Category - Weekly Updates

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

Market Update: 01-07-20

The Issachar Fund (LIONX), is fully invested in growth stocks.  I sold the 10% index short because I became convinced the market was heading higher.  I was expecting the market to sell off on the 1st trading day of the year as investors may have deferred taxable gains into the new year but the market rallied about 1% instead.  That told me there were more buyers than sellers, which led me to believe the market still had a little “gas left in the tank”.  However, possible Iranian retaliation after the United States took out a murderous Iranian general spooked the market on the 2nd trading day of 2020.  There was a bit of “flight to safety” as oil spiked and investors flocked to treasuries and gold.  However, the junk bond market barely moved which tells me that investors may still have an appetite for “risk assets”.  I suspect this skirmish with Iran will be short lived and will not affect the long-term uptrend of the stock market.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.) 

Pass the QE, please!  The People’s Bank of China said it will cut its reserve requirement ratio by 50 basis points on January 6th and signaled it will continue to implement favorable policy in 2020.  This tells me the Trump tariffs were likely effective at putting pressure on the Chinese economy.  I believe the Chinese are now prepared to do what is necessary to boost their struggling economy which should be good for the stock market.  Our Fed grew its balance sheet last week by about $8billion and that tells me that the Fed still has its “foot on the gas and they have our back” at least for now.  I would not be surprised if we find out next week that the Fed substantially increased its balance sheet in the wake of the US killing an Iranian general last Thursday.  The market was up big on Thursday, the first trading day of 2020 as new money was put to work then the news of the Iranian general killing hit the wires after the close on Thursday.  The futures were down hard on the news and Friday was a down day.  However, I did not see a lot of panic selling as one might have expected with such a “black swan” event.  The NASDAQ volume on Friday’s decline was less than the volume from the prior day which tells me that investors might be taking a “wait and see” approach to how this Iranian skirmish will unfold.

Trump has promised severe retaliation if Iran does anything stupid!  I expect Iran will respond with violence, but I believe America will respond with a vengeance like no one has ever seen.  If the market responds badly, I will do my best to avoid life-changing losses for LIONX shareholders.  No one knows the future and the past is history so keep your eyes on the road ahead and never fall asleep at the wheel.              

Bottom line:  The Fed’s still pumping money in the system and I believe the Fed has our back.  Thank you for reading and I want to wish you a Happy Healthy and Prosperous New Year! 

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 junk bonds/growth stocks with strong technical chart patterns and sound fundamentals.  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!               

Click here to view “My Strategy”.

Here is a link to the latest 3rd 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 PowerPoint link to “My Strategy”.        

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.     

So, whether you eat or drink, or whatever you do, do all to 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, 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: 3006-NLD-1/7/2020

Market Update: 12-30-19

The Issachar Fund (LIONX), holds 90% growth stocks and a 10% index short.  I sold several stocks that were not performing as expected and I added an index short as a hedge.  Hedging could potentially create profits during a market decline.  If indexes take a steep dive in January, I do not believe the hedging will make the fund money as much as I believe hedging will allow the fund to lose less.  The market is extended, and I believe is due for some profit taking but I do not expect we will see the start of a protracted decline soon.  The Fed continues to create new liquidity injections and I believe that is why the market keeps plodding higher.  However, the Fed says this is Not “QE” and I vehemently disagree!  (Portfolio holdings are subject to change at any time and should not be considered investment advice.) 

Liquidity rules the market! In 2008, central banks had $3 Trillion in assets and today they have over $16 Trillion!  All this added liquidity may have had a dampening effect on interest rates, and I expect rates to stay low while this “free money” bids up bond and stock prices around the globe.  When the central banks buy bonds, they are injecting liquidity back into the system.  I believe that most of this “new money” ends up bidding stock prices higher as more money chases fewer shares.  If the Fed ever decides to decrease its balance sheet again and interest rates trend higher, I do not believe it would be a good time to be invested in the stock or bond market.      

The market appears to be assuming that Trump will be reelected!  I believe the stock market is a forward-looking discounting mechanism and it is telling me that there are no serious contenders who can beat Trump.  I believe if the market thought anyone could beat Trump then the market would be declining but it is not.   

Japan has been creating money for the last 29 years just like we have for the last 11 years!  Japan has postponed market crashes and deep recessions and our Fed has done the same since the Financial Crisis of 2008.  The Bank of Japan has been buying stock ETFs, and that could be a major source of price support.  Our Fed is thought to inject up to $1 TRILLION of new money by mid-January 2020.  I believe this “free money” experiment is in a sense, borrowing growth from the future for today’s instant gratification.  I also believe that the people making these current decisions will be happily retired when the “day of reckoning” arrives.          

Bottom line:  The Fed’s balance sheet continues to rapidly expand ($26 Billion last week), and the stock market makes another new high.  I am bullishly optimistic coming out of a Santa Claus Rally into the New Year.  Thank you for your time and I want to wish you a Happy Healthy and Prosperous New Year! 

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 junk bonds/growth stocks with strong technical chart patterns and sound fundamentals.  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!               

Click here to view “My Strategy”.

Here is a link to the latest 3rd 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 PowerPoint link to “My Strategy”.        

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. The Fund is ESG (Environmental Social Governance) conscious, pro-life and pro-family and will not invest in securities with a negative InspireImpact Score.     

