Category - Weekly Updates

Market Update: 12-16-19

The Issachar Fund (LIONX), is fully invested in growth stocks with a 30% index short as a hedge.  I increased stock exposure and added a short position in an effort to minimize the downside should the market decide to “take profits”.  I plan to remove the hedge shortly.  I am bullishly optimistic on the market into the new year mainly because the Fed continues to expand its balance sheet and I believe the market seems to welcome the added liquidity.  Imagine what you would do if the Fed gave you $4 billion dollars for the treasury bonds in your account, where would you invest that $4 billion today?  If it were me, I would invest that $4 billion in growth stocks because that is where I see the greatest risk/reward opportunities.  In reality, the Fed has been buying about $4 billion every day (increasing liquidity) since September 2019 and that money has to go somewhere.  I believe the Fed’s balance sheet expansion experiment which they say is “Not Quantitative Easing (QE)” is an “invisible hand” in the market “lifting all boats”.  Let’s “ride the wave” while it lasts but always be prepared to “get out” before it crashes.  LIONX is a BRI, Trend Following, Liquid-Alternative Mutual Fund that is Actively Managing  Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes.  When my Strategy identifies a low risk environment, I seek to invest in junk bonds/growth stocks with strong technical chart patterns and sound fundamentals.  During high risk environments I seek to avoid Life-Changing losses.  The Issachar Fund seeks moderate capital appreciation consistent with capital preservation.  The Fund Adviser (HCM) is Celebrating 30 Years of Actively Managing Risk!  (Portfolio holdings are subject to change at any time and should not be considered investment advice.) 

A China trade preliminary phase one agreement has been reached!  I believe the market was on “pins and needles” about a potential trade war with China that could have severely hurt both US and Chinese economies, but Thank God that saner minds prevailed.  The Fed left rates unchanged last Wednesday.  Brexit took a big step forward as Boris Johnson and the conservatives took over British Parliament in a landslide election.  The new NAFTA (USMCA) is set to pass Congress and the December 15 China Tariffs have been removed.  Top Democratic and Republican lawmakers said they reached a tentative agreement on federal government spending, likely averting an end-of-year shutdown.  Now that this “uncertainty” has been removed from the market, I believe a Santa Claus Rally (tendency of the stock market to rally over the last few weeks of December into the New Year) is in the cards.   

I believe interest rates are headed lower and debt is headed higher and both are at or near all-time record levels.  The global economy is experiencing slower growth which supports the need for continued global central bank intervention.  I believe this “free money printing” experiment has a way of finding its way into the stock market by expanding Price/Earnings (P/E) ratios especially since overall earnings growth is slow at best.  I believe we may see P/Es expand in 2020 as most of this central bank “free money” finds a “happy home” in growth stocks.  I do not want to be around when the central banks decide to change course.  I honestly believe there could be “life-changing” events caused by a possible “stock market crash like we have never seen” when the potential “bubbles eventually burst”.  When balloons inflate too big too fast, they eventually go “bust”.  Just look at what happened to Venezuela, Argentina and Zimbabwe after their bubbles went bust.  From my perspective, generations were lost while their counties try to rebuild.  I plan to “keep my eyes on the road ahead” and never “fall asleep at the wheel” because I have way too much to lose.  Many investors plan to “buy and hold” but I believe that everyone has a “threshold of pain” before they “throw in the towel” and sell everything.  I believe that we are nowhere near a “panic point” but it is always a good idea to have an “exit strategy”.                

The Fed’s balance sheet grew by over $29 billion last week and junk bonds continue to trend higher.  These two indicators tell me that investors have “money to spend” and their “appetite for risk” is good.  Don’t fight the Fed and don’t fight the tape could be good axioms to follow.   

Bottom line:  A lot of uncertainty was removed from the market last week and Santa is smiling as he prepares for a jolly ride into the New Year.  Liquidity/credit is still flowing through the stock market veins and that tends to lift a lot of big and small boats.  I expect the waters to stay calm which could produce smooth sailing into 2020.  I want to wish You and Your Loved Ones a Very Merry Blessed Christmas!                 

