Market Update: 11-08-21

Stretched!     More Room to Run!

The Issachar Fund is fully invested in leading growth stocks, and the market has been rewarding us. However, the market is stretched, so I would not be surprised to digest recent gains. Earnings have been coming in strong, and it looks like the COVID “fear” is behind us as people get back to work after being paid to stay home. The market typically responds favorably to more government spending, but it will be interesting to see how it handles the proposed largest spending ever. The rising dollar does not seem to be concerned with more US debt being issued and then purchased (monetized) by the Fed, so we may have more room to run. I believe the market will continue to trend higher into the new year, especially now that junk bonds have resumed trading above their 50-DMA. I am currently bullish and optimistic, but I am flexible, trying to stay in sync with the trend. However, I do not plan to ride the next bear market lower. I plan to be net short and make money while some funds are required to stay fully invested. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)     

The Fed increased its balance sheet by $18 billion last week to another all-time high! While the Fed talks about tapering its bond purchases, I am not seeing it on their balance sheet. I believe Jay Powell wants Biden to reappoint him next year, so he will likely keep expanding the Fed’s balance sheet, buying bonds, and suppressing rates. Biden met with Powell and Brainard last week, possibly to send a signal to Powell that if he does not keep liquidity spigot flowing, he will appoint and the more dovish Brainard. I think rates will remain low until Powell is reappointed then it could get ugly when rates start to rise.

Bottom Line: Issachar is all in, but the indexes are extended so we could see some profit-taking. I believe the Fed is still on our side and will provide liquidity the market needs to keep the uptrend intact. A lot of money on the sidelines will likely feel like they missed the rally, so they will likely capitulate and keep bidding prices higher. We could see a market melt-up as money rushes in, but I would rather it be a slow grind higher into the new year. I sure am glad God is in control and not man.

Do not conform to the pattern of this world but be transformed by the renewing of your mind. Then you will be able to test and approve what God’s will is—his good, pleasing, and perfect will. Romans 12:2

Personally: Deirdre and I (58) have joined the Energized Health program, and I highly recommend it if you are looking to lose weight and reprogram your DNA.  It takes 88 days for cells to rejuvenate, so we expect to exercise, eat right, drink lots of water, and be transformed from the inside out. We attended the Red Pill Expo and highly recommend you check out the Red Pill University if you want to understand the truth about why America is being fundamentally transformed and what we can do to take back our country.      

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: 5664-NLD-11/8/2021.

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Dexter Lyons