Market Update: 09-15-17

The Issachar Fund (LIONX) is fully invested and leveraged in: Strategic Income, and High Yield Muni Bond mutual funds and ETFs as of 9/15/17.   I have not made any significant changed to the portfolio in the last two weeks.  I do not believe that tax free income derived from muni bonds is in jeopardy of being repealed in the Trump tax reform negotiations.  However, I stand ready to take action and attempt to manage risk and limit losses.  (Portfolio holdings are subject to change at any time and should not be considered investment advice. There is no guarantee that any investment will achieve its objectives, generate positive returns or avoid losses.) The stock market up-trend that started on 2/11/16 is still in-tack and the market is trading near all-time-highs.  The energy sector has rallied nicely off the 8/21/17 low but it is right up against stiff over-head resistance so it will be interesting to see how it responds.  The dollar is still trending lower since the high on 1/3/17 which indicates to me that the market does not expect the Fed to raise rates in the near future.  A steady dollar decline does conjure up the possibility of impending deflation.  I am watching energy and the dollar for signs of a change in market character but so far, so good.  I do not expect the Fed to raise rates in December as Texas and Florida recovers from wrath of Harvey and Erma.  Rising interest rates […]

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Market Update: 09-01-17

My sincere thoughts and prayers go out to those affected by Hurricane Harvey and I am expecting the Church to be a beacon of Light in this time of need.  The Issachar Fund (LIONX) is fully invested and leveraged in: Strategic Income, and High Yield Muni Bond mutual funds and ETFs as of 8/31/17.   I added a few more high yield muni bond ETFs to the LIONX portfolio as they have exhibited risk-adjusted returns that were better than expected.  The market appears flush with liquidity and the buy-the-dip mentality still seems to still be working so I plan to just go with the flow……until it stops.  At 53 years old, I am not looking to hit home-runs anymore because that usually involves the risk of striking out or hitting pop flies that are easily caught.  I am trying to get a few good base hits and hopefully score when the time is right and ultimately win the game in the end.  I believe that the Fed will now be reluctant to raise rates (as planned) while the economic impact of Harvey lingers.  However, I keep an eye on the exit door in case the rug gets pulled out from under. I believe the key to growing money begins when one seeks to protect it. (Portfolio holdings are subject to change at any time and should not be considered investment advice. There is no guarantee that any investment will achieve its objectives, generate positive returns or […]

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Market Update: 08-18-17

The Issachar Fund (LIONX) is fully invested and leveraged in: Strategic Income, and High Yield Muni Bond mutual funds and ETFs as of 8/17/17. I sold the fund’s Preferred, Senior Loans and Junk Bond positions last week as they violated my sell criteria. I had no way to know that the S&P 500 would drop 1.54% (on above average volume) this Thursday but it is comforting to see LIONX’s NAV unchanged. It is hard to beat buy-and-hold in a bull market (last eight years) but when the market changes character one must recognize the change and manage ones portfolio so the money will be there when it is truly needed. I believe the market has put in a top and money will flow out of the momentum stocks and some money will find its way into safe haven plays like treasuries and munis. (Portfolio holdings are subject to change at any time and should not be considered investment advice. There is no guarantee that any investment will achieve its objectives, generate positive returns or avoid losses.) Money managers have the lowest cash levels on record and I believe they will be hard-pressed to buy on the dips.  This lack of liquidity could steepen the decline further than most are expecting. Don’t believe everything you hear of TV.  Everyone has a bias and many have conflicts of interest that are not in your best interest. The media will call a 20% decline a “correction” and a […]

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