Fund (LIONX), is about 75% invested in about 50 growth stocks as of 4/12/20! I increased exposure last week due to a positive
price and confirming volume action in response to an over-accommodative Fed. Stocks surged about 7% higher last Monday on
coronavirus optimism and that set the stage for a 12% S&P 500 index gain
for the shortened 4-day Easter week. On
Thursday, the Fed said it would provide up to 2.3 Trillion in loans to
businesses and that it would buy junk bond ETFs to support the market due to the
“stay at home” government orders. No one
has ever seen this kind of liquidity injection into any market or economy in
the entire world. The market is trying
to digest the potential impact of this desperate act to save a country from
falling into a self-induced coma (recession/depression). The longer people are not allowed to work,
the greater the chances are that the “social distancing cure” will be far more
damaging than the virus. I pray that our
government finds a way to put America back to work so we can Make America Great
Again! (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.)
On 4/2/20, Investor’s Business Daily (IBD) issued a Follow Through Day (FTD) indicating the start of a potential uptrend. IBD states that not all FTDs work, but an FTD has proceeded every bull market since 1890. IBD defines an FTD as a major index gain (at least three days after a market low) above 1.5% in price on a greater volume than the previous day. I have been following IBD since 1990. While no “system” is perfect or works forever and no one rings a bell when the “system” is broken, I use the IBD “system” with experience and discipline. I view money management as a practice meaning it is more of an “art” than a “rules-based science”. Markets are changing every day, so I believe one must learn from and adapt to the changes to maintain one’s edge. I never plan to “ride out” any bear market because there is no guarantee that the market will be higher when I need my money.
The Federal Reserve (Fed) is NOT a wing of the US government! Shareholders of the Fed are its member banks. Just like any shareholder-owned entity, the Fed seeks to serve the interests of its shareholders and not us “mom and pops”. Think about this, congress passes a spending bill for the Treasury to issue bonds that the Fed buys with fiat money. This is called “monetizing the debt”. So, we are spending money we do not have by issuing debt purchased with “fake” money. Something smells like fish! While all this “stimulus” that Congress passes to “help” Americans deal with the mandated shutdown they created seems good and well-intentioned, I wonder who it is helping. Do you think the Fed buying junk bonds is helping “Main Street” or “Wall Street? The big banks of the Fed (Wall Street) will likely benefit more than the Main Street “mom and pops” from the $2 Trillion “stimulus” of junk bond buying that the big banks hold. The Fed’s balance sheet is now over $6 Trillion! It has increased by about $1.9 Trillion or 40% since 3/1/20! I believe this unbridled creation of money “out of thin air” will likely not have a happy ending. That does not mean that I will not try to take advantage of this “free money”.
Bottom line: The Fed appears to have our back and they are printing money like never before to help an economy “stay at home”. Paying someone to not work is often considered a form of socialism. America is a capitalist country where people are paid to work, and I pray that never changes. I also pray that saner minds will prevail and find a way to put us back together again. We were not created for isolation but relationships. Please pray with me for God to perform another miracle and raise us from the “dead” of fear to courage like He raised His Son Jesus 2000 years ago. I pray you had a Happy and Blessed Easter because He is alive!
The angel said to the women, Do not be afraid, for I know that you are looking for Jesus, who was crucified. He is not here; he has risen, just as he said. Come and see the place where he lay. Then go quickly and tell his disciples: He has risen from the dead and is going ahead of you into Galilee. There you will see him. Matthew 28:5-7
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. 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: 3461-NLD-4/14/2020