Market Update: 07-26-21

Subject:   Buying the Dip!       Fed Increases Liquidity!   

The Issachar Fund is almost fully invested in the Medical, Real Estate, Retail, Chips, Software, Machine, and Metal Sectors as the S&P 500 Index rebounds from Monday’s drop to its 50-day moving average (DMA).  I plan to do more buying this week as I find opportunities.  The major indexes are trading near all-time highs again. I believe the current annualized rate of return is not sustainable, so some sideways price consolidation/digestion would be expected and welcomed.  I like how the market tested its average and bounced higher on strong volume.  This tells me that Monday’s drop was likely a “shakeout” to move money from weak (short-term) hands to stronger (longer-term) hands.  It also looks like “buying the dips” may be back in favor. If so, we could see growth stocks catch a strong bid, perhaps like we saw last year as the Fed stepped on the gas of liquidity then.  The Real Estate sector appears to be under accumulation as investors search for higher yields.  The market seems to be firing on all cylinders, so let’s enjoy the party while it lasts. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)                        

The Fed increased liquidity by $39 billion last week to another all-time high!  It seems like the Fed thinks inflation is transitory, so they keep stepping on the gas of liquidity to keep the economy moving in the right direction.  As long as they keep the pedal to the medal, the market should do well.  The dollar is not in free-fall, telling me the world still deems the dollar king as the reserve currency.  However, there are limits to everything, and there are no guarantees that the dollar will be the haven it has been.  I believe there will be a huge price to pay for this money creation experiment, but I do not see any caution signs yet.  I am all in for now, but that is subject to change based on the price action I see in the charts.     

Bottom Line: Issachar is almost fully invested and enjoying the ride higher.  Issachar is a liquid alternative mutual fund managed like a hedge fund. The S&P 500 Index tested and held its 50-DMA, and that gives me a conviction that we are in a “risk-on” environment.  The junk bond average trending higher says that investors have a risk appetite and confirms that we may be headed higher.  If new money came into Issachar, I would not have a hard time putting it to work.  I have a Spirit of Peace at this time, and I pray the same for you and your loved ones.   

Then you will experience God’s peace, which exceeds anything we can understand. His peace will guard your hearts and minds as you live in Christ Jesus. Philippians 4:7

Links: Fact Sheet Performance Blogs Strategy My Story Docs BRI/ESG

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, obtained by calling 1-866-787-8355 or visiting 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.  Opinions expressed are subject to change and are not guaranteed and should not be considered investment advice. For more information regarding the fund, including current performance, please visit www.IssacharFund.com.   Review Code: 5476-NLD-7/26/2021.

About author View all posts

Dexter Lyons