Category - Weekly Updates

Market Update: 03-23-20

The Issachar Fund (LIONX), is still in Cash as of 3/22/20, but that could change!  Cash has been a haven for LIONX shareholders since 2/25/20 as stocks have taken a beating.  The S&P 500 Index is down over 26% YTD and the trend is still pointing lower.  It is hard to imagine but the S&P 500 Index is at the same level it was on 12/24/18 which was the Christmas Eve market bottom. Actually, from 5/31/17 to 3/20/20 (~2.8 years) the S&P 500 Index is up only about 1% so basically, the market has gone nowhere fast.  I am waiting for confirmation that a potential bottom is in before tiptoeing back in the market, but I don’t believe we are there yet.  I followed my “sell rules” and avoided major losses since 2/25/20.  I have “buy rules” for getting back in but “risk” still appears too high for my money so I will patiently wait for the right pitch before taking a swing.  I plan to remain open-minded, flexible and take one-day-at-a-time being careful to not let anything or anyone steal my peace.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.  For more information on the Issachar Fund, including current fund performance, please visit www.IssacharFund.com/Performance/.) 

About 500 Americans have died of the coronavirus!  During the 2018-2019 season, the CDC estimates 16.5 million people went to a health care provider for the flu and more than 34,000 people died in the U.S. The prior season saw 61,000 deaths.  China is now back to normal.  I believe America will defeat this virus shortly and we will be better and stronger as a result. 

The Fed’s balance sheet is at a record $4.7 trillion!  Congress is working on a $2 trillion spending package to put money back in the economy and our pockets.  I believe that most of this excess liquidity will eventually work its way into the economy and more importantly into the stock and bond market.  I believe that once the virus cases in America appear to be peaking (hopefully, over the next few weeks) then the market’s uncertainty will begin to wane.  Once analysts have better visibility on future earnings then their estimates will eventually be reflected in the stock prices and stock breakouts will likely emerge.  My watch list is full of fundamentally strong stocks that have exhibited strong relative strength charts during this bear market and could be ready for the next leg up in price once the market bottoms.  I believe there is a light at the end of the tunnel, and we could be on the verge of an incredible stock buying opportunity.            

Bottom line:  The Issachar Fund remains in cash, as the market searches for a bottom.  I am being careful to not buy into the fear that is spreading rapidly and stirring the panic pot.  I am focusing on what may happen next instead of what is happening because I want to get in position for the next opportunity that may be in the making.  I believe that capital preservation is the key to long-term success.  If you like how I have managed risk and you want to make a change, please contact me.   I pray that you find Peace and Rest in this difficult and challenging time. 

Links: My Story, Strategy, Blogs, Interview, Fact Sheet, Performance, Website, Grace

Come to me, all you who are weary and burdened, and I will give you rest.  Matthew 11:28

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Investors should carefully consider the investment objectives, risks, charges and expenses of the Issachar Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net.  The prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc., (HCM) is not affiliated with Northern Lights Distributors, LLC.  Important Risk Information: Mutual Funds involve risks including the possible loss of principal.  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.  If the Fund 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.  If the Fund 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.  Past performance is no guarantee of future results. S&P 500 Index is an unmanaged composite of 500 large-capitalization companies. Biblical Responsible Investing (BRI) describes the activities of Christian investors who purposely align their investment choices to support their Christian values. LIONX is also ESG (Environmental Social Governance) conscious, pro-life and pro-family. LIONX is a BRI, Trend Following, Liquid-Alternative, Tactical Allocation Mutual Fund that is Actively Managing Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes.  When my Strategy identifies a low-risk environment, I seek to invest in growth stocks/junk bonds with sound fundamentals and strong technical chart patterns.  During high-risk environments, I seek to avoid Life-Changing losses.  The Issachar Fund seeks moderate capital appreciation consistent with capital preservation.  The Fund’s Adviser (HCM) is Celebrating 30 Years of Actively Managing Risk!  99% of my liquid net worth is invested in LIONX, so I have the incentive to avoid life-changing losses when the next recession/bear market occurs.  Before June 2019, I was not honoring God by investing in companies that support abortion, pornography, human trafficking, etc. then God touched my heart.  He revealed to me how to screen out “bad actors” and make His Fund a BRI Fund.  Since partnering with Inspire, LIONX has only invested in companies with positive Inspire Impact Scores and I am very pleased with the results.  The ­Inspire Impact Score is a faith-based ESG (environment, social, governance) security selection methodology that seeks to identify the most inspiring, biblically aligned companies in the world.  NLD Review Code: 3358-NLD-3/23/2020

