Category - Weekly Updates

Market Update: 09-07-21

Melt Up!     Growth is Being Rewarded!            

The Issachar Fund is fully invested in the Building, Business Services, Chips, Finance, Machine, Medical, Metals, Real Estate, Retail, Software, and Transportation Sectors.  The market has been rewarding us for investing in growth stocks, and I expect it to continue.  I was anticipating a potential “melt-up” in the last quarter, but it looks like it may have already started.  The major indexes are extended in price, so a sideways consolidation would be ideal to support another leg higher into the new year. The junk bond market tells me that investors still have an appetite for risk while the junk bond average trades above its rising 50-day moving average, sitting at an all-time high.  I focus on price and volume, and I still see prices rise on above-average volume, which means that institutions may have been on a buying spree.  I plan to ride the wave and get out before it crashes.  There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)     

The Fed’s balance sheet expansion continues with another $16 billion of newly printed money that has to go somewhere!  The Fed’s balance sheet is now about 37% of our GDP.  The European Central Bank’s balance sheet is about 80% of its GDP, while the Bank of Japan sits at a whopping 133%.  Global stocks gained about $1.6 trillion in value last week.  Global equities are now valued at over $120 trillion.  Global stock market capitalization is estimated to be over 142% of the world GDP, which is also at an all-time high.  I believe that a large majority of this central bank “free money” printing is finding its way in the stock market, which may explain why we are at record highs.  God help us if central banks slow their printing presses!

Bottom Line: The market has been rewarding growth stock investors, and I expect this trend to continue into a historically seasonally strong fourth quarter.  Risk has been rewarded, and when that dynamic changes, I hope to ring the register and patiently wait for the next wave.  God is good, and his hand of favor is on us, so I thank Him every day for His Amazing Grace!   

For sin will have no dominion over you, since you are not under law but under Grace. Romans 6:14  

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: 5517-NLD-09072021.

Market Update: 08-30-21

Fed Assures Market!    No Rate Increases!               

The Issachar Fund is fully invested in the Building, Business Services, Chips, Finance, Machine, Medical, Metals, Real Estate, Retail, Software, and Transportation Sectors.  I continue seeking to fine-tune Issachar by selling weaker stocks and buying stronger ones, which seems to be working in our favor.  I still do not see any warning flags of an imminent market decline because the big leaders continue to be accumulated in heavy volume.  If the “smart money” were concerned about Afghanistan, higher taxes, open borders, wasteful spending, and COVID, they would likely not be piling into the stock market.  Junk bonds are telling me that investors have a risk appetite, and that indicator has proven to be a reliable indicator for me in my last 30 plus years of managing risk.  However, the smart money seems too complacent as the indexes make new highs, so maybe that is a warning sign.  Either way, I will do my best to ride the wave as long as possible and get out before it crashes.  There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)           

The Fed decreased its balance sheet by $10 billion last week, but that is a drop in the bucket of massive liquidity!  Fed Governor, Jay Powell, reassured the market that he would not raise rates anytime soon, and the market rallied on Friday.  The market was concerned that Powell would remove liquidity from the market too soon, but he communicated that inflation is transitory, and liquidity would remain strong.  In other words, Powell will keep printing money out of thin air, hoping to keep the market afloat, giving the appearance that all is well so he can get re-appointed by Biden if he is still President.  I pray that God would continue to favor America and bless us with leaders who follow the heart of Jesus.

Bottom Line: The market appears to be firing on all cylinders, and the high-risk flags don’t seem to be flying.  With all the bad news around the globe, the stock market continues to advance higher, which tells me that excess liquidity is the key to this bull market.  However, liquidity from the Fed will not always be this robust, and there will be another bear market crash, but I do not see it happening today.  I attempt manage risk one day at a time, and today we are all in, but tomorrow could be a different story.  I am simply doing my best to rely on God’s Wisdom to manage His fund in a way that honors Jesus.    

The one who gets wisdom loves life; the one who cherishes understanding will soon prosper. Proverbs 19:8

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: 5513-NLD-08302021.

Market Update: 08-23-21

Fed Steps on the Gas!    Uptrend Resumes!               

