Market Update: 10-01-18

LIONX 3rd Quarter Fact Sheet

The Issachar Fund (LIONX) finished the 3rd quarter up 0.39% and I am very optimistic for the upcoming seasonally and historically strong 4th quarter! LIONX holds 28% Stocks, 35% Floating Rates and 35% Cash as of Friday, September 28, 2018. LIONX has 19 leading stocks exhibiting CAN SLIM fundamental and technical characteristics in various industries. Leading stocks continue to break out of sound basing patterns with strong fundamentals (earnings and sales). I purchased a Floating Rate mutual fund in a nice uptrend. I expect the Floating Rates to perform well in the current rising rate environment with low inflation. I continue favor Health Care, Energy and Technology Sector stocks as they appear to be under heavy accumulation. Financials did not perform as expected after the Fed’s ¼ point rate increase last week so I sold them and purchased stocks in the Energy sector. Energy appears to be getting hot while Financials are not.

The S&P 500 continued to trend higher as money poured into the index ETFs ignoring Price/Earnings (P/E) valuations. I have noticed many stocks trading above their P/E ranges over the last year and that is a little concerning. However, the market could be anticipating better than expected 3rd quarter earnings due to be released over the next few weeks. Some blow-out earnings surprises could justify the elevated P/E ratios I am seeing and only time will tell. I am working hard to stay invested in the up-trends and avoid the major down-trends.

Investor’s Business Daily (IBD) says that we are in a “Confirmed Uptrend”. IBD says that it may be a good time to consider buying fundamentally strong stocks that are breaking out of proper base patterns and I agree.

Junk Bonds continued to trend higher (low default risk) confirming the current uptrend. It is also hard to argue with the positive results that lower taxes and de-regulation appear to be having on the economy and the stock market. However, if the market senses the Republicans might lose control of the House or Senate in the November elections, then we might see an end to the Bull Market we have been enjoying. My advice: vote to Keep America First and Strong!

After 30-40 years of falling interest rates, we have now entered a period of rising rates. Rising rates compete for the available capital and as the liquidity pool declines, demand for stocks could fall and consequently stock prices may likely fall as well. I am not overly concerned about rising rates at this time, but it is something that I am keeping a close eye on and you might want to consider also. Remember, no one cares more about your money than you do.

Bottom Line: Leading stocks continued to break out of sound basing patterns with great fundamentals and I believe that bodes well for a healthy sustainable uptrend. I try to let the market pull me into great stocks and push me out when they should be sold. I remain focused on the bottom line every day in an effort to profit in the up-trends and avoid life-changing loses.

PS: I created LIONX, so you could piggy-back off the investment decisions I make for my own account. Therefore, I will manage your money like my own!

(Portfolio holdings are subject to change at any time and should not be considered investment advice. There is no guarantee that any investment will achieve its objectives, generate positive returns or avoid losses.)

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Dexter Lyons