Market Update: 03-16-20

The Issachar Fund (LIONX), is still in Cash as of 3/15/20, but my watch list is growing!  LIONX went to an “all cash” position on 2/25/20 after hitting sell triggers.  I followed my sell discipline and therefore avoided further declines which could have led to life-changing losses.  The S&P 500 Index is down over 20% from its peak on 2/19/20.  I am patiently waiting for a confirmation that the bear/correction (>20%) is over before getting back in, but I don’t believe we are there yet.  Once I get a “buy” signal then I will look for stocks that meet my fundamental and technical criteria in my watch list of potential Leaders.  I believe there is a ton of money on the sidelines waiting to get invested once the market has more clarity on future earnings, but the current picture is “clear as mud”.  Trump declared a “national emergency $50 billion spending plan” on Friday and the market rallied about 7% in the last 30-minutes of trading possibly due to an oversold market and some heavy short-covering.  This rally comes after the market just experienced the fastest market decline into bear market territory since 1929.  My approach is to take it one-day-at-a-time, using my rules, charts, and discipline to navigate these uncharted waters.  Currently, my perception of risk is high, and I remain on defense until I believe the market has bottomed.  However, the future could be bright for investors flush with cash ready to scoop up bargains near the bottom.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.)  

The Fed announced on Sunday that it would cut its target interest rate by 100bps to a range of 0 to 0.25% returning rates to the record lows reached during the 2009-09 recession.  The Fed is also launching another $700 billion round of QE “artificial money creation” by buying $500 billion of Treasuries and $200 billion of mortgage bonds starting Monday with a $40 billion installment!  At this rate of “free” money creation, it will top the money the Fed threw at the 2008 financial crisis.  The Fed increased its balance sheet last week by $70 billion which brings its balance sheet back to $4.3 Trillion, just short of the $4.5 Trillion peak it set in the 2008 financial crisis.  Just this past Thursday the Fed said it would make $1.5 trillion available to Wall Street over just the next two days.  What will the Fed do to get us out of the next recession if they “run out of free money bullets”, buy stocks?  The Sunday evening index futures traded “limit down” and was halted after a 5% decline.  The dollar is also trading down about 1% tonight against other major currencies and I would not be surprised to see gold rally on Monday.  Bitcoin has lost about 50% from its recent 2/18/20 peak.  Oil prices are down over -45% YTD.  There appears to be “no juice left to squeeze” in the 20-year Treasury bond as prices dropped over 10% since 3/9/20.  Long and short duration bonds including muni bonds have not been a haven place to hide in this corona crisis.  The corona health crisis turned into an economic crisis that could be evolving into a serious credit market event.  However, money markets (cash and cash equivalents) have been a good place to be during this corona scare and I am content to sit and wait for “my pitch before taking a swing”.   

Italy has quarantined the entire country due to coronavirus fears!  China closed down its last coronavirus hospital.  Ultimately, the coronavirus will likely burn itself out with warmer weather.  China reported only 11 new cases on Sunday, so we may have 3 to 6 more weeks of “fear and panic” before the contagion dies here in America.  Italy was hit hard probably because they have the oldest population in Europe (average age of those that have died is 81).  85 million perished in WW2 and 50 million perished from the Spanish flu.  The CDC estimates the 2009 Swine flu caused 60.8 million illnesses, 273,304 hospitalizations and 12,469 deaths in America.  Last year, 37,000 Americans died from the common Flu.   America has about 3,595 active cases of coronavirus and only 68 deaths!  Please put the coronavirus in perspective and do not panic. 


Bottom line:  Fear Not!  In my opinion, it is not the end of the world; the sky is not falling, and this too shall pass.  Yes, it could get worse before it gets better, so draw a line in the sand and stay disciplined.  Mike Tyson said: “We all have a plan until you get punched in the mouth”.  This might be a good time to reassess your tolerance for risk and consider a small allocation to LIONX.  Fear is very contagious, but I believe it will eventually stop spreading.  The Fed has thrown the kitchen sink at the market and we could be setting up for an incredible buying opportunity.  I believe that capital preservation is the key to long-term success, and no one cares more about your money than you do.  I pray that you Rest and receive His Grace and Peace in this storm of life. 

