollars and bought Treasuries. As the dollar was rising, gold was declining due to their somewhat inverse relationship.  I believe the market is telling us that the Fed may not raise rates as planned.  There is a lot of foreign money earning zero to negative rates pouring into our positive yielding treasuries, causing the dollar to spike. I also believe we will see more cyclical stock selling this week, but some money will likely continue to rotate into the higher P/E growth names instead of a mass exodus into cash equivalents.  If the Fed were not stepping on the gas, I would expect the market to go into correction mode of a 20% decline in the indexes.  However, I believe the Fed will support (buy stocks and bonds) the market at all costs to prevent a stock market crash while we are in this COVID recovery period.  If I am wrong, I plan to sell the remaining small positions and wait for another buying opportunity.                

Bottom Line: The market may look ugly now, but I believe we could be witnessing the early stages of a rotation out of the famous 2021 inflation trade into the higher P/E growth stocks of last year.  If I am right, I plan to follow my discipline and buy fundamentally and technically sound stock charts that appear to be under accumulation.  As long as the Fed remains accommodative at the printing press, I will likely have a bullish bias believing they will try to backstop any potential crash in the stock market.  In my 31-years of professionally managing money, I have been here before, and by the Grace of God, I have always come out better and stronger, giving God the Glory.  I trust and believe that God’s Wisdom will take us to all-time highs and beyond.  Thanks for your Trust and Business!      

God is able to bless you abundantly, so that in all things at all times, having all that you need, you will abound in every good work.  2 Corinthians 9:8

Links: Fact Sheet Performance PodCasts Blogs Strategy My Story Docs BRI/ESG

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Issachar Fund. This and other important information about the Fund are contained in the Prospectus, which can be obtained by calling 1-866-787-8355 or visiting https://www.IssacharFund.com.  The Prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc. (HCM) is not affiliated with Northern Lights Distributors, LLC. 

Important Risk Information: Mutual Funds involve risks, including the possible loss of principal.  An investment in the Fund may not be appropriate for all investors.  The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly, and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions.  The Adviser’s judgment about the attractiveness, value, and potential appreciation of particular asset classes and securities in which the Fund invests may prove incorrect and may not produce the desired results. Past performance is no guarantee of future results.  Ratings are only one form of Fund performance and should not be used as the sole consideration in making an investment decision.  Opinions expressed are subject to change and are not guaranteed and should not be considered investment advice. For more information regarding the fund, including current performance, please visit www.IssacharFund.com.   Review Code: 5297-NLD-6/21/2021.

Market Update: 06-14-21

Subject: Rotating Back to Growth!    Looking Better!   

The Issachar Fund purchased more stocks last week as the market appears to be rotating back into growth stocks which could bode well.  Higher P/E Tech stocks, as represented by the NASDAQ 100, had nice gains as it approached its all-time high. I like to see the Tech stocks come back to life as the inflation trade may indeed be transitory.  I believe the inflationary pressures we have recently seen are temporary phenomena because the 10-Year Treasury Yield dropped to its lowest level since early March.  If the market were concerned with inflation, I believe rates would be trending higher instead of lower.  As rates continue to fall, banks and related financial stocks have been experiencing selling pressure as their spread margins begin to decline.  CPI inflation came in at a 13-year annualized high of 5%, but about 1/3 of the gain came from rising used car and truck prices.  The CPI number was not a major market mover, resulting in a rotation of the interest-sensitive stocks into the higher-PE and PE expansion tech/growth stocks.  I view this rotation back to growth as a positive one, and that could act as a catalyst to propel the market beyond its all-time high line of resistance.  Junk bonds also confirm a “risk-on” environment as it trades higher above its 50-day moving average.  This ensures that investors’ appetite for risk is increasing, which gives me more conviction to get more invested. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)          

The Fed increased its balance sheet by another $16 billion last week to an all-time high!  The Fed still appears to be on our side, supporting the market with liquidity as needed.  It is wise to not “fight the Fed,” so I will go with the flow and stay invested in growth stocks.  I believe the Fed is creating a liquidity bubble that will eventually burst and do a lot of damage to investors who chose to stick their heads in the sand.  I do not know when this money creation experiment will end, but I know nothing goes up forever without significant corrections along the way.  Until then, let’s enjoy the ride.     

Bottom Line: The market is looking better, and Issachar is buying growth stocks.  I am more confident that my growth strategy will outperform, and we will be rewarded for taking risk.  Money is rotating out of cyclical stocks back into growth companies that dominated the market last year, and that gets my blood flowing in the right direction.  Old stock market leaders are perking up and regaining their leadership roles, which could be what takes us higher.  I find peace in knowing that God not only loves me, but he likes me too, and he feels the same about you!        

Steady plodding brings prosperity; hasty speculation brings poverty. Proverbs 21:5  

Links: Fact Sheet Performance PodCasts Blogs Strategy My Story Docs BRI/ESG

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Issachar Fund. This and other important information about the Fund are contained in the Prospectus, which can be obtained by calling 1-866-787-8355 or visiting https://www.IssacharFund.com.  The Prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc. (HCM) is not affiliated with Northern Lights Distributors, LLC. 

Important Risk Information: Mutual Funds involve risks, including the possible loss of principal.  An investment in the Fund may not be appropriate for all investors.  The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly, and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions.  The Adviser’s judgment about the attractiveness, value, and potential appreciation of particular asset classes and securities in which the Fund invests may prove incorrect and may not produce the desired results. Past performance is no guarantee of future results.  Ratings are only one form of Fund performance and should not be used as the sole consideration in making an investment decision.  Opinions expressed are subject to change and are not guaranteed and should not be considered investment advice. For more information regarding the fund, including current performance, please visit www.IssacharFund.com.   Review Code: 5294-NLD-6/14/2021.