Here is a link to the latest 3rd Quarter Issachar Fund Fact Sheet

Member organizations: KA, NACFC, CIF, OSC, NAAIM and here is a Podcast of “My Interview on The Real FBI.  Here is a link to a Video of “My Story     

Biblical Responsible Investing (BRI) is the term used to describe the activities of Christian investors who purposely align their investment choices to support their Christian beliefs. The Fund is ESG (Environmental Social Governance) conscious, pro-life and pro-family and will not invest in securities with a negative InspireImpact Score.     

She will give birth to a son, and you are to give him the name Jesus, because he will save his people from their sins.  Mathew 1:21   

Investors should carefully consider the investment objectives, risks, charges and expenses of the Issachar Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net.  The prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc, Inc is not affiliated with Northern Lights Distributors, LLC.  Important Risk Information.  Mutual Funds involve risks including the possible loss of principal.  The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions.  If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss.  The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments.  The Adviser’s judgment about the attractiveness, value and potential appreciation of particular asset classes and securities in which the Fund invests may prove to be incorrect and may not produce the desired results.  Past performance is no guarantee of future results.  If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss.  The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments. Quantitative easing (QE) is a monetary policy whereby a central bank buys predetermined amounts of government bonds or other financial assets in order to inject liquidity directly into the economy.  S&P 500 Index is an unmanaged composite of 500 large capitalization companies.  NLD Review Code: 7342-NLD-12/16/2019

Market Update: 12-09-19

The Issachar Fund (LIONX), is about 95% invested in stocks and my conviction level is high!  I sold a few stocks that were not performing as expected and traded up for what I believe are better prospects.  There are a lot of stocks that meet my fundamental criteria of three consecutive quarterly increases in earnings and sales AND have double-digit next year earnings estimates.  I really like what I am seeing in the market especially as the indexes approach new highs.  It feels like Santa will arrive on time and NOT disappoint like last Christmas.  Let’s not forget that the market had fallen over 19% in Q4 before bottoming on 12/24/18.  The Fed was in a rate raising mode and the market was not happy UNTIL the Fed did an about-face and lowered rates.  The Fed decided to be more accommodative in early 2019 and the market rewarded it’s policy change with a new up-trend.  Recently, the Fed became even more friendly by expanding its balance sheet.  The market seems to again welcome this liquidity expansion experiment with open arms.  My stock positions are very liquid allowing me to sell very quickly if needed.  However, I am expecting the market to finish strong into Christmas and a bring in a Happy New Year!  LIONX is a BRI, Trend Following, Liquid-Alternative Mutual Fund that is Actively Managing  Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes.  When my Strategy identifies a low risk environment, I seek to invest in junk bonds/growth stocks with strong technical chart patterns and sound fundamentals.  During high risk environments I seek to avoid Life-Changing losses.  The Issachar Fund seeks moderate capital appreciation consistent with capital preservation.  The Fund Adviser (HCM) is Celebrating 30 Years of Actively Managing Risk!  (Portfolio holdings are subject to change at any time and should not be considered investment advice.) 

QE continues to Expand!  From 1/2/18 to 8/30/19, the Fed’s balance sheet declined about 15% (10% annualized).  However, from 9/3/19 to 12/3/19, the Fed’s balance sheet expanded from $3.759 Trillion to $4.052 Trillion or $293 Billion which is an 8% increase (34% annualized).  Bottom line, this additional liquidity injection has to go somewhere, and I believe a lot of this “liquidity” is finding its way into the stock market.  This “shot in the arm” of additional liquidity gives me GREAT CONVICTION to stay fully invested!  In early October, the Fed made an important policy switch, announcing injections of $60 billion/month instead of the prior withdrawals of $60 billion/month.  That was a huge $120 billion switch/month and I believe the market seems to agree with the Fed’s decision.  This additional “boost of credit” may provide the “fuel” to keep this bull market charging ahead.  I believe the market is anticipating a robust economy with very little risk of a recession in 2020 AND a Trump presidency re-election.           

266,000 new jobs were created in November and the unemployment rate hit a 50-year low at 3.5%!  Wages advanced 3.1% from a year earlier and that has not been seen in over 16 years.  This is great news and I believe it shows the incredible strength of this economy.  President Trump is working on another tax cut aimed at the middle class.  Japan launched its biggest fiscal package in three years hoping to lift its economy.  Japan has been hit by the Chinese slowdown as well as its own trade war with South Korea.  Liquidity rules the day!