The Issachar Fund is fully invested in the Business Services, Chips, Internet, Finance, Machine, Medical, Metals, Real Estate, Retail, and Software Sectors.  I did a little more “tweaking” last week by selling weaker stocks and buying stronger ones that I feel are poised to head higher.  There has been a lot of stock price deterioration below the surface while the indexes continue advancing, which will likely continue.  I believe the Fed is keeping this market alive by printing more money, and this new money has to go somewhere.  The indexes are the fastest and easiest way to invest large sums of money in the market, and that is where I see a lot of buying.  I have been focused on the highest weighted big-cap stocks because they have the most liquidity and can absorb large amounts of new buying.  We will not always be in a bull market where the “buy on the dip” mentality wins, but I believe that is where we are, so let’s ride the wave while it lasts.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)           

The Fed increased its balance sheet by $85 billion last week to another all-time high of $8.3 Trillion!  The Fed has stepped on the gas of excess liquidity creation once again, and the uptrend resumed.  I sound like a broken record, but the stock market will likely continue its advance as long as the Fed keeps the pedal to the metal.  God help us when the Fed is less accommodative, so I keep watching for signs the Fed may be changing course, but I see nothing of the sort.  Open borders, defund the police, and COVID chaos seems like events right out of a Marxist playbook, so the Fed continues to mask the lie with unlimited “free” money.  If people begin to wake up and see what is going on in America, the stock market could enter into a long-protracted bear market or, even worse, a depression.  We are not there yet, but I believe it will happen in my lifetime, and I have an exit strategy to avoid life-changing losses.  Most mutual funds and ETFs must stay fully invested in all bull and bear markets but not Issachar.  Issachar is a mutual fund managed like a hedge fund, so I plan to avoid the next bear market and hopefully make money on the short side.  Until then, let’s enjoy the ride and thank God for His Amazing Grace and Mercy.           

Bottom Line: The Fed has stepped on the gas of liquidity again, so we are along for the ride.  I plan to continue tweaking our positions seeking to position us for the next advance.  Money seems to be flowing into the most liquid names, while the smaller stocks appear to be experiencing a lot of distribution and deterioration below the surface.  I believe that God still has His hand of favor on America, and He will right all wrongs no matter what evil tries to do to us.  We win in the end, and that is the Truth!      

For God gave us a spirit not of fear but of power and love and self-control. 2 Timothy 1:7  

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: 5510-NLD-08232021.

Market Update: 08-16-21

The Issachar Fund is fully invested in the Apparel, Chips, Machine, Medical, Metals, Real Estate, Retail, and Software Sectors. The Fed remains accommodative providing excess liquidity in the economy, and the stock market has been making progress.  I see no real warning signs of a market top or signs of higher risk that warrants going to cash, so we will ride the wave while it lasts.  Institutions create the waves/trends, and I try to follow them.  I have been selling a few laggard stocks and trading up to leaders that appear to be under institutional accumulation.  This has been rewarding, and I plan to keep tweaking positions as I find new stocks to buy.  Earnings have been coming in better than expected, and that presents new opportunities as stocks “pop” higher with new institutional buying. Some market sectors see nice upward moves as an infrastructure play, but I am not buying it.  I still cannot believe Congress will approve spending trillions on the “green new deal.”  If it passes, the market will likely continue trending higher, and our kids will probably have to pay the price for our irresponsible spending.  Either way, everything known to man will be reflected in “price,” and that is where I am focused.  I am optimistically bullish into the 4th quarter as this has been a seasonally strong time of year.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)          

The Fed increased its balance sheet by $22 billion last week to another all-time high!  How long can the Fed keep printing money out of thin air?  As long as the market allows it!  Unfortunately, America is not the only Central Bank creating money with no real hard asset backing, so it becomes a race to see who can spend the most.  No one knows how long this money printing experiment will last, and we should not live in a state of fear.  I pray this Modern Monetary Theory experiment does not end with a crash causing life-changing losses while alive.  There is a lot of fear and division being spread through the media, so let’s focus on the truth. One should not operate from a position of fear.  Fear is not from God, and Jesus says, “fear not”!  Amen!   

Bottom Line: Issachar is fully invested!  I see no real warning flags of a market top, so we will ride the wave while it lasts.  I remain in the optimistic bull camp until my perception of risk changes.  By the Grace of God, let’s rejoice in the Love of Jesus and share that love with our neighbor.  Darkness lives until the light shows up, so let’s choose to be the Light we are!  

 Heaven and earth will pass away, but my words will not pass away. Matthew 24:35

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: 5506-NLD-08162021.

Market Update: 08-09-21

Yields Rise!    Fed Keeps Printing!          

