Market Update: 10-18-21

Uptrend Continues!     Growth Leads!  

The Issachar Fund is back in the market!  The market indexes were up over 1% Thursday on above-average volume, and growth stocks led the charge.  This advance provided me with confirmation and conviction that risk was abating, so I added new positions in leading growth stocks.  All major indexes are now trading above their 50-day moving averages, which can signify that the correction may be over.  I am expecting buyers to dominate sellers in the fourth quarter due to a historically favorable seasonality period.  Third-quarter earnings should come in better than expected, and that could be enough fuel to keep the uptrend moving in the right direction.  COVID fears appear to be declining, and that could be a catalyst for new buying. Yields have tamed, the dollar is still relatively strong, and the junk bond market is slightly below its 50-DMA.  The Fed appears to still be on our side even though inflation may be here for a while. I am optimistic and expect the market to post new highs shortly. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)     

The Fed increased its balance sheet by $17 billion last week to a near all-time high of $8.5 trillion!  This is a welcome sign for the stock market because much of this liquidity finds its way in the stock market. Based on the Fed’s recent inflation comment, I expected the Fed to start dramatically reducing their balance sheet, but they did not, so that should be good for growth stocks.  It seems the Fed is more concerned with keeping rates low to promote more borrowing in the private and public sectors. Low rates help keep our debt payments manageable, but higher rates would likely force the Fed to monetize more of Congress’ irresponsible spending.  I pray for God to raise up men and women of courage to stop this ridiculous spending bill that is expected to be voted on at month-end.     

Bottom Line: Issachar is invested in growth stocks because that is where I see institutional accumulation.  The market’s health has improved, and my perception of risk has declined, so we will stay at the party a little longer.  However, I always dance close to the door no matter how much fun we may have.  The Fed seems to still have its foot on the gas of liquidity, which gives me great conviction.  I am doing my best every day to honor God with the gifts I am blessed with.

So, whether you eat or drink or whatever you do, do it all for the glory of God. 1 Corinthians 10:31

To honor God, Issachar is 100% committed to Biblically Responsible Investing (BRI) stocks.

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: 5641-NLD-10182021.

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Dexter Lyons