Market Update: 11-07-22

New Leadership! The Issachar Fund is 35% invested in 23 growth stocks! I purchased stocks with accelerating earnings/sales with raised estimates coming out of sound technical chart patterns and sold stocks that triggered my sell stops. The market fell hard on Powell’s comments to kill inflation on Wednesday but recovered nicely by Friday. I see a leadership change out of the over-owned “cloud” stocks and into the “tangibles” (things you can drop on your toe) like building, electronics, energy, food, medical, metals, and telecom. Institutional distribution is occurring out of the mega-techs and into energy, our biggest weighting. As institutional money leaves one area, it looks for a welcome home because big money has to go somewhere. Issachar is tactical and tries to go with the flow avoiding life-changing losses while attempting to capture most of the uptrends. My job since 1990 has been managing risk because the market provides the return we seek. I try to find the best stocks in the best industries at the right time and sit in cash when the market is not rewarding us for taking risk. I believe the market bottomed on 10/13/22, and we could drift higher, especially if Republicans sweep both houses on Tuesday. Please do your part and vote for common sense, God-honoring leaders, and we will take back America from a failed ideology of socialism. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

The Fed’s balance sheet declined another $46 billion last week, so the Fed is seriously trying to bring inflation down. The Fed also raised rates 75bps last Wednesday, and the market dropped about -3% but remained above the 10/13/22 low, so I am encouraged by how the market bounced higher on Friday after the jobs report. While employment was little changed, more workers are losing higher-paying jobs and taking lower-paying, lower- or no-benefit “gig” economy jobs. The dollar dropped about -1.8% on Friday to its 50-DMA of support, while gold jumped over 3% above its 50-DMA on above-average volume. The market could be telling us that the Fed may be forced to raise its 2% inflation target higher as part of their “surrender.” If that is the case, I expect to get more invested because I see a lot of fundamentally/technically sound stocks breaking out on strong volume and holding their gains. In the recent past, stocks were breaking out, and the “shorts” were taking them out, but they seem to be more “sticky” this time. I am optimistically bullish about what I see in the charts and believe we could participate in a nice year-end rally.

Bottom Line: We are 35% invested and plan to get more invested if our stocks continue to work. My watch list of “merchandise” to buy is growing, which could signify higher stock prices ahead. Stock leadership continues to flow out of the “cloud” names into the oil, gas, and coal “energy” plays since the “green new deal” is being exposed as a failed ideology. God created everyone and everything, and only He can “save the planet.” Please vote for common sense, God-honoring leaders so He can put America back together again. God is all-powerful and all-knowing, and God is Love! Amen!

Instead of asking God “why” bad things are happening, ask “what” He wants me to do about it.

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

God is love, and all who live in love live in God, and God lives in them. 1 John 4:16

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: 5969-NLD-11/07/2022.

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Dexter Lyons