So, whether you eat or drink or 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, 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:7364-NLD-12/30/2019

Market Update: 12-23-19

Click here to watch “My Strategy”.

The Issachar Fund (LIONX), is fully invested in growth stocks!  I sold the index short because I became more convinced that this market may be headed higher.  A large majority of LIONX stocks have at least two consecutive quarters of increasing sales and earnings AND double-digit earnings estimates for next year.  LIONX holds about 85 individual stocks with weightings averaging a little more than 1% eachLIONX 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 junk bonds/growth stocks with strong technical chart patterns and sound fundamentals.  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!(Portfolio holdings are subject to change at any time and should not be considered investment advice.)

The Fed increased its balance sheet last week by over $45 Billion!  Now that “freshly printed” money has to go somewhere, and I believe some of that “free money” is finding its way into the stock market.  If I had $45 Billion of new money to spend, I would put it in the largest index funds and ETFs because, in my opinion, they are the most liquid and easiest to buy and sell.

Remember the Christmas Crash last year!  From August to November 2018, global central banks began a Qualitative Tightening (QT) experiment where they reduced their bloated balance sheets of “free money created out of thin air”.  I believe the market was “addicted” to this excess liquidity and when the central banks began to remove the “spiked punch bowl” from the party, many investors began rushing for the exits as they saw the “writing on the walls”.  I believe it could have been a disaster if the Fed would have continued to raise rates and shrink its balance sheet.  However, the Fed listened to the markets.  On December 24th, 2018, the Fed Funds Rate (rate that banks charge each other for over night loans) went from 2.25% to 2.5% BUT the Fed signaled that it would reverse its tightening policy.  After the market had dropped over 19% from 9/21/18 to 12/24/18, the market finally bottomed on 12/24/18 as the Fed appeared to become “sensitive” to how the stock market “feels” about higher rates.  I have concluded that the market does not like uncertainty or higher rates, and it may become “concerned/correct” when the future does not look so bright.  Currently, the market appears to be “content” with the outlook on rates.  Yes, I am “all in” BUT I will do my absolute best to avoid any life-changing losses should the market take a turn in the wrong direction of this 11-year old bull market that started with QE injections in 2008.

The Fed insists that buying T-Bills is not QE4!  The Fed says that since T-Bills do not have any “duration” it is not QE.  However, it sure walks and quacks like a QE duck so I am calling it QE4 until proven otherwise.  The Fed has been buying 3-month T-Bills since rates in the repo market spiked 248 basis points on September 16, 2019 which is more than double of the overnight rate set by the Fed.  The 4 Trillion Repurchase Agreement (Repo) market is used by institutional investors to satisfy their short-term demand for liquidity.  If the Repo market is having a hard time meeting overnight liquidity requirements, then I suspect that there may be a ton of leverage (hedge funds & Algos) in the system that the “system” is not used to seeing.  Hence the need for the Fed to step in and provide massive amounts of overnight liquidity.  If “leverage” is too great and something triggers a “sell off”, then we could see the market come down really hard and fast.  However, I believe the Fed will do all it can to prevent any major “liquidity” issue.  I remember Fed Chairman Greenspan “pumping” liquidity into the system in 1999 ahead of the “Y2K” scare where people were concerned of a potential stock market crash as the new year rolled in.  The market did not crash on 1/1/2000 but is sure was a scary and uncertain time to be invested.  The Fed provided excess liquidity and the market was fine.  Fast forward to 9/17/19 when the Fed began rapidly buying T-Bills to provide liquidity in the Repo market.  The stock market bottomed a couple weeks later on 10/2/19 and it has been “off to the races” since then.  The Fed has committed to $60 Billion/month of liquidity injections until March of 2020 so I suspect the market may keep heading higher as long as the Fed keeps its promise.  I believe the Fed will eventually start buying longer dated maturities and then they will be forced to call it QE4.

Junk bonds continue to trend higher which tells me that investors have an appetite for “risk”!  I believe growth stocks have more “return” potential than junk bonds at this time, but I am considering junk bond positions for LIONX.

Notice below that the Fed’s balance sheet has grown over $377 Billion since September 2019!  Where will all this added liquidity end up?  The stock market seems to be a logical recipient as the major indexes reach all-time highs.    

Chart source: Federal Reserve.gov

Bottom line:  The Fed’s balance sheet continued to rapidly expand, and some of that “free money” usually finds a “happy home” in the stock market.  I try to not to fight the Fed and try very hard to stay in sync with the bull and avoid the bear.  Thank you for reading my Blog and please let me know if you have any questions.  Jesus is the Reason for the Season and I want to wish You a Very Merry Christmas Full of Love, Grace and Peace!                 

Here is a link to the latest 3rd 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 PowerPoint link to “My Strategy”.  

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. The Fund is ESG (Environmental Social Governance) conscious, pro-life and pro-family and will not invest in securities with a negative InspireImpact Score.     

For unto us a Child is born, Unto us a Son is given; And the government will be upon His shoulder. And His name will be called Wonderful, Counselor, Mighty God, Everlasting Father, Prince of Peace.  She will give birth to a son, and you are to give him the name Jesus, because he will save his people from their sins. Isaiah 9:6

Investors should carefully consider the investment objectives, risks, charges and expenses of the Issachar Fund. This and other important information about the Fund are contained in the prospectus, 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.  S&P 500 Index is an unmanaged composite of 500 large capitalization companies.  NLD Review Code: 3925-NLD-12/23/2019