The Issachar Fund (LIONX, BRI & ESG) is 65% invested in 43 growth stocks on Thursday, December 17, 2020. After last week’s round of profit-taking, I purchased new growth stocks, and I plan to get more invested shortly. Many stocks are extended in price, and P/E ratios are expanding, but I believe there is still room to run higher. I am pleased with how LIONX has performed YTD especially when compared to the S&P 500 Index and its drawdowns. LIONX is not required to be fully invested during bear markets but the S&P 500 Index assumes a fully invested position at all times. LIONX is actively managed like a hedge fund seeking moderate capital appreciation consistent with capital preservation. I see moderate risk with potentially higher returns in the current market, and I plan to take advantage of the opportunities I am finding. I believe the Santa Clause Rally has begun, so let’s enjoy the ride. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
The Fed has stepped on the gas by increasing its balance sheet by $120 Billion to a record high of over $7.4 Trillion this week! WOW! That is a considerable increase, and that newly created money has to go somewhere. Some of that “free” money is being reinvested in growth stocks, which is where I am focused. When the Fed buys bonds, the proceeds go back into the seller’s account, and the seller has new money to invest. The seller typically buys stocks and bonds to replace what they sold to the Fed, which is the tide of fresh capital that lifts many boats. The Fed said it plans to continue buying at least $120 billion of bonds every month until they reach their maximum employment and price stability goals. Who knows what that means? It tells me that they will keep printing money out of thin air as long as the market allows. The dollar is responding by continuing to slide, and Bitcoin zooms higher. I do not know how this money printing experiment ends, but I cannot imagine it will have a happy ending. All eyes are on the road ahead, and ears are listening for signs of a top in the market, but I see none at this time. Is there another Black Swan event like COVID lurking?
I am writing this Blog on Friday since we plan to be in Gatlinburg, TN, for a Lyons Family Christmas Vacation next week! We rented a high-top van and a house on a hill with a million-dollar view. My wife and I and our three adult kids are excited about our first Christmas road trip. We typically fly places for Christmas, but COVID rules and restrictions might spoil the fun, so off we go!
Bottom Line: I am optimistically bullish and expect the gains to continue mainly because the Fed has substantially increased liquidity in the market. Congress is close to passing a stimulus bill, the vaccine is being distributed, and the market seems content. I plan to get more invested as I find growth stocks exhibiting accelerating sales and earning with sound chart patterns. Instead of selling positions in the next correction, I plan to hedge, seeking to capture more of the upside. I expect LIONX to drop about $1/ share today due to a required distribution, but it will not impact your account’s value. This is my favorite time of the year because I get to celebrate the birth of my Lord and Savior. I pray that you receive the Love of Jesus and share it with your neighbor. Love is a gift, so don’t forget to unwrap it and get a fresh revelation of God’s Grace. Merry Christmas and may God’s Unconditional Love Bless you like never before!
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: 9303-NLD-12/18/2020