The Issachar Fund (LIONX, BRI & ESG) is 20% invested in 20 growth stocks on Sunday, Dec. 13, 2020. The S&P 500 Index hit an all-time high last Tuesday and slid lower into Friday as rumors of a stimulus compromise diminished. I believe stocks are extended in price, and P/E ratios are expanding in anticipation of a stimulus deal getting done before Friday. I think the market is factoring in a stimulus compromise before Congress heads home on Dec.18, so the market could turn south quickly if talks fall apart. Many of the growth stocks in LIONX experienced some profit-taking last week, so I decided to lock in some gains. Software and medical stocks are still the most significant weightings in LIONX, and that is where I am currently finding the best stock opportunities with accelerating sales and earnings. Remember, bulls make money, and bears make money, but pigs get slaughtered. (There is no guarantee that any investment will achieve its objectives, generate positive returns or avoid losses.)
The Fed expanded its balance sheet by $20 billion last week to an all-time high of $7.2 trillion. The Fed’s commitment to keeping rates low for the next couple of years gives me a great conviction that it is still on our side and will likely act as a back-stop to mitigate a prolonged market decline. I do not see a crashing dollar or rapidly rising yields flashing any warning signs at this time, but I believe it is just a matter of time before we see the flags start to wave. Could a falling dollar or a spike in yields be the next black swan event to rock the market as COVID did from Feb. 19 to March 23 when the S&P 500 dropped over 33%? Time will certainly tell! As long as the “market” allows Congress to spend money it does not have by letting the Fed create money out of thin air to buy bonds issued by the Treasury, Congress will keep doing what it does, which is kick the can down the road. I do not see how this irresponsible spending can end well. Imagine what would happen if you or I were to spend money like there is no tomorrow without any plans to pay it back!
Bottom Line: LIONX is 20% invested in 20 growth stocks, and I expect Santa to rally the market into Christmas. If Congress cannot agree on a stimulus bill before Friday, the market could take a turn for the worse and head south for the winter. However, I believe the Fed will step in and support the market with fresh liquidity in hopes of keeping the market afloat. I actively manage LIONX seeking moderate capital appreciation consistent with capital preservation, trying to avoid life-changing losses.
I want to wish everyone a very blessed Christmas, and I pray that you accept the love of Jesus and share it with your neighbor. May God’s grace and peace be with you forever!
“This is my commandment, that you love one another, as I have loved you” (John 15:12).
Read the third-quarter LIONX fact sheet here and listen to Biblical Stock Market Updates on the Charisma Podcast Network here.
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: 8214-NLD-12/14/2020
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