Links: My Story, Strategy, Blogs, Interview, Fact Sheet, Performance, Website, Grace

Let the Peace of God rule your heart, acting as an umpire; deciding and settling with finality all questions that arise in your mind. Colossians 3:15

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Investors should carefully consider the investment objectives, risks, charges and expenses of the Issachar Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net.  The prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc., (HCM) is not affiliated with Northern Lights Distributors, LLC.  Important Risk Information: Mutual Funds involve risks including the possible loss of principal.  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.  If the Fund 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.  If the Fund 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.  Past performance is no guarantee of future results. S&P 500 Index is an unmanaged composite of 500 large-capitalization companies. Biblical Responsible Investing (BRI) describes the activities of Christian investors who purposely align their investment choices to support their Christian values. LIONX is also ESG (Environmental Social Governance) conscious, pro-life and pro-family. LIONX is a BRI, Trend Following, Liquid-Alternative, Tactical Allocation Mutual Fund that is Actively Managing Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes.  When my Strategy identifies a low-risk environment, I seek to invest in growth stocks/junk bonds with sound fundamentals and strong technical chart patterns.  During high-risk environments, I seek to avoid Life-Changing losses.  The Issachar Fund seeks moderate capital appreciation consistent with capital preservation.  The Fund’s Adviser (HCM) is Celebrating 30 Years of Actively Managing Risk!  99% of my liquid net worth is invested in LIONX, so I have the incentive to avoid life-changing losses when the next recession/bear market occurs.  Before June 2019, I was not honoring God by investing in companies that support abortion, pornography, human trafficking, etc. then God touched my heart.  He revealed to me how to screen out “bad actors” and make His Fund a BRI Fund.  Since partnering with Inspire, LIONX has only invested in companies with positive Inspire Impact Scores and I am very pleased with the results.  The ­Inspire Impact Score is a faith-based ESG (environment, social, governance) security selection methodology that seeks to identify the most inspiring, biblically aligned companies in the world.  NLD Review Code: 3341-NLD-3/16/2020

Market Update: 03-09-20

The Issachar Fund (LIONX), is still in Cash as of 3/8/20, but I see incredible opportunity in the making!  While it was hard to see what could go wrong when LIONX was last fully invested on February 19, I believe one must always be ready to sell positions if risk rises and one’s “line in the sand” is crossed.  I am an optimist at heart and expect the best to happen, but I have a threshold of pain where I will abandon my “system”.  I will do all I can to prevent life changing options.  Yes, markets have always come back from steep declines but what if next time it takes longer than ever?  What will happen if the Fed runs out of “bullets” to rescue the market?  Just ask the people in Japan who have been in a recession for over 30 years if zero percent interest rates have been a good policy.  I expect the coronavirus to slowly burn itself out as warmer temperatures approach, but it appears that hopes for a vaccine may still about a year away.  As analysts begin to understand the virus’s impact on earnings, I believe they will revise earnings estimates and then the market might be able to put in a defining bottom where new leaders will emerge.  I am eager for this incredible opportunity and my watch list is full of stocks with sound fundamentals of three consecutive quarterly earnings and sales increases.  However, the technical chart patterns are not displaying institutional accumulation, so I will patiently wait for the “right pitch before taking a swing”.  I stand ready to start buying but my risk measures are still in the “red zone” as junk bonds are well below their averages indicating higher risk.  It’s likely fear will eventually recede, and greed will take over once again, but it does not appear to be today.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.)

The S&P 500 Index is down over 7.5% YTD (now at breakeven levels since 7/12/19) as it falls below its 200-day moving average and flirts with the low reached on 2/28/20.  We had a nice constructive high-volume supportive rally off the 2/28/20 low on Friday, but the futures are down about 5% as I write this on Sunday night.  We could see some capitulation selling on Monday that could set the stage for a bottom formation, but it will likely be a messy and volatile one.  Could the fragile global recovery be “derailed” by the corona black swan?  Global central banks are cutting rates and inflating their balance sheets trying to mitigate the negative effects of the coronavirus, but will it help?  Market crashes are not fun and can be kind of scary at times so we should always be prepared to act in case of an unexpected black swan event.  Historically, there have been enormous opportunities on the other side of a black swan event if one is patient and able to buy when the “price is right”.

