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