I believe “liquidity” is more important than “earnings”!  In fact, during the bear market of 1973-1974, a major stock market index lost 80% of its value as the Fed tightened the money supply to stifle soaring inflation.  Earnings of the S&P 500 index rose every quarter during that bear market which tells me that earnings are not as important as we may have been led to believe.  Earnings have declined every quarter this year and they are expected to show a decline in Q4 as well.  Economic growth has been weakening for the last two years but the stock market does not seem to care.  I believe “credit/liquidity expansion” trumps “earnings”.  What do you believe?  

Bottom line I try to never fight the Fed when they are expanding liquidity/credit.  The more money banks have to lend, the more likely they are to lend it.  Let’s just go with the flow and enjoy the ride while it lasts.  I believe there will be a price to pay for this global money expansion experiment, but the time is not now. 

Junk bonds are trending higher!  The junk bond average has resumed its uptrend and that tells me that investors’ have a good appetite for risk.  I see lots of “green lights” ahead so let’s enjoy the party while it lasts and make a little hay while the sun is still shinning.

Bottom line:  I believe QE appears to be still “alive and kicking”!  Thanks to a strong jobs report, I believe the Fed is likely to NOT lower rates on Wednesday and precious metals could lose support they recently acquired.  If the President decides to NOT raise tariffs on December 15th, that could add more “fuel to the fire” in support of a year-end rally.  If I am wrong, by God’s Grace I will not hesitate to do what it takes to “right the ship” and avoid life-changing loses.  Wishing You and Your Loved Ones a Very Merry Christmas!                 


Here is a link to the latest
3rd Quarter Issachar Fund Fact Sheet

Member organizations: KA, NACFC, CIF, OSC, NAAIM and here is a podcast link to my interview on The Real FBI.       

Biblical Responsible Investing (BRI) is the term used to describe the activities of Christian investors who purposely align their investment choices to support their Christian beliefs. The Fund is ESG (Environmental Social Governance) conscious, pro-life and pro-family and will not invest in securities with a negative InspireImpact Score.     

For nothing will be impossible with God. Luke 1:37

Investors should carefully consider the investment objectives, risks, charges and expenses of the Issachar Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net.  The prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc, Inc is not affiliated with Northern Lights Distributors, LLC.  Important Risk Information.  Mutual Funds involve risks including the possible loss of principal.  The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions.  If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss.  The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments.  The Adviser’s judgment about the attractiveness, value and potential appreciation of particular asset classes and securities in which the Fund invests may prove to be incorrect and may not produce the desired results.  Past performance is no guarantee of future results.  If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss.  The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments. Quantitative easing (QE) is a monetary policy whereby a central bank buys predetermined amounts of government bonds or other financial assets in order to inject liquidity directly into the economy.  S&P 500 Index is an unmanaged composite of 500 large capitalization companies.  NLD Review Code: 7334-NLD-12/9/2019

Market Update: 12-02-19

The Issachar Fund (LIONX), is about 98% invested in stocks and sitting tight!  I added about 8% more in individual stocks last week.  I am buying stocks that have produced three consecutive quarters of increases in sales and earnings and forecasting double digit earnings for next year.  I remain bullish as the market appears to be rotating out of one sector into another digesting recent gains.  Rotation has been a way for the market to digest stocks that have recent price advances into stocks that have been consolidating.  The market looks healthy and constructive as it may be discounting the potential negative news of China trade, impeachment and the Hong Kong unrest.  If the market changes character, I reserve the right to change my opinion, but for now I am all in!  LIONX is a BRI, Trend Following, Liquid-Alternative Mutual Fund that is Actively Managing  Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes.  When my Strategy identifies a low risk environment, I seek to invest in junk bonds/growth stocks with strong technical chart patterns and sound fundamentals.  During high risk environments I seek to avoid Life-Changing losses.  The Issachar Fund seeks moderate capital appreciation consistent with capital preservation.  The Fund Adviser (HCM) is Celebrating 30 Years of Actively Managing Risk!  (Portfolio holdings are subject to change at any time and should not be considered investment advice.) 

