Category - Weekly Updates

Market Update: 10-18-21

Uptrend Continues!     Growth Leads!  

The Issachar Fund is back in the market!  The market indexes were up over 1% Thursday on above-average volume, and growth stocks led the charge.  This advance provided me with confirmation and conviction that risk was abating, so I added new positions in leading growth stocks.  All major indexes are now trading above their 50-day moving averages, which can signify that the correction may be over.  I am expecting buyers to dominate sellers in the fourth quarter due to a historically favorable seasonality period.  Third-quarter earnings should come in better than expected, and that could be enough fuel to keep the uptrend moving in the right direction.  COVID fears appear to be declining, and that could be a catalyst for new buying. Yields have tamed, the dollar is still relatively strong, and the junk bond market is slightly below its 50-DMA.  The Fed appears to still be on our side even though inflation may be here for a while. I am optimistic and expect the market to post new highs shortly. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)     

The Fed increased its balance sheet by $17 billion last week to a near all-time high of $8.5 trillion!  This is a welcome sign for the stock market because much of this liquidity finds its way in the stock market. Based on the Fed’s recent inflation comment, I expected the Fed to start dramatically reducing their balance sheet, but they did not, so that should be good for growth stocks.  It seems the Fed is more concerned with keeping rates low to promote more borrowing in the private and public sectors. Low rates help keep our debt payments manageable, but higher rates would likely force the Fed to monetize more of Congress’ irresponsible spending.  I pray for God to raise up men and women of courage to stop this ridiculous spending bill that is expected to be voted on at month-end.     

Bottom Line: Issachar is invested in growth stocks because that is where I see institutional accumulation.  The market’s health has improved, and my perception of risk has declined, so we will stay at the party a little longer.  However, I always dance close to the door no matter how much fun we may have.  The Fed seems to still have its foot on the gas of liquidity, which gives me great conviction.  I am doing my best every day to honor God with the gifts I am blessed with.

So, whether you eat or drink or whatever you do, do it all for the glory of God. 1 Corinthians 10:31

To honor God, Issachar is 100% committed to Biblically Responsible Investing (BRI) stocks.

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: 5641-NLD-10182021.

Market Update: 10-11-21

Market in Correction!   Stuck in Stagflation!  

The Issachar Fund is in Cash, 100%!  Investor’s Business Daily (IBD) calls this environment a “Market in Correction,” allowing for selling only.  IBD has an excellent record at identifying market risk, and they believe risk is high.  I also believe risk has been elevated to a level I cannot stick my head in the sand and ignore. When the market is not rewarding me for taking risk, I look for reasons to sell and patiently wait for the next opportunity.  By Prospectus, most mutual funds must stay fully invested, so they can’t go to Cash in a bear market.  Issachar is different because it is a mutual fund managed like a hedge fund that can be long, short, or anywhere in between.  Cash is a good position while the market digests higher deficit spending, slower job growth, and rising rates. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)     

No one knows where the market is headed, but we have warning signs of potential danger!  My favorite risk indicator is the junk bond market.  When the stock market senses higher risk, I have found that the junk bond market trades below its 50-DMA on higher above-average volume, as it is now.  When investors lose their appetite for risk, they tend to sell the higher-yielding bonds and buy the safer US Treasury bonds causing yields to drop.  However,  Treasury yields have been spiking higher, telling me that bond sellers are overwhelming buyers indicating something is different this time.  Could it be that inflation is not as “transitory” as Jay Powell previously assured us?  I believe inflation is real and here to stay.  The inflation we are seeing was primarily created by the Fed expanding its balance sheet to unprecedented levels.  Higher inflation may be the new normal.  Economic growth is slow and declining, but it should be expanding now that the worst of COVID is behind us.  However, the threat of even higher rates, more irresponsible spending from Congress, and potentially even higher taxes are hurting our recovery.  I believe we are in a period of stagflation where slow economic growth and joblessness coincide with rising inflation.  Oil and gas prices have hit record highs, and I do not see them abating anytime soon, so we may have to learn to live with the Biden economy of higher prices and slow economic growth. I am constantly building my watch list of stocks to buy, but my list is getting smaller, so buyer beware.  Trying to make hay when the sun is not shinning can be a costly and challenging task.    

Bottom Line: Issachar is in Cash, patiently waiting for the next long or short opportunity.  Labor shortages, rising rates, and stagnant economic growth are in our midst, and the major indexes are trading below their 50-DMAs on above-average volumes.  There are times to be invested and other times to sit on the sidelines, such as now.  I have drawn a line in the sand and refuse to go lower, so Cash should do the job now.  This is a time for patience where stock market leaders build bases where stronger hands shake out the weaker ones.  I am focused on the leaders because they tell me about the health of the market and the patient is not healthy. I hope you have a Blessed Day!   

