Market Update: 04-05-21

Higher Highs!   Looking Good!        

The Issachar Fund owns growth stocks with accelerating earnings and sales on Sunday, April 4, 2021.  Here is a link to the 1st Quarter Issachar Fund Fact Sheet.  The Issachar Fund Institutional share class (LIOTX) should now be available for purchase at Schwab, TDA, and Fidelity.  I have been buying stocks that appear to be under accumulation and plan to continue as the market rewards us for taking risk.  I believe the market has digested its recent gains and may be ready for higher highs.  From my perspective, the market looks good and could continue to trend higher while new quarter money allocations get repositioned in the market.  I do not see any fundamental roadblocks on the horizon, so we could see another run at new highs for the major indexes.  However, there could be a few earnings blowups. Still, I believe the overall earnings announcements will come in better than expected due to the enormous government spending and relief checks in the system. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The Fed decreased its balance sheet last week by $30 billion, which erased the prior week’s increase!  This should not be a concern.  However, I will continue to monitor the Fed’s action because I believe they hold the key to the market’s liquidity, which has kept the market afloat.  If the Fed were to pump the brakes on liquidity, it could send shock waves through the system, but I do not see them doing that anytime soon.  However, I believe rates may have temporarily peaked, and we may see money flow out of the financials, which have benefited from rising rates.  If money flows out of banks, we could see growth stocks catch a bid and take the lead for a while.  That is not a prediction, just an observation I would like to see.   

Bottom Line: I like what I see in the market, and I am repositioning Issachar to take advantage of the opportunities that I am anticipating.  1st quarter earnings should come in better than expected due to the excess liquidity that has been pumped into the system, and I believe stock prices should respond favorably.  I certainly hope you had a Happy Easter because Jesus is alive in us, and that is Good News!     

We know that Christ, being raised from the dead, will never die again; death no longer has dominion over him.  Romans 6:9

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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.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.  S&P 500 Index measures the stock performance of 500 large companies in America. For more information regarding the fund, including current performance, please visit www.IssacharFund.com.  NLD Review Code: 5168-NLD-4/5/2021

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Dexter Lyons