The Fed surprised us with a ½ percent emergency rate cut last Tuesday and the market has declined about 5% since then!  Did they panic or do they see something we are not seeing as they slowly run out of ammunition?  The yield curve is still inverted putting pressure on the banking system, so I believe the Fed will likely cut rates again this week.  The Fed also increased its balance sheet by $83 billion last week and that is the second-largest weekly increase since they started their balance sheet expansion experiment on 8/30/19.  10-year Treasury yields hit all-time lows near 0.70% last Friday.  However, the 10-year Treasury yield in the futures market is currently trading at 0.50% which is a 25% + drop in yield since Friday!  The 20+ Year Treasury bond price finished up 5.2% on Friday! Commodity indexes have fallen about 11% YTD.  Oil prices dropped 10% on Friday and are down about -32% YTD.  Oil futures are down about 30% from Friday! Gold futures are up only about 1%, so I am not seeing a flight to safety in the precious metals.  30-year Treasury bonds seem to be the safe-haven play tonight as they rally up near a 4% gain in price from Friday’s close.  Saudi Arabia promises to open the spigots (creating a price war) hoping to drive oil prices down as Russia/OPEC relations turn ugly.  The dollar has dropped almost 4% since 2/20/20 in a waterfall decline!

The entire city of Milan is being quarantined!  Since one can remain asymptomatic for at least a couple of weeks, quarantines have done little to contain the virus.  Severe quarantines and supply chain disruptions could cost many jobs and health concerns.  The number one silent epidemic killer is called stress.  Never let anyone or anything steal your Peace.

Bottom line:  Things could get worse before they get better.  Fear should eventually decline, and greed will likely return. I believe Cash is good place to be until the next opportunity presents itself.  Catching a falling knife could be dangerous, so I plan to be patient and let the chips fall where they may then the bargain hunting can begin.  I pray that you find His Grace and Peace in this storm of life. 

Links of Interest: My Story, Strategy, Blogs, Interview, Fact Sheet, Performance, Website

And the peace of God, which surpasses all understanding, will guard your hearts and your minds in Christ Jesus.  Philippians 4:7

**************************************************************************************Investors should carefully consider the investment objectives, risks, charges and expenses of the Issachar Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net.  The prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc., (HCM) is not affiliated with Northern Lights Distributors, LLC.  Important Risk Information: Mutual Funds involve risks including the possible loss of principal.  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.  If the Fund 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.  If the Fund 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.  Past performance is no guarantee of future results. S&P 500 Index is an unmanaged composite of 500 large-capitalization companies. Biblical Responsible Investing (BRI) describes the activities of Christian investors who purposely align their investment choices to support their Christian values. LIONX is also ESG (Environmental Social Governance) conscious, pro-life and pro-family. LIONX is a BRI, Trend Following, Liquid-Alternative, Tactical Allocation Mutual Fund that is Actively Managing Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes.  When my Strategy identifies a low-risk environment, I seek to invest in growth stocks/junk bonds with sound fundamentals and strong technical chart patterns.  During high-risk environments, I seek to avoid Life-Changing losses.  The Issachar Fund seeks moderate capital appreciation consistent with capital preservation.  The Fund’s Adviser (HCM) is Celebrating 30 Years of Actively Managing Risk!  99% of my liquid net worth is invested in LIONX, so I have the incentive to avoid life-changing losses when the next recession/bear market occurs.  Before June 2019, I was not honoring God by investing in companies that support abortion, pornography, human trafficking, etc. then God touched my heart.  He revealed to me how to screen out “bad actors” and make His Fund a BRI Fund.  Since partnering with Inspire, LIONX has only invested in companies with positive Inspire Impact Scores and I am very pleased with the results.  The ­Inspire Impact Score is a faith based ESG (environment, social, governance) security selection methodology that seeks to identify the most inspiring, biblically aligned companies in the world.  NLD Review Code: 3326-NLD-3/9/2020