The fruit of the Spirit is love, joy, peace, patience, kindness, goodness, faithfulness, gentleness, and self-control.  Galatians 5:22

To honor God, Issachar is 100% committed to Biblically Responsible Investing (BRI) stocks.

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: 5578-NLD-10112021.

Market Update: 10-04-21

The Issachar Fund is in Cash, 100%!  Last week was an expectation breaker because I expected the indexes to rally above their 50-DMAs like many dips before.  Buying the dips had been working all year, but the tide may be changing.  Low rates caused the tide to lift many boats, but it appears the tide may be going out, which could mean trouble for stocks and bonds.  Interest rates have been rising probably due to higher inflation expectations, and the market has been selling off on higher above-average volume.  When prices decline on big volume, that tells me that big money is concerned, so I try to follow the smart money.  The big smart institutional money managers have been liquidating many of the favored stock market leaders.  This massive liquidation tells me it could be different this time, so cash may be a good place to sit while the market decides where we are headed.  My gut tells me this is just a correction, but I follow price, and I see caution flags.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)     

The Fed decreased its balance sheet last week by $41 billion!  Jay Powell said inflation was “transitory,” but now he says inflation could be here for a while.  That is big news!  If the Fed is concerned inflation may be heating up to a level they were not expecting, they may slow their balance sheet expansion experiment, which could be bad news for the stock and bond market.  I believe the market has been rising because the Fed is printing massive amounts of “free money,” Most of this liquidity has found its way in the stock market.  If the liquidity spigot is turned down more than the market expected, we could be in for a severe correction/bear market.  My perception of risk is high. Therefore, I prefer to sit in cash while the market works through this challenging period.    

Bottom Line: Sell signals were triggered last week as risk increased, so cash is where we are now.  If the Fed is concerned about inflation, then I am worried because they control liquidity.  If liquidity is contracting, then the market and the economy could be in trouble.  I have peace while patiently waiting for the next opportunity.    

I am leaving you with a gift—peace of mind and heart. And the peace I give is a gift the world cannot provide. So don’t be troubled or afraid.  John 14:27

The Issachar Fund is 100% committed to Biblically Responsible Investing (BRI) stocks.

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: 5547-NLD-10042021.

Market Update: 09-27-21

The Issachar Fund is invested in the Apparel, Business Services, Chips, Finance, Internet, Leisure, Medical, Retail, Software, and Transportation Sectors.  I am still tweaking the portfolio by selling laggard stocks and buying leaders that appear to be under accumulation.  The major indexes fell hard last Monday below the 50-DMA but rebounded nicely to slightly above the 50-DMA by Friday.  This positive action tells me the bulls still have a little gas left in the tank to keep us going in the right direction…. higher.  The junk bond market is trading above its 50-DMA, indicating a “risk-on” environment telling me that investors still have an appetite for risk.  Big leading growth stocks are showing signs of institutional buying as their prices break out to all-time highs on above-average volume.  These high-volume breakouts indicate to me that this bull run is not done, and we could be setting up for a great 4th quarter rally to new highs. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)     

The Fed did it again last week and created another $41 billion out of nothing!  I am not complaining because most newly printed money will likely find its way into the stock market, keeping many stock boats afloat.  However, I believe there will be a day of reckoning when the Fed slows its printing presses, and the market blows a fuse, but we are not there yet.  Until the Fed gives a date that it will “taper” its bond-buying or whispers that it might raise rates, I will likely remain bullish because the market is hooked on the Fed’s artificial “fake” liquidity.  I honestly hope they do not stop flooding the market with new cash in my lifetime, but if they do, I stand ready to do what is necessary to avoid any life-changing losses for shareholders in Issachar. My faith is in God, and his wisdom will never lead us in the wrong direction.    

Bottom Line: The leaders are leading, and I am all in expecting the uptrend to continue, so let’s enjoy the ride while it lasts.  I can’t control what the market does, but I can control what I do in response to the market’s action. For now, the market is telling me that the bulls are still in charge.  Growth investors are being rewarded for taking risk, so that is where we are for now.  Never forget, God is love, and Jesus loves you no matter what you do or don’t do (unconditional love).   

God is love, and he who abides in love abides in God, and God in him. 1 John 4:16

The Issachar Fund is 100% committed to Biblically Responsible Investing (BRI) stocks.

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: 5539-NLD-09272021.

Market Update: 09-20-21

Bought the Dip!    Fed Steps on the Gas!             