Quantitative Easing (QE) appears to be still alive!  The Fed claims that what they are doing is “Not QE”.  However, I believe that they are still printing money out of thin air and that sounds like QE to me.  The Fed increased its balance sheet by $162 billion in October and that was the greatest monthly increase since 2008.  Since 9-11-19, the Fed’s balance sheet has increased by $270 billion which implies about $5.8 billion of daily liquidity being added to the market!  This $5 billion or so of additional liquidity has to go somewhere and I believe a lot of this extra cash is being used to sure up stock prices.  Who knows why the Fed feels the need to expand its balance sheet at such a rapid pace?  I believe Fed Chairman, Jay Powell, messed up last December and may have contributed to the Christmas Crash where the market fell over 19%.  I believe he is now trying to fix his mistake of raising rates too fast in what I believe to be a weak economy by adding liquidity to the market which tends to lift all boats.  Is the Fed doing this to get Trump reelected?  I believe Jay Powell wants Trump to be a two-term president and I believe this will help America in the long-run.  The market does not seem to care why the Fed has ramped up its bond buying program, it just keeps steady plodding along it’s merry way. 

Imagine having to invest $5.8 billion per day!  Where would you put that kind of money to work?  I would not invest it in bonds because I believe yields are NOT headed lower which would benefit bond prices.  I expect yields to be flat at best over the short term.  Fed futures is predicting a zero % chance of a ¼ point rate cut and a 4% chance of a rate increase at their next meeting in about 10 days.  If I had $5.8 billion per day to invest, I would invest it in what I believe are companies with solid fundamentals and sound technical chart patterns of which I am finding plenty to choose from.  Keep in mind that the Fed said it plans to do about $60 billion of bond purchases every month at least until March 2020!  When the Fed buys bonds, the bond holders now have cash to invest and it has to go somewhere.  I believe the net effect of the Fed expanding its balance sheet increases asset prices and that is why I remain bullish and optimistic in the short run.             

Junk bond trend, sideways!  The junk bond average appears to be struggling as the uptrend has slowed a bit, but I am not that concerned.  I expect junk bonds to consolidate recent gains and resume trending higher even though I do not expect rates to decline.  If the economy is picking up steam, then I would expect junk bond prices to rise as they move away from “junk bond” status into a more favorable “investment grade” status.  Christmas is right around the corner and I believe the market could be gearing up for a Santa Clause Rally to erase last year’s Christmas Crash.      

Bottom line:  I believe that “Federal Reserve adjustment” is the main driving force behind the market’s new highs, and we should enjoy the ride while it lasts.  I am very bullish on the market but that could change if the market does the unexpected.  By the Grace of God, I will do my best to ride the wave and avoid life-changing loses before the wave crashes.                     


Here is a link to the latest
3rd Quarter Issachar Fund Fact Sheet

Member organizations: KA, NACFC, CIF, OSC, NAAIM and here is a podcast link to my interview on The Real FBI.       

Biblical Responsible Investing (BRI) is the term used to describe the activities of Christian investors who purposely align their investment choices to support their Christian beliefs. The Fund is ESG (Environmental Social Governance) conscious, pro-life and pro-family and will not invest in securities with a negative InspireImpact Score.     

Steady plodding brings prosperity; hasty speculation brings poverty.  Proverbs 21:5

Investors should carefully consider the investment objectives, risks, charges and expenses of the Issachar Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net.  The prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc, Inc is not affiliated with Northern Lights Distributors, LLC.  Important Risk Information.  Mutual Funds involve risks including the possible loss of principal.  The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions.  If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss.  The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments.  The Adviser’s judgment about the attractiveness, value and potential appreciation of particular asset classes and securities in which the Fund invests may prove to be incorrect and may not produce the desired results.  Past performance is no guarantee of future results.  If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss.  The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments. Quantitative easing (QE) is a monetary policy whereby a central bank buys predetermined amounts of government bonds or other financial assets in order to inject liquidity directly into the economy.  NLD Review Code: 7315-NLD-12/2/2019

Market Update: 11-18-19

The Issachar Fund (LIONX), is about 70% invested in stocks and seeking more opportunities!  I added about 30% more individual stocks last week.  I am buying stocks that have produced three consecutive quarters of increases in sales and earnings and forecasting double digit earnings for next year.  The market has been rewarding growth stocks and this is the kind of market I like to invest in.  I am bullish and I hope to increase our exposure as more opportunities present themselves.  LIONX is a BRI, Trend Following, Liquid-Alternative Mutual Fund that is Actively Managing  Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes.  When my Strategy identifies a low risk environment, I seek to invest in junk bonds/growth stocks with strong technical chart patterns and sound fundamentals.  During high risk environments I seek to avoid Life-Changing losses.  The Issachar Fund seeks moderate capital appreciation consistent with capital preservation.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.) 

