The Issachar Fund (LIONX & LIOTX) is 95% invested (5% cash) on Sunday, March 14, 2021, with $66 mil. in AUM at $12.54 per share. After exiting the lagging large-cap "stay at home" stocks that had performed well for us, I repositioned Issachar to the "reopen" stocks that appear to be leading the market higher. Reopen cyclical stock sectors like energy, retail, machinery, finance, autos, chemicals and construction seem to be under institutional accumulation as their prices have risen on above-average volumes. It looks like last year's losers are becoming this year's winners and vice versa, so we will stay here as long as the market rewards us for taking risk. I like what I see in the market and feel we are well-positioned to take advantage of these new uptrends in the cyclical and small-cap stocks. These stocks also have great fundamentals of increasing earnings and sales with sound technical chart patterns, so my conviction level is high, being close to 100% invested. I plan to do more buying this week as new money continues to flow into Issachar. For all the recent new shareholders, thank you for your trust and welcome aboard. I promise to treat your money like my very own. (There is no guarantee that any investment will achieve its objectives, generate positive returns or avoid losses.)
The 20-year treasury yield has risen over 59% this year! This also means that the 20-year treasury bond has lost over 13% of its value as commodity prices surpass 18% YTD. I believe the market is trying to discount inflationary pressures of an expanding federal reserve balance sheet that will likely finance several Democrat-led spending bills full of pork. In my opinion, the good news of irresponsibly spending money we don't have is it will probably be good for cyclical stocks that may benefit from an accelerated economic expansion. So far, the dollar has advanced slightly due to higher interest rates, but the negative impact of $28 trillion of federal debt will likely take a toll on the dollar when the rate rise honeymoon is over. Check out the U.S. National Debt Clock if you want to see some scary numbers. Our Debt/GDP ratio is now over 145%. Sooner or later, there will be a price to pay for all this irresponsible spending, but the market does not seem to care for now. I am dancing but always next to the door listening for any "last call" signs indicating the lights may be coming on, which could be a sign that the party is over. Until I see or hear the warning signs that it may be time to cash in our chips, I plan to enjoy the ride while it lasts.
Bottom Line: Issachar is 95% invested in cyclical and small-cap names as they appear to be under institutional accumulation. The "stay at home" tech stocks seem to be breaking down while the "real economy" stocks appear to be breaking out, so that is where we will stay as long as we feel welcome. If the Democrats keep passing pork-barreled spending bills without Republican support, we may get to a breaking point in the market before the 2022 elections. The wind is at our back for now, and I expect smooth sailing ahead. However, may God help us if the dollar starts to free-fall. I believe that it is only by the grace and love of God that America is still a beacon of hope. Thank You, Jesus!
"Oh, give thanks to the Lord, for He is good; for His mercy endures forever" (1 Chron. 16:34).
LIONX is a BRI/ESG, tactical, alternative, mutual fund actively managed like a hedge fund.
For the one week ending 3/12/21, Issachar returned 1.95%, with the IQ Hedge Multi-Strategy Index (IQX) at 0.31% and the S&P 500 Index (SPX) at 2.69%. The year-to-date return for Issachar is 2.79%, with IQX at 0.34% and SPX at 5.33%. For the one year ending 12/31/20, Issachar returned 26.19%, with IQX at 6.26% and SPX at 18.40%. The 5-year annualized return for Issachar was 7.14%, with IQX at 4.26% and SPX at 15.23%. Since inception on 2/28/14, Issachar has a 5.45% annualized return with IQX at 3.32% and SPX at 13.08%. The maximum draw-down since inception for Issachar has been -9.87%, with IQX at -13.81% and SPX at -33.79%. Since inception for Issachar, the monthly standard deviation has been 2%, with IQX at 1.51% and SPX at 5.17%.
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 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 issacharfund.com. For more information on LIONX, please visit LIONX.net. NLD Review Code: 5114-NLD-3/15/2021.
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