The Issachar Fund is invested in the Business Services, Chips, Energy, Finance, Internet, Medical, Real Estate, Retail, Software, and Transportation Sectors.  I continue to sell stocks that have met my sell criteria and buy growth stocks that seem to be under institutional accumulation.  This has been going on for several weeks, and we have been rewarded for those efforts, so I plan to continue tweaking the portfolio until the market changes character.  I am bullish mainly because growth stocks appear to be back in favor, and the Fed has stepped on the gas of liquidity, once again.  Due to options expiration, I am discounting the negative action on Friday, but I stand ready to sell if conditions change.  The S&P 500 Index (big-cap stocks) traded slightly below its 50-day moving average on heavy above-average volume on Friday, so that is a little concerning.  However, since the COVID low in March 2020, the index has flirted with its 50-DMA about six times and every time has been a “buy the dip” opportunity.  This time could be different, but I believe it is an opportunity because I “bought the dip.” (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)     

The Fed stepped on the gas of liquidity last week by increasing its balance over $91 billion!  That is a massive amount of money created from nothing that has to go somewhere, and I believe most of it will find its way into the stock market.  It seems like the US, German, UK, Chinese, and Japanese central banks are racing to see who can print more money the fastest without “breaking the bank.” One day this excessive free money printing experiment will likely end badly, but I do not see it happening any time soon.  However, I do believe it will happen in my lifetime.  My job is to manage the risk every day and let the price and volume action tell me when to get out, hedge, or go short.  It is only by the grace of God that I see what He wants me to see.  I pray that God will reveal more truth to you today!        

Bottom Line: I am still bullish, and the Fed appears to be on our side by keeping the printing presses flowing with a fresh supply of new money.  Growth stocks appear to be back in favor like 2020, so this could be a good time for the Issachar Fund to bring glory to God.  Keep the faith and never lose hope because God is still on the throne, which will never change.  Grace and Peace to everyone!

Heaven is My throne, and the earth is My footstool.  Isaiah 66:1

The Issachar Fund is 100% committed to Biblically Responsible Investing (BRI) stocks.

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: 5532-NLD-09202021.

Market Update: 09-13-21

Buy the Dip?    Fed Still Buying!             

The Issachar Fund is about 60% invested in the Building, Business Services, Chips, Finance, Machine, Medical, Metals, Real Estate, Retail, and Software.  Leading stocks have been breaking down, and that is not a good sign.  I locked in some gains last week and parked those proceeds in cash until the next opportunity presents itself.  I believe the market is extended and due for a pullback, but I am not expecting the market to fall more than 5%.  Seasonality since 1990, equities have tended to top around September 15th and bottom near October 9th, so caution is warranted.  I can’t explain why this pattern has persisted, but it does.  I believe that price is the arbiter of truth, so I try to focus on price and the volume moving price.  The major indexes are off their highs, but the Fed has been buying bonds, which is a good sign.  When the Fed buys bonds with money they created out of thin air, someone receives cash for said bonds, and some of those proceeds are often used to purchase equities supporting higher stock prices. As long as the Fed keeps liquefying the market with “free money,” I will likely maintain a bullish bias.  However, when this “free money” printing press experiment begins to taper, I believe the “house of cards” may start to fall.  At that point, I plan to raise cash, hedge, or short the market.  Until the Fed takes his foot off the gas and taps the brakes, let’s enjoy the ride.  (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 $8 billion last week to another all-time high!  However, our central bank is not the only one printing money at will; other global central banks seem to be more intoxicated at this seemingly never-ending money printing party.  The European Central Bank and Bank of Japan are printing money faster than the US, which should tell us that things are not as good as they want us to believe.  The scary part is we all seem dependent on the government to save us from a problem they helped create.  I cannot see how this party will end without a massive hangover of life-changing losses.   Now is an excellent time to reflect on God, spouse, kids, family, and business, and in that order.       

Bottom Line: The market appears to be running out of gas as the indexes pull back, but the Fed seems to have our back as they keep the printing presses running.  Investors have been rewarded recently for “buying the dips,” so we will see if they do it again.  We are entering a seasonally weak period, so locking in some gains may not be a bad idea.  We have about 40% cash, and I stand ready to do more selling if things do not go as planned.  I expect the market to rally into the new year, but price and volume matter more than my opinion.  However, nothing can replace the Wisdom of God we receive from the Holy Spirit living in us.  Learn to trust the Holy Spirit in you since He will never lead you in the wrong direction.   

Keep your life free from the love of money, and be content with what you have, for he has said, “I will never leave you nor forsake you.” Hebrews 13:5  

The Issachar Fund is 100% committed to Biblically Responsible Investing (BRI) stocks.

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: 5525-NLD-9/13/2021.