Don’t fight the Fed!  The market is trading higher in a low-volatility up-trend as it seems to ignore China Trade, Brexit, impeachment hearings and Hong Kong protests.  A few weeks ago, the market was fixated on the “news” but now it does not seem to care.  What changed?  The Fed!  One thing I have learned over the last 30 years of managing risk is to never fight the Fed.  When the Fed is adding liquidity to the market, it is usually a good time to be invested.  Fed futures are now forecasting a 0% chance of a rate cut in 22 days.  That tells me that the market is not expecting a recession like it was just a few weeks ago.  If the market feared a recession was imminent then I believe the market would likely be expecting the Fed to cut rates, so I am a “happy camper”…… for now.         

My conviction level increased after attending a NAAIM Conference last week.  NAAIM stands for National Association of Active Investment Managers and I recommend it to anyone interested in learning how to manage market risk.  I have been a member for many years, and I sit on the Board, so I am a little biased.  However, this conference was probably one of the best because I now have a better understanding of how the Fed operates and more importantly why it does what it does. 

The Fed has added almost 300 billion in liquidity since the end of August 2019!  Now that is a lot of money that has to go somewhere, and some of that money is finding its way into the stock market as the indexes make new highs.  In October 2017, the Fed announced they would be “tapering” their bloated balance sheet and the Fed stopped reducing its balance sheet in August 2019.  The Fed may have been spooked about something they have not fully disclosed because on October 11, 2019, they announced that they will expand their balance sheet once again.  The Fed was careful to say, “it’s Not QE”!  They were reducing their balance sheet at about $60 billion per month (selling bonds) but they are now increasing T-Bill purchases to the tune of about $60 billion per month until at least March 2020.  As the Fed buys bonds, that money has to go somewhere, and investors seem to like what they see in the market, so a lot of this excess liquidity appears to be driving stock prices higher.  This will likely last until it doesn’t, and no one will ring a bell and say that risk is high, and it is time to sell.  I am watching all of the eggs in our basket and will take prudent action while seeking to maximize gains and minimize losses.             

Bottom line:  QE seems to be driving the market for now so let’s enjoy the ride while it lasts.  I promise to treat your money like it is my very own.  Thanks for Your Trust and may God Bless You and Your Loved Ones!               


Here is a link to the latest
3rd Quarter Issachar Fund Fact Sheet

Member organizations: KA, NACFC, CIF, OSC, NAAIM and here is a podcast link to my interview on The Real FBI.       

Biblical Responsible Investing (BRI) is the term used to describe the activities of Christian investors who purposely align their investment choices to support their Christian beliefs. The Fund is ESG (Environmental Social Governance) conscious, pro-life and pro-family and will not invest in securities with a negative InspireImpact Score.     

In Christ we have redemption through his blood, the forgiveness of sins, in accordance with the riches of God’s grace.  Ephesians 1:7  (We are all children of God (who created everything) so we just need to Believe to inherit the Kingdom!)

Investors should carefully consider the investment objectives, risks, charges and expenses of the Issachar Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net.  The prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc, Inc is not affiliated with Northern Lights Distributors, LLC.  Important Risk Information.  Mutual Funds involve risks including the possible loss of principal.  The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions.  If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss.  The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments.  The Adviser’s judgment about the attractiveness, value and potential appreciation of particular asset classes and securities in which the Fund invests may prove to be incorrect and may not produce the desired results.  Past performance is no guarantee of future results.  If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss.  The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments.    NLD Review Code: 3875-NLD-11/18/2019

