|1) The Issachar Fund (LIONX) is Fully Invested and Leveraged (165%)! Current LIONX positions include some: Russell’s, Mid-Caps, Junks, Floating Rates, Materials, Defense and Aerospace, Transportation and Regional Banks. I believe the market is trying to tell us that we are moving from a slow-growth economy to a pro-growth economy and investors are repositioning their portfolios accordingly. Trump is promising lower corporate taxes, less regulation, fair trade and to repeal and replace Obama Care and the market seems to just love it! Trump is also not taking a salary as President and that speaks volumes to me! If I sound a little excited, I really am! I believe America will be Great Again because God’s favor is upon us! We are a Blessed Nation! (Portfolio holdings are subject to change at any time and should not be considered investment advice.)
2) Since the election, billions have been coming out of treasury bonds, corporate bonds, muni-bonds and utilities and this money has to go somewhere. The charts are telling me that most of this money is finding a new home in small-caps and financials. I believe that small-caps are doing relatively better than large-caps mainly because the dollar is strong (relative to other currencies). Small-caps export less than large-cap multi-nationals therefore they tend to have less currency risk. If a large-cap exporting company makes a profit outside of the US and brings the profit back to America then it may lose part of that profit when it is converted into real dollars. I believe that there may still be money to be made in large-caps however small-caps might have more potential for price appreciation in the short term. However, if I am wrong I plan to manage the risk by selling or hedging my positions until I am comfortable with the risk I am sleeping with. I typically try to limit losses to no more than 1% per day. I monitor and measure my risk (potential loss) intra-day and try to take action to minimize my perceived risk and maximize my potential return. All of my personal assets are invested in LIONX so I have a vested interest to be a good steward of what God has entrusted me with.
3) The positive effect of expected economic growth may be greater than the negative effect of a small expected interest rate increase. Rising interest rates can cause bond prices to decline and that seems to be what is currently happening in the bond market. It seems that someone rang a bell on election night and big money started flowing out of bonds into stocks. Large institutional money managers can’t normally trade out of bonds into stocks in one day like you and I may be able to do. Big money managers are like large cargo ships, it can take a great deal longer for a cargo ship to make a turn than it does for a small boat. We are the small boats and we have the ability to turn-on-a-dime if needed whereas big boats (big money managers) can often take months to reallocate money. Currently, the market waves appear to be moving in the right direction and I plan to ride the wave as long as it lasts then I will look for another one. I designed LIONX to give me the freedom to invest in pretty much anywhere I perceive the risk is worth the potential return. No one knows what tomorrow will bring but I do know how I plan to react if things do not go as I expect. My number one goal is to protect the assets in LIONX then grow them when my perception of risk justifies the potential expected return. There are no guarantees in life so I plan to just receive God’s blessings and honor him with all that he has given me. I want to personally wish you and your loved ones a Very Merry Christmas! Happy Birthday Jesus and Thank You for loving us first!
We know that God is always at work for the good of everyone who loves him. Romans 8:28
After twenty-four years of professionally managing money, I opened LIONX to investors who want me to manage their money exactly like I manage my own money. If you do trust me with your assets, I will do my best to become one!
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Issachar Fund (LIONX)
Thanks for your time and I wish you a Profitable and Blessed Day!
Horizon Capital Management Inc., is not affiliated with Northern Lights Distributors, LLC.
The Fund may engage in frequent trading, leading to increased portfolio turnover, higher transaction costs, and the possibility of increased net capital gains, including net short-term capital gains that will be taxable to shareholders as ordinary income when distributed. The Fund may hold cash positions and 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 Fund’s investments in large capitalization stocks may underperform Funds that invest primarily in the stocks of lower quality, smaller capitalization companies during periods when the stocks of such companies are in favor. Investments in small-capitalization and mid-capitalization companies involve greater risks and volatility than investing in larger capitalization companies. Small and medium-size companies often have narrower markets for their goods and/or services and more limited managerial and financial resources than larger, more established companies. The Fund is non-diversified, which means it invests a high percentage of its assets in a limited number of securities. A non-diversified fund’s NAVs and total returns may fluctuate more or fall greater in times of weaker markets than a diversified mutual fund.
