Category - Weekly Updates

Market Update: 05-28-19

The Issachar Fund holds 115% in Muni Bond Mutual Funds (70%) and ETFs (45%).  The stock market peaked on October 3rd and High Yield Muni Bonds bottomed on October 10th and they have been trending higher (double-digit annualized rates) ever since.  Maybe the bond market was predicting that if the Fed raised rates like they indicated, the economy would slow and low and behold, I think the bond market was right. The Fed raised rates in Q-4 and the stock market dropped about 19% while the munis continued to attract money and trend higher.  Munis have historically been a low-volatility asset class and I like that because their trends tend to persist.  Low volatility trends that persist like junk bonds (not currently doing well) and munis has allowed us through the years to generate return relative to the risk we are taking.  I have conviction in this muni trade, and I plan to stay as long as we are being rewarded.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.  Allocations exceeding 100% result from the use of leverage.)

All major stock market indexes are now trading below their 50-day moving averages (dma) which could mean trouble for the stock market.  The major market indexes remain in a three-week downtrend (lower lows and lower highs) “correction” from their early May highs. This is the deepest correction since the market rally began in late December, so we need to discern what the market is trying to tell us.  The semi-conductor stocks were leading the stock market higher, but they have certainly run out of gas as they have shed over 15% since their peak on April 24th.  The small-cap Russell 2000 Index (R2K) is trading below its longer term 200 day moving average (dma) and that indicates to me that risk is “coming off”.  A “risk off” market simply means that money is coming out of the risky stocks (R2K) and into more “safe” areas like government bonds.  Muni bonds tend to be lower yielding bonds issued by city and state government municipalities that pay lower interest rates, but their income is tax free.  If risk is “coming off” and the economy does slow then I would expect bond prices to rise and yields to decline further.  As I see things today, the stock market is expecting the economy to slow, and “big money” is flowing out of stocks and into bonds.

China is smart but I believe Trump is smarter.  Trump wrote “The Art of the Deal” and I see him as the best negotiating President America has ever had.  Yes, America may endure some economic pain in the short-run, but I believe we will be better off in the long-run if we trust the process.  It seems un-fair for our so-called trading partners to outright steal our “intellectual property” to copy it then sell it to the world at a lower price.  I believe the theft of American ingenuity stifles America entrepreneurship and I am glad someone is finally standing up for what is right in America.  China sees that the trade war may be causing our stock market to decline, and their market is hurting as well but they might feel they have leverage.  Therefore, I believe that China does not mind inflicting collateral damage on their people if they get what they want.  In my experience, the US tends to live in the present and many of our decisions are made to get the maximum benefit today.  I feel China is much better at looking into the future.  I believe that Communist China is willing to keep this “trade war” alive until 2020 in hopes that Trump will lose reelection and they will get their way again with a Democrat President.  I also believe that Trump knows this, and he will do whatever it takes to get reelected, so I believe America wins and China loses in the end.            

For God hath not given us the spirit of fear; but of power, and of love, and of a sound mind.  2 Timothy 1:7

Bottom line:  I believe risk is elevated due to the “trade war” with China and it may continue until the 2020 Presidential Election.  I believe we need to be patient and sit quietly in muni bonds until the tide changes.  If I am wrong, I will not hesitate to do what is necessary to achieve our objective.  Investors who have a mandate to always stay invested in stocks, may experience “death by a thousand cuts” until the market has done what it needs to do.     

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. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenue, for the project or from the assets. Moreover, an adverse interpretation of the tax status of municipal securities may make such securities decline in value.  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 to be incorrect and may not produce the desired results.  Past performance is no guarantee of future results.    

Russell 2000 Index is a small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index.  NLD Review Code:  3395-NLD-5/28/2019

Market Update: 05-20-19

The Fund holds 15% in Muni Bond ETFs and 85% in Cash.  I like what I am seeing in the muni bond space, especially high yield muni bond ETFs and mutual funds.  I added two muni ETFs as a starter position with plans to possibly add more if things work out the way I anticipate.  I typically “test the waters” with small positions and if they “work” then I try to add bigger positions as I get more conviction in the trade.  On a risk-adjusted basis, the muni bond sector looks attractive at this juncture in anticipation of a slower economic environment.  According to fund tracker EPFR Global, investors pulled $19.5 billion out of global mutual funds and ETFs in the week ended May 15, while bonds added $5.1 billion for their 19th week of inflows.  There is the potential for the stock market to make lower lows.  However, I believe that we are one tweet away from a rally or one tweet away from a sell-off, so stay alert.      