Market Update: 11-11-19

The Issachar Fund (LIONX), is about 40% invested in stocks and looking for more opportunities!  The major stock indexes have now all broke out above their ceilings of resistance.  That trend break-out confirmed what I needed to do and gave me the conviction to get invested.  We had been in a wide trading range for the last six months as stocks digested the “ramp up” from Christmas Eve to the beginning of May.  I now believe stocks could trend higher into January.  Consequently, I purchased an equal weighting basket of stocks (40%).  Junk bonds are trending higher albeit at a slower pace nevertheless still trading above their 50-dma.  Junk bonds are telling me that investors have an appetite for risk.  The “slowing” slope of the junk bond trend indicates to me that stocks may offer a better risk adjusted return than bonds at this juncture.  Therefore, my focus is on finding more stocks to buy and avoiding bonds.   LIONX is a BRI, Trend Following, Liquid-Alternative Mutual Fund that is Actively Managing  Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes.  When my Strategy identifies a low risk environment, I seek to invest in junk bonds/growth stocks with strong technical chart patterns and sound fundamentals.  During high risk environments I seek to avoid Life-Changing losses.  The Issachar Fund seeks moderate capital appreciation consistent with capital preservation.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.) 

The Fed futures are now forecasting a 3% chance of a ¼ point rate cut in 30 days!  That is a major shift down in the probability of future rate cuts.  I believe interest rates have put in a bottom and rates will continue rising at least in the near future.  The Fed cut rates three times this year and Fed futures forecasted each rate cut with a high probability of accuracy.  The fact that the Fed futures is now predicting only a 3% chance of a ¼ point rate cut is a huge “red flag” as I now expect rates to drift higher.  I believe we will see a lot of money now come out of bonds and into stocks because rising rates are typically not good for bond holders.  I also expect to see money come out of interest sensitive utilities, realty and precious metals and flow into economically sensitive investments like banks and financials.  As money flows out of interest sensitive investments, I expect that money to find a new home in bank, financials and possibly some energy stocks.  Banks have not been performing well this year as rates were heading lower and spreads narrowed.  However, rates have “ticked” higher and I expect to see banks catch a bid and rise into January.  Banks typically make more money when the spread between the short and long rates widen as they have been doing in the last few weeks.  My watch list is chock full of bank and financial stocks just waiting for the right opportunity to add them to LIONX.  I am looking to diversify stock holdings across several growth sectors. 

I am finding a lot of stocks that have been consistently increasing sales and earnings over the last three quarters and have double-digit next year earnings forecasts.  This is very encouraging to me and I look forward to putting more money to work.  I believe the market is getting less concerned about China trade and higher tariffs, a socialist democrat who can beat Trump in 2020 and a Trump impeachment.  Therefore, I expect stocks to continue higher into this seasonally strong period into the new year.  If I am wrong, I plan to do what is necessary to avoid life-changing losses.            

Bottom line:  I believe QE is still the main driving force lifting stocks higher.  The Fed is buying about $60 billion of bonds every month, which is currently predicted to continue until at least March of next year. The market is telling me that the future could be bright for economically sensitive stocks but not so bright for interest sensitive bonds.  If you invest with me in LIONX, I promise to treat your money like my very own.  Thanks for Your Trust and may God Bless You and Your Loved Ones!               


Here is a link to the latest
3rd Quarter Issachar Fund Fact Sheet

Member organizations: KA, NACFC, CIF, OSC, NAAIM and here is a podcast link to my interview on The Real FBI.       

Biblical Responsible Investing (BRI) is the term used to describe the activities of Christian investors who purposely align their investment choices to support their Christian beliefs. The Fund is ESG (Environmental Social Governance) conscious, pro-life and pro-family and will not invest in securities with a negative InspireImpact Score.     

May the God of Hope fill you with all Joy and Peace as you Trust in Him, so that you may overflow with Hope by the power of the Holy Spirit.  Romans 15:13

Investors should carefully consider the investment objectives, risks, charges and expenses of the Issachar Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net.  The prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc, Inc is not affiliated with Northern Lights Distributors, LLC.  Important Risk Information.  Mutual Funds involve risks including the possible loss of principal.  The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions.  If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss.  The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments.  The Adviser’s judgment about the attractiveness, value and potential appreciation of particular asset classes and securities in which the Fund invests may prove to be incorrect and may not produce the desired results.  Past performance is no guarantee of future results.  If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss.  The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments.    NLD Review Code: 3865-NLD-11/11/2019)

