The Issachar Fund (LIONX, BRI, ESG), is about 25% invested in 14 growth stocks as of Sunday, July 19, 2020. The market fell hard last Monday, so I did some buying in stocks that I felt offered lower-risk entries and by Friday I was pleased with the results. Even though LIONX was 100% in cash when the market dropped last Monday, I was still bullishly optimistic.
I just thought that the market was due for some corrective action, so I harvested some profits ahead of a potential steep sell-off, which did occur on Monday. It feels like the market takes the stairs up and the elevator down at times. I like playing my cards close to my vest and I am more interested in keeping/harvesting gains versus missing out on opportunities.
We are now heavy into earnings season, and it feels like a “chop zone” where stocks blast higher on favorable guidance and stocks with not so favorable earnings guidance get chopped up and die. That is why I typically sell a stock before its earnings are released simply because of potential stock price gap downs after an earnings disappointment.
If a stock gaps up in price after an earnings release on above-average volume, I add it to my watch list and do further due diligence to see if it is a good fit for LIONX. I am looking for stocks that continue to grow their earnings and sales in this government-mandated economic lockdown.
The cloud and software “work from home” theme stocks have taken a breather ahead of earnings, but I feel the true market leader “work from home” stocks will come back alive shortly because the economy is still stuck in the mud.
However, I am extremely optimistic that the economy will be firing on all cylinders right before the November election, and Trump will be reelected along with Republican majorities in the House and Senate. By the grace of God, I believe He will keep His hand of blessings on America, and we will continue to be the most prosperous and generous nation in the world.
If I am wrong, I will do my best to avoid life-changing losses for all LIONX shareholders. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)
Good News
Due to increased demand, LIONX is now available for purchase at Charles Schwab on its One Source No Transaction Fee (NTF) platform! To all the new and old LIONX shareholders, thank you for trusting me to manage your hard-earned assets, and I promise to treat your investment like my very own. LIONX is also available at Fidelity, TDA, TCA, Scottrade, Envestnet, Interactive Brokers, Pershing and very soon, Matrix.
More Good News
The Fed started expanding its balance sheet once again last week by $38 billion. The Fed was reducing its balance sheet in the prior four weeks by about $248 billion, so this upturn is a welcome surprise. I believe the market has been treading water or stuck in a trading range since June 8, but now the pump may be primed enough for the market to break out and head higher.
I believe growth will continue to outperform value until the lockdowns are removed. I believe the truth will eventually expose the lies of fear, and we will soon get back to some sense of a new normal, because truth always trumps evil.
Even More Good News
I plan to host a “Chat With Dex” live Q&A webinar on Tuesday, July 28, at 3:15 Central (15 minutes after market close). Please email me, [email protected], if you want me to send you the invite details. I am super excited to do this, and I hope you can join us!
Bottom line: I believe we will break out of this trading range and head higher into November. The Fed currently appears to have our back. If things go as planned, I plan to increase exposure this week. If I am wrong, I will do my best to minimize the draw-down risk by going back to cash if needed. Don’t forget to sign up for the “Chat With Dex” webinar. Grace and peace to everyone! Peace is a fruit of the Spirit, so please do not let anyone steal the peace that Jesus died to give you.
“The fruit of the Spirit is love, joy, peace, patience, gentleness, goodness, faith, meekness, and self-control” (Gal. 5:22-23a).
Click here for the LIONX Second-Quarter Fact Sheet. Click here to listen to this blog/podcast.
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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 to be incorrect and may not produce the desired results. Past performance is no guarantee of future results. For more information on LIONX, please visit LIONX.net. NLD Review Code 3822-NLD-7/20/2020
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