The Issachar Fund (LIONX, BRI & ESG) is 100% invested in 54 growth stocks on Sunday, Nov. 29, 2020. My conviction level increased last week because stocks did what I expected, so I took LIONX to a fully invested position. If new money came into LIONX today, I would likely put it to work since I am still finding stocks with attractive setups. Growth stocks with accelerating sales and earnings and sound chart patterns have led the charge and appear to be under accumulation, so that is where LIONX is focused. There has been a bit of rotation from some growth names into more cyclical, value and small-cap companies, but I believe growth offers a better risk/reward relationship. Cyclical and value stocks have historically done well ahead of economic recoveries, so there is a lot of pent-up demand anticipating a vaccine approval. I am encouraged to see a small-caps rally, which has historically been a "risk-on" sign in a healthy bull market. If we get a COVID vaccine distributed before Christmas, this could relieve a lot of the market's fear, and we could see more upside potential. In the meantime, growth stocks are being rewarded, and that is where LIONX will rest for now. If the market takes an ugly turn, I will do my best to sell or hedge LIONX positions seeking to avoid life-changing losses. (There is no guarantee that any investment will achieve its objectives, generate positive returns or avoid losses.)
The dollar has lost about 12% since the market bottomed on March 19. The 10-year Treasury yield has gone from about 0.50% on Aug. 4 to about 0.88% today, which is almost a 70% increase. I believe the dollar is declining and yields are rising because the market is trying to factor in the negative effects of our ballooning national debt of over $27 trillion and our widening budget deficit of over $3.2 trillion.
As long as the Fed continues to print money to buy debt that Congress allows the Treasury to issue, the market should be fine. This debt monetization program where the Fed creates money out of thin air to buy Treasury bonds to bail out irresponsible spending cannot continue forever. Consequently, I believe there will be a huge price to pay if the rest of the world has had enough of our limitless spending and starts liquidating our paper dollars. If the dollar were to experience a period of rapid decline, I would view that as a sign of grave caution. We are not there yet, but I believe it may happen in my lifetime, and it could cause a market crash like we have never seen. Until then, let's just enjoy the ride while it lasts. I hope you had a wonderful Thanksgiving, and I pray you will have a blessed Christmas. Fear not! God is still on the throne of grace, and that will never change.
Bottom Line: LIONX is fully invested, and that confirms how bullish I am. I believe the bull market still has some gas left in the tank, and we may see higher returns before Christmas. I am expecting a Santa Claus rally to push stocks higher, and I plan to take advantage of this historically favorable time of year. One primary concern is our ever-increasing national debt that gets harder to fathom ever paying it down. For now, the market does not seem to care about our irresponsible spending, so I will let it rest. The CDC says if you have COVID-19 and you are younger than 70, you have a 99% survival rate. God gave us freedom, so I chose not to live in fear, and I pray you do the same. Grace and peace be with you!
"There is no fear in love, but perfect love casts out fear, because fear has to do with punishment. Whoever fears is not perfect in love" (1 John 4:18).
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: 9253-NLD-11/30/2020
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