Category - Weekly Updates

Market Update: 06-07-21

The Issachar Fund owns lower P/E growth stocks with strong fundamentals and technical chart patterns!  After an incredible 2020 in Issachar, it has been a frustrating 2021, but I am confident that growth investors will be rewarded soon. I have great conviction that my time-tested strategy will work over the long term even though it is underperforming in the short run.  I believe that investors looking for growth will want to own the companies we own in Issachar.  I look for and own companies with three quarters of accelerating earnings and sales with double-digit earnings estimates for next year.  If a company is producing accelerating earnings and sales in this environment, it must be doing something right.  I do not like to buy companies trading near the higher end of their five-year P/E range even though the fundamentals are sound, and the chart pattern is in buy position.  If a company is trading near the upper end of its five-year high P/E range, it has a strict line of resistance to overcome and may be running out of gas, so I look elsewhere.  I believe our low P/E growth companies are ready to rally higher.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)          

The S&P 500 Index has rallied to an all-time high and appears ready to break through its trading range!  The employment report showed fewer jobs created than expected, and the market took that to mean the Fed will keep rates near zero.  If the market gets concerned that the Fed may have to raise rates to fight the inflationary pressures the Fed created, I believe this bull market could turn into a vicious bear market.  I do not plan to have any long positions in a bear market but instead, own short positions seeking to profit during a decline.  I am not concerned about entering a bear market, but I believe it could happen if the tax and spend Biden plan is passed.  God help us if Biden bans oil and gas.         

The Fed increased its balance sheet by another $32 billion last week to an all-time high of $7.935 Trillion!  I was happy to see them continue to print more money that has been ending up in the stock market.  However, I am sad because there will be a huge price to pay for this money creation experiment that will likely end badly.  I am still dancing with one eye on the exit.      

Bottom Line: The S&P 500 Index is trading near its all-time high and appears ready to break out on the upside.  Issachar is invested in lower P/E growth stocks with great fundamentals and technical chart patterns prepared to advance.  The weight of the evidence has me bullish and optimistic, but I remain flexible in case the market does the unexpected.  One thing I am sure of is who I am and who is my Father.  I am a child of God, He is my Father, and that will never change.  Amen!

So in Christ Jesus, you are all children of God through faith.   Galatians 3:26

And I will be a father to you, And you shall be sons and daughters to Me.  2 Corinthians 2:18

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: 5276-NLD-6/7/2021.

Market Update: 06-01-21

The Issachar Fund purchased more stocks last week as I found secondary buy points in stocks that appear to have great fundamentals and technical chart patterns of accumulation!  I believe themarket’s long-term trend is up and seems ready for another leg higher as growth stocks appear to be catching a bid.  I have noticed that recent IPOs seem to be in favor, which indicates speculation is still alive.  Junk bonds are in a short-term sideways pattern like most indexes, meaning investors still have an appetite for risk assets.  Yes, there is a lot of speculation coming from the stimulus checks of people “playing with the house’s money,” but that still counts.  I believe that liquidity is the key to keeping this bull market running, and I see no signs of liquidity drying up.  However, according to recent measures, inflation seems to be an issue the Fed has created, and they will need to address it shortly. There have been talks of Fed “tapering,” which could be what is holding the market back.  If the Fed decides to reduce QE too fast, things could get ugly very quickly, and they know it very well.  I always have an eye on maximizing gains, but the other eye is on the exit if the market looks ready to fall off a cliff. I want to stay in the market as long as I am rewarded for taking risk, but I do not want to ride through the next recession or bear market.  There are no guarantees in the market, no matter what probabilities say the market should do.  Until I start to see more warning signs, we will stay invested in stocks that seem to be under institutional accumulation.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)         

The Fed reduced its balance sheet by $19 billion last week to $7.9 Trillion!  I am not too concerned. However, they executed over a record $1 Trillion of reverse repos (repurchase agreements) last week as a sign QE may be ending soon.  The Fed uses the repo market to soak extra cash in the repo market to create a floor under market rates.  Eligible counterparties lend money to the Fed for about .02% in return for Treasury collateral on an overnight basis.  It seems like the Fed may be trying to keep money market rates above zero to avoid the dreadful consequences of negative interest rates in the economy.  I think the Fed is very concerned with inflation, and they are using other tools to suppress rates to make us believe all is well.  I believe the Fed will have to raise rates sooner than the market expects, which could be trouble for stocks and bonds.        

Bottom Line: The market looks good as growth stocks catch a bid.  I am dancing but dancing close to the door if the lights come on, signaling the party may be over.  The Fed is doing many reverse repos trying to keep rates near zero, so that is good, I guess.  I do know that God is still on the throne, and I trust that he is working all things for our good.   