The Fund invests in debt instruments which have varying levels of sensitivity to changes in interest rates, credit risk and other factors. Many debt instruments are subject to prepayment risk, which is the risk that the issuer of the security will repay principal prior to the maturity date. The Fund could lose money if the issuer or guarantor of a debt security goes bankrupt or is unable or unwilling to make interest payments and/or repay principal. Changes in an issuer’s financial strength or credit rating also may affect a security’s value and have an impact on Fund performance. The value of the Fund’s investment in fixed income securities will fall when interest rates rise and the effect of increased interest rates is more pronounced for intermediate-term or longer-term fixed income obligations owned by the Fund. The Fund will invest a significant portion of its assets in securities that are rated below investment grade or “junk bonds.” Junk bonds may be sensitive to economic changes, political changes, or adverse developments specific to a company. These securities generally involve greater risk of default or price changes than other types of fixed-income securities and the Fund’s performance may vary significantly as a result. The floating rate loans in which the Fund invests are usually rated below investment grade and are generally considered speculative because they present a greater risk of loss, including default, than higher quality debt securities and may be less liquid than higher rated debt securities.
The value of the Fund’s asset-backed securities may be affected by changes in interest rates, the availability of information concerning the interests in and structure of the pools of purchase contracts, financing leases or sales agreements that are represented by these securities, the credit worthiness of the servicing agent for the pool, the originator of the loans or receivables, or the entities that provide any supporting letters of credit, surety bonds, or other credit enhancements. The Fund’s investment in municipal securities carries additional risk including changes in federal, state or local laws that may make a municipal issuer unable to make interest payments when due. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenue, for the project or from the assets. Moreover, an adverse interpretation of the tax status of municipal securities may make such securities decline in value. In addition to the risks typically associated with fixed income securities, loan participations carry other risks, including the risk of insolvency of the lending bank or other intermediary. Loan participations may be unsecured or not fully collateralized, may be subject to restrictions on resale and sometimes trade infrequently on the secondary market.
The Fund uses investment techniques, including investments in futures contracts, forward contracts, options and swaps, which may be considered to be an aggressive investment technique. Investments in such derivatives may general be subject to market risks that may cause their prices to fluctuate over time and may increase the volatility of the Fund. The use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives, such as counter party risk and the risk that the derivatives may become illiquid. The use of derivatives may result in larger losses or smaller gains than investing in the underlying securities directly. Interest rate swaps are subject to interest rate and credit risk. Total return swaps are subject to counter party risk, which relate to credit risk of the counter party and liquidity risk of the swaps themselves. There may be an imperfect correlation between the prices of options, futures, and/or forward contract and movements in the price of the securities (or indices) hedged or used for cover which may cause a given hedge not to achieve its objective. There may not be a liquid secondary market for futures contracts and Forward currency transactions include the risks associated with fluctuations in currency. If the Fund uses a hedging instrument at the wrong time or judges the market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss. Use of leverage can magnify the effects of changes in the value of the Fund and makes them more volatile and increases the risk for loss in adverse environments. Short positions are designed to profit from a decline in the price of particular securities, baskets of securities or indices. The Fund will lose value if the instrument’s price rises – a result that is the opposite from traditional mutual funds.
Investments in foreign securities and securities that provide exposure to foreign securities involve greater risks than investing in domestic securities. As a result, the Fund’s returns and NAVs may be affected to a large degree by fluctuations in currency exchange rates, political, diplomatic or economic conditions and regulatory requirements in other countries. The Fund also may invest in depositary receipts, including ADRs, which are traded on exchanges and provide an alternative to investing directly in foreign securities. Investments in ADRs are subject to many of the risks associated with investing directly in foreign securities. The laws and accounting, auditing, and financial reporting standards in foreign countries typically are not as strict as they are in the U.S., and there may be less public information available about foreign companies. Investments in emerging markets instruments involve greater risks than investing in foreign instruments in general. Risks of investing in emerging market countries include political or social upheaval, nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets and risks from an economy’s dependence on revenues from particular commodities or industries among others.
The indices shown are for informational purposes only and are not reflective of any investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. Past performance is no guarantee of future results.
Long: Buying a security such as a stock, commodity or currency, with the expectation that the asset will rise in value.
Short: Any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume they will be able to buy the stock at a lower amount that the price at which they sold short.
Dexter P. Lyons . 106 Valerie Drive . Lafayette, LA 70508 . Dexter@Lionx.net . www.LIONX.net
NLD Review Code: 3891-NLD-12/09/2016