Market Update: 11-04-19

The Issachar Fund (LIONX), is Defensively positioned but that could change very soon!  I made no changes last week, but I expect to get back in the game shortly.  The Fed cut rates ¼ point last Wednesday as expected and the unemployment numbers came in better than expected on Friday.  GDP growth came in at a 1.9% annualized rate for the 3rd quarter. The market cheered the news by breaking out to new highs!  Historically, the market is in a seasonally strong period and I now expect the market to head higher into the new year. I believe the main driving force is more QE from the Fed to the tune of $60 billion per month of treasury purchases.  When the Fed buys treasuries, they add liquidity in the system and that typically is a good sign for stock investors.  I do not fully understand how this “free money – boat load” of QE gets in the stock market, but it often does, and it historically results in a “tide that lifts a lot of boats”.  Other central banks around the globe are also printing money to keep their economies afloat so it looks like we are all in this “sea of liquidity” together.  It will likely not be a pretty sight when they close the QE spigot so let’s enjoy the fun while it lasts.  As the saying goes, “don’t fight the Fed” which simply means get in line, follow the leader and don’t ask questions….yet.  LIONX is a BRI, Trend Following, Liquid-Alternative Mutual Fund that is Actively Managing  Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes.  When my Strategy identifies a low risk environment, I seek to invest in junk bonds/growth stocks with strong technical chart patterns and sound fundamentals.  During high risk environments I seek to avoid Life-Changing losses.  The Issachar Fund seeks moderate capital appreciation consistent with capital preservation.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.) 

 My watch list is full of low P/E stocks instead the usual higher P/E growth stocks.  My positions used to consist of higher P/E multiple stocks, but the market has not been kind to them lately, so I sat on the sidelines.  The character of the market seems to be changing in favor of rewarding Value (low P/E) over Growth (higher P/E) stocks.  I am excited at what I am seeing develop in the market.  My junk bond market indicator is still trending higher indicating that investor’s appetite for risk is still strong, so I am making a list and checking it twice.             

Fed Futures has a 10% probability of another rate cut at the next Fed meeting in 37 days.  I was surprised to see such a low probability of another rate cut and that tells me that bonds may take a breather until they can find another catalyst.  Gold is starting to look interesting again as the dollar declines.  My focus has shifted to low P/E stocks with favorable technicals and fundamentals.  Consequently, I am finding a lot of lower P/E stocks with historically consistent sales and earnings increases for the last three quarters and double-digit earnings estimates for next year.  I believe the higher P/E stocks are coming off the field to let the lower P/E stocks play a while and I plan to get back on offense

Bottom line:  Most of the earnings are out and they were better than expected albeit they lowered the bar to make it easier to beat.  However, the market is forward looking, and I believe the future looks bright.  Please join me as a shareholder and I promise to treat your money like my very own.  Thanks for Your Trust and may God Bless You and Your Loved Ones!               


Here is a link to the latest
3rd Quarter Issachar Fund Fact Sheet

Member organizations: KA, NACFC, CIF, OSC, NAAIM and here is a podcast link to my interview on The Real FBI.       

Biblical Responsible Investing (BRI) is the term used to describe the activities of Christian investors who purposely align their investment choices to support their Christian beliefs. The Fund is ESG (Environmental Social Governance) conscious, pro-life and pro-family and will not invest in securities with a negative InspireImpact Score.     

But to each one of us Grace has been given as Christ apportioned it. Ephesians 4:7

Investors should carefully consider the investment objectives, risks, charges and expenses of the Issachar Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net.  The prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc, Inc is not affiliated with Northern Lights Distributors, LLC.  Important Risk Information  Mutual Funds involve risks including the possible loss of principal.  The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions.  If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss.  The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments.  The Adviser’s judgment about the attractiveness, value and potential appreciation of particular asset classes and securities in which the Fund invests may prove to be incorrect and may not produce the desired results.  Past performance is no guarantee of future results.  If the Fund’s uses hedging instruments at the wrong time or judges market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss.  The use of leverage can magnify the effects of changes in value of the Fund and could cause investors in the Fund to lose more money in adverse environments.    NLD Review Code: 3837-NLD-11/5/2019