Chinese trade tensions have not eased and may have gotten worse.  Trump feels that he is in the driver’s seat when it comes to trade negotiations with China and sometimes, he pushes the envelope …because he can.  However, China sold the most Treasuries in almost 2.5 years in March, offloading over $20 Billion taking China’s Treasury holdings to $1.12 Trillion.  I believe the Fed will buy whatever China sells so I am not too concerned about China selling US Treasuries unless they start dumping then I will become more concerned.  I also believe Trump generally wants the best for America and he is will willing to stick his neck out, just a bit.  It does not seem fair to hard-working Americans who spend money and take risks to bring a product to market to have the Chinese or anyone else steal their intellectual property.  They often duplicate the American product overseas and sell it at a lower price.  It’s believed that this has been going on for many decades and I am glad that someone is finally standing up for America.  Now this trade dispute may incur some pain on both sides, but I believe it is worth it for our economic health in the long run.  I also believe that any economic weakness could be met with more Quantitative Easing (QE) by the Fed.  The Fed has the ability to buy bonds with money it creates out of thin air (QE) in an effort to add liquidity to the markets in hopes of stopping a decline or stimulating demand.  If one looks under the hood and understands how the system really works, it can be a scary scene.  So, let’s pretend all is well and not peak under the hood, okay?  I believe that one day there will be a stiff price to pay for all of this fiscal irresponsibility, but I do not see that happening in the next year so let’s enjoy the ride while it lasts.  However, one should never fall asleep at the wheel and ignore the flashing signs of higher risk.                

The semiconductor stocks were leading the market, but they have turned south.  Semiconductor stocks have historically been a barometer for the health and direction of the market, and they were trending higher up over 45% since the Christmas Eve low.  However, the semiconductor stocks are now trending lower and they are down over 10% since peaking at the end of April.  Risk is high of a further continuation of this down trend.  The NASDAQ, S&P 500 and Russell 2000 Indexes are all trading below their respective 50-day moving averages and that confirms to me that risk is high.  I have learned over the last 29-years of managing money that there are times to be invested and there are times to not be invested.  I believe that cash may be a good place to be right now. 

Bottom line:  I believe the market is the sum total of the collective mindset and none of us is as smart as all of us.  The market is always trying to send us a message and I believe the message is …stay out.  When the market sends a different message, I hope to be able to take advantage of the opportunity but for now, the market does not seem to be rewarding risk-takers.  I am graciously optimist looking at the glass as half-full, but I see the glass as half-empty today but that could change.  When I perceive that the market will reward me for taking risk, I plan to seize the opportunity.  Gratitude leads to optimism, and I believe a positive attitude is 90% of the game.

All this is for your benefit, so that the grace that is reaching more and more people may cause thanksgiving to overflow to the glory of God.   2 Corinthians 4:15

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. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenue, for the project or from the assets. Moreover, an adverse interpretation of the tax status of municipal securities may make such securities decline in value.  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 to be incorrect and may not produce the desired results.  Past performance is no guarantee of future results.    

S&P 500 Index is an unmanaged composite of 500 large capitalization companies. This index is widely used by professional investors as a performance benchmark for large- cap stocks.
Russell 2000 Index is a small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index.
NASDAQ Index is an electronic traded listing of over 5,000 active large and small companies.    NLD Review Code: 3385-NLD-5/20/2019 

Market Update: 05-13-19

The Fund holds 100% in short maturity cash equivalents.  Cash is a position!  I sold all stock positions last week as the market declined following a Trump Tweet promising to raise tariffs on Chinese imports by Friday if the Chinese did not give into his demands.  The market lost about 2% last week.  When the market is not rewarding me for taking risk, I prefer to reduce exposure or simply step aside and let the market do what it needs to do.  Imagine doing a planned retreat to hilltop on a battlefield to get a better view of what you are up against.  Once we clear our minds and get a vision of where we are headed, then we can plan our attack.  In a sense, going to an all cash position allows me to clear my head and refocus on my objective.  Once I am convinced the market may reward us for taking risk, I will carefully reenter the market.  However, most of the previous stock leaders are not acting like leaders so I will patently wait for the leaders to show me they are ready to “act right”.          

