Market Update: 09-26-22

No Place to Hide!

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The Issachar Fund is content in Cash, 100%! The major indexes dropped slightly above the June 17th bottom, and it feels like the bottom will not hold. The S&P 500 is down over -21% YTD, Gold is down about -20% since 3/8/22, and 20-year Treasury Bonds are down over -30% since 12/3/21, so there has been no place to hide. The market is very oversold, but it can get more as investors throw in the towel and sell at any price. We have not seen this type of capitulation selling yet, but it could happen this week. This is a Bear Market, and we are in a downtrend, so the best thing to do might be to watch from the sidelines because it could get worse. I expect to see more selling because the fundamentals driving this market lower does not appear to be getting better or changing. The administration’s policies have made inflation worse while the economy struggles in a recession, creating a stagflationary environment with no credible exit plan. I put my faith in God and pray for new leadership in November because our current leaders keep making bad decisions. Maybe their goal is to collapse the system so people will be more dependent on them to “fix” the problems bad decisions have created. I believe there are people in current leadership making evil decisions that try “steal, kill and destroy” our way of life, BUT there is hope! The calvary is coming in November, so please vote for common sense, Godly leaders who love America by committing to follow our Constitution. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.) 

The Fed’s balance sheet decreased by $15 billion last week, wiping out a $10 billion increase the prior week! I thought the Fed had one foot on the gas expanding the balance sheet and one foot on the brake raising rates, but that has changed, and I now expect the market to break the June 17th level of support. The market expects the Fed to raise rates another 75bps on November 2nd, one week before the November 8th elections. If the Fed keeps raising rates to slay the inflation dragon, they will likely kill the economy, which could throw us into a long-term recession/depression as we have never seen. Keep in mind the Fed bailed us out of the 2008 Financial Collapse by increasing its balance sheet and reducing rates to near zero. This time is different! They are raising rates and decreasing their balance sheet!

Tidbits! More than 33 million puts (betting the market will head lower) traded on Friday, the highest single day of put volume since data began to be collected roughly 30 years ago. Retail traders are holding $46 billion worth of index futures net short, a record. Leveraged traders are betting on very, very bad things happening soon.

Bottom Line: Issachar is in Cash waiting for the next leg lower. Bad policies got us to this point, and it will take Godly leaders to get us back on the right track. I believe the market could fall another 2% to test the June bottom, which might not hold if capitulation selling takes over. After weaker hands get shaken out, and the market can anticipate some potential fundamental changes, it might be time to get back in. Until then, I will continue to look for opportunities on the short side. Cash is King! Grace & Peace to Everyone!

Links: Fact Sheet, Performance, Blogs, Strategy, My Story, Docs, BRI

Issachar: A Buy & Hold Alternative Actively Managed Like A Hedge Fund!

For I know the plans I have for you, declares the Lord, plans to prosper you and not to harm you, plans to give you hope and a future. Jeremiah 29:11

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 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 an investment decision. Opinions expressed are subject to change, not guaranteed, and should not be considered investment advice. There is no assurance these opinions or forecasts will come to pass, and past performance is no assurance of future results. For more information regarding the fund, including current performance, please visit IssacharFund.com.   Review Code: 4073-NLD-09/26/2022.

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Dexter Lyons