Market Update: 03-02-20

The Issachar Fund (LIONX), is 100% in Cash as of 3/1/20!  As previously discussed, I heeded the “red flags” and sold all positions including our muni bond ETFs.  The coronavirus fears have spread faster than anticipated and fear has trumped greed.  The S&P 500 Index has declined every day losing -12.70% in the last 7-days of trading and it is now down -8.27% YTD.  LIONX performance results YTD can be seen here.  We have just witnessed the indexes falling faster than it rises and that can be scary if one has a fully invested buy and hold posture.  Past performance is now history so all that matters is how one is doing today and what one does tomorrow if things do not go as planned.  I try to take it one-day-at-a-time measuring risk and positioning LIONX accordingly.  My risk measure of junk bonds is trading below its 50-day moving average (dma) so my discipline has the portfolio positioned in a “risk-off” environment.  LIONX seeks to avoid life-changing losses and participate in the major up trends.  We could be witnessing one of those life-changing events, so caution is advised.  However, I have seen this type of waterfall decline many times in the last 31 years and I am looking forward to the potential opportunities that could result after the market bottoms and the junk bond market starts trending above its 50-dma.  Cash has been a good place to be while the market gets crushed but my watch list is already filled with stocks that are displaying higher relative strength so opportunity could be knocking.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.)    

The semi-conductor index bounced off its 200-dma on above-average volume last Friday!  I believe that is a good sign as it shows me that “big money” could be betting that the worst is over as they pick up “fire sale” bargains.  If the market can get some clarity on how the virus will impact earnings, then I believe stocks will attempt to discount the future and we will begin to see the faster horses (leaders) sprint out of the gate.    However, I believe there is still too much uncertainty concerning the virus, so I plan to patiently wait for more clues from the leaders.    

We just witnessed the most rapid 10% market decline off the peak in history!  The Fed said it stands ready to act appropriately to address the economic fallout of COVID-19 (coronavirus).  However, the Fed decreased its balance sheet by $13 Billion last week and over $24 Billion in the last two weeks so who’s side are they really on?  I wonder if the Fed is allowing the market to crash so money will flow into safe-haven Treasury bonds which would allow the Fed to sell its plethora of bonds at lower rates to reduce its balance sheet?  I also wonder if the “deep state” wants to crash the market in hopes of throwing us into a recession before the election lessoning Trump’s chances of re-election?  It is hard for me to imagine why anyone would rather see the country fail than Trump succeed.  We do live in “interesting times”.  Fed futures are predicting a 100% chance of a ¼ point rate cut on March 18th and an 80% chance of another ¼ point rate cut on April 29th.  I do not believe rate cuts will help the market if the virus gets out of control.  The good news is that the hotter weather is believed to slow the virus spreading so the worst may be over.           

Bottom line:  The sky is not falling.  However, risk appears elevated, and I believe risk management is now more important than ever so please be patient and do not try to catch a falling knife.  My eyes are focused on tomorrow and how I want to position LIONX for the next great opportunities that are developing.  It may be hard to see how we will get out of this mess but by the Grace of God we will.  Thanks for reading and may your day be blessed!   

LIONX is a BRI, Trend Following, Liquid-Alternative, Tactical Allocation Mutual Fund that is Actively Managing Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes.  When my Strategy identifies a low-risk environment, I seek to invest in growth stocks/junk bonds with sound fundamentals and strong technical chart patterns.  During high-risk environments, I seek to avoid Life-Changing losses.  The Issachar Fund seeks moderate capital appreciation consistent with capital preservation.  The Fund’s Adviser (HCM) is Celebrating 30 Years of Actively Managing Risk!  99% of my liquid net worth is invested in LIONX, so I have the incentive to avoid life-changing losses when the next recession/bear market occurs.      

Before June 2019, I was not honoring God by investing in companies that support abortion, pornography, human trafficking, etc. then God touched my heart.  He revealed to me how to screen out “bad actors” and make His Fund a BRI Fund.  Since partnering with Inspire, LIONX has only invested in companies with positive Inspire Impact Scores and I am very pleased with the results.  Biblical Responsible Investing (BRI) describes the activities of Christian investors who purposely align their investment choices to support their Christian values. LIONX is also ESG (Environmental Social Governance) conscious, pro-life and pro-family.

Member organizations: KA, NACFC, CIF, OSC, NAAIM. 

Here is a Podcast of “My Interview on The Real FBI. 

Links to My Story, My Strategy and My Blogs.