The S&P 500 Index futures are pointing to about a 2% decline on Monday morning.  Tensions with Iran and potentially more Chinese tariffs seem to be spooking the market at this time.  The market traded lower last week on a sell-the-rumor; buy-the-news bounce-off-support reversal-rally on Friday.  We could see the Chinese retaliate; however, they import far less from us than we import from them so they would likely feel more pain in a trade war.  If this uncertainty starts to weigh on a lukewarm U.S. economy, the Fed may step in and lower rates.  At this time, the positive market turnaround on Friday looks like it will be challenged.  There is certainly a lot of uncertainty in the market and the market does not appear to like it so cash may be a good place to be for now.    

The Put/Call ratio spiked above 1.11 which is the highest level since the December lows (blood in the streets) which marked the bottom on Christmas Eve.  The Put/Call ratio measures the number of Puts (bearish bets) versus the number of Calls (bullish bets) and it is viewed as a contrarian indicator.  In other words, there are more people betting that the market will go down than up.  What if they are right this time and the market does head lower?  Time will tell.  I am in cash because the market was not rewarding me for taking risk and therefore, I believe the market will head lower in short order.  However, I remain humble and ready to admit when I am wrong and hopefully learn valuable lessons, so I do not repeat my mistakes.

It is estimated that three-fourths of the global economy as measured by GDP will experience a slowdown this year.  Smartphone shipment volumes (a key metric) were down 6.6% YoY in 1Q19 according to International Data Corporation (IDC).  Apple and Samsung recorded their sixth consecutive quarter of declines with the slowdown accelerating.  Since microprocessor chips are at the heart of these devices, that may explain why the semiconductor sector has not been doing so well lately.  If the semiconductors do not hold support and roll over, then I suspect the market may follow suit.  Further trade war China retaliation will likely escalate so I am keeping a close eye on China and how they respond.  Trump threatened to slap 25% tariffs on the remaining $325 billion of imports currently untaxed on top of the $200 billion that were tagged on Friday.  If China responds by raising its weighted tariffs on $60 billion of U.S. goods to 15% from the current 7%, that could reduce U.S. GDP by 0.1 percentage point.  I believe that it would be wise for China to give into our demands otherwise they may suffer more in the long run.  I am glad that someone is finally standing up for what is right for America!        

Bottom line: We may have seen the top in the market, and we may have to test a lower low which would put the market in a confirmed down-trend.  Do you have an exit plan for your assets, and will you stick to it if your line-in-the-sand is crossed?  The market does not have to go up because it always has.  The only constant in the market is change.  What would you do if your account declined 25% to 50% or more?  Would you ride it out or would it cause a life-changing event? Plan for the worst but hope and pray for the best.                                   

Plans fail for lack of counsel, but with many advisers they succeed.  Proverbs 15:22

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.  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.    

S&P 500 Index is an unmanaged composite of 500 large capitalization companies. This index is widely used by professional investors as a performance benchmark for large- cap stocks. NLD Review Code: 3371-NLD-5/13/2019



Market Update: 05-06-19

The Fund holds about 85% in short-term bonds and about 15% in stocks.  I sold stocks that were not performing as expected last week and purchased new ones which appear to have strong fundamentals and sound technical chart patterns.  It has been a frustrating year for risk managers, but I am confident that my strategies can keep us out of major declines and keep us in during major advances.  If my current positions start to work (make money) then I plan to increase exposure if we are rewarded for taking on more risk.  However, if these positions start to roll over (lose money) then I plan to do what is necessary to minimize losses.  I am cautiously optimistic but that can quickly change depending on market conditions.  

The US stock futures were pointing to a sharp decline at the open!  President Trump tweeted that he intends to impose additional tariffs on Chinese imports as trade talks progress “too slowly” and the market does not appear to be happy about that.  The S&P 500 Index was trading near all-time highs so I would not be surprised to see the indexes use these “trade fears” as an excuse to retreat a bit.  However, this could be the start of a major market decline and we should never ignore the warning signs.  Just because the market has always “come back” and has made new highs does not mean that it will “come back” when you are ready to start taking money out of your account.  Never forget, the market does not owe you a dime and it does care if you have a profit or a loss, so you never want to ignore risk.  No one cares more about your money than you do.                  

