Market Update: 11-01-21

Growth Leads!     Indexes Breakout!  

The Issachar Fund is invested in leading growth stocks, and there seems to be more gas left in the bull tank!  Growth stocks are leading the charge, especially in the Software Sector.  All major indexes have broken out above resistance, and they did so on above-average volumes.  It is great for prices to make new highs, but when they do so on higher above-average volume, that tells me that “big money” may be behind the move.  If the “big money” institutions are behind this advance, I have more conviction this uptrend may be sustainable.  Treasury yields came down last week, which tells me inflation may not be an issue.  However, that may change if this ridiculous spending bill gets passed on Tuesday.  The dollar spiked higher last week on a relative basis which may mean that we are the best house in a bad neighborhood.  Junks bonds are trading below their 50-DMA, which means investors may be losing their risk appetite, but I believe it is temporary.  If I weigh all the evidence, I conclude that we may indeed be headed higher into a historically seasonally strong period of November and December. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)     

The Fed decreased its balance sheet by a fractional $9 billion last week but still near its all-time high!  There have been lots of chatter about the Fed tapering its bond purchases, but I still see them in a balance sheet expansion mode.  If the Fed keeps printing money, that money must go somewhere, and a lot of that new money finds its way into the stock market.  I say follow the money!       

Bottom Line: Earnings have been coming in better than expected, and I believe Issachar is positioned to benefit from a continuation of an uptrend in the indexes.  The market seems to be firing on all cylinders, so we will ride this wave while it lasts.  We are enjoying the party, but I always have one eye on the exit.     

May the God of hope fill you with all joy and peace as you trust in him, so that you may overflow with hope by the power of the Holy Spirit.  Romans 15:13

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: 6689-NLD-11012021.

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Dexter Lyons