The Issachar Fund is fully invested in the Chips, Machine, Medical, Real Estate, Retail, and Software Sectors. The employment numbers came in better-than-expected Friday, and yields spiked, indicating the Fed may have to raise rates sooner than expected to tame inflation.  Mr. market seems to be hooked on low rates, so any hint of higher rates has spooked the market into profit-taking mode.  I am not too concerned because I believe Jay Powell will do what it takes to keep rates low and liquidity flowing to increase his chances of getting reappointed as Federal Reserve Chairman next year.  I like the way the market is rewarding growth stocks which is where we are positioned.  The market seems healthy and poised to continue its advance.  However, I would not be surprised to see some backing and filling as stocks digest recent earnings announcements, which have been better than expected.  I see no high-risk flags and remain optimistic with a glass-half-full outlook. The skies are clear, and the sun is shining, so let’s stay a little longer at the beach.  (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)          

The Fed increased its balance sheet by $13 billion last week to an all-time high of $8.3 Trillion!  The Fed created $872 Billion of new money out of thin air this year and over $3.2 Trillion last year, so that money has to go somewhere.  Do you think that some of that “free money” ends up in the stock market, increasing stock prices?  I certainly believe it does, and this free money printing experiment is the primary source behind this bull market advance. I also think if the Fed were to remove the punchbowl of liquidity from the market too soon, we would see an unwinding of stock prices as we have never seen.  However, I do not plan to ride the market down in the next bear market or recession, and I pray you also have an exit plan.  Issachar is a mutual fund, BUT it is managed like a hedge fund that can be long or short depending on the risk levels.  Issachar has not been short in a very long time, but it could be if the market changed its character. 

Bottom Line: Issachar is fully invested and dancing at the party with one eye on the exits at all times.  I follow price and volume, and it is telling me that all is well for now.  This market has been incredibly resilient, finding a floor of support (buying) at every recent dip, so buying on the dips has been working well. If the market continues higher, I plan to ride the wave, but I do not intend to sit still as the wave crashes.  If you like my way of thinking and know of someone who might benefit, don’t hesitate to get in touch with them or me to share the good news.  Speaking of Good News, please help me spread the Word that Jesus unconditionally loves everyone the same.  

 My only aim is to finish the race and complete the task the Lord Jesus has given me – the task of testifying to the good news of God’s grace.  Acts 20:24

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: 5495-NLD-08092021.

Market Update: 08-02-21

Looking Good!       All in!   

The Issachar Fund is fully invested in the Medical, Real Estate, Retail-Leisure, Chips, Software, Machine, and Metal Sectors.  My highest conviction trade is in the Real Estate Sector, as investors seek higher yields in a low-interest-rate environment.  The Retail-Leisure space is also attracting a lot of institutional support, so that is where I would likely focus if I had new money to invest.  It seems like a lot of the big names are pulling into their bases to find support while the smaller stocks are breaking out of bases and making new highs.  I welcome this big to small rotation because it gives the big-cap leaders a chance to digest recent gains and allows the small-cap stocks to catch up and potentially lead us higher.  This is healthy action, especially as the Fed continues to supply excess liquidity in the market.  I believe the uptrend is looking good with plenty of gas left in the tank, so I remain bullish and optimistic for now. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)          

The Fed reduced liquidity by $19 billion last week, but its balance sheet is still near an all-time high!  I believe the Fed holds the keys to this bull market, and they are in the driver’s seat with a heavy foot on the gas.  I see no signs of the Fed pumping the brakes or taking its foot off the gas.  Jay Powell is up for reappointment in 2022, so he probably does not want to upset Biden.  I believe Powell will do everything he can to keep the economy and the stock market humming along to get Biden’s approval. When Powell raised rates in October of 2018, the market dropped 19% into Christmas Eve.  Trump lashed out at Powell for raising rates, and Powell reversed his position, then the market bottomed and blasted higher.  The market seems to be hooked on low-interest rates and excess free money printing by the Fed.  I can not imagine the market acting favorably if the Fed decided to raise rates to fight this “transitory” inflation we are experiencing.               

Bottom Line: Issachar is fully invested in big and small stocks with accelerating sales and earnings.  I believe the Real Estate and Retail-Leisure Sectors offer the best risk-adjusted returns.  The Fed continues to print money that has a way of finding its way in the stock market, so I remain bullish and optimistic. Issachar is a liquid alternative mutual fund managed like a hedge fund, so I will continue to ride the trends while they last. It is by the Grace of God that I get to do what I love.  I pray the same for you. 

For sin will have no dominion over you since you are not under law but under Grace.  Romans 6:14

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: 5487-NLD-08022021.