The Issachar Fund is fully invested in the Building, Business Services, Chips, Finance, Machine, Medical, Metals, Real Estate, Retail, Software, and Transportation Sectors. I continue seeking to fine-tune Issachar by selling weaker stocks and buying stronger ones, which seems to be working in our favor. I still do not see any warning flags of an imminent market decline because the big leaders continue to be accumulated in heavy volume. If the “smart money” were concerned about Afghanistan, higher taxes, open borders, wasteful spending, and COVID, they would likely not be piling into the stock market. Junk bonds are telling me that investors have a risk appetite, and that indicator has proven to be a reliable indicator for me in my last 30 plus years of managing risk. However, the smart money seems too complacent as the indexes make new highs, so maybe that is a warning sign. Either way, I will do my best to ride the wave as long as possible and get out before it crashes. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
The Fed decreased its balance sheet by $10 billion last week, but that is a drop in the bucket of massive liquidity! Fed Governor, Jay Powell, reassured the market that he would not raise rates anytime soon, and the market rallied on Friday. The market was concerned that Powell would remove liquidity from the market too soon, but he communicated that inflation is transitory, and liquidity would remain strong. In other words, Powell will keep printing money out of thin air, hoping to keep the market afloat, giving the appearance that all is well so he can get re-appointed by Biden if he is still President. I pray that God would continue to favor America and bless us with leaders who follow the heart of Jesus.
Bottom Line: The market appears to be firing on all cylinders, and the high-risk flags don’t seem to be flying. With all the bad news around the globe, the stock market continues to advance higher, which tells me that excess liquidity is the key to this bull market. However, liquidity from the Fed will not always be this robust, and there will be another bear market crash, but I do not see it happening today. I attempt manage risk one day at a time, and today we are all in, but tomorrow could be a different story. I am simply doing my best to rely on God’s Wisdom to manage His fund in a way that honors Jesus.
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: 5513-NLD-08302021.