The Issachar Fund is holding growth stocks with strong fundamental and technical chart patterns that appear to be under accumulation. I believe the rotation from Growth to Value that occurred in the 1st quarter may be switching back to Growth because growth stocks have seen price increases before and after their earnings announcements. Earnings are looking good, and Growth has come back alive, so we could be ready for a nice sprint higher. Almost all of our stocks have seen an increase in mutual fund ownership in the last quarter. The more mutual fund buying I see, the more conviction I have to buy and hold through the next decline. Larger mutual funds are typically longer-term holders simply because they can not get in and out of a stock like a smaller nimbler fund. Issachar is a fund that can invest in the fastest horses during a bull market or sit on the sidelines in a bear market. Currently, we are invested in some fast horses because I believe we are in a bull market, and the Fed certainly appears to have our back. It has been a “hard penny” market in 2021, but we could be nearing an “easy dollar” market similar to 2020. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
The Fed did it again and increased its balance sheet by $28 billion last week, which is encouraging! Every time the Fed increases its balance sheet by printing new money, that money has to go somewhere, and a lot of it ends up in the stock market bidding up prices. As long as the Fed keeps rates near zero by buying Treasury Bonds, the longer the “can will be kicked down the road.” However, I have noticed that the Dollar has fallen over 2.5% since 3/31/21 while the Fed’s balance sheet has increased over $130 billion. Could this be a sign that the Fed has printed too much too fast? I do not think so. However, if the Dollar falls another 1.5% past the January 6th support level, things could get interesting quickly.
Bottom Line: Growth seems to be in favor, so that is where we are invested. Earnings are coming in better than expected for the most part, and I am encouraged. Issachar stocks are fundamentally strong, with accelerating earnings and sales exhibiting sound chart patterns of institutional accumulation giving me great conviction. I believe we could be entering a more favorable period where growth stock investors are rewarded for taking risk. However, I rely on God’s Wisdom to keep us out of harm’s way and steer us in the right direction.
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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: 5221-NLD-2021.