LIONX Performance and Fact Sheet

Let us then approach God’s throne of grace with confidence, so that we may receive mercy and find grace to help us in our time of need.  Hebrews 4:16

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Investors should carefully consider the investment objectives, risks, charges and expenses of the Issachar Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net.  The prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc., (HCM) is not affiliated with Northern Lights Distributors, LLC.  
Important Risk Information:
Mutual Funds involve risks including the possible loss of principal.  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.  If the Fund 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.  If the Fund 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.  Past performance is no guarantee of future results. S&P 500 Index is an unmanaged composite of 500 large-capitalization companies. The ­Inspire Impact Score is a faith-based ESG (environment, social, governance) security selection methodology that seeks to identify the most inspiring, biblically aligned companies in the world. The Inspire Impact Score utilizes both positive inclusionary and negative exclusionary screens in the scoring process. The result is a rules-based system of finding companies that are operating as blessings to their customers, communities, workforce and the world and excluding companies that are operating at odds with biblical values.  NLD Review Code: 3287-NLD-3/2/2020  
Dexter P. Lyons, Portfolio Manager (LIONX) Sunday, March 1, 2020.

Market Update: 02-24-20

The Issachar Fund (LIONX), is about 60% invested in a diverse group of leading growth stocks and about 50% in Muni Bond ETFs.  I sold the 30% hedge (short) tech position last Tuesday and the market peaked on Wednesday.  Since Wednesday, technology has fallen about 2.8% so the market is in a minor pullback which could result in a deeper correction as coronavirus fears spread.  I see no real fundamental reason for the market to enter into a serious correction/bear market at this time, but I plan to heed the “red flags” as I see them.  Consequently, I reduced stock exposure and stand ready to take further action should my sell limits get triggered.  I earnestly seek to avoid life-changing losses because I want to continue pursuing my passion for managing money.  Muni bonds have been doing fine as money flows out of riskier stocks into less risky bonds.  The market was due for a pullback, but this could get ugly quickly if panic selling takes over.  Just taking one-day-at-a-time and assessing the risk daily to determine how much exposure I am comfortable with. (Portfolio holdings are subject to change at any time and should not be considered investment advice.)     

The Fed’s balance sheet declined about $11 billion last week!  However, the Fed stated that it plans to keep expanding its balance sheet into June.  I have noticed that when the Fed’s balance sheet declines, the market has struggled to advance.  I am very concerned this decline could get out of hand if the Fed does not provide enough liquidity to abort whatever is troubling the market.  I believe the Fed will attempt to “save” the market from a major crash prior to the election but I would not bet my life savings on it. 

Gold and silver have continued to move higher as gold hits a seven-year high!  They are both extended in price at this time and could be ready for a parabolic move if stock market conditions deteriorate.  Oil prices are down about 13% YTD and are still in a downtrend, so I am not interested in oil.  Bitcoin is trading near $10,000 and trending higher as investors seek stock alternatives.  Utilities are up about 8% YTD as investors seek higher yields.  Higher yielding junk bonds are trading near all-time highs indicating that investors still have an appetite for risk.  Mixed signals could mean a confused market fraught with uncertainty leading to lower prices.            

Bottom line:  The market experienced two above-average volume days of selling last Thursday and Friday and that has me very concerned this decline could get worse before it gets better.  No one knows the future and there are no guarantees in the stock market, so I measure risk every day seeking to avoid life-changing losses.  Grace & Peace to Everyone!   

LIONX is a BRI, Trend Following, Liquid-Alternative, Tactical Allocation Mutual Fund that is Actively Managing Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes.  When my Strategy identifies a low-risk environment, I seek to invest in growth stocks/junk bonds with sound fundamentals and strong technical chart patterns.  During high-risk environments, I seek to avoid Life-Changing losses.  The Issachar Fund seeks moderate capital appreciation consistent with capital preservation.  The Fund’s Adviser (HCM) is Celebrating 30 Years of Actively Managing Risk!  99% of my liquid net worth is invested in LIONX, so I have the incentive to avoid life-changing losses when the next recession/bear market occurs.      

Before June 2019, I was not honoring God by investing in companies that support abortion, pornography, human trafficking, etc. then God touched my heart.  He revealed to me how to screen out “bad actors” and make His Fund a BRI Fund.  Since partnering with Inspire, LIONX has only invested in companies with positive Inspire Impact Scores and I am very pleased with the results.  Biblical Responsible Investing (BRI) describes the activities of Christian investors who purposely align their investment choices to support their Christian values. LIONX is also ESG (Environmental Social Governance) conscious, pro-life and pro-family.

