Market Update: 04-06-20

Check out these 1st Quarter LIONX Fact Sheet Results!

The Issachar Fund (LIONX), is in Cash as of 4/5/20!  The market rallied about 17% from 3/23/20 to 3/26/20 in 3-day V-bottom formation.  I increased exposure in LIONX on 3/25/20 after sitting in cash since 2/25/20 strategically avoiding much of the carnage in the stock market.  LIONX was initially rewarded for its efforts, then the market did an about-face and erased all recent gains on 4/1/20, so I took LIONX back to an all-cash position.  I watch every position in LIONX very close and when risk goes beyond my comfort level, I take immediate action, seeking to preserve capital and to avoid life-changing losses.  Avoiding bear markets is not easy but I believe it can be profitable to your portfolio in the long run.  I have been an active risk manager since 1990.  The market appears ready to advance again, but I am a little gun-shy, so I will wait for more confirmation before getting back in.  The market has been very news-driven and negative coronavirus reports have been met with bouts of heavy selling.  However, the hope of a cure and virus case curve flattening appears to be what is driving prices higher.  We may have seen the bottom, so nibbling on fundamentally and technically strong stocks may be a good idea.  Still trying to remain open-minded, flexible and take one-day-at-a-time because that is all we have.  (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.) 

America has over 335,000 coronavirus cases out of approximately 335,000,000 people which is 0.1% of the US population!  The CDC estimates that influenza was associated with more than 35.5 million illnesses, more than 16.5 million medical visits, 490,600 hospitalizations, and 34,200 deaths during the 2018–2019 influenza season.  We now have about 9,700 deaths related to the coronavirus.  Could this lockdown be more political than medical?  Comparing this year’s coronavirus deaths (9,700) to last year’s flu season deaths (34,200) seems small.  However, it is not small to the people who have died or the many that are suffering through this horrible disease.  I believe “disease” is a result of the fallen world we live in and God did not bring this disease to discipline anyone.  However, I believe God will use this for our good.  Here are The Presidents Coronavirus Guidelines for America. 

Bottom line: I am practicing a little stock market social distancing waiting for a lower-risk entry which I feel could be soon.  I believe cutting grass in the rain is not too wise, so I will wait for a better “sunny” day.  One thing I have learned through the years is to protect my psychology, so I can live to invest another day.  Avoiding “psychological damage” by letting small losses turn into huge losses then hoping (hope is not a strategy) to break even was a life lesson I never want to repeat. I prefer to sell when I “want to” and not when I “have to”.  Everyone has a threshold of pain so drawing a “line in the sand” (maximum loss) has helped me stay out of trouble.  It takes disciple and hard work to follow a historically proven system, but I believe the potential reward is worth the effort.  I Pray that you find Peace and Joy is this season of life.     

Links: My Story, Strategy, Blogs, Interview, Fact Sheet

Be strong and courageous. Do not be afraid; do not be discouraged, for the Lord your God will be with you wherever you go.  Joshua 1:9

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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. 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: 3390-NLD-4/6/2020

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Dexter Lyons