The Issachar Fund (LIONX, BRI, ESG) is 95% invested (5% Cash) in 51 leading growth stocks on Sunday, Feb. 7, 2021. My conviction level went up last week as the leaders resumed their advance after a brief consolidation. I recognized the bullish patterns and acted quickly to get reinvested, and we were rewarded. In hindsight, it would have been better not to raise cash when the risk was rising, but that is hindsight, and the market does not always go up. Last year at this time, the market dropped over -33% in 23 days thanks to COVID-19, but those fears seem to be abating. Issachar lost less than -4% in that same period, so I did my job and managed risk because riding through any bear market fully invested is not something I want to ever experience. I have been managing risk since 1990, and I do not ever plan to buy and hold anything. If I am wrong, I try to recognize my mistakes and take corrective action to make it right as quickly as possible. Pride has no place in my portfolio. Remaining humble and adapting to what is working in the market while trading with a disciplined edge has worked well over the years.
I am pleased with our year-to-date performance (below), and I believe there is still room to run on the upside. It is never too late to do what is right. (There is no guarantee that any investment will achieve its objectives, generate positive returns or avoid losses.)
The Fed increased its balance sheet last week by $3 billion to an all-time high of $7.4 trillion! As long as the Fed keeps its foot on the gas of liquidity, this "free money printing" experiment will likely continue to lift many boats in the stock market sea. A policy of higher taxes, regulations and more red tape could have a dampening effect on the stock market, but excess liquidity seems to be the grease that keeps the stock market wheels turning higher.
The more the Fed keeps propping up the market with easy money, the more the market gets addicted, and the harder the fall might be if they pump the brakes and start contracting their balance sheet. I believe the market is anticipating the trickle-up effects of another $1.9 trillion deficit spending bill; hence the market is trading near an all-time high, so let's enjoy the ride.
Bottom Line: My perception of higher risk has subsided, and growth stocks are being accumulated, so Issachar is fully invested. I am still finding stocks with accelerating sales and earnings displaying sound chart patterns, so the timing feels right—and the potential for more gains is promising. I believe it is not too late to join the party, and there still may be room to run in this aging bull market. However, if the character of the market changes, I plan to stick to my discipline seeking to maximize our profits and avoid life-changing losses. I take my cues from the market and rely on the wisdom of God to make all decisions. I pray God's grace and peace on you and your loved ones forever.
"Be anxious for nothing, but in everything, by prayer and supplication with gratitude, make your requests known to God. And the peace of God, which surpasses all understanding, will protect your hearts and minds through Christ Jesus" (Phil. 4:6-7).
Performance results highlighted below show that LIONX is outperforming both indexes YTD.
For the one week ending 2/5/21, LIONX returned 2.71%, with the IQ Hedge Multi-Strategy Index (IQX) at 1.28% and the S&P 500 Index (SPX) at 4.67%. The year-to-date return for LIONX is 8.77%, with IQX at 1.80% and SPX at 3.61%. For the one year ending 12/31/20, LIONX returned 26.19%, with IQX at 6.26% and SPX at 18.40%. The 5-year annualized return for LIONX was 7.14%, with IQX at 4.26% and SPX at 15.23%. Since inception on 2/28/14, LIONX has a 5.45% annualized return with IQX at 3.32% and SPX at 13.08%. The maximum draw-down since inception for LIONX has been -9.87%, with IQX at -13.81% and SPX at -33.79%. The monthly standard deviation since inception for LIONX has been 2%, with IQX at 1.51% and SPX at 5.17%.
LIONX has achieved great returns with reduced risk! Praise Jesus!
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor's shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month-end, please call toll-free 866-787-8355. Total annual fund operating expenses are 2.56%.
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: 4276-NLD-2/8/2021.
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