The Issachar Fund (LIONX, BRI, ESG) is 53% invested (47% Cash) in 37 leading growth stocks on Sunday, Jan. 17, 2021. LIONX just completed its best 10 market days of performance ever! Consequently, I harvested some profits last week as many leading stocks came under selling pressure. Prices got a little extended as investors piled in, but I am still bullish.
I do not see a character change in the leaders, just a possible pause and digestion of gains before the next potential move higher. It is normal and expected to see leaders take a stairstep approach higher or maybe three steps forward and one step back, but I do not believe this is the start of a major decline.
On Thursday, Jan. 14, I sold 70% to lock in some profits and bought back 20% on Friday as many growth stocks offered attractive secondary buy points. I plan to get more invested as I find cheaper entry levels in stocks that meet my fundamental and technical criteria. I am seeking stocks with accelerating earnings and sales and double-digit earnings estimates for next year that appear to be under accumulation. It is not rocket science; I believe it makes sense that investors looking for growth would want to invest in innovative stocks with healthy fundamentals and technical chart patterns. That is what I am investing in for LIONX shareholders at this time.
When growth stocks go out of favor, and they will, I plan to shift my focus to where the market is rewarding investors for taking risk. If the market is not rewarding investors for taking risk, I plan to sit in cash until I find the next opportunity.
Growth still appears to be in favor and has been rewarding us for taking risk, so that is where we are today. (There is no guarantee that any investment will achieve its objectives, generate positive returns or avoid losses. For more information about the Fund, including current performance, please visit issacharfund.com/performance.)
The Fed dropped its balance sheet by a small $850 million last week, which does not concern me! I do not see a significant Fed easy money policy change in the cards anytime soon. The Fed still appears to be on our side, adding liquidity to the market buying bonds attempting to keep rates low. However, 10-year treasury yields have risen over 19% so far in 2021! This does concern me because it may imply that the Fed's efforts to keep rates low is failing. If the Fed's stated low interest rate policy is now allowing inflation to creep higher than they would like, then they may have to raise rates sooner than everyone is expecting. I do not put a high probability on that scenario, but I am observing. The Invesco Commodity Index ETF (DBC), which tracks the prices of oil, gas, copper, corn and more is up over 20% since Oct. 30. I believe the Fed may be forced to curtail its balance sheet expansion experiment if inflation appears to be getting out of control. Creating money out of thin air with nothing to back it except for the U.S. treasury's full faith and credit could be an accident waiting to happen. I hope it does not happen in my lifetime, but I believe it could end badly for many uninformed investors. I love what I do, and I plan to stay informed, actively managing risk seeking to avoid any life-changing losses for all LIONX shareholders.
Bottom Line: Leading growth stocks have bent a little, but they do not appear to be broken as many are digesting recent gains and resting near key support areas. I plan to increase exposure to growth stocks as I find proper buy points. I believe the Fed will do whatever it can to keep rates low and inflation in check, but there is always a breaking point where they could lose their grip. Gold is down over -4% YTD, and Bitcoin is up over 22%, so why are investors dumping physical for digital? It is fascinating to watch all the bad things that are happening and want to run for the hills, but fear not! Fear is not from God. I put my faith in God who knows tomorrow, and I believe He is working all things for my good.
"For God has not given us the spirit of fear, but of power, and love, and self-control" (2 Tim. 1:7).
"Let us then come with confidence to the throne of grace, that we may obtain mercy and find grace to help in time of need" (Heb. 4:16).
And for more Spirit-filled content on the Stock Market, listen to Biblical Stock Market Updates on the Charisma Podcast Network.
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 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: 3085-NLD-1/19/2021
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