The market ended the week pretty much where it started.  There was some mid-week volatility centered around the Fed meeting, but a better than expected jobs report and a 3.6% unemployment rate boosted confidence on Friday as the market melted higher on lighter volume.  I am concerned that the Russell 2000 Index has not performed as well as the S&P 500 but that could change if the market decides to shift out of “trade” related large-cap stocks (S&P 500) into small-cap stocks (Russell 2000) which are less dependent on exports.  Under the surface, there have been wild price swings, gaps and weak-fundamental stocks pushing higher.  This tells me that there is still plenty of liquidity in the market and money seems to be moving from one sector to another which is considered healthy, but it can be frustrating at times.  The markets are constantly changing and algorithmic trading models (computerized trading) can be a dominant force known to affect equity prices.  At the end of the day, it is still about supply and demand and that is what I try to stay focused on.  I am fully invested in my Fund so I will always do my best to maximize gains and minimize losses as I see fit.                         

Bottom line: I believe the more times we bounce off the ceiling of resistance, the harder it becomes to penetrate so the indexes may have hit a wall, for a while.   If junk bonds roll over with the stock market, I could become more defensive because I believe there is a mountain of debt lurking to potentially spur a major crisis.  However, I believe Trump will do all he can to produce an environment that is conducive to getting him re-elected and that remains the bottom line.                           

For we walk by faith, not by sight. 2 Corinthians 5:7

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, Inc is not affiliated with Northern Lights Distributors, LLC.

Important Risk Information

Mutual Funds involve risks including the possible loss of principal.

Investments cannot be made in an index. Unmanaged index returns do not reflect any fees, expenses or sales charges.  Past performance is no guarantee of future results.

S&P 500 Index is an unmanaged composite of 500 large capitalization companies. This index is widely used by professional investors as a performance benchmark for large- cap stocks.
Russell 2000 Index is a small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index.

NLD Review Code: 3343-NLD-5/6/2019

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 to be incorrect and may not produce the desired results.  Past performance is no guarantee of future results.    

Market Update: 04-29-19

The Fund holds about 85% in short-term bonds and about 15% in stocks.  I added to our stock positions last week and I expect to increase stock exposure this week if earnings come in better than expected.  A few leading growth stocks were crushed after releasing negative earnings and guidance last week, but I am finding many more leading stocks rallying after positive earnings surprises.  This is very encouraging to me because I believe the “leaders” (best stocks in the best groups) often pave the way for the indexes to follow.  I am more optimistic than last week as I “follow the leaders” and trust they will tell us when there is trouble ahead. 

Real GPD for the 1st Quarter grew at an annualized rate of 3.2%!  This is far above expectations and the market seems to like this kind of positive economic growth.  Inflation is very low, and bonds are also doing very well.  Junk bonds are confirming the euphoria and trending higher indicating to me that investors still have a hungry appetite for risk.  Two-year German, French and Japanese bond yields have negative yields while the 2-Year US Treasury bonds yields a positive 2.3%. Imagine loaning money to Germany, France and Japan and having to pay them interest to loan them money.  It makes no sense to me but that is what is happening across the pond.  I pray that will never happen to us but that is what can happen when government promises a bunch of “free stuff” and spending gets out of control.  As I see things, America is still the best place to invest.  Having a 2.3% yield on our 2-year Treasury bond may explain why the US dollar continues to trend higher and trades near an all-time high (relative to other currencies).  One potential negative of a rising dollar is that it tends to weaken profits of companies that export goods to weaker currency countries.  I have to conclude that Trump is living up to his promise to “Make America Great Again”!

The S&P 500 Index trading at the 2940 resistance area and I expect it to break through and head higher.  The S&P 500 Index (large-caps) high of 2940 was last reached on September 21, 2018 so basically the index is now “flat” or back to break-even.  Let’s not forget that the index dropped over 19% ending on Christmas Eve and has since had a V-shaped rally back over 25% just to get back to this current break-even level.  The Russell 2000 Index (small-caps) has about 8% more to go before it is back to break-even and it is also trading near a major resistance level of around 1600.  I believe that both indexes will break through these levels of resistance and the up-trend will continue.  However, I will let price and volume confirm my convictions because “price” never lies. 

