The Issachar Fund (LIONX, BRI & ESG) is 85% invested in 45 growth stocks on Sunday, November 22, 2020. I like how select growth stocks have been basing (going sideways) and appear to be under accumulation, so I purchased more stocks and added to existing ones. I am finding opportunities in the Software, Medical, Chips, Building, and Solar Energy sectors. I plan to get more invested as my conviction level expands, and the accommodative Fed is certainly giving me the confidence I am seeking. If I am wrong, I will do my best to get right and avoid life-changing losses. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
The Fed stepped on the gas and increased its balance sheet by over $65 billion last week! The Fed’s balance sheet now sits at an all-time high of over $7.2 trillion! This rising tide of newly printed money has to go somewhere, and it appears to be trickling into the stock market, lifting many boats. I believe the Fed will continue to support the market by buying bonds attempting to keep rates artificially low. Rapidly rising rates could break the camel’s back and potentially produce life-changing losses for buy and hold investors, so I am watching this closely. I do not know how the market will react if/when the Fed becomes less accommodative, but I cannot imagine it will be good for investors who are not actively managing risk. However, I believe risk has now moderated, and the market may continue its advance in these two historically strong months.
The S&P 500 Index of large-cap stocks has been in a 3-month trading/digestion range and currently trading at its September 2nd all-time high! However, the Russell 2000 Index of small-cap stocks is in an up-trend and is trading over 6% above its all-time high. The market may be changing character going from large to small stocks, which has historically been a good sign for a continued advance in a healthy bull market. LIONX holds a mix of small and mid-cap stocks, trying to stay in sync with what seems to be working. (Investments cannot be made in an index. Past performance is no guarantee of future results.)
Bottom Line: LIONX is almost fully invested, and I am still finding stocks with accelerating sales and earnings exhibiting sound chart patterns. I am bullishly optimistic that growth stocks will continue to outperform, so that is where I am focused. The Fed has committed to keeping rates low by buying bonds, and their balance sheet continues to expand, so my conviction level remains high. I am grateful and humbled with all that God has blessed me with, and I pray you are as well. It is only by God’s grace that we are allowed to pursue our passions. The human mind cannot be angry and grateful simultaneously, so let us focus on an attitude of gratitude and expect God to bless His children. I Wish You a Happy and Blessed Thanksgiving!
LIONX is a BRI/ESG, Tactical, Alternative, Mutual Fund Actively Managed like a Hedge Fund.
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, which can be obtained by calling 1-866-787-8355 or visiting https://www.LIONX.net. 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. For more information regarding the fund, including current performance, please visit www.issacharfund.com. For more information on LIONX, please visit LIONX.net. NLD Review Code: 8175-NLD-11/23/2020