Market Update: 10-31-22

Red Wave Bottom! The Issachar Fund is 25% invested in 22 growth stocks! The market may have bottomed on 10/13/22 as investors anticipate a “red wave” in the House and Senate races come November 8th. I sold all shorts and the dollar and went long fundamentally strong growth stocks breaking out of sound base chart patterns. The indexes rallied last week on bad earnings releases from the mega-techs, which is a good sign. The market is looking ahead and maybe sees republicans winning the majority and stopping a lot of the irresponsible spending that has caused much of our inflation. I have seen three above-average volume index price gains since 10/13/22, indicating institutional demand is coming back into the market. Our biggest weighting is energy, with smaller positions in retail, medical, software, and telecom. I like what I see and plan to buy more stocks as we are rewarded for taking risks. I am trying to capture about 80% of the uptrends and avoid life-changing losses of bear markets and recessions. If I am wrong, I will not hesitate to do what it takes to right the ship. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The Fed’s balance sheet declined $20 billion last week and is down $242 billion since 4/19/22, so the Fed is doing what it said. They were reducing their balance sheet and expected to raise rates by 75bps on Wednesday, hoping to bring inflation down from above 8% to 2%. The market may be anticipating the Fed will raise rates by 50bps instead of 75bps at its December meeting, which could be a sign of getting a handle on inflation. If the Fed raised its inflation target from 2% to 4%, the market would welcome that change. Whatever the market sees, it appears that it could be rewarding for growth stock investors.

Bottom Line: We are 25% invested, bullish, and plan to get more invested if we are rewarded for taking risk. I like how the indexes shrugged off bad earnings from big tech and managed to finish strong on the week. Prices have been rising on above-average volume, which is a huge tell of big money coming back into the market after a brutal bear market. I believe if everyone would use common sense and vote for Godly leaders, we could get this country back on the right track. By the Grace of God, I see a huge “red wave” on November 8th! Grace & Peace to Everyone!

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

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

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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: 5950-NLD-10/31/2022.

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Dexter Lyons