Member organizations: KA, NACFC, CIF, OSC, NAAIM. 

Here is a Podcast of “My Interview on The Real FBI. 

Links to My Story, My Strategy and My Blogs.

LIONX Performance and Fact Sheet

The heart of man plans his way, but the Lord establishes his steps.  Proverbs 16:9

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Investors should carefully consider the investment objectives, risks, charges and expenses of the Issachar Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net.  The prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc., (HCM) is not affiliated with Northern Lights Distributors, LLC.  
Important Risk Information:
Mutual Funds involve risks including the possible loss of principal.  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.  If the Fund 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.  If the Fund 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.  Past performance is no guarantee of future results. The ­Inspire Impact Score is a faith-based ESG (environment, social, governance) security selection methodology that seeks to identify the most inspiring, biblically aligned companies in the world. The Inspire Impact Score utilizes both positive inclusionary and negative exclusionary screens in the scoring process. The result is a rules-based system of finding companies that are operating as blessings to their customers, communities, workforce and the world and excluding companies that are operating at odds with biblical values.
NLD Review Code: 3277-NLD-2/24/2020   Dexter P. Lyons, Portfolio Manager (LIONX) Sunday, February 23, 2020.

Market Update: 02-18-20

The Issachar Fund (LIONX), is about 99% invested in a diverse group of leading growth stocks, about 50% in Muni Bond ETFs and about 30% Short Technology.  I purchased more stocks and muni bonds and put on a hedge (30% short) seeking to limit some downside risk should the market turn south on escalating coronavirus fears.  If the “fears” diminish, I plan to remove the hedge and stay long.  I am of the opinion that Chinese and US central banks will flood the market with liquidity as needed to squash virus fears seeking to instill hope and prosperity into the markets.  The Fed currently has the ability to increase its balance sheet by creating money out of thin air without anyone auditing its records.  Sooner or later, there will likely be a price to pay for this excess money creation, but I do not believe the time is near.  I plan to ride this liquidity wave as long as it lasts.  However, I will not stick my “head in the sand” and pretend that this will continue forever.  Risk management has not been “valued” since the financial collapse in 2008 but I believe it will be “respected” during the next correction/bear market.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.)

The Fed’s balance sheet increased by $16 billion last week and $422 BILLION since 8/30/19!  As long as the Fed keeps expanding its balance sheet, I believe it will be hard for the market to correct.  When the Fed creates liquidity out of nothing, I believe it usually finds its way in the stock and bond markets where it is being welcomed with open arms.  If the coronavirus causes earnings to contract more than anticipated, I believe stock prices could still continue higher due to an expanding Fed balance sheet causing P/E ratios to expand. 

This bull market could end with a parabolic move higher!  While many pundits believe P/E ratios are high and stretched and ripe for a sharp correction, I believe the market could go higher if the Fed remains on our side.  I believe the Fed has our back and will use all tools in its market bag to support an upward slopping stock market into the November election.  If I am right, this bull market could extend its gains higher and end with a parabolic move into November.  If that were to happen, I believe Trump would be reelected and both Houses would be ruled by Republicans for more than four years.  However, I will continue to manage risk on a daily basis seeking to avoid life-changing losses. 

Party like its 1999!  The Fed expanded its balance sheet similar to what it was doing right before the year 2000.  There was great fear percolating through the markets at the end of 1999 as investors feared computers would not function properly when the clock strikes midnight on December 31, 1999.  The worst fears were not realized in January, but the market topped on March 24, 2000.  From 3/24/2000 to 9/21/2000, the market dropped over 35%!  History has a way of repeating and rhyming so let’s keep our eyes on the road and never fall asleep at the wheel stuck on “buy and hold” cruise control.                        

China is learning how to play the QE game!  China dropped about $29 billion into their repo market on Monday, February 17, 2020.  They also lowered their interest rates by 10 bps.  I believe the Chinese could be learning how to play the QE game better than their rivals at the Federal Reserve.  Think about it, if no one knows the limits of QE (printing money out of thin air) then why not push the limits to see how much the market will stand.  I believe that is where we are.  When a country gets in a bind, they just print more of their currency hoping the “market” will “take it”.  Central banks understand if they reach an inflection point by printing too much currency they are doomed.  I believe it is the “secret” no one wants to talk about because there is no “Plan B”.  If central banks get to a point where the world does not accept their currencies, then the whole system could implode.  We are not there yet, but I believe we are headed in that direction.  Managing risk daily and letting the market determine the return has helped me to avoid life-changing losses.          

