Lessons Learned! The Issachar Fund is slightly invested and optimistic! The market looks healthy and poised to move higher, but there may be some initial new year volatility as big money repositions itself for 2022. Money has been flowing out of the higher P/E names and into the defensive stocks like utilities and consumer staples. This tells me that the market may be anticipating slower growth and higher inflation in 2022. Issachar holds positions in the Agriculture, Building, Chips, Medical, Real Estate, Software, and Telecom Sectors as they appear to be under accumulation. I plan to follow the smart money by analyzing price and volume charts looking for stocks with increasing sales, earnings, and profit margins. Most institutional money must stay fully invested, so I plan to follow the smart money in the bull markets and avoid the life-changing losses during the bear markets. If you know someone who might benefit from my philosophy, please forward this to them or contact me. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
Issachar had a great 2020, and into April 2021, it was looking like 2021 was going to be another stellar year! However, I let my guard down and did not cut losses quick enough; lesson learned. The February to April losses taught me valuable lessons that I vowed never to repeat. I drew a line in the sand and refused to go lower, which is pretty much what has happened since April. A 10% loss requires an 11% gain to break even, and I will do my best to get us back in the black in 2022. No one controls or knows what the market will return, but I can manage the risk I take. When the market is not rewarding me for taking risk, I plan to obey my time-tested system and do what it takes to get in sync with the market. All my investable assets are in Issachar, so I have a huge incentive to keep us going in the right direction.
The Fed reduced its balance sheet by $33 billion last week, but liquidity is still robust! The Fed says it is concerned about the inflation it has created, but let’s see if they do anything. I suspect they will keep the money spigot open until something breaks, then it may be too late. By the way, there are now over 14,000 cryptocurrencies in circulation. Bitcoin and the NFT “metaverse” still do not interest me. It reminds me of the tulip-bulb mania era of the early 1600s, looking for a pin to prick the bubble. I do not believe we are there yet, but it could happen fast if the Fed decides to fight inflation. Could this be a year for Gold as the dollar turns south? I am a cautious bull for now.
Bottom Line: Issachar is lightly invested in stocks with good earnings, sales, and margins that appear to be under accumulation, and I plan to get more invested if the uptrend continues. I have learned valuable lessons from my 2021 mistakes, and I have new rules to cover those errors and get us back on track. I am expecting 2022 to be a great and prosperous year for Issachar! I pray that you have a Happy & Healthy New Year and Thank You Again for Your Continued Trust and Business!
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Issachar Fund. This and other important information about the Fund are contained in the Prospectus, obtained by calling 1-866-787-8355 or visiting www.IssacharFund.com. The Prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC. Horizon Capital Management Inc. (HCM) is not affiliated with Northern Lights Distributors, LLC.
Important Risk Information: Mutual Funds involve risks, including the possible loss of principal. An investment in the Fund may not be appropriate for all investors. The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly, and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions. The Adviser’s judgment about the attractiveness, value, and potential appreciation of particular asset classes and securities in which the Fund invests may prove incorrect and may not produce the desired results. Past performance is no guarantee of future results. Ratings are only one form of Fund performance and should not be used as the sole consideration in making an investment decision. Opinions expressed are subject to change and are not guaranteed and should not be considered investment advice. For more information regarding the fund, including current performance, please visit www.IssacharFund.com. Review Code: 5748-NLD-1/3/2022.