What will you do the next time the Fed raises rates and the market declines beyond 19%?  If you plan to buy and hold through the next bear market, I beg you to consider your options and find an edge that may help protect your hard-earned money.  An edge is an indication of a higher probability of one thing happening over another.  As a risk manager, I do not plan to sit through the next bear market because I believe it could be a life-changing event that I do not want to experience.  The Fed and global central banks have been pumping money into the system since the 2008 financial collapse and I believe this “free money” experiment could end very badly.  Sooner or later, we will have to stop kicking the can down the road and pay the price for this excess money printing but for now let’s enjoy the ride while it lasts.  I plan to let you know when I see the caution lights start to flash.                           

Bottom line: I believe the trend is your friend so let’s ride the wave while it lasts.  I have strong opinions about what I think will happen but when I am wrong, I try to be quick to correct my mistakes and never argue with “price”.  I have heard that more money has been lost preparing for a correction than has been lost in corrections.  If you make a mistake, admit it, learn from it and don’t repeat it.                        

For God was in Christ, reconciling the world to himself, no longer counting people’s sins against them. And he gave us this wonderful message of reconciliation. 2 Corinthians 5:19 

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.  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.    

S&P 500 Index is an unmanaged composite of 500 large capitalization companies. This index is widely used by professional investors as a performance benchmark for large- cap stocks.
Russell 2000 Index is a small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index.

NLD Review Code: 3306-NLD-4/29/19

Market Update: 04-23-19

The Fund is about 95% invested in short-term bonds.  I sold stocks as sell limits were triggered as money appears to be flowing out of growth.  It has been a difficult environment for growth investors as leading stocks after the 12/23/18 low get hit with waves of selling due to profit-taking and short-selling which tend to suppress prices even further.  I am cautiously optimistic. 

The trend is still up but stiff resistance is just ahead.  The S&P 500 Index (large-caps) is less than 1% away from an all-time high.  However, the Russell 2000 (small-caps) is about 10% from its all-time high and I consider that a yellow caution flag.  The small-caps can underperform the large-caps for a short period, but I prefer to see the small-caps lead on a relative basis.  A small-cap dominance indicates to me that investors are okay with taking on more risk.  However, that does not appear to be the case currently.  It could be that the market is predicting a favorable trade deal with China and that could benefit the large-cap exporters more than domestic small-cap companies.  Bottom line, the trend is still up but I would not be surprised to see a “pause” before the market truly breaks out of this V-shaped pattern.                   

Defensive sectors like consumer staples, healthcare and utilities are not leading.  This tells me that the market is not concerned with economic growth slipping into a recession as it was in Q4.  Healthcare related stocks took a beating last week as presidential democratic leaders utter words of “free” government health care for everyone.  The market viewed that as a huge negative for profitable public healthcare companies having to compete with government run healthcare that does not operate under a profit incentive.  I do not think this will come to fruition, but the market was certainly concerned. 

The Fed is on our side.  After the Fed’s “about face” last December to not raise rates as it had planned in October, the market has been “off to the races”.  Global Quantitative Easing (QE) seems to be the dominant theme and I do not see any signs of this “money printing” experiment to end anytime soon nor do I see any chance of the Fed to raise rates in the near future.  Junk bonds are trending higher indicating to me an “all-clear” signal as it seems investors are complacent with taking on more risk.  Corporate buy-backs are near all-time highs which artificially boost earnings and suppress Price to Earnings (P/E) ratios.  However, I believe the market has already factored this into the “price” and the “price is always right”.         

It is all about winning!  I believe that President Trump will be re-elected for a second term in 2020.  The Mueller Report indicated there was no collusion between Trump and the Russians and the market did not seem to care.  It could be that the market already knew there was no collision and therefor no grounds for impeachment.  I believe Trump’s pro-business policies will help the stock market prices rise and keep the economy growing strong so that voters who typically “vote their pocket books” will cast a vote for Trump! 

Bottom line: The trend is up but we are nearing significant resistance, so I expect some “choppiness” as we approach significant resistance and digest earnings season.  I believe the market is digesting the V-shaped gains and may resume higher ground in short order.              

With great power the apostles continued to testify to the resurrection of the Lord Jesus. And God’s grace was so powerfully at work in them all.  Acts 4:33

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.  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.    

S&P 500 Index is an unmanaged composite of 500 large capitalization companies. This index is widely used by professional investors as a performance benchmark for large- cap stocks.
Russell 2000 Index is a small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index.

NLD Review Code: 3306-NLD-4/23/2019