Market Update: 01-27-20

The Issachar Fund (LIONX), is about 35% invested in a diverse group of 22 individual growth stocks.  I “rang the register” last week and realized some stock gains in LIONX as the market appeared vulnerable to some profit taking.  I am comfortable with current positions but will not hesitate to sell more stocks should the market sell-off escalate to unacceptable levels of risk.  I define risk as potential loss and my job is to manage the risk while letting the market determine the return.  The market was down a little less than 1% on Friday on news that the Corona Virus was getting worse.  I believe investors used this as an excuse to take profits after a nice run up since September.  However, the Fed took its foot off the gas last week as its balance sheet declined about $30 billion from the prior week and that has not been a welcomed event in the past.  A sudden decline in market liquidity can be a recipe for a “correction” and we just may be getting a highly anticipated 3% to 5% decline.  This could be an “inflection point” in the stock market so I am on alert.  No one knows the future, so I believe assessing risk one day at-a-time and acting accordingly is a good defense.  I promise to keep my “hands on the wheel” and do my best to avoid any life-changing losses for all LIONX shareholders of which I am one.  (Portfolio holdings are subject to change at any time and should not be considered investment advice.) 

Crude Oil prices are down over 10% YTD!  Just because oil related stocks performed badly last year does not mean that they will rebound this year.  I believe oil prices and oil stocks are declining because we have an oversupply of oil due to “fracking”.  Fracking is just another way to get more oil and gas out of older existing wells for a fraction of the cost of drilling a new well.  Fracking has helped the US become energy independent and we are now a net exporter so we can Thank God for new technology and fracking.  Lower crude oil prices can also translate into lower gas prices at the pump.  The more money Americans save at the pump filling up their vehicles, the more money they have to spend and the better they may feel about reelecting Trump in November.  Trump understands this and I believe he will continue to cut regulation and taxes, in the hopes to benefit the majority of Americans who will continue to prosper.              

Bottom line:  The Fed took its foot off the gas and the market does not appear to like the consequences.  I believe increasing liquidity is a primary driver of higher stock prices and the opposite is true when liquidity declines.  We may be going through a temporary correction or we may have hit an inflection point and could experience a deeper decline.  Either way, I will manage the risk in an effort to avoid life-changing losses.  Thanks for your Trust and I wish You a Blessed Day!    

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!  The Lyons family are the largest LIONX shareholders, so I have incentive to succeed.                

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

Here is a link to the latest 4th Quarter Issachar Fund Fact Sheet.

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

Here is a link to a Video of “My Story”. 

Here is a link to “My Blogs”.

Prior to June 2019, I was not honoring God by investing in companies that support abortion, pornography, human trafficking, etc. God touched my heart and revealed to me how to make Issachar a BRI Fund.  I stopped pretending that God was not concerned with how I invested His money and decided to try and honor Him instead.  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 values. LIONX is ESG (Environmental Social Governance) conscious, pro-life and pro-family and will not invest in securities with a negative InspireImpact Score.     

You are no longer a slave, but a son; and if a son, then an heir through Christ.  Galatians 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.  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.

 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 which are operating as blessings to their customers, communities, workforce and the world, and excluding companies which are operating at odds with biblical values.   NLD Review Code: 3147-NLD-1/28/2020 

Blog written by Dexter P. Lyons, Portfolio Manager (LIONX) on Sunday, January 26, 2020

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Dexter Lyons