Junk bonds are still confirming the uptrend in the stock market!  The junk bond market is like a “canary in the coal mine” that has historically revealed to us the “risk” in the market.  The junk bond market is trending higher and just reached an all-time high.  This tells me that investors may still have an appetite for risk and their hunger could be growing.  The market is also trading near an all-time high and I see no alarming signs of the trend ending any time soon.  I believe there are times to be in the market when the risk is low and there are times to sit in cash when the risk is high.  I view the risk as low because the economy appears to be firing on all cylinders and I believe the Fed will do whatever necessary to keep this train rolling into the November election.  It is hard to stop a train once it is rolling!             

Bottom line:  The market appears to be firing on all cylinders with plenty of gas still left in the tank!  I remain optimistic and believe the trend (the Fed and QE) is my friend.  However, there is always the possibility of a Black Swan event so stay alert and focused on the prize.  I wish you all a healthy and prosperous week! Grace & Peace to Everyone!   

LIONX is a BRI, Trend Following, Liquid-Alternative, Tactical Allocation Mutual Fund that is Actively Managing Risk like a Hedge Fund seeking low-correlation/beta/risk to the stock indexes.  When my Strategy identifies a low-risk environment, I seek to invest in growth stocks/junk bonds with sound fundamentals and strong technical chart patterns.  During high-risk environments, I seek to avoid Life-Changing losses.  The Issachar Fund seeks moderate capital appreciation consistent with capital preservation.  The Fund’s Adviser (HCM) is Celebrating 30 Years of Actively Managing Risk!  99% of my liquid net worth is invested in LIONX, so I have the incentive to avoid life-changing losses when the next recession/bear market occurs.      

Before June 2019, I was not honoring God by investing in companies that support abortion, pornography, human trafficking, etc. then God touched my heart.  He revealed to me how to screen out “bad actors” and make His Fund a BRI Fund.  Since partnering with Inspire, LIONX has only invested in companies with positive Inspire Impact Scores and I am very pleased with the results.  Biblical Responsible Investing (BRI) describes the activities of Christian investors who purposely align their investment choices to support their Christian values. LIONX is also ESG (Environmental Social Governance) conscious, pro-life and pro-family.

Member organizations: KA, NACFC, CIF, OSC, NAAIM. 

Here is a Podcast of “My Interview on The Real FBI. 

Links to My Story, My Strategy and My Blogs.

LIONX Performance and Fact Sheet

I Believe: The God of heaven and earth is my Father and I am a Son.  Jesus is my Savior and the Holy Spirit is my Helper.  We are all under the New Covenant of Grace and there is nothing we can do or not do to make God love us any more or less.  I try really hard to Rest daily in His Grace & Peace and Love my neighbor the way Jesus Loves Me!  I pray that you would accept the Love of my Father because I Believe You are a Son/Daughter that is totally forgiven and unconditionally Loved Forever! Amen!              

May God our Father and the Lord Jesus Christ give you Grace and Peace. 1 Corinthians 1:3  

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Investors should carefully consider the investment objectives, risks, charges and expenses of the Issachar Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net.  The prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC.   Horizon Capital Management Inc., (HCM) is not affiliated with Northern Lights Distributors, LLC.  
Important Risk Information:
Mutual Funds involve risks including the possible loss of principal.  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.  If the Fund 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.  If the Fund 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.  Past performance is no guarantee of future results. The ­Inspire Impact Score is a faith-based ESG (environment, social, governance) security selection methodology that seeks to identify the most inspiring, biblically aligned companies in the world. The Inspire Impact Score utilizes both positive inclusionary and negative exclusionary screens in the scoring process. The result is a rules-based system of finding companies that are operating as blessings to their customers, communities, workforce and the world and excluding companies that are operating at odds with biblical values.   NLD Review Code:3270-NLD-2/18/2020   Dexter P. Lyons, Portfolio Manager (LIONX) Monday, February 17, 2020.