And we know that in all things, God works for the good of those who love him, who have been called according to his purpose.  Romans 8:28

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. Quantitative easing (QE) is a monetary policy whereby a central bank purchases at scale government bonds or other financial assets in order to inject money into the economy to expand economic activity.  For more information regarding the fund, including current performance, please visit www.IssacharFund.com.   Review Code: 9084-NLD-6/1/2021.

Market Update: 05-24-21

The Issachar Fund is lightly invested in these Sectors: Building, Chemical, Energy, Finance, Metals, Real Estate, Retail, and Transportation.  It feels like the market does not want togo down as it churns higher on low volume.  Bad news hits the market, and it seems to shrug it off after a day or two.  This may be a good sign that more buyers want to get in than sellers want to get out.  I hope to get more invested, but I want to see if our current positions can continue to pull us higher.  Lately, it seemed like one step forward and two steps back, but that may be changing now that the Fed has stepped on the gas.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)   

The Fed jacked up its balance sheet by another $92 billion last week to another all-time high!  Wow! I thought the Fed would have slowed its money creation experiment after a shockingly higher CPI and PPI print the prior week, but it did not.  Instead, the Fed created more money to buy more bonds hoping to keep rates near zero to spur economic growth. It appears the Fed is more concerned with getting unemployment lower than with the inflation bubble they may be creating.  I believe the Fed will overshoot its target, and we will end up with higher inflation and higher unemployment, but we are not there yet.  So, let’s enjoy the ride and make some hay while the sun is still shining.  I do not see this unprecedented money creation “experiment” ending well.  Therefore, there will likely be a price to pay for all this unchecked spending, but I believe there will be warning signs for those with eyes to see and ears to hear.   

The dollar bounced higher off its 9/20/18 and 1/6/21 line of support!  If the dollar fails at this major support level, we could see a steep decline in the dollar and a sharp selloff in the stock market.  Higher inflation typically leads to higher rates which supports a higher dollar, but the dollar looks weak. I am concerned the market may be telling Biden that his radical spending has gone too far.  Gold has been considered an inflation hedge, so maybe it is time to reconsider gold. Watch gold for a potential buy.          

Bottom Line: Issachar is treading lightly, hoping to increase exposure if our positions continue to advance.  The Fed-induced liquidity seems to be flowing in selected stock market sectors.  The market appears to be rewarding the lower P/E stocks with accelerating earning and sales, so that is where we are for now.  I believe rising rates are a sign of rising inflation, and as “real” interest rates move further into negative territory, we could see gold become a “safe haven.”  Only God knows the future, so I try to rely on His Wisdom to guide His Fund in the right direction.

May the God of hope fill you with all joy and peace in believing, so that by the power of the Holy Spirit you may abound in hope.  Romans 15:13  

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: 5260-NLD-5/24/2021.

Market Update: 05-17-21

The Issachar Fund is lightly invested after an inflation scare spooked the market last week.  The government released data indicating that consumer and producer prices were rising faster than expected, so the market dropped about 4% from Monday to Wednesday.  The thinking was that the Fed would be forced to take away the punch bowl of liquidity by raising rates sooner than expected. However, the market rebounded about 3% on Thursday and Friday as liquidity flooded the markets.  I believe the Fed holds the key to this bull market by creating money out of thin air and expanding its balance sheet.  The Fed buys bonds with this “free money,” and we have seen how this new money trickles down into the stock market, lifting many boats.  As long as the Fed is allowed to print money at will with no physical (gold) backing, I believe they will likely continue to keep rates and unemployment at historic low levels.  Since no one knows the future, I try to study and understand the present risks and actively manage Issachar to capture the majority of the up moves and avoid the bear markets.  We are invested and hope to get more invested, but I will let the market pull me into the stocks that could be the next winners.  (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 $20 billion last week to an all-time high!  Fed Governor, Jay Powel,  seems to be not too concerned with the inflationary reports from the CPI and PPI last week since he has not come out with a statement yet.  However, I will expect to hear from him if the market focuses more on the inflationary pressures present in the economy. Oil, gas, lumber, copper, and steel are just a few of the essential items that have seen recent accelerations in price.  Things could get out of hand quickly if these rapid increases in commodity prices are not adequately addressed.  I believe the Fed is in a tough spot.   Their easy free money printing policy is causing commodity prices to rise, leading to out-of-control inflation.  If inflation gets out of hand, then we could see higher unemployment, leading to a recession or worse.  As we all know, recessions and depressions are typically not good for the stock market unless you are short.  Issachar has the ability to short, but it is a tool I do not plan to use until the red flags of an impending bear market are flying, which they are not.  All seems well now, but I remain flexible and ready to change my opinion based on what the market is doing instead of what I expect.        

Bottom Line: Issachar is invested in lower P/E stocks with accelerating earnings and sales, unlike last year when we were in higher P/E stocks.  I try my best to stay in sync with what is currently working and position Issachar accordingly.  The trend is still up, so I plan to get more invested as I find new opportunities.  Only God knows the future, so I rely on His Spiritual Gifts of Wisdom and Understanding to manage His Fund in a way that honors Him. 

For the Lord gives wisdom; from his mouth come knowledge and understanding.  Proverbs 2:6

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, 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: 5255-NLD-5/17/2021.

Market Update: 05-10-21

The Issachar Fund is invested in growth stocks with accelerating earnings and sales.  My time-tested growth strategy has worked well for us, but it is not always in favor.  Therefore, I remain flexible and try to stay in sync with the trends that are working.  I adapt my disciplines and adjust the sails to capture the majority of the up trends and avoid the bear markets.  We own retail, commodity, construction, and reopen/recovery stocks that seem to be under accumulation.  It feels like there is a stealth correction beneath the surface in last year’s leaders while the indexes hold and base allowing new leaders to emerge.  The old high P/E tech/growth winners from 2020 have become the 2021 laggards, and this rotation is good because the smart money does not seem to be leaving the market but instead finding a new home to invest. Issachar held many high P/E growth stocks in 2020, but now we own a majority of lower P/E growth reopen/recovery stocks.  The weak employment report caused the dollar to drop on Friday, forcing commodity prices higher, which caused inflation to rear its ugly head.  Excessively creating more money out of thin air will eventually lead to more money chasing fewer commodities, leading to higher prices.  The market has been a vast forward-looking discounting mechanism, and it may be telling us that inflation is coming sooner than most would like.  I say we make some hay while the sun shines.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The Fed continues to boost its balance sheet by another $30 billion last week to a near all-time high!  As long as Fed is allowed to continue to print money, the government will find a way to spend it.  However, the steep drop in the dollar on Friday to the February low could be a warning sign to our tax and spend government. If the dollar continues to fall another 1% to the January line of support and support is not held, we could see the dollar freefall, which could be ugly.  I pray that our government would follow God and the Constitution to get us back on the right track, but that is not what I see.  However, I believe most Americans would favor free-market capitalism over socialism if they were told the Truth!        

Bottom Line: Issachar is invested in growth stocks that should benefit from a faster-growing economy as America returns to work.  The inflation trade seems to be in focus as the dollar continues to decline.  The reopen/recovery stocks appear to be under accumulation, and that is where I see opportunity.  If I am wrong, I do not plan to stay there.  I plan to adjust the sails and let the wind steer us in the right direction.  Of course, God controls the wind, so I follow Him above everything!  

The wind blows where it wishes, and you hear the sound of it but cannot tell where it comes from and where it goes. So is everyone who is born of the Spirit.  John 3:8

Links: Fact Sheet Performance PodCasts Blogs Strategy My Story Docs

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: 5242-NLD-5/10/2021.

Market Update: 05-03-21

The Issachar Fund is slightly invested in growth stocks.  I did a lot of selling last week before earnings announcements, and I have lots of cash to invest.  However, the major indexes may have put in a short-term top, and it feels like the market is ready to roll over and correct a bit.  I have a rule not to hold a stock through its earnings release because the risk of a gap down in price on an earnings miss is too great.  I have a hard time finding growth stocks to buy that are not already extended in price, so I will exercise discipline and wait for a better opportunity.  The major indexes are near their highs, but I see lots of stock price deterioration beneath the surface.  Most of the stocks that I follow have been breaking down after earnings, and that tells me that investors might be worried about Biden’s big government tax and spend plans.  I am cautiously optimistic, but I will be patient and wait for stocks to set up again before buying.  Maybe the market is telling us that it may be time for another correction because the “good news” has been mostly met with more sellers than buyers.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The Fed lowered its balance sheet by $39 billion last week, but the trend is still up!  I believe the Fed wants to keep rates low to spur economic growth, but they are scared of inflation.  Printing too much money too fast could produce runaway inflation which would likely be followed by higher rates.  Higher rates could derail the economic recovery that we seem to be on, so the Fed has to be careful, or they could potentially create a bigger problem.  If the Fed is forced to decrease its balance sheet before they are ready, things could get ugly fast.  I believe that as long as the Fed is allowed to expand its balance sheet, they might be able to offset Biden’s proposals.  However, if Biden steps too hard on the economic brakes while the Fed lightly steps on the gas, it could produce a recession that no one will like.  I am watching the dollar and rates, and I do not see any caution flags flying yet on that front, but I am concerned.                    

Bottom Line: Issachar is less invested than the prior week as price action after earnings announcements are not very encouraging.  The major indexes are near all-time highs, but the action below the surface has me concerned.  We may be setting up for a correction or a minor pullback.  I am patiently waiting for proper buy points before taking any new positions, but they are hard to find.  Patience is a Fruit of the Spirit, so I wait.

But the fruit of the Spirit is love, joy, peace, patience, kindness, goodness, faithfulness.  Galatians 5:22

Links: Fact Sheet Performance PodCasts Blogs Strategy My Story Docs

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 at any time, 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: 5229-NLD-5/3/2021.