The Issachar Fund is fully invested in the Medical, Real Estate, Retail-Leisure, Chips, Software, Machine, and Metal Sectors. My highest conviction trade is in the Real Estate Sector, as investors seek higher yields in a low-interest-rate environment. The Retail-Leisure space is also attracting a lot of institutional support, so that is where I would likely focus if I had new money to invest. It seems like a lot of the big names are pulling into their bases to find support while the smaller stocks are breaking out of bases and making new highs. I welcome this big to small rotation because it gives the big-cap leaders a chance to digest recent gains and allows the small-cap stocks to catch up and potentially lead us higher. This is healthy action, especially as the Fed continues to supply excess liquidity in the market. I believe the uptrend is looking good with plenty of gas left in the tank, so I remain bullish and optimistic for now. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
The Fed reduced liquidity by $19 billion last week, but its balance sheet is still near an all-time high! I believe the Fed holds the keys to this bull market, and they are in the driver’s seat with a heavy foot on the gas. I see no signs of the Fed pumping the brakes or taking its foot off the gas. Jay Powell is up for reappointment in 2022, so he probably does not want to upset Biden. I believe Powell will do everything he can to keep the economy and the stock market humming along to get Biden’s approval. When Powell raised rates in October of 2018, the market dropped 19% into Christmas Eve. Trump lashed out at Powell for raising rates, and Powell reversed his position, then the market bottomed and blasted higher. The market seems to be hooked on low-interest rates and excess free money printing by the Fed. I can not imagine the market acting favorably if the Fed decided to raise rates to fight this “transitory” inflation we are experiencing.
Bottom Line: Issachar is fully invested in big and small stocks with accelerating sales and earnings. I believe the Real Estate and Retail-Leisure Sectors offer the best risk-adjusted returns. The Fed continues to print money that has a way of finding its way in the stock market, so I remain bullish and optimistic. Issachar is a liquid alternative mutual fund managed like a hedge fund, so I will continue to ride the trends while they last. It is by the Grace of God that I get to do what I love. I pray the same for you.
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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, 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: 5487-NLD-08022021.