Market Update: 09-07-21

Melt Up!     Growth is Being Rewarded!            

The Issachar Fund is fully invested in the Building, Business Services, Chips, Finance, Machine, Medical, Metals, Real Estate, Retail, Software, and Transportation Sectors.  The market has been rewarding us for investing in growth stocks, and I expect it to continue.  I was anticipating a potential “melt-up” in the last quarter, but it looks like it may have already started.  The major indexes are extended in price, so a sideways consolidation would be ideal to support another leg higher into the new year. The junk bond market tells me that investors still have an appetite for risk while the junk bond average trades above its rising 50-day moving average, sitting at an all-time high.  I focus on price and volume, and I still see prices rise on above-average volume, which means that institutions may have been on a buying spree.  I plan to ride the wave 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’s balance sheet expansion continues with another $16 billion of newly printed money that has to go somewhere!  The Fed’s balance sheet is now about 37% of our GDP.  The European Central Bank’s balance sheet is about 80% of its GDP, while the Bank of Japan sits at a whopping 133%.  Global stocks gained about $1.6 trillion in value last week.  Global equities are now valued at over $120 trillion.  Global stock market capitalization is estimated to be over 142% of the world GDP, which is also at an all-time high.  I believe that a large majority of this central bank “free money” printing is finding its way in the stock market, which may explain why we are at record highs.  God help us if central banks slow their printing presses!

Bottom Line: The market has been rewarding growth stock investors, and I expect this trend to continue into a historically seasonally strong fourth quarter.  Risk has been rewarded, and when that dynamic changes, I hope to ring the register and patiently wait for the next wave.  God is good, and his hand of favor is on us, so I thank Him every day for His Amazing Grace!   

For sin will have no dominion over you, since you are not under law but under Grace. Romans 6:14  

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: 5517-